Transcripts For BLOOMBERG Bloomberg Markets Asia 20170308 :

Can monitor messages, thousands of documents claim agents can hack into Smart Devices. Haidi and on International Womens day, the gender gap has been reduced, but women still earn less than men. Rishaad we do have [speaking simultaneously] rishaad sorry about that. We have trade data coming out in the course of the next couple of hours from china. That should give us a lead as to which way the deficit is heading for the u. S. In particular. It could add to more risk when it comes to transportation trumps protectionist tendencies. Haidi lets take a look at the balance. Looking at strong numbers out of china. We will see if that can give a bit of a list to the fairly lackluster session in asia. Not a lot of drivers at the moment, quite a risk going into the end of the week, and of course i had of the fed meeting next week. Of the fed meeting next week. Singapore, malaysia, taiwan coming on line. Sophie kamaruddin has more. Sophie we are seeing asian markets falling, u. S. Stocks slower, perhaps the china data could provide catalyst, but we got japanese gdp meeting showing the economy grew more than expected. But in tokyo, it is set for a fourth day of losses in healthcare stocks leading the decline. Been eight that problem for the japanese pharma. A problem for the japanese pharma. Look at the movers in tokyo. We have toshiba rising over 3 . Toshiba Officials Say the company is on track to report earnings by march 14 and says the deadline for bids for the chip unit is in talk with funds as the most likely buyers. Face regulatory hurdles. It is the worst performer on the nikkei 225 year to date. In sydney, shares a dragged lower by minors and property stocks. Falling 6 , down for a second day. This is the government is set to invest aussie dollars into the Clean Energy Fund to be Carbon Neutral by 2030. We have gold miners resolute, up here tracking bullions gained. We saw the stock illustrating resilience this week, and take a look at the korean won as china expresses its displeasure over the sad issue. The korean won has seen a large interior ration of the fundamental trade, diminishing since last january. Pmi has been a contact larry has been in contractionary territory. The negative turn is not yet extreme enough for risk to be seen as bearish. The finance ministers saying this morning that we get with the man, the trade issue in china, and there is uncertainty for the economy. Gdp trading against the dollar yen. 3. 80 for the rishaad lets run through the Growth Numbers with shery ahn in tokyo. It is an optimistic picture with some caveats. Are key,e caveats because it was revised up but not as much as we had expected, growth of 3 on quarter. Public investments was advised downward, that is why it lagged. In the revision we saw reduction claims. This is a trend in japan because of the lack of Skilled Labor in the last few years. When it comes to business spending, that was on the positive. We saw stronger growth there. But the boj former member and also professor at Keio University telling me it is not enough. Take a listen. Growth, that is continuous over the past three years, but if we look at the level of business investment, it is not very high compared to say the crisis periods. That compares to the cash flow, the space of investment growth is not very high. This is suggesting that corporate sector is very cautious in terms of the increasing capacity. Shery so the corporate sector, the pick up on that side of the inng, should inflect fact be reflected next quarter. Haidi that trade surplus also means estimates. Should that be of greater concern for policymakers . Shery the trade struggle is coming in at less than half of what was expected for january, ¥65. 5 billion. But this is the month of january, when we have the Lunar New Year holidays. That completely skews the numbers right there. Throughout asia of course, that holiday. This may not be that much of a concern when you take a look at the broader picture and you see that in the past six months, we have seen cheaper yen just helping those overseas shipments also the professor telling me there was no downward revision when it comes to the export numbers in the latest gdp figures, which is a positive and points to some sort of recovery in the japanese economy. What you have to keep in mind is not just these numbers but the broader trend in the japanese economy and with abenomics, and what abenomics has faced as big challenges, which is corporate profits scoring. Now we are seeing the pickup in capital spending, but what about wage growth . That is what we need, more japanese to go out and spend money. We have the labor talks, the shinzo abe wage talks. That might disappoint as well. That is something you have to keep a close eye on. Right. Yeah, that is the deflator still a negative spot, so much stimulus from the bank of japan. Shery ahn in tokyo. Lets get the first word news with paul allen. Tokyos third female governor has told bloomberg more must be done to promote the role of women in japan. She is setting an ambitious target, having women take the majority of seats in the city election. Female defenset minister and the first women to contest the leadership of shinzo abes liberal Democratic Party. She is seen as a potential Prime Minister. Improvementa little with the new policies for the women mix has been taken, but unfortunately, i should say that the piece is not so fast yet. To step advantage and one step going behind. Paul chinas number two telecom maker is being fined for avoiding u. S. Restrictions on the sale of u. S. Technology to iran. They will pay 92 million and potentially another 300 million if it breaks the terms of the deal. This is the largest criminal control orport sanctions case. Attorney general Jeff Sessions says they lied to investigators and their own lawyers. Cte shares have been expanded. China has taken action to support stock markets during this weeks National Peoples congress in beijing. They ordered large mutual funds to avoid net selling during the policy meeting. That has made volatility fall to the lowest since the 1990s. Stay back investors are said to be prepared to buy shares if necessary. The Un Security Council has condemned north koreas missile launches on monday and called on nations to enforce current sanctions. North Korean Television has aired pictures showing kim jongun overseeing the launches, which coincided with military drills in south korea. The peninsula is heading for what could be nuclear disaster. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Looking at the latest trade data out of china, ros is having a look. We saw some rebound in january now. It could have february numbers, skewed a little bit. This time of year does that because of the new year. Rosalind exactly. We have to look at december numbers. It is hard because of the lunar holiday. We saw a big rise in january, the fastest pace in almost two years. Exports were about 40 year on year and imports 20 year on year. You can look at 6561, this chart is chinese imports and exports and offers a trade balance in green. That is the trade balance value at 51. 3 i believe. For january, that is expected to be 27 billion for the month of february. Last time we saw a drop in shipments, so from the council, and we will be looking at march before we see any order clarity on export momentum. That will be a complete picture of the quarter as a whole. Positives moderately in chinese exports. He pickup and yuan, u. S. You pick up in yuan, u. S. Consumption. And reports from the weekend, they will ensure Foreign Trade continues to pick up and register growth. Haidi one of the notable changes in language coming out of the meeting was the yuan. How will that play into the trade tensions . Because it is tricky the man has also been say the Exchange Rate will be further liberalize and the currency stabilized, maintained. We had a report from shanghai securities news saying the governor will continue to promote internationalization. Propping upa seeing again. It risks a weaker yuan. With could be trade issues the west, where there is a big benefit with china, and that is raising more difficult for the Trump Administration with the policies it wants to follow. Rosalind chin for us. Joins us tonk discuss gender disparity across the asiapacific region. We get an update. Rishaad getting an outlook at the japanese economy and markets. We will do that with sick of the universe in a. You are back Bloomberg Markets asia. Im Rishaad Salamat in hong kong. Aidi im haidi lun in sydney a quick check of the business flash light business flash headlines, volkswagen seeking access to technology while offering access to the home market. Talk to has spent 18 months before it came to be w, but they did tata spent 18 months before he came to bmw. Consummate competition is rising in india and citroen expanding competition. Rishaad alibaba calling on penalties as it tries to rip the site of products. They said to the russian Peoples Congress to come down on fakers and drunk drivers. Alibaba has not done enough to deter copycats, and it has been labeled a notorious market. Trade officials. Haidi the biggest copper producers that is rolando stoppage at the escondido mine could push prices highs higher. It pushes supplies back into deficit. Negotiations between the unions have stalled, but the chilean government has no plans to intervene. Rishaad japans gdp expanded more in the final quarter of 2016 that had been reported. There was an upward revision when it came to business spending. The economy has expanded for four consecutive quarters, the longest run in three years. Shery ahn is in tokyo. The headwind for the recovery, that is easing a little bit. Shery yeah, that seems to be the assessment all over in fact. We are seeing the japanese economy with a slight rebound, cheaper japanese yen giving a boost to the equity markets as well, but lets introduce my guest who is from fidelity international, joining me now. Thank you for coming into the tokyo studio. Lets discuss the numbers out of japan. The gdp numbers, also we have the trade surplus, but one number that struck me was bank lending. It was little noticed, but now it is at the highest level since 2016. If you look at my bloomberg, you office, since abe took we have seen this steady increase or rise in bank lending figures. Take a look at that. Even when we are seeing this compressed lending margins across financial institutions, does this give you some cause to look at the pause to look at the financial opportunity . I think japan Going Forward is seeing fewer headwinds. All of the data you are pointing to really resonates with that thesis. Theink as we move toward second half of this year, we could see maybe some light at the end of the tamil the tunnel in terms of where the economy is going. A lot of the bottom of research has shown that we can see a lot of positive things bubbling up. Your example of take lending is certainly one data point for us to focus on. Shery what does it tell you about abenomics when you see bank lending increasing since abe took power . Is a positive . Melissa it could be. It could mean a lot of things. It is hard to take one data point and make farreaching assumptions. It is put in context and really looked at in terms of valuation and how when you think about, we make money for a moment, that is the most important, how we take that data and deliver it to our clients. I would say that in terms of where the boj fits into that, where the macro story fits in, it is very important for us to look at what abe is doing in terms of driving the economy in the third arrow. We are looking very carefully at a lot of the reforms he is making, looking at how those are affecting the behavior of corporate, and how we can basically change our own assumptions and think about where stocks are priced and get our clients the best. Shery where do you see the yield curve headed with the boj so involved with that sector . Melissa it is probably not going to go down. Probably stay pretty consistent i would say. I dont expect any big upside surprises, but it will probably be pretty steady. Shery how much steeper will he get . Melissa i could not give you and expect a specific angle. We will not the 90 degrees. We will see how it plays out from here. Call i want to take your on the dollaryen, because its rally has not kept up with the premium we are seeing from the u. S. Over what japan offers when it comes to the whitening yield. Take a look at the bloomberg, and use that expectations of a fed rate hike in march really, not really being solved when it comes to the dollaryen. Also leverage funds continuing to reduce their bets. That would be on the weaker yen, the bars in blue, the yen would be the wide climb here they doubt the Monetary Policy can in fact have much impact when it comes to the currency place and your assessment as well. Melissa we would share that view. It would not shock me to see the dollar really strengthen a bit from here. We dont see any big moves, but it would not shock me if we didnt see any meaningful weakening. Shery where do you put the yen throughout the year . Melissa we dont have specific macro targets like that. Empowering myt team to come up with the best of bottomup stock ideas that they can, but if i were to this take a general assessment, we would shake out around where it is now, maybe a little stronger by the yearend. Shery stronger sectors or when it comes to start picking, what do you tell your team to do . Melissa i tell them to did dn and look at financials, have dig in and look at financials. You to know the management, what management is saying, then look at competitors and compare. Do you believe it go toward are you really seeing from the Management Team what you are hearing . Lets make sure we are in the right game. Shery thank you so much im a melissa auto, director of research telling our team to look deeper into all of the companies that they are assessing when it comes to putting your bets on the Financial Market. Haidi yeah, did yen and do your and do yourdig in research is a good strategy no matter what market. Battle withhe shareholders airing their views. That is next. This is bloomberg. Haidi this is Bloomberg Markets asia. Im haidi lun in sydney. Shery we are going theaad we are looking at open in Hong Kong Market on the way, up marginally, shares going up ahead of the shareholder nini meeting that may end a boardroom battle. A change in venue. What are the expectations . Reporter the change was made to venue this morning, now held at a hotel instead of the other place. They changed the time to the afternoon rather than the morning. This has been a long, drawnout battle between two sections of the board. Hopefully it will dissolve of the issues. Rishaad how will the results affect any pending deals . Lisa at the moment, there has been a product that has been given a preliminary proposal for the guests, and there is also pag group. Rishaad based in hong kong. Lisa yes. The feeling is that there needs to be a board that will facilitate the prices according to the gases. The shareholder meetings will help resolve some of these problems. Rishaad we resolve these problems, but tell me, what does the Financial Community say about what is going on . Lisa it has been quite a saga. There have been a lot of commentators that feel like they dont know who to believe anymore because the two sides have been arguing a lot. A lot of he said, she said. They hope it will be reconciliations down. Rishaad thank you so much for that. Having a look at the beginning doug gas, which is at the forefront of this. Yingde gas. We have International Womens day and the gender gap is closing. We have the market open in hong kong and over in shanghai. Looking at Victoria Peak in the heart of hong kong, 9 29, counting down to the china open of course. We are coming to you from the Bloomberg Asia headquarters. Lun in sydney. Di we are tending down in the opening in shanghai and shenzhen in hong kong. This should be a boost of the markets, because the yuan is gaining after the piece of news, fx reserves. I want to bring up this chart, 471, and it shows a bit of a stabilization when it comes to you on reserves. Yuan reserves. That 3 risen above trillion now, the first increase since june. I suppose the question is, is this a sign that sentiment when it comes to the chinese currency has lifted or whether capital troll is working control is working a trade. Rishaad there are a lot of questions in the market. We have payrolls, the losing Federal Reserve rate hike. A lot of people to concentrate on at the moment. Lets weigh the trade numbers. Here is sophie kamaruddin. Sophie at a time when chinese stock volatility is already at its lowest since the 1990s, we have authorities taking steps to support the market this week at the National Peoples congress. The shanghai, opening opening a 0. 1 , opening on monday. Trades down in shenzhen. Penalty to settle, ivory and allegations that the shares are falling in hong kong and the things they lower hang seng lower. Performance in up 2. 5 , ande, Television Broadcast dropping after lg losing in entertainment. The takeovermed of proposal. Shipping rising Cosco Shipping rising. Absolutely. Lets find out what else is going on, get to paul allen with the first word News Headlines. Expandedans economy more than a fourth at the end of last year due to an upward revision of business spending, gdp rose 2 for december. The for the very figure was 1 . The economy has expanded for four consecutive quarters, the longest in three years. Growth was modest and mostly driven by exports while private consumption remains soft. The economy may not be Smart Devices<\/a>. Haidi and on International Womens<\/a> day, the gender gap has been reduced, but women still earn less than men. Rishaad we do have [speaking simultaneously] rishaad sorry about that. We have trade data coming out in the course of the next couple of hours from china. That should give us a lead as to which way the deficit is heading for the u. S. In particular. It could add to more risk when it comes to transportation trumps protectionist tendencies. Haidi lets take a look at the balance. Looking at strong numbers out of china. We will see if that can give a bit of a list to the fairly lackluster session in asia. Not a lot of drivers at the moment, quite a risk going into the end of the week, and of course i had of the fed meeting next week. Of the fed meeting next week. Singapore, malaysia, taiwan coming on line. Sophie kamaruddin has more. Sophie we are seeing asian markets falling, u. S. Stocks slower, perhaps the china data could provide catalyst, but we got japanese gdp meeting showing the economy grew more than expected. But in tokyo, it is set for a fourth day of losses in healthcare stocks leading the decline. Been eight that problem for the japanese pharma. A problem for the japanese pharma. Look at the movers in tokyo. We have toshiba rising over 3 . Toshiba Officials Say<\/a> the company is on track to report earnings by march 14 and says the deadline for bids for the chip unit is in talk with funds as the most likely buyers. Face regulatory hurdles. It is the worst performer on the nikkei 225 year to date. In sydney, shares a dragged lower by minors and property stocks. Falling 6 , down for a second day. This is the government is set to invest aussie dollars into the Clean Energy Fund<\/a> to be Carbon Neutral<\/a> by 2030. We have gold miners resolute, up here tracking bullions gained. We saw the stock illustrating resilience this week, and take a look at the korean won as china expresses its displeasure over the sad issue. The korean won has seen a large interior ration of the fundamental trade, diminishing since last january. Pmi has been a contact larry has been in contractionary territory. The negative turn is not yet extreme enough for risk to be seen as bearish. The finance ministers saying this morning that we get with the man, the trade issue in china, and there is uncertainty for the economy. Gdp trading against the dollar yen. 3. 80 for the rishaad lets run through the Growth Numbers<\/a> with shery ahn in tokyo. It is an optimistic picture with some caveats. Are key,e caveats because it was revised up but not as much as we had expected, growth of 3 on quarter. Public investments was advised downward, that is why it lagged. In the revision we saw reduction claims. This is a trend in japan because of the lack of Skilled Labor<\/a> in the last few years. When it comes to business spending, that was on the positive. We saw stronger growth there. But the boj former member and also professor at Keio University<\/a> telling me it is not enough. Take a listen. Growth, that is continuous over the past three years, but if we look at the level of business investment, it is not very high compared to say the crisis periods. That compares to the cash flow, the space of investment growth is not very high. This is suggesting that corporate sector is very cautious in terms of the increasing capacity. Shery so the corporate sector, the pick up on that side of the inng, should inflect fact be reflected next quarter. Haidi that trade surplus also means estimates. Should that be of greater concern for policymakers . Shery the trade struggle is coming in at less than half of what was expected for january, \u00a565. 5 billion. But this is the month of january, when we have the Lunar New Year<\/a> holidays. That completely skews the numbers right there. Throughout asia of course, that holiday. This may not be that much of a concern when you take a look at the broader picture and you see that in the past six months, we have seen cheaper yen just helping those overseas shipments also the professor telling me there was no downward revision when it comes to the export numbers in the latest gdp figures, which is a positive and points to some sort of recovery in the japanese economy. What you have to keep in mind is not just these numbers but the broader trend in the japanese economy and with abenomics, and what abenomics has faced as big challenges, which is corporate profits scoring. Now we are seeing the pickup in capital spending, but what about wage growth . That is what we need, more japanese to go out and spend money. We have the labor talks, the shinzo abe wage talks. That might disappoint as well. That is something you have to keep a close eye on. Right. Yeah, that is the deflator still a negative spot, so much stimulus from the bank of japan. Shery ahn in tokyo. Lets get the first word news with paul allen. Tokyos third female governor has told bloomberg more must be done to promote the role of women in japan. She is setting an ambitious target, having women take the majority of seats in the city election. Female defenset minister and the first women to contest the leadership of shinzo abes liberal Democratic Party<\/a>. She is seen as a potential Prime Minister<\/a>. Improvementa little with the new policies for the women mix has been taken, but unfortunately, i should say that the piece is not so fast yet. To step advantage and one step going behind. Paul chinas number two telecom maker is being fined for avoiding u. S. Restrictions on the sale of u. S. Technology to iran. They will pay 92 million and potentially another 300 million if it breaks the terms of the deal. This is the largest criminal control orport sanctions case. Attorney general Jeff Sessions<\/a> says they lied to investigators and their own lawyers. Cte shares have been expanded. China has taken action to support stock markets during this weeks National Peoples<\/a> congress in beijing. They ordered large mutual funds to avoid net selling during the policy meeting. That has made volatility fall to the lowest since the 1990s. Stay back investors are said to be prepared to buy shares if necessary. The Un Security Council<\/a> has condemned north koreas missile launches on monday and called on nations to enforce current sanctions. North Korean Television<\/a> has aired pictures showing kim jongun overseeing the launches, which coincided with military drills in south korea. The peninsula is heading for what could be nuclear disaster. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. Looking at the latest trade data out of china, ros is having a look. We saw some rebound in january now. It could have february numbers, skewed a little bit. This time of year does that because of the new year. Rosalind exactly. We have to look at december numbers. It is hard because of the lunar holiday. We saw a big rise in january, the fastest pace in almost two years. Exports were about 40 year on year and imports 20 year on year. You can look at 6561, this chart is chinese imports and exports and offers a trade balance in green. That is the trade balance value at 51. 3 i believe. For january, that is expected to be 27 billion for the month of february. Last time we saw a drop in shipments, so from the council, and we will be looking at march before we see any order clarity on export momentum. That will be a complete picture of the quarter as a whole. Positives moderately in chinese exports. He pickup and yuan, u. S. You pick up in yuan, u. S. Consumption. And reports from the weekend, they will ensure Foreign Trade<\/a> continues to pick up and register growth. Haidi one of the notable changes in language coming out of the meeting was the yuan. How will that play into the trade tensions . Because it is tricky the man has also been say the Exchange Rate<\/a> will be further liberalize and the currency stabilized, maintained. We had a report from shanghai securities news saying the governor will continue to promote internationalization. Propping upa seeing again. It risks a weaker yuan. With could be trade issues the west, where there is a big benefit with china, and that is raising more difficult for the Trump Administration<\/a> with the policies it wants to follow. Rosalind chin for us. Joins us tonk discuss gender disparity across the asiapacific region. We get an update. Rishaad getting an outlook at the japanese economy and markets. We will do that with sick of the universe in a. You are back Bloomberg Markets<\/a> asia. Im Rishaad Salamat<\/a> in hong kong. Aidi im haidi lun in sydney a quick check of the business flash light business flash headlines, volkswagen seeking access to technology while offering access to the home market. Talk to has spent 18 months before it came to be w, but they did tata spent 18 months before he came to bmw. Consummate competition is rising in india and citroen expanding competition. Rishaad alibaba calling on penalties as it tries to rip the site of products. They said to the russian Peoples Congress<\/a> to come down on fakers and drunk drivers. Alibaba has not done enough to deter copycats, and it has been labeled a notorious market. Trade officials. Haidi the biggest copper producers that is rolando stoppage at the escondido mine could push prices highs higher. It pushes supplies back into deficit. Negotiations between the unions have stalled, but the chilean government has no plans to intervene. Rishaad japans gdp expanded more in the final quarter of 2016 that had been reported. There was an upward revision when it came to business spending. The economy has expanded for four consecutive quarters, the longest run in three years. Shery ahn is in tokyo. The headwind for the recovery, that is easing a little bit. Shery yeah, that seems to be the assessment all over in fact. We are seeing the japanese economy with a slight rebound, cheaper japanese yen giving a boost to the equity markets as well, but lets introduce my guest who is from fidelity international, joining me now. Thank you for coming into the tokyo studio. Lets discuss the numbers out of japan. The gdp numbers, also we have the trade surplus, but one number that struck me was bank lending. It was little noticed, but now it is at the highest level since 2016. If you look at my bloomberg, you office, since abe took we have seen this steady increase or rise in bank lending figures. Take a look at that. Even when we are seeing this compressed lending margins across financial institutions, does this give you some cause to look at the pause to look at the financial opportunity . I think japan Going Forward<\/a> is seeing fewer headwinds. All of the data you are pointing to really resonates with that thesis. Theink as we move toward second half of this year, we could see maybe some light at the end of the tamil the tunnel in terms of where the economy is going. A lot of the bottom of research has shown that we can see a lot of positive things bubbling up. Your example of take lending is certainly one data point for us to focus on. Shery what does it tell you about abenomics when you see bank lending increasing since abe took power . Is a positive . Melissa it could be. It could mean a lot of things. It is hard to take one data point and make farreaching assumptions. It is put in context and really looked at in terms of valuation and how when you think about, we make money for a moment, that is the most important, how we take that data and deliver it to our clients. I would say that in terms of where the boj fits into that, where the macro story fits in, it is very important for us to look at what abe is doing in terms of driving the economy in the third arrow. We are looking very carefully at a lot of the reforms he is making, looking at how those are affecting the behavior of corporate, and how we can basically change our own assumptions and think about where stocks are priced and get our clients the best. Shery where do you see the yield curve headed with the boj so involved with that sector . Melissa it is probably not going to go down. Probably stay pretty consistent i would say. I dont expect any big upside surprises, but it will probably be pretty steady. Shery how much steeper will he get . Melissa i could not give you and expect a specific angle. We will not the 90 degrees. We will see how it plays out from here. Call i want to take your on the dollaryen, because its rally has not kept up with the premium we are seeing from the u. S. Over what japan offers when it comes to the whitening yield. Take a look at the bloomberg, and use that expectations of a fed rate hike in march really, not really being solved when it comes to the dollaryen. Also leverage funds continuing to reduce their bets. That would be on the weaker yen, the bars in blue, the yen would be the wide climb here they doubt the Monetary Policy<\/a> can in fact have much impact when it comes to the currency place and your assessment as well. Melissa we would share that view. It would not shock me to see the dollar really strengthen a bit from here. We dont see any big moves, but it would not shock me if we didnt see any meaningful weakening. Shery where do you put the yen throughout the year . Melissa we dont have specific macro targets like that. Empowering myt team to come up with the best of bottomup stock ideas that they can, but if i were to this take a general assessment, we would shake out around where it is now, maybe a little stronger by the yearend. Shery stronger sectors or when it comes to start picking, what do you tell your team to do . Melissa i tell them to did dn and look at financials, have dig in and look at financials. You to know the management, what management is saying, then look at competitors and compare. Do you believe it go toward are you really seeing from the Management Team<\/a> what you are hearing . Lets make sure we are in the right game. Shery thank you so much im a melissa auto, director of research telling our team to look deeper into all of the companies that they are assessing when it comes to putting your bets on the Financial Market<\/a>. Haidi yeah, did yen and do your and do yourdig in research is a good strategy no matter what market. Battle withhe shareholders airing their views. That is next. This is bloomberg. Haidi this is Bloomberg Markets<\/a> asia. Im haidi lun in sydney. Shery we are going theaad we are looking at open in Hong Kong Market<\/a> on the way, up marginally, shares going up ahead of the shareholder nini meeting that may end a boardroom battle. A change in venue. What are the expectations . Reporter the change was made to venue this morning, now held at a hotel instead of the other place. They changed the time to the afternoon rather than the morning. This has been a long, drawnout battle between two sections of the board. Hopefully it will dissolve of the issues. Rishaad how will the results affect any pending deals . Lisa at the moment, there has been a product that has been given a preliminary proposal for the guests, and there is also pag group. Rishaad based in hong kong. Lisa yes. The feeling is that there needs to be a board that will facilitate the prices according to the gases. The shareholder meetings will help resolve some of these problems. Rishaad we resolve these problems, but tell me, what does the Financial Community<\/a> say about what is going on . Lisa it has been quite a saga. There have been a lot of commentators that feel like they dont know who to believe anymore because the two sides have been arguing a lot. A lot of he said, she said. They hope it will be reconciliations down. Rishaad thank you so much for that. Having a look at the beginning doug gas, which is at the forefront of this. Yingde gas. We have International Womens<\/a> day and the gender gap is closing. We have the market open in hong kong and over in shanghai. Looking at Victoria Peak<\/a> in the heart of hong kong, 9 29, counting down to the china open of course. We are coming to you from the Bloomberg Asia<\/a> headquarters. Lun in sydney. Di we are tending down in the opening in shanghai and shenzhen in hong kong. This should be a boost of the markets, because the yuan is gaining after the piece of news, fx reserves. I want to bring up this chart, 471, and it shows a bit of a stabilization when it comes to you on reserves. Yuan reserves. That 3 risen above trillion now, the first increase since june. I suppose the question is, is this a sign that sentiment when it comes to the chinese currency has lifted or whether capital troll is working control is working a trade. Rishaad there are a lot of questions in the market. We have payrolls, the losing Federal Reserve<\/a> rate hike. A lot of people to concentrate on at the moment. Lets weigh the trade numbers. Here is sophie kamaruddin. Sophie at a time when chinese stock volatility is already at its lowest since the 1990s, we have authorities taking steps to support the market this week at the National Peoples<\/a> congress. The shanghai, opening opening a 0. 1 , opening on monday. Trades down in shenzhen. Penalty to settle, ivory and allegations that the shares are falling in hong kong and the things they lower hang seng lower. Performance in up 2. 5 , ande, Television Broadcast<\/a> dropping after lg losing in entertainment. The takeovermed of proposal. Shipping rising Cosco Shipping<\/a> rising. Absolutely. Lets find out what else is going on, get to paul allen with the first word News Headlines<\/a>. Expandedans economy more than a fourth at the end of last year due to an upward revision of business spending, gdp rose 2 for december. The for the very figure was 1 . The economy has expanded for four consecutive quarters, the longest in three years. Growth was modest and mostly driven by exports while private consumption remains soft. The economy may not be Strong Enough<\/a> to withstand a threat posed by increased trade barriers over the stock markets or currency volatility. The organization sees expansion of 3. 3 this year, which is below the two decade averaged before the financial crisis. The Economist Says<\/a> she is worried about the soft foundation. President trump tweet promising consumers lower drug prices saying pharmaceutical stocks tumbling. , thet suisse is intrigued morning after House Republicans<\/a> announced they would replace obamacare. These three cell while the industry gauge dropped the most tweetednuary 11 when he that the pharmaceutical industry was getting away with murder. They are trying to replace the Affordable Care<\/a> act. Such a rand paul made a list of what obamacare was liked, and others talked about welfare entitlement. Some labeled it ryan care and a substitute for government run health care. The House Speaker<\/a> says the bill is based on a conservative principle. Obamacare is collapsing. Obamacare is not staying. If we did nothing, the law would collapse and leave everybody without Affordable Health<\/a> care. We are doing an act of mercy in reviewing this law and replacing it with patientcentered Health Care Reforms<\/a> that we as conservatives have been fighting for for years. Paul global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am paul allen. This is bloomberg. That, paul. You for the governor of tokyo has scored several firsts. She is the First Defense<\/a> minister and first to contest the leadership of shinzo abes liberal Democratic Party<\/a>. She is seen as a potential future Prime Minister<\/a> of japan. However she says more must be done to promote the wall the role of women in the economy. Improvementa little since the new policies for the have been taken, but unfortunately i should say that the speed is not so fast yet. Two steps advancing and one step going behind. Shery you are one of the most popular politicians in japan. Would you say the economy the country is becoming more open to female leadership . Yuriko yes, i would like to believe so. I hope many women as possible to run for the assembly, and the election will take place in july, coming july. Since i have a governor i am the governor of a megacity, majority ofhe women, hopefully, that would be a big change. The poweraccelerate of tokyo and change from the old system to a new system. For instance, tokyo is now preparing for 2020 Tokyo Olympic<\/a> games. Last time was 1964 when japan war andoring after the begin its economic power in chin concent shinkansen, in other words, a hard infrastructure. For 2020, we have to prepare for aging society. Our society is aging as well as other asian countries, by selecting as many women legislature or when politicians at the local assembly. It will surely make tokyo change. Haidi that was shery ahns exclusive interview with the tokyo governor. The World Bank Says<\/a> the gender gap has been reduced, especially when it comes to education, but women still work less and earn less than men. They are improving, but the situation is not economics. Joining us from the World Bank Headquarters<\/a> is victoria, the Vice President<\/a> for east asia and the pacific at the world bank. Great to have you. I want to pick up on the back of the previous interview we had, the tokyo governor saying there are steps and advances being made to womenomics in japan, but it is two steps forward and one step back. Take a look at this chart. As young men and women enter the workforce, they start off on a pretty level playing ground when it comes to pay, but as they become more senior, that disparity tends to increase. What does this say about efforts being made in japan by the Prime Minister<\/a> . We know they are pushing the womenomics front and trying to get women into the workplace. What needs to change . Victoria it is a pleasure to be here, and i would like to wish all women in asia a happy womens day. I really like this story on japan is that the government is committed, made efforts since the mayor has referred to. A lot more needs to be done to really make a huge difference to accelerate the wage. There are policies that need to come into play to make sure that women just have the same opportunities as men to develop their career, even as they take on childbearing response abilities, they have the support to continue to work, and that they are also considered for more senior positions. I would say it is a good start. It is not finished, and these are longterm initiatives. Tough. victoria, it is we have come quite a long way from 25 years ago. What could a body like the World Bank Due<\/a> to address the gender gap . It is not an organization one visits on their own. How did you get a visit to narrow that . Victoria at the world bank, we byd by example lead example. We are highly committed to reducing gender disparity in our workforce. We have a strong commitment to diversity including gender the target of achieving gender parity in management positions for we are not there yet, but we are making strides. It will take strong commitments. It is a climb, countries are at the forefront. We do not do it for them. We work with them and bring global knowledge, global experience, policy advice and support investment to enhance the ability of women to develop their Human Capital<\/a> rights at an early age, early education, childbearing, education, promising young girls to get into the stem disciplines, that help government with the right sorts of policies. That will encourage women to participate fully in the labor market, to encourage women or help women get access to asset management, Financial Capital<\/a> and policies that will support Women Participation<\/a> in the labor force. ,hildcare for example deliberate efforts to identify pipelines of strong and capable women for political positions for government leadership roles, and the ability for women to participate in leadership as well. These are things that we bring together through the Economic Policy<\/a> and financing to support implements. Rishaad very quickly, where have you had success, where do you want to see more success as well, and where art you doing so well arent you doing so well . Victoria if you look at the region, education, you look at the greek, we have gender parity as far as literacy rates go up you look at education, there is more female enrollment than wmen men. Financingen access to for women businesses that have done very well, and we have encouraged competition policies. It has also allowed women to participate in different parts of the economy. Clearly with the case of japan, it is not a finished agenda. East asia is the leader on economic development, and it can lead in terms of its use of gender parity as well. We need to provide women access to the key factors of production. We need to do more to help women to be able to carry out their childbearing responsibilities and to work at the same time. Victoria. Time, butt out of thank you for joining us. Rishaad having a look at this, the gender gap, trying to narrow it and with some success. Perhaps two steps forward and one step back sometimes. Chinas economic targets, the investor of management. This is bloomberg. You are back with Bloomberg Markets<\/a> asia. Im Rishaad Salamat<\/a> in hong kong. Haidi i am haidi lun in sydney. A quick check of the business flash headlines, there are signs of potential trouble for toshiba, blackrock is one of its biggest shareholders. It indicates a huge rise in the amount of stock it has lent out. They are rent lending about 6 million shares up from four point million in january. They are betting the stock will fall. Rishaad pricewaterhousecoopers people will resign in 2011. The group bankruptcy was caused by trading at on profitable business and the [indiscernible] was the main driver. That case inayed the test in the hope that the people would reach a deal. Launched thei has fastest production in its history, and is already sold out. Than12 supercar cost more 12 million. Ferrari has promised a rise in profits. The Company Facing<\/a> the challenge of selling more cars without diluting its arab occlusive eddie. Just exclusivity. Rishaad already aboard that vehicle, but lets look at the National Peoples<\/a> Congress Meeting<\/a> in beijing. They are setting a growth target of 6. 5 , but there are new challenges. Our next guest is one of the best stock managers, investing for more than two decades. Joining us from beijing is the chairwoman from fantasy management. The npc . U make of are you positive . We can feel it in beijing at this event. I am getting more positive this year than next year. This year than that year for sure, yes. But you are always bullish, arent you . Liu not really. Last year, i was really nervous and worried about many issues in terms of currency, earnings, but 2017 is a brandnew year. Rating. Ee a new after 20 years of overcapacity, Chinese Market<\/a> is coming up. And lots of money are really to invest. However, we have to be more selective for 2017. Haidi are you still worried about the currency issue, because we did not have fx reserves stemming the bleeding, coming at a cost. Capital control working, and i know on the ground the npc sidelines, a lot of big people saying it is cutting dealmaking because they cannot get money out of the country . Howeveris in the air, the capital controls, what they said, those over the reality. Those are the reality. Currently we have to look at the positive side. That is where the growth is coming from, where the real economy is mentioned, the answer is real, the answer is yes. We look at the real economy. They are gaining momentum in terms of many bottom line and fundamental numbers. We have to look at those numbers. At the end of the day, we look at earnings. A lot of money needing to be invest, but they have confirmed about the big picture first. I was worried about the currency, but that is temporarily. I am very sure that this year, all the forecasters are different expect of the economy. The supplyside reform, at the end of day, where are the real earnings coming from . Day, at the end of the you say you are bullish, but where do you make money in china at the moment . Volatility is the lowest in six months with equities. What is the next catalyst . Liu sure. Much is no longer really focusing on that investment because we all know china has been underperforming the rest of the world for a few years. What we look at the catalyst is really how the reform is pushing forward. Where we see the money to go, put up by the government first, through money to follow. At the end of day, we are more selective on the sector. Number wise we like health care. You know my Health Care Fund<\/a> has been running for eight or nine years. We are making money. We will pay more attention about the new consumption, the new consumption for the young in the region. We call them big consumption cap. They are related to internet, hightech, ai, food and beverage, all the big issues. You look at the big details, you have to follow the strength. Rishaad lets give it. T. U mentioned lets pivo or and thened the eb other things that you can pick up, which may do well here. Very quickly. In 2013e, obor was set to respond to the Strategic Mutual<\/a> of the tpp. We have to be, the government said big advantage. In know the forum is coming may to accelerate the obor protection. This is the big opportunity for everyone enrolled in this region in the coming three years. We will beef up a lot of investment subjects in many areas. It will help that you factor infrastructure, investment in particular. The Hong Kong Market<\/a> year to date, the bestperforming sectors, and the names in the field, they are all obor companies in this region. Rishaad always a pleasure talking to you. Yang joining us from atlantis management. Just ahead, wikileaks saying the cia is how to hack your eyes tones and start tvs i found that smart tvs. All the reactions on the way. Wikileaks has released documents set to reveal how the cia can hack into peoples phones or smart to these. Ramy inocencio is looking into the specifics for us. What an incredible story. Ramy definitely a massive revelation with massive ramifications for Global Security<\/a> around the world and you and me and anyone with a smart device. What we are looking at is the cia potentially according to wikileaks can turn any smart device that we use, phones, ipad, tvs, into spy devices. The stake a look at this. Android apple iphones, smartphones, and smart tvs from samsung which can be turned into a fake off mode and can listen to peoples conversations. Also messaging apps including whatsapp, signal and telegram. According to wikileaks, this is 7061old 7000 61 pages pages. This has malware capabilities. The cia does not comment on the authenticity of these pyramid of is true or not, the initial announcement by the university of california berkeley says it appears to be true. The wall street journal confirmed that. Interesting stuff and definitely just the beginning of much more to follow. Rishaad thank you very much for that. That was Ramy Inocencio<\/a> in new york. We have loads more to come in the next hour of Bloomberg Markets<\/a> asia including a look at trade numbers expected out of china. We will break down those numbers as an as they are released, all of this coming in. And the Foreign Exchange<\/a> reserves edging back up. The 3 trillion level. You are watching bloomberg. Rishaad it is 10 00 a. M. In hong kong. This is the location of bloombergs asian headquarters. Youre watching Bloomberg Markets<\/a> asia. Haidi beijings explosive cards. North korea on the chinas number two bank telecoms sanctions busting and iran. Resume trading today. Rishaad thousands of documents onat hacking occurs wireless devices. Haidi trade numbers out of beijing expected to show strong import and export activity in february. We did have a mixed picture when it comes to that fourthquarter gdp number out of japan. More on that in a minute. The japanese Prime Minister<\/a> shinzo abe saying they want to e deflation, but cannot say they are completely out of deflation at this point. Markets aheadour of the data dump out of beijing. Sophie investors are waiting for some catalyst to drive sentiment. Shares are lower across asia following the slide in europe and the u. S. Thenikkei 225 down, and drop,extending its toshiba up 4 . An official from the company says it is on track report earnings. We are seeing swings on the index. Old miners leading elsewhere, the hong sang snapping a two day gain, industrials weighing on hshares. And the red after rising on tuesday. Sands china rising one point 5 as it considers a final dividend on march 17. E shares reversing earlier losses. They are still suspended and the hookas it is on for a 1. 2 billion fine in the u. S. Most in threehe plan to acquire a stake in the broadcaster. Nomura falling come saying it may be affected by chinas boycott a south korean games. We do have u. S. Treasuries the yield still above 2. 5 . Reckons 3 it still insight him a but only after a drop below 2. 25 . Investors cute u. S. Debt holdings for a third month in january amid rising yields. This is the longest selling streak since 2013. Mass Mutual Life Insurance<\/a> as it will be time before japanese investors returned to u. S. Bonds , and if they do, it will be shorter paper, not long bonds. Haidi thank you for that. Npc inour of the i beijing. The minister is speaking amid rising regional tensions, not least of which is north korea. At the embassys in beijing. What can we expect to hear today . As you say, he is starting his press conference now unlikely that tensions around north korea will be near the top of the agenda, particularly from international journalists. We have heard more from china on opposition toand south korea deploying of this Missile Defense<\/a> shield with the backing of the u. S. , butve heard from china whatuch on officials, but we have heard from beijing is they are very angry about this in defense shield and say it has surveillance capabilities, meaning they can ease drop on military maneuvers in china and chinas missile systems. South korea and the u. S. Say this is aimed at protecting south korea from north korean missiles. We know the chinese are irritated by what pyongyang is doing. The spot light is shifting away from npc and focusing on these regional, geopolitical tensions. Leverage overt of north korea, accounting for 70 of his trade, provides north korea with energy and food aid. In february, it canceled the import of north korean coal, so it does have clout, but does not want to undermine the regime in north korea to the point of collapse. One big fear for china is a refugee crisis across the border, so it is a complex and different set of pressures that china is facing, and thought by that the communist party is divided on how to deal with this we have to get a few details from the foreign minister. What about beijings relations with the region . Tom i think it is fair to say that this is bad for chinas image in the region because china is effectively propping up one of the most destabilizing forces in the region, if not the world, and it puts to test some of these key relationships, china, south korea, that relation being severely tested with china hitting south korea with economic retaliation. Malaysia, a country that china would hope to bring closer to it, malaysia breaking off diplomatic ties with north korea. Where does china side on that . Many competing tensions and casts some doubt over the idea that the u. S. Will be stepping back from this region and china can play a more central role. As these missile tests continue, the u. S. Is having to step up its support and presence in the region. We have seen this with this Missile Defense<\/a> shield and President Trump<\/a>s support for japan as well. Of situations. T Rex Tillerson<\/a> is expected to be in the region next week visiting south korea, japan, and china, so no doubt we will have more on this story as it unfolds. Lets get you back to sydney and the first word News Headlines<\/a> from paul allen. Chinas number two bank telecoms maker has jumped in hong kong after being fined for violating u. S. Restrictions on the sale of American Technology<\/a> to iran. Will pay 892 million. It is the Justice Department<\/a>s largest criminal fine in an export control sanctions case. Sources say china has taken action to support stock markets ining this weeks npc beijing. They have ordered neutral funds avoid selling during the meeting. And chinese stocks has fallen to its lowest since the 1990s. State backed investors are prepared to buy shares if necessary. The United Nations<\/a> Security Council<\/a> has condemned north koreas missile launches, and also called on nations to enforce sanctions on pyongyang. North Korean Television<\/a> has aired pictures that it says it shows kim jongun overseeing the launches. Pyongyang also said the peninsula is heading for what it called nuclear disaster. Tokyos first female governor more must beg mus done to support women. She was japans first female defense minister and first woman to contest the leadership of shinzo obvious liberal Democratic Party<\/a> and is seen as a potential Prime Minister<\/a>. There is a little improvement since the new policies towards women have been taken, but unfortunately i should say that the speed is not the best yet. Two steps advancing, and one step going behind. Tom global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. I am paul allen. We are on tender hopes for the latest trade data out of china. Latester hooks for the trade data out of china. What about february . Ad is what we are looking for. This data is quite skewed. Bloomberg survey 35 institutions and they gave a wide range of answers from exports year on year and dollar but the a drop of 10 , Consensus Forecast<\/a> is for exports to increase 14 year on year. Imports will increase 20 year on year. If you look at the chart 6561, imports and the blue, the white line exports, the green bars show the trade balance, and that trade balance value is expected to drop to 27 billion trade surplus in february, down 51. 3 billion in january. We are seeing some Yuan Movement<\/a> on that. There is some distortion in january and february because of the Lunar New Year<\/a> holiday, so it is difficult to get a read and extrapolate from that. Once we see a complete set of data, we will have more clarity. Said china will make sure trade picks up. Bloomberg intelligence see some moderately positive 2017 when it comes to trade, exports, and largely due to the weaker yuan as consumers pick up buying in the u. S. Haidi we are keenly watching that trade deficit, but china has made a notable shift npc at furtherrding the yuan liberalization. How is that likely to affect trade tensions . Rosalind it is tricky, because it has been a component of china liberalizing its currency. Currently china has been stepping into prop up its the growth station if you take away that support, it could mean a weaker yuan and exacerbate trade tensions with the u. S. This chart at how shows the renminbi spot for the last year or so, this is an issue that may be looked at by the g20 finance ministers next week. You can see reserves have been dropping is china steps into prop up the yuan. Waiting for those numbers, which should come out at any moment. Still ahead, barclays gives those the outlook for the chinese economy as the commonest partys top brass meet in beijing to outline their plans. Rishaad next, standard charters singapore ceo about their latest strategy. Haidi this is Bloomberg Markets<\/a> asia i am haidi lun in sydney. Inhaad i am Rishaad Salamat<\/a> hong kong. Standard chartered reporting a 14 increase in profit last year after three years of losses. Haslinda amin, take it away. Haslinda it is about investing in growth areas. Congratulations on the strong numbers. The question is whether that pace of growth and sustainable. Happy withuite performance of the last 18 months. Very mature a franchise and a profitable one. Saw an increase of 14 in operating profit, so we are happy with that outcome and we will continue to invest in singapore. It is early days. The macro picture is still quite challenged. We like the longterm fundamentals of singapore, the growth and wealth, and this is still a leading financial center, so our focus is on continuing to invest in people and technology. Up 33 ar, technology over the previous year, so while we are focused on doing things more efficiently, we are reinvesting that savings back into the bank. Growth translate into you hiring more people . Give us a sense of what you are looking at. Yes. Last year in singapore, we hard more people. Than 1000 people in singapore. Both the singapore franchise and to support the rest of the group. Singapore is our de facto head office. This is the head of our technology as well, so last year we hired a lot of people to support the investment in technology, so that has been a growth area for us. Digital capabilities are very important to continue to allow clients to deal with us more easily, more conveniently, so that is a big investment for us. We actually increased our headcount come on our frontline headcount by 20 . That is a great thing because we do feel our clients want to deal ish us and digitally, so it important to have expensed advisers to help our clients. Haslinda when you look at the industry, it is consolidating. We are seeing abn, barclays getting out of the wealth business in singapore. What is sparking your optimism . Why does this make sense for you . We have scale. In singapore, we have a universal bank, which means we serve clients of all segments, retail, private banking, all the way to international corporate. For us to helpge clients with their Wealth Management<\/a> needs, so we do have scale, and if you look at our platform, it is a global , so investment into a great Wealth Management<\/a> platform is something we can use globally , so for us, we have to scale, and we are continuing to be optimistic about the growth , aseannity in china countries. Haslinda you see further consolidation in the industry . I think for smaller players, if they dont have the scale that it will be more challenging. Intensive. Capital it is a business, it is light on fromal, but very high cost a people perspective. Haslinda is there a need to raise the amount that wealthy people hold . Right now, a can be 100,000 to one million. Could that be raised to 5 million as a minimum . We need to have the right Service Model<\/a> to serve all soent segments profitably, if you talk about the high end of Wealth Management<\/a> collects clients, the services personalize, tailored. You may require someone with a higher minimum, but if you look at Standard Chartered<\/a>, we serve retail clients and have more than one million retail clients. Is between 100000 and 200,000 and we provide them with a strong proposition. This is where it is a hybrid of using technology to support that as good, as well relationship management. With the hybrid model and scale, we can still serve those class so it is depending on your Service Model<\/a>. Haslinda im wondering which are views are on the economic cycle. Have we seen the worst . Seeing, it are still has been a long global slowdown. Better prospects in the u. S. , and that potentially will feed into the rest of the world, but singapore longterm fundamentals are still very strong. For us, when we look at an economyit is in transition and present attractive opportunities for Standard Chartered<\/a>. I talk about the society being more digital, and that means branchve physical presence come and we have fewer branches than local banks, that becomes less of a limitation for us. We can still grow our market share despite our limits. If you think about singapore, are venturing outside to capture growth in neighboring. Ountries, that is a big push Standard Chartered<\/a> has third Strong International<\/a> presence, asia, africa, middle east. Last year alone, we had more than 500 Singaporean Companies<\/a> expanding overseas in 26 countries, and this is where we can add value. Yes, butm headwinds, longterm is good and we are wellpositioned to continue to be adding value and growing our market share here. We are very optimistic. Haslinda we thank you for your insights. There you have it. Thank you very much indeed for that. Haslinda amin looking at s singaporeanered executive. To the National Peoples<\/a> congress in beijing, talking about a restart when it comes to u. S. Relations. Haidi this is Bloomberg Markets<\/a> asia lamb haidi lun in sydney. Inhaad i am Rishaad Salamat<\/a> hong kong. Quite a scene at the moment, wang yi addressing the npc, talking about a new beginning for the relationship with washington. They want toaying expand cooperation in all areas and that each have to respect one anothers social system, going on to say there is no reason why the United States<\/a> and china cannot be partners and hoping the washington relationship with will be more robust. Too paying a compliment perhaps his opposite man there, Rex Tillerson<\/a> in the united saying he is a man who loves to communicate. This is what is coming out of beijing at the moment. Thats right. We will continue to monitor that speech there. A lot on his agenda at the moment with that troublesome ally in north korea. We have pretty big guest joining us on bloomberg tv. Ceo of talk to the new iata. On daybreak america, our conversation with the commerce secretary wilbur ross. Guests comingg up, in particular that conversation with wilbur ross. This is bloomberg. Livestream your favorite sport at the airport. Binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream<\/a> app. Xfinity. The future of awesome. In sydney. 29 i am paul allen with first word headlines. Japans economy expanded more than thought due to an upward revision of business sending their spending. Dp rose the economy has expanded for four consecutive quarters come the longest run in three years. Growth is modest and mostly byven by x boards exports. The oecd says the Global Economy<\/a> may not be Strong Enough<\/a> to withstand the threat posed by increased trade terriers, overblown stock markets, or potential currency volatility. The organization sees the expansion of 3. 3 this year, below the average before the financial crisis. The oecd chief Economist Says<\/a> she is worried about the soft foundations. A trump tweet promising consumers lower drug prices sent from a suitable stocks tumbling. Credit swiss says it is intrigued by the timing of the tweet, the replacement for obamacare. Industry gauge of dropped the most since january 11 when trump tweeted the industry is getting away with murder. Republicans and conservatives have attacked the bill to replace the aca. Senator rand paul a labeled it obamacare lite. Carelabeled it right and ryancare. The House Speaker<\/a> says the bill is based on conservative principles. Obamacare is collapsing. Cant be sustained. If we did nothing, it would collapse and leave everybody without Affordable Health<\/a> care. Mercy bying an act of repealing this law and replacing it with patientcentered Health Care Reforms<\/a> that we have been fighting for four years. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Haidi i am haidi lun in sydney. Rishaad i am Rishaad Salamat<\/a>. Having a look at the market action, japan heads for its lunch bank, here is sophie kamaruddin. Japanese stocks, the nikkei two to five down. 5 with Health Care Stocks<\/a> among the biggest decliners. Asces have been a problem japan looks to tighten price controls. Toshiba climbing for a third day. The deadline for the initial bid for its chip business is the end of the month. One china group has clarified it is not interesting. An official from toshiba says better prospects and rivals due to regulatory issues. Credit suisse expects earnings to be a positive surprise. Do have one falling over 4 , falling for a third day, and the company will see its president step down. Mizuho has cut the stock. It is japans biggest private store and we Consumer Spending<\/a> has 10 a drag on the retailer. Upcoming talks for wages are expected to this point. The upward revision to japans gdp perhaps offering another reason for the boj to hold at its policy meeting next week. Watching that. Chinas number two telecoms maker is surging by the most in two months in the hong kong session after it was fine for violating u. S. Restrictions on the sale of American Technology<\/a> to iran. For more, lets go over to our Asia Technology<\/a> managing editor in tokyo peter elstrom. Zte has agreed to pay at or so as partlion of the settlement. Another 300 million depending on what happens over the next few years. They also pled guilty to three fell in 80s three felonies. The u. S. Took a tough stance on this under the Trump Administration<\/a>. You had Jeff Sessions<\/a> and wilbur ross speaking out publicly about zte wouldng that is th be an example of how tough they will be on companies that violate u. S. Export laws. Rishaad what are the allegations then behind these payments . Zte is a china company, so the question is how did they fall under the u. S. Regulations. They buy components from companies in the u. S. And use those components in the equipment they shipped to other places. With the u. S. Alleges is that they were exporting equipment from the u. S. , including u. S. Components, 32 million in u. S. And shipping those two iran without getting the proper export approvals to do so. You mentioned that shares were up. Toestors seem to be reacting the idea that this removes some uncertainty. Continueld be able to to get components from these key suppliers, and secondly, they have been trying to get in the u. S. Market with their Communications Equipment<\/a> and handsets, and this probably opened the door to allow them to do a bit more of that in the future. Haidi what does this mean Going Forward<\/a> for the company . Te has been trying to compete around the world. It competes in the domestic market, number two in that market. Now as it it expands, it will have the benefit of using u. S. Technology and opening the door to sales in a way they have not had before. They are trying to improve that situation. Rishaad thank you very much indeed for that. In tokyo. Rom wikileaks publishing thousands of documents that it says proves the cia has the ability to hack into our Smart Devices<\/a>. Ramy inocencio cespedes from new york. Ramy this is a massive revelation with massive implications for cybersecurity around the world. Cia can turns the Smart Devices<\/a> into spy devices, that it has a hacking arsenal, and that arsenal has been stolen and is probably being used by criminals and foreign spies. Iphones, android smart phones, samsung tvs that can listen in on conversations, Microsoft Windows<\/a> that can be hacked, as well as messaging apps, like whatsapp. That information is in wikileaks data dump of 8007 hundred 61 pages that highlight malware, viruses, and security vulnerabilities. It is calling it the largest publication of confidential documents about the cia to the cia said we do not comment on the authenticity or content of reported intelligence documents. Initial analysis by the university of california berkeley says most if not all of that looks legitimate. Alsoall street journal confirmed legitimacy through an intelligence source. U. S. Politicians are calling for an investigation to find out who has the cias hacking arsenal and how we can protect ourselves. This begs the question whether the cia has used these tools to hack into our Smart Devices<\/a>. It does not list exploits. Those would have the details of any attacks. It does not mean hacks were done , just none were listed and the documents are still being analyzed. Companies are on alert and microsoft says we are aware of the report and looking into it. Samsungapple, facebook, declined to comment or did not reply to questions. The cia may be on alert as is hacking tools may have been exposed. Wikileaks that the cia explored ways to hack into smart cars. One thing that has not been big yet says wikileaks are the cias own tools. It did not rule it out at a later date. Smart devices and private details are still all at risk. Haidi coming up, we ask barclays why they think the risk for a trade war between the china and u. S. Has receded. This is bloomberg. Haidi we are getting more out of beijing, chinas Foreign Affairs<\/a> minister is addressing the National Peoples<\/a> congress in beijing and has moved on to talking about the situation in north korea, highly anticipated remarks saying china has advised the u. S. To stop military exercises and advised north korea to stop nuclear development. Wang yi saying tensions are rising on the peninsula after ,he missiles fired yesterday three landing in japans exclusive economics own. This comes as the Un Security Council<\/a> is due to meet in new york today. The Chinese Foreign<\/a> minister saying north korea should stop its missile tests and suggesting the relative parties of the peninsula should come back to beijing willying spare no effort to bring all parties back to the table for further discussions. The foreign minister reiterating and south korea should stop largescale military exercises. The execution of the thaad system has gotten beijing on edge in the last couple of days, also resulting in these actions taken against south korean businesses in china. The foreign minister said china relations in teeth ship. We will wait to see what else wang yi has to say. We are waiting for the latest trade numbers out of china. The question is do we see the momentum continuing . Us is barclays chief china economist. Great to have you. Are you expecting this overall picture of stabilization and buoyant growth out of china continuing this year . Meeting we have the npc going on. We have a 6. 5 growth target. Kiffin this is an important year of leadership transition and they will hit this target, and if you look at the Global Environment<\/a> and we have robust the developedith economies manufacturing sectors continuing to recover and the commodity price has stayed elevated supporting demand and improving the industrial activity, so overall we have a more favorable domestic environment and external with whatt compared people have expected a few months ago. Rishaad the thing is, what will its number when we do get finally tell us about perhaps the Global Economy<\/a>, which is perhaps something many of us seeing strong signs. We forecast are increase in exports and imports following the surprise strong number in january, and this is partly justse as i discussed now and you look at the Global Environment<\/a> we have in chinas pmi showing a continuing recovery in the export orders, and also the import index rising further, so birth are the signs both are the signs pointing to reasonably robust activity. Rishaad which would seem to suggest that the yuan is maybe at the right price . Well, i think it is useful to , thethat the latest npc government has used which to describe the yuan. Continue thed to marketoriented exchange reform, but on the other hand they said the renminbi will maintain its stable position in the global monetary system, suggesting to will less likely be a big shock to Global Financial<\/a> markets, and it is in the governments interest to maintain currency stability this and the potential upside from the dollar, especially if the fed continues rate hikes. We are waiting for the trade numbers. We are also getting Inflation Numbers<\/a> tomorrow. We have seen this nice uptick when it comes to factory gate inflation. There is a piece on the bloomberg today saying this is this incentivizing local authorities and companies from cutting capacity and putting through supplyside reforms because times are good right now. Lessat base effect becomes flattering, do see an easing when it comes to Producer Price<\/a> inflation . Indeed. We have done some their analysis on the ppi. View, the strong surge in the ppi, particularly last year into this year, is more driven by supply side sect were, capacity reduction, output cuts, for example in the coal industry , and then the demand factor, although the demand certainly contributed. Moreso think it is also than 50 contributed by a domestic china factor, and maybe 40 driven by International Commodity<\/a> price, energy price, so if youre looking at these underlying drivers and the government continues to commit to capacity and there could be further output reduction to keep the commodity price elevated to come which has helped in proving that in certain resource sectors in china, so with that, i think there will be continued underlying pressures for the ppi and commodity price, and there could even be upside surprise, but then you made a very good point about race effect. We had very low base effect last year, particularly in q1, so we look for the ppi to peak in terms of year on year february and looking for 7. 4 to 7. 5 growth. Rishaad even though we have base effect the numbers peaking, it does show excess capacity is being cut. There is a good news story if you look for it. Yes, i agree. Right, lets get to accentuating the positives. Lets do it the other way. Is debt the biggest single threat to china . To the views from global investors, the Chinese Government<\/a> also recognizes that more than 250 over gdp ratio by ourh total credit measures is still running at 18 , 19 , clearly sustainable, almost three times the nominal gdp growth. Report, weat the npc see the government putting, deleveraging and stabilizing leverage a reducing leverage, reducing Financial Market<\/a> leverage, it is a policy priority. Rishaad do they have the will to do it . We see the Monetary Policy<\/a> has turned with the tightening see thed we do government lowering its social financing target to 12 , compared with 12. 8 last year, have the will to do it, but still set a 6. 5 percent growth target and are looking for meaningful structural reform to enhance productivity growth in the shortterm. It will continue to be a balance. We are not looking for growth to slow significantly, and we are not looking for debt to held up, but they recognize the issue and are trying to stabilize leverage. Rishaad thank you very much indeed. Coming up, the pulse of the purse strings. We talked to marketing app maker about how they are tapping Consumer Habits<\/a> to make money. Withad you are back Bloomberg Markets<\/a> asia. I am Rishaad Salamat<\/a> in hong kong. Haidi i am haidi lun in sydney. A startupe ceo of looking to sell to merchants. Haslinda it is a local startup with global ambitions. Facebookked by cofounder eduardo severin. Good to have you with us. You have been pretty successful so far, but it is due to appear that you made. Why the cap it . Why . There is no proactive engagement. You and i have banking services, insurance, telcos. In cages pro actively the only proactive engagement we get is an email reminding us to pay our bill. The data is so rich, but it sits in a data vault and needs to be monetized. The marketow big is right now . You are in quite a number of markets already. We see a massive opportunity in the space. About thethink Digital Transformation<\/a> going on with Large Enterprises<\/a>, we see that consumer space has yet to with Predictive Analytics<\/a> and recommendation engines and so forth, so we see ai as the driver for a lot of these transformations come and Consumer Engagement<\/a> is part of that. Haslinda give us a sense of what happens because you have lost your to cofounders and then redirected the company. What happened . Why did they leave . And where do you go from here . I am coming from the Silicon Valley<\/a> perspective. Most founders are so passionate about their companies, and even me as a single cofounder of this company. Shareholders want to have a return on their investment, and businesses are still saturated. Model, iw the broken quickly found a solution to the event quickly and raise a round itfunding and focus on r d would have to build a robust platform to serve the enterprise. Haslinda and it has to be about making money. Give us an example of how you make money. Was a low by ael , but now we are hitting six figures, sevenfigure opportunities with Large Enterprises<\/a> because it is strategic and we are building a artnership with them and 35year roadmap, so we are innovating with our customers more than before when we were talking about smes. Smes have high churn, but enterprises are investing in their future. It is a big thinker approach and would like to innovate with our partners. Haslinda im betting it has been difficult, a woman leading a startup. What have you had to go through to be here today . For an entrepreneur, it is tough regardless of gender, but i believe being a female because of the bold challenges and some it pegs us tohat this stereotype that we are too aggressive. On singapores only . Why are you expanding so fast . Get some proof points first . We are already the number one. Oyalty app here we know we are making the right move to enterprise, and this is where the sweet spot is. Haslinda and 20 seconds, the nested vice you could give Women Entrepreneurs<\/a> . Mentors, communicate, network, work with your peers and other female leaders, and dont be afraid to ask questions and ask for help. Haslinda dont be afraid, that is keep. That is the ceo of perx. Back to you. Amin there. Linda well, updating, you with the big stories of the day so far. We will have a look at how these markets are traveling as we hit midweek here in asia. Lack of direction. We are still waiting on china trade numbers. This is bloomberg. From our studios in new york city, this is charlie rose. Good evening. I am filling in for charlie rose. On saturday, President Trump<\/a> took to twitter to accuse former president barack obama of wiretapping trump tower during the 2016 president ial election. Fbi director james comey reportedly asked the Justice Department<\/a> to reject the president s unsubstantiated claims, arguing that the allegations are false. A spokesman for the white house said monday morning, President Trump<\/a> does not accept james does not","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801501.us.archive.org\/22\/items\/BLOOMBERG_20170308_010000_Bloomberg_Markets_Asia\/BLOOMBERG_20170308_010000_Bloomberg_Markets_Asia.thumbs\/BLOOMBERG_20170308_010000_Bloomberg_Markets_Asia_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240627T12:35:10+00:00"}