selling shares to pay down debt. sophie: donald trump till silicon valley he is simply there to help. rishaad: he had that private meeting, elon musk as well. was not there, jack dorsey twitter, something to consider. rishaad: anyway, let's get to the trading day. session: not a great for asian markets, taking that lead from the s&p 500, janet yellen probably more hawkish in terms of 2017 projections than many had been expecting, particularly when you look at plot, so the momentum eased in terms of equities, and weakness in all asian markets, except japan, boosted by the

fact we are seeing this dollar strength, yen weakness, and the nikkei and topix at those 2016 highs. the nikkei up by .2%. significant weakness in shanghai, down .7%. hong kong, down by 1.2%, only to stocks on the hang seng in the black. australia, a at better than expected employment number, 39 thousand 100 jobs created over the last month, but you did see the unemployment rate pickups likely, participation higher, so a dip in terms of the australian markets, also korea, the bank of korea leaving rates on hold at 1.25% as expected. have a look at the offshore theinbi, down .2% against dollar, six point 9381. we did see a weaker fix from the

pboc once again. that is the weakest level we have seen since august 29. the aussie dollar has recovered after that jobs data come up by 74 .24. bonds, you are seeing a little bit of movement in terms of the yield on the australian 10 year note. bonds getting a little bit of a bid today. thank you so much. let's check on the markets, and we get back to our top story later. rishaad: let's get to first word news. shery: shares in chinese tech itu start trading after an ipo expected to raise $630 million. the mobile and selfie app 4eveloper plans to sell 57

million shares. it is the biggest tech offering in the area since alibaba. the chairman told bloomberg that the company has aspirations and social media. more exposures and let more people know about our brand. tools, andake better later to turn it into a social media apps. fell in trade after announcing another security breach. it says on unidentified third parties stole data from one billion users. inquiry suggested happen in august 2013 and is separate from the breach yahoo! reported last september. the stole the data may have included names, email addresses, telephone numbers, passwords, security questions and answers. the chicago stock exchange could be the first u.s.

exchange to be owned by chinese investors. approved by the committee on foreign investment. the sale still needs approval. afterl motors fell reports that its chinese joint venture is under investigation for possible antitrust violations. sources say the network is being checked over pricing the news comes amid strained tensions between beijing and washington. the global time said retaliation could follow proposals by president-elect donald trump for tariffs on chinese goods. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. sophie: thanks. back to our top story. no surprise, the fed delivering one interest rate hike at its final policy making

meeting of the year. rishaad: it looks like us deeper path ahead as far as monetary policy and normalization goes. >> once the fed opens the door to a steeper path, markets are wondering what else could spurred them to make that half a steeper still. let's take a look at what they did today, what janet yellen had to say about it in her press conference. they boosted the key rate. in fact, we have not seen a rate increase in nearly 10 years since the fed cut its key rate to zero and started raising it again. i should say it is the second one since then. will it become more frequent? t yellen said labor markets are getting stronger. let's dip into the press conference. year, 2.2 5past million net new jobs have been

created, unemployment has fallen further, and inflation has moved closer toward longer run goals of 2%. we expect the economy will continue to perform well. with the job market strengthening further and inflation rising to 2% of the next couple of years. >> so, first we got the rate hike, but we also got the updated forecast from the federal reserve, their summary of economic projections, just a few more people out of the 17 members said we now see three hikes in 2017. let's look at the dots, a popular page at times like this, you can see the flat line, that was what was expected, .5%, but the officials seefed the rate going up three times

next year. are a few that see more, but there are still six who did not see it going up that high, completes not to consensus. and some members look at the potential for a fiscal impact from the policies that may be enacted, and that may have tilted them. it does not sound like janet yellen in this camp yet. ishaad: janet yellen downplaying that, but markets not downplaying stocks. could this be seen as an overreaction? >> you might have thought the bond markets have sold off so much, why selloff more on something that is only adding one interest rate increase in 2017. let's jump into the bloomberg and take a look at a chart that says it all, 5350 one, at the far right, you can see a spike in yields and you can see broadly on that bottom white line, two-year treasury yields

are at their highest since 2009, a part of the curve that is most sensitive to interest rate changes, shorter term paper. bill gross earlier said that the rising dollar is a risk to the fed and they have to move cautiously. he said emerging markets like theyo and brazil, he said will not be increasing interest rates three times next year, so we can wonder what a bond that like that from the bond king is important, but markets sold off today around the clock. rishaad: thank you for that. kathleen hays in new york. australia,r in scrapping plans to spin off .nternational assets paul allen joins us now from sydney. what is going on? that's a 13.4% stake in milk a crown that crown resorts

will selloff, 198 million shares, and that will make them $1.2 billion, the buyer is melco international, controlled by the ceo lawrence ho and his family. this deal will reduce crown resorts shareholding down to 14%, but it has not been a fantastic year for crown resorts. the plan's been off of international assets, 18 employees under arrest in china come yet to be charge, held on suspicion of what is being called gambling related crimes, and of course we saw the shares of crown resorts get hit a few days ago along with other global gaming stocks when there was all that confusion over macau atm withdrawal limits. the market has not had every a chance to react with shares of crown resorts in a trading halt. rishaad: where will the proceeds of the sale of the shares go to? an even split, have to pay

off debt, the other half return to shareholders. crowne resorts in the statement says this decision is going to allow to redeploy capital to fund high-quality growth projects. locally, one of the christians would be if that includes sydney. crowne resorts is playing an impressive development -- thening and development on waterfront, two billion dollar development, a six star hotel. it will be aimed at high rollers, but since these arrests in china, brown has said turnover has slumped 45% on year according to a survey taken over the past 23 weeks, so it will be interesting to see what crown resorts does next. so much, paulyou allen on crown's plans to sell shares in the melco. rishaad: still ahead, more on the trading day in hong kong, speaking to one of the early

investors in this selfie app maker who has ambitions when it comes to social media. sophie: our next guest says bond traders remain complacent on the pace of rate hikes. we will hear from him in a moment. this is bloomberg. ♪

>> i would doubt the ability of any central bank or global central bank to raise interest rates three times a year for the next several years because the global economy in the u.s. economy is relatively highly levered, and housing will begin to reflect that. >> the risks of the central forecast, 2-3, and the fed said three interest rate hikes is on the upside.

if there is more of this fiscal stimulus, more growth, more inflation, then the fed will be more aggressive. path was a little bit stronger than had been expected. the dollar strengthened by more you 1% on average, and so are going to see a lot of volatility and countries around the world as we have this clash of the titans, the fed going in one direction, major central banks going in the other direction, so that makes for a lot of volatility, particular he foreign-exchange markets. sophie: let's discuss the implications of the hike on the asia fixed income markets. on the frequency of rate hikes indicated by the fed for 2017? is the fed overestimating here? think the fed is facing a lot of uncertainties in terms of the macro economic indicators

they are looking at, but also the trump policy. that will start to kick in in 2017, so the fed is at least preferring the markets for a somewhat more hawkish stance. i think it has every right and every reason to do so, because over the last few years am a fixed income markets have grown increasingly dovish in terms of expectations of rate hikes, and ds the markets to her shock, so the fed has every reason to prepare the markets. rishaad: we had to guess suggesting this 30 year secular bond rally is over with, and certainly if anything to go on, last night's clobbering of the short end, two-year treasuries, remarkable. yes, it has been a remarkable move. we have seen already quite a

significant repricing. the money market future rates for 2018, 2000 19, it is still under the risk of significant rate hikes, so there is still complacency in the fixed income markets, which is understandable, so at the moment, the main risk is in the repricing inflationary risks and we want to shy away from the long end of the curve in bond markets in credit markets. , what otherelse opportunities are you seeing? >> so there is definitely portions of the market less exposed to rising interest rates. also, higher yield, higher quality higher yield tend to be less sensitive to interest rate hikes and benefit from some of the fiscal aspects that start to kick in next year, so this is

typically where we are looking at looking in the region in a share, we see some of the higher-yielding markets will perform quite well, india and indonesia as a nick sample, and one reason there is that they have their own dynamics in terms of reforms, political developments, and in the current market environment, it is an to look at,variant different from the low yielding countries that are expected to move in tandem with u.s. treasuries. rishaad: right, how does that play out in this part of the world? a lot of guests talk about emerging-market debt eating attractive right now. if they are true to their word, it looks like a crowded trade. >> i would not call it a crowded consider fund flows over the last few quarters. we have not seen significant inflows yet, so there is no

heavy positioning, but the sentiment hasn't proved, and it will be tested in this more volatile environment, definitely with the fed moving in a different direction and becoming more hawkish. we will see more volatility, however, we would expect the volatility to be in the fx markets, a shock absorber to these type of uncertainties, and day as well,to most of the fx show the volatility, the rand, the turkish lira. this is where we are seeing the movements. sophie: how much more can they take? we had the pboc, the fixing of the yuan the weakest since august. >> that is the other import and thing to look at, pboc policy and terms of fixing its currency

, but important to highlight there is typically in the press attention for the renminbi versus the dollar. they need to look at the basket of currencies these days, and there is a basket where the picture is not as clear-cut. consider the yen movement overnight, so it is a much broader repricing of currencies. also in light of changes in trading policies and other trump policies we will see in the next year. if we go on like this and see dollar strength of course continue, there's going to be a a lot of happy japanese stock market investors, aren't there? is indeed what we see play out at the moment, so currency weakness in japan translates into equity market strength. we have seen a lot of announcements of central banks over the last couple of weeks, the ecb, we don't call it

tapering, but more hawkish or duration tapering. now beth fed, it will be interesting to see what the boj will do in the next couple of weeks. at this moment in time, given where yields are on jgb's, keeping yields at 0% for the 10 year net net is still highly cute eli can terms of adding the quiddity to the market. it will be interesting to see how that will play out over the next couple weeks. policy net netb negative for bonds, what about the euro? range,rading in a tight 105-107, so what are you seeing here? >> that is interesting, the last couple of sessions in the euro -dollar seem to fade out in terms of momentum. there is still a somewhat more hawkish stance from the fed that gives it a newly sun life. -- a new police on life.

we don't expect any major movers the ecb and the marches becoming more comfortable with the inflation and growth outlooks, so if the market start to digest that and seek the ecb might come to an end of qe, that would stabilize euro-dollar. sophie: thank you so much. rishaad: up next, donald trump meeting with top tech leaders, telling them he wants to be , but his favorite communication platform was not there. sophie: details from new york, next. this is bloomberg. ♪

sophie: president-elect donald trump has been holding a tech summit in new york, and among the guests, silicon valley cheese who were his vocal

opponents during the campaign. rishaad: here is our bloomberg tech reporter. after months of opposition, trump and tech leaders came together at trump towers on wednesday. the first part of the meeting he open to the media, and may consider a tory remarks to the tech leaders and tried to put tray himself as an ally. he told the executives that he was there to help him, that they could call him any time, and there were no direct lines of command in his administration. this comes after those executives had said many of donald trump's policies would hurt their businesses. there was a lot of controversy leading up to the event as to whether the executives should have attended. a person said the main topics included jobs, immigration, and china. donald trump has criticized many of the tech companies for moving their jobs overseas and ask copies like apple to produce their products in the nine at

states, but there are areas of common ground, one includes tax repatriation. tech companies hold billions of dollars overseas and would like to bring that back at a favorable tax rate. rishaad: a quick check of the latest business flash headlines. singapore'some fourth licensee, paying for the rights and spectrum, expected in april. singapore has one of the deepest penetration for mobile services in the world. the market is currently dominated by three players. a bill japan has passed legalizing casinos, paving the way for billions of dollars of potential investment. more legislation is needed before so called integrated resorts can be built, mean none

is likely to open before the 2020 olympics. las vegas sands it is prepared to make an unmatched investment in japan. only 12% of the public supports casinos. an amazon customer received a special delivery, a fire tv streaming device and a g of popcorn, dropped off by an autonomous drone. it happened near cambridge, authorities have authorized a drone test flights. it is conducting tests in the u.k. because restrictions and regulations in the u.s. are too strict. at the way the markets are trading in asia. looking at the way the hong kong hang seng is down 1.5%, and the shanghai composite also in the red, along with the nikkei. rishaad: that's what we have at

the moment. coming up, we are looking at the philippines. is visitingt cambodia and singapore. we are talking to his trade secretary. ♪

is 10:29 a.m. in hong kong, 1129 in tokyo. 39,000ia's economy added 100 jobs in november, more than double forecasts. the growth was led by full-time positions with a higher participation rate, signaling a healthy labor market and validates the prediction that hiring would improve in the coming months after mixed messages's on the ground and suggests policymakers will extend the interest rate pause. swell as agest banks recent surge feel speculation that shares have gone too far too fast.

the election of donald trump lit attracted and over trac buyers. they see the rebound as overdone. the bank spent 2016 as japan's worst-performing stock. the fugitive accused of stealing data from 100 million customers from companies including j.p. morgan has arrived in the u.s. from russia. the u.s. attorney's office says he landed wednesday afternoon in new york. his return was secured after seven months of negotiations between washington and moscow. it comes at a time of heightened tensions and accusations of hacking. uber's seems to have reverted to bad habits, ignoring regulators. is breaking the law by rolling out i'll, cars in san francisco without official approval. uber to lloyd self driving cars knowing that others have obtained licenses from the dmv.

huber said it's cars are self driving, but not autonomous. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. sophie: welcome back. i am sophie kamaruddin. .ishaad: i am rishaad salamat we did have japanese equities moving to the upside. even that has been reversed. let's get a flavor for what is going on. yes, only one winner, the u.s. dollar on the back of janet yellen's hawkish comments following the fed's first rate hike in the year. the dollar up by .4%, and weakness coming through in other currencies, particularly the thean won, down .9% against dollar. hitting its lowest level in a month. we are seeing a big sell out out of equities against that buy the rumor, sell the fact story

coming through today, the asx 200 down by 1%, unemployment picking up to 5.7% in november. korea weaker by .4%, the bank of korea leaving rates on hold at 1.5%, and significant weakness in hong kong, down by 1.6% on the hang seng index. as you say, despite a positive start, weakness coming through in the nikkei and topix. the nikkei down by .2%. where you are seeing support in the japanese equity market, export stocks, particularly carmakers, so some of the best performers. china dairy falling saying it will sustain a loss due to its

infant milk formula. santos of big to kleiner in australia, down almost 10%, not a story about oil surprises -- oil prices. it said it completed the institutional part of that at an 8% discount. this surprised market because wasos, or the market thinking santos was getting its debt under control without having to raise more capital. the 10 year ons, the japanese note, a little bit of movement, down by two basis points, but certainly not a great day for equities today. much.: thank you so over to china, where general motors joint venture is under investigation. because ofis is possible antitrust file nation's. tom mackenzie has the details. what more do we know now? yes, in the cross hairs them's joint venture with

shanghai auto corporation, and sources tell bloomberg news that they are investigating pricing practices at some of their dealerships. gm says they stick to all the laws and abide by regulations, but it did have an impact on the share price, closing down 3.8% because china is its largest market. it sold more than 3 million vehicles so far this year, an increase of around 8.6% from the year before and only trails vw as the largest foreign automaker in china, so the stakes are high for gm, and this comes in the context of those strained u.s.-china ties, particularly around what trump has been saying on tariffs on china imports, the questioning of the one china policy, and the controversial phone call he had with taiwan's president. another thing to think about is

that these investigations have been used before according to one trader expert to pressure foreign firms operating in china and to get domestic automakers a bit of a leg up. in 2015.unit hit in 2014, fiat and vw were hit with some fines. going into 2017, there was uncertainty whether beijing would extend a tax break on smaller engine cars, but now we ,ave an idea what will happen and increase on that sales tax, so what do we know here? haslinda: those auto sales have rocketed. cut willces say that be increased, but they're taking the middle road, seven point 5% for 2017, that compares to the original tax rate of 10% price

october 2015. still, china's automakers are miffed about this. looked, trading lower in today's session. thecompanies had lobbied government to extend this 5% tax rate almost indefinitely, seen as key to supporting the auto industry as the economy has slowed. we are now in the 25th consecutive year of auto sales growth here, but now analysts growthling us that rate could get to 3% next year. sophie: tom mackenzie with the latest on the china auto market. american think tank says there is evidence of chinese military installations on disputed islands and the south china sea. they publish satellite information's that showed missile-defense systems and antiaircraft guns on islands in

the spratly chain. they had previously committed to not militarize the region. tohie: rodrigo duterte came power determined to strengthen ties with regional neighbors. sophie: joining us now is the philippine trade secretary. thank you for joining us. give us a sense of what kind of compliments -- kind of a congressman's were made in cambodia. >> hello, yeah, good morning. we are happy to note that we have signed a memorandum of understanding with cambodia leadership, and this involves understanding when it comes to strengthening our relationship with respect to labor, with respect also to tourism, sports, and education. the philippines to mark the 60th year, next year, of our

diplomatic ties with cambodia, the philippines has offered 60 scholarships for cambodians to study in the philippines, sponsored by the philippine government. moreover, we were there to strengthen our trade relationship between the philippines and cambodia. quiteade levels have been low, but we would like to strengthen that further to maximize both our membership in asean economic community where cambodians and philippines are members. rishaad: when we look at trade deals it does look like the tpp as floundering, to put it at a diplomatic best. what progress are you making with rcep? that is a more exciting

agreement as far as we are concerned, because this involves an agreement concerning our region. this is an extension of asean. countries, china, japan, india, australia, new zealand, and korea, so what we expanding to do is to the regional partnership we have to go beyond asean. is an agreement that will account for half of the world's population and one third of the world economy, so it is important for us to have some but theon next year, philippines is determined with it would be an

achievement if we were able to finish the discussion on rcep. based on the last meeting, where , we haved on the rcep narrowed down the range of numbers when it comes to the percentage of products to be included in the free trade area , and we look forward to further narrowing the band and coming up with an agreement by next year. reaching that target of , what are thep major sticking points that remain? in asean or rcep? sophie: for rcep. ofit is a percentage

products to be included, as well as services, subsectors, the numbers of inclusion in the rcep . those are the two remaining major issues that have to be ironed out for next year's discussion, and we will be having a series of meetings in the early part of next year. i understand it will start sometime in march or april, to push through the discussions on moment, deputye ministers and their secretaries are ironing out the details on how we can really bring that to conclusion for next year. seen quite a bit of capital leave the stock returnsnd in terms of to philippines. some say this is a buying opportunity, but others point to your president. do these mixed messages

and anti-u.s. rhetoric harm the philippines and the reputation abroad? actually those statements should be, i guess not taken too seriously, especially when he says he has killed himself, some drug pushers. this has to be taken into context. our president would usually put jest, but as in no thing is clear, there are extrajudicial killings, no human rights violations, especially allegedly done by government. our president is clear on that. these arere killings, being investigated, and what we there isced as that

some process they are in. this is something that is not condoned by government. ae thing sure is that this is big war against drugs, and our president is really determined to put a stop to this because this is destroying the society. our president is a simple guy. he would just like to do what is good for the filipino people, and we all know that drugs are killing the society, the filipino society, and therefore that,intending to stop and anyone who would counter that move, he would put up a fight against those guys. also, one good thing happening also is there is a reduction in crime by over 50% in the philippines, so that is a ,ig achievement, greater safety

it is a safer environment, and investors are coming in. , all policiess have been consistent in terms of encouraging more investment into the philippines. he is the one giving guarantee and protection to all investors coming in. rishaad: thank you for joining us today. joining us there from singapore. sophie: up next, hong kong's biggest tech ipo in nine years, but an underwhelming debut. we will discuss that with one of its earliest investors. this is bloomberg. ♪

billed as the

biggest coming-out party for a tech company in hong kong for almost a decade. ipo of chinese selfie apps developer meitu falling flat, down nine hong kong since currently. currently. thank you for coming in. day to come tod the market, stocks generally getting hammered across the asia-pacific, but it is down. tell us about it. ,> we are excited about meitu one of the largest application developers in the world. meitu have over one billion users, and they love it with a passion. that would develop more users. sophie: there will be at first to monetize, but not getting traction yet. earliest effort has been about building user base, just

like google and others began that way. our position should be easy. southeast asia, the nine at states grow that market share. it will need some tweaks to be attractive to those users. >> it has grown from nothing to 20%. brazil, uniteda, states are some of the largest countries. everybody wants to look beautiful. break: do think they will even by the year end? monetization will be very successful. toould look to 1-2 years out have substantial upside. the exact breakeven, you have to ask the chairman. rishaad: they want to get into the u.s.. what did they need to do in your

view and how do you assist them with this? >> everyone's idea of beauty is different. to asians tend to want exaggerate the degree to which everyone is beautiful and similar. i think americans like to look different. african users have a different desire, as well as brazil and india. skin whitening is an example where every country is a little different. so we have a presence in the u.s. and have been helping meitu to go to the u.s.. i have lived in the u.s. for over 30 years and will do everything i can to help it grow. rishaad: it should have good take up, but let's get back to the hong kong listing. how much of this is going to be based on people knowing this company, whereas in the u.s., they are not familiar with it. what benefit do you see from the shenzhen connect as well? and thehenzhen connect

growing number of mainland investors who can invest will be tremendous. it is a household name. everybody and china knows meitu. if you go on the streets, 90% of the ladies will raise their hands. rishaad: i've never heard of it. sophie: going back to what you said earlier, that you been helping meitu gain access to the u.s. do you seeactivities in that world? think china cap developers have become the best in the world. i think everything else being equal, the chinese app developer will be better than the average has aan because china large market, huge capitalization, the engineers are getting better, so not only alsoaces like meitu, but artificial intelligence,

autonomous vehicles. i think china will be as serious power to be reckoned with on the global scene for technologies. rishaad: this is the biggest tech ipo that hong kong has seen since 2007 when alibaba listed. for so long, nearly a decade, the point is does this mean we will get more tech ipos? in the tech space, would you looking at? invest in early-stage companies, so technology differentiation, the founders having lots of experience in the ing a good leader, and execution, so those of the stages we are looking for. hong kong can make a great place for an ipo because the u.s. stock market is not focused on china anymore, so it's a great opportunity for the hong kong stock exchange to attract

high-tech mainland companies to list here. there are stronger profitability requirements. investment banks aren't following chinese companies anymore. this is a great opportunity for meitu, and i hope their successful cause more companies to come here. rishaad: thank you for being with us. sophie: thank you so much. ,p next, betting on super mario nintendo introduces its first game for smartphones after two years of waiting. details are next. this is bloomberg.: asia ♪

sophie: it is a big day for nintendo as super mario finally makes the leap to mobile. will the weight be worth it for investors? be worth it for investors? >> we will see and about five hours when it comes out globally. pokémon go was not developed by nintendo, where as super mario run is almost completely developed by nintendo. good game developers, but can they make it work on mobile devices, a different --erience, so the big test

when they first announced they would in brace smartphone gaming , 21 months ago, their shares ine added almost $20 billion market value since then, so investors are very excited and think nintendo will sell a lot of games on smartphones, and today is the first big test, that's why there is a lot of focus on this game. ,o be honest, i have played it and i'm not sure if it will be on the same scale of impact as pokémon go. it does not have the novel features that pokémon go has, but investors are optimistic. it should be a big success, although not as big as pokémon go. we will see. rishaad: tell us about analysts and their projections. ofre has been a sense disappointment that it is only available on the apple iphone, for instance. >> sure, yeah, that's very true.

2.3 billion smartphones around the world, two thirds are android devices, so two thirds of all smart phone users will not he able to download super mario today. that is a big limitation by nintendo. the first two months, it got 500 million downloads. analysts are saying it will take super mario run twice as much time, four months or so. sophie: we have to leave it there. nintendo's mario run, we will be waiting to see what happens. rishaad: losses across the federal -- asia-pacific after that fed increase. this is bloomberg. ♪

♪ >> from our studios in new york city, this is "charlie rose." charlie: cybersecurity has become one of the greatest challenges facing this country. last february, president obama created a commission to address the growing threat. earlier this month the commission on enhancing national cybersecurity announced its findings in a comprehensive report, it called for urgent action to enhance american cybercapabilities. meanwhile last week, president obama ordered a full review of russia's election-related hacking. president-elect trump continues to dispute the kremlin's involvement. joining me now are the commissioner's chairs. former ibm ceo