♪ midday in sydney, on this thursday evening. this is bloomberg markets. ♪ see you in court, trumpet suites he is taking his fight all the way to the judge. ,ith the immigrant and refugee the unexpected surge in china's exports. shiftore warns of a dark

of globalization, we are going to be speaking live with the trade minister. thet, 30 minutes away from markets opening in hong kong. we're just coming into the fray. records for the dow, nasdaq and s&p are seeing one-way traffic. >> today, when you look across>> are seeing the wolves putting their hats on. market is open, and taiwan. you can see that market has really seen a lot of care. a lot of people are also watching this. in overbought terrain. when you are looking at the working day, yesterday we are above this red line. you can see a little bit here as well.

you can see this as we move above this. looking at the markets right now , you can see the sport right behind me. 67, that would take us back all the way 18 months. we are very far away from that high. , only 11 stocks are down in that market right now. there is the best they there since the first of the year. australia is seeing a four-day straight there. go, pretty flat nonetheless. take a look at futures in hong kong. , they are back above 10,000. back above not assets, when you're looking at trading

overall, it is a pretty good discount. there is a lot of momentum coming through. now, all of that said. , too much toohere quickly. this time we are looking at the bloomberg. there you go. not sure how clearly you can see that. it is 59.12. that would say that it is overbought to a lot of people. flag for us here, they are the best performing this week. that is a look forward at markets in hong kong and shanghai in just 25 minutes. >> president donald trump is inching closer to his judges rejecting his closed border plan. franciscow out of san

, here is an immediate reaction in raged -- enraged trump? who has spent plenty of time in court. he is looking forward to going back to district court. they have ordered a temporary restraining order, that should be in place. that will take the next crack at this case. the next step is likely to come from washington which will file a preliminary injunction. that is the next step in trying to ban the ban. we could also see an appeal from the department of justice to the supreme court. if that happens there will be a lot of questions about how this divided panel will world. >> i think it was fairly of note that this decision was

unanimous. is quite a battle for these administrations. >> what the panel today was reviewing, it was nothing in favor of the state. anwas whether they have opposition to the band being overturned. argument was that the state is hurting because people who contribute to the economy, microsoft employees, amazon employees, universities and the state of washington our -- are not able to get back and come to work. the white house said their general counsel had revised the term of the executive order but the court says the general counsel does not count. has -- what has occurred now is a temporary restraining order and in place is a sign that the state has

standing to continue in this battle. whether it is an issue of executive power versus judicial review and what the courts have. will do tourts continue monitoring, we will keep an eye on that. >> thank you. join us from a san francisco. later on we are expecting exports to rebound in china. 58.official data is what, 55 minutes away. picture shaping up? >> a stronger pickup was what we are expecting. for what we saw as a drop in december. 3.2% increase that will be the first since march of 2015.

up the reason the forecaster optimistic for this area one, new orders will be factored into this decision. the other is south korea exports, they are very strong. it -- suggest that area is very strong. lower, see that trading even if it takes up again. imports, we are expecting those to pick up 10%. a word of warning though, it is very hard to pin down this import. it is coming from a very large states. >> chinese new year was later, with we have this problem every year. where this is incredibly distorted. see if this is an export.

you see the donald trump is a risk. president donald trump looms large. goldman sachs have been trying to get clarity for the potential scenario here. they are waiting for washington dealings that would not china's exports down. set are suggesting they are , they are looking to open up their economy. we are looking for machine parts, a big thing therefore trump. there is a trade deficit. 14 .95 you this up can see the trait has been edging down in 2016. in fact the trade deficit

between u.s. and china is around 347. that is down about half a cent. for the next hour or so. thank you very much indeed. we have been to singapore and beijing, let's look with the first word news. house lance to turn down its top rhetoric with president trump. they have been in the u.s. a short while ago, he is looking to reinforce a decade worth of alliance. one official says the accusation beenrrent manipulation has his focus is the auto industry. saidupreme court nominee

he was dismayed over president trump's attack on the judiciary. this was made public by senator blumenthal. he is convinced that an attack on one judge is an attack on all judges. the central bank says inflation is still manageable. us that thenor told bank will move quickly if needed. still seen as key to the asian economy. global news 24 hours a day powered by more than 2600 journalists and analysts, in this isn 120 countries. bloomberg. >> let's look at growth over the next couple of days, the temperatures are next. by onegoing to be joined

of the biggest shipping lines, he will be with us in just a few minutes. ♪

♪ >> a quick check of the blitz -- business headlines. the analysts shares are down about 12%. the social network having problems with advertisers not be lowered to the platform. mcdonald's japanese division is seeing a fourth-quarter surge, they had a scandal in the past few years. coming in at $76 million. the u.s. considers this an estate sale, there is no update

on the sale process. and we are seeking to reign in the united states, this is this third consecutive drop for nissan. see them raising their earnings forecast. risingreason for the sales abovere car the average. reversing, the rising incentive is temporary. a north american uprising would be misleading. >> rates have started to pick up. stricter trade and immigration measures mean there is a dim immigration prospect. tradeis a potential u.s.

issue. thank you for coming in. how would you characterize this? where are we with trade rates. we are seeing one of two things. the number of ships have been pushed aside. >> first of all, i don't think we should underestimate the impact of 2016 on the economy. it has been a decisive year. not just because of the alsocial climate but because of what has taken place in the industry. someone argue that that is necessary. too many ofmply them. because of the efforts that are taking place, we are seeing some of that taking place in the industry. we are seeing many more successful years to come.

it is about supply and demand balance. it is also about shippers understanding the need for shipping industry's be much healthier. we can see the discussions we are having, it is not about need to sustain healthy markets because the need for unhealthy plants. in the contract season we have , it for -- so far in europe is trending upwards. we are seeing that economic growth. the growth is healthy. it is both the right size. >> the sanity, when you put it ,hat way, when things are great you guys have a bunch of ships.

the doldrumsin again, when will it end. there is the over buying. >> we are always looking a few years ahead. is also the supply and demand situation in 2016 this is caused by an overestimation. we do see that has come back into that. have a delivery of ships based on the forecasted demand. part of this is also because of the shipping lines. do you see a realignment of them should there be more. >> eyeing it is a good number to have read there isn't something taking place. there is always configurations.

i think we will see that in that respect. targetsve seen various in asia, i'm a you are doing something with them. >> we are very busy and the acquisition of a german company. we are in the regulatory process of finalizing that. when you march these, how do you go about getting the synergies out of the measure. >> there is a lot of operational rule -- room for savings. that is definitely part of the facility. we have a very successful customer basis, we will do our best to retain that. let's bring in the politics side of things, donald trump. let's talk about the protection

funds. he has worried people when he is said to get out of the tpp. with teeming with tpp? >> specifically the protectionism. global strata 6% of the gdp. to grow global trade rather than shrink. we think that eventually there will be a realignment. solutionl be a win-win that will continue to boost global trade for the past 20 or 30 years. thank you for joining us. robbert right after this. ♪

♪ back with bloomberg markets. we continue to have a chat with the ceo of shipping here. we are talking about globalization and protectionism talkingthink we were about the possibility of trade in the united states. china is also the other side of this or it they say it would be at slowly ridiculous, it is not in anyone's interest to be doing this. spat affecttrade things? >> we do not see a trade were very likely. it growing trade rather than diminishing it. we see how the u.s. has moved over the past couple of years, the china is looking to export more to the u.s.. i think we see the global

growing trade benefiting the u.s. and consumers. i think that is the only way forward. >> there is financial is him and naturalism. as long as the arrangements we had no opinion on how that should be happening. because 60% of global trade is our gdp. that has no benefit to anyone. i had no idea what that was. tell us a little bit about that. there is a long-term ourselvesion between and them, we just announce a new collaboration with hyundai.

forward toly looking working with them. we will be launching our new product in the u.s.. data that comes under the u.s. is quite good. we will be launching important products together with them. >> you mentioned going into these products and seeing how this is an event for the shipping company. >> ivy this draws a line of customers. i think a lot of the people involved with bankruptcy, there is a lot of laws in this country. fact that this saw such a , they are making sure they did not lose any sales. it is some and they have not dealt with for quite some time. i think that also gives way for a much healthier 2017.

>> are you ever interested in that? >> no. >> this new adventure with hyundai and seeing the co-shares. it is agreeing to share space, howhat how that -- that is that works. it will strengthen our products specifically. it is a win win situation. >> how does that affect your forward bookings? have a contract with the u.s.. january, that will end around april. we are looking at the forward contracts were used -- u.s. trade. >> you are seeing what is happening with global trade. where is trade the strongest and getting stronger? the just discussed

employment day, we see what is happening. we can see more retail sales. >> are you going to see what is happening? like 95% of goods are delivered on ship. if i'm going to talk to you in the like seven months where is it going to be? certainly going to be up from where it was last year. we expect a similar rate? >> thank you for joining us or it he will give us his view on trade next, over the worst of it. how we prefer the consolidation. shouldup, why the snobs beware. the price of your

favorite pitbull. the reason behind that. will be openets for the last day of the week. ♪

♪ this is bloomberg markets: asia. we are looking forward to just over half an hour if it comes in on time. we do see how the markets are reacting. the right course of the nasdaq and s&p, if it is making its move here. there is a little bit of a tough awful. thate back with information, are we back with a donald trump trade their?

as we have from shanghai. in fact, here is david. >> easiest. i think they are seeing their best day. it is friday, you look across the board. usually talk about things, look at the bloomberg. opens in a lot of ways. the fact that we are celebrating h shares trading above not price. there is that bit rate here. now, you seeht looking at we are this chart. there is a relocation right now. kept secret oft

the financial market. there is the same stock in hong kong and one in shanghai. or should i say one in shenzhen. they are half of 1%. they are getting a boost there. look at the some of the things we are watching here. shanghai in the mainland is looking at a very policy driven increase. these are just some of the property development, the used data, the facts that we are looking at with mortgage rates across the board. , some areoking at 10% offering a different amount and a little less. , you onlyy stocks opened up at half of 1%. two big pharma in shanghai,

these two right here. cut drugvowing to prices and distribution that is a good -- distribution that is very slow in the making. we are getting there. very quickly, have a look there. the reason i looking at insurers right now is the vice chair of the insurance regulator on the telling is now insurance companies if you have inot a cash do not speculate the stock market. also do not do hostile takeovers, have a fixed income. overbought, you can see that is 71 and 81 on the 14 day chairs index. there we go. >> thank you. going out with the

first word news. >> president trump has tweeted see you and court after his judges restraint his travel ban. it means the u.s. will continue to welcome refugees from the seven muslim majority countries. there seems to be a lack of a national security argument, president trump has asked the supreme court that will test limits of his power. we are expected to see a 3% rise in china's exports this is after a 2% decline in december. this year after the lunar new year could play havoc. the st. louis president said the central bank should not be in any rush to raise rates. this is clouding the economic

output. in at aestors coming rate hike. this is not a voting member, he said the risks will remain. >> a relatively low policy rate will remain. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. this is bloomberg. ♪ >> president donald trump travel plan -- ban is inching closer to the supreme court after the administration tried to reinstated. what is the latest, even though we have this verdict, we also have the twitter sphere? >> no surprise on that. the details of this, there was a

pre-zero unanimous decision by .he supreme court appeals there was to democrats and one republican appointed judge. the white house did not get enough evidence to support the case. what does this mean? borders that the u.s. will remain open until a another legal case develops on this. it will go as far as the supreme court potentially. let's go to the tweet you talked about first. that is what a lot of people are leading with. the president about what happened our after the president decided this ruling. he said see you in court. the security of our nation is at stake. we heard from the legal team at washington, d.c. where they argued that case for about one hour, let's go there. >> the ninth court of appeals in a unanimous -- unanimous

decision granted everything we sought. we are a nation of laws. said and as we have said from day one that those laws apply to everybody in our country and that includes the president of the united states. >> it is the rule of the court to say what the law is. that is their check on executive branch. it is what the court has done, that is an excellent opinion. thatis a careful opinion considered all of this. >> i also got in my inbox and email from the office of chuck schumer, he said that basically what is happening is unconstitutional. he is saying he should see the handwriting on the wall and see something that is more of a bipartisan plan. i want to point out that while we have been highlighting the

things happening on the democratic side as well as chuck schumer. i have also been monitoring the response from republican senators. there has been nothing. it is interesting what is not being said as well. >> give us an idea of the details. the overall ramifications here as well. >> of course it is the unit is this -- unanimous decision. it is a victory for immigrants and for businesses who rely heavily on immigrants. example, the u.s. is going to stay open for the seven was nations that have been at the center of this case. also it is a victory for businesses, there are 100 silicon valley businesses that cited amnesty agreement that they do rely on immigrants. closer tohis case was the supreme court, that is a with four republican

justices and free democrats rid this case has much further to go. indeed. you very much with president trump and the premise or of japan are coming up. is in singapore, why is he so anxious to bring down from a package of goodies? japanese prime ministers are worried about any new united states administrator. the u.s. andat china may try to strike some kind of g2 talk over japan. with this particular case we have donald trump as resident he is somebody who has been a japan dodger sense the 80's.

since coming up is a real estate developer. he said how much it costs to have troops in japan. he said that china has been manipulating currency. to be worriedason about how the administration will you japan and how it will traded security and economic and turns. he is trying to flatter them and he is trying to give him a bit of a victory to get him on their side. >> what is he looking for in return? obviously china is something people have one eye on. >> yes, on that front he is probably pretty confident in the people who trump have recorded -- appointed to the secretary of other cabinet members are pretty tough on china. i think what he has looking for is what he received last week in tokyo from secretary matus. he wants a reassurance that the u.s. japan defense treaty will

cover all of their territory. up theng the islands coast. he want some assurance that the u.s. is comfortable with the payst of money that japan to house u.s. troops on their territory. on economic terms i think he is looking for a lack of criticism on currency manipulation. also some willingness to talk about trade, we've open the possibility for reopening the tpp. he is looking at opening a bilateral trade deal. >> thank you very much indeed. one of the things going on in control, it capital is essentially cash. it is not just a headache for individuals. it is a headache for multinational companies. there are even further restrictions on the country. at how howng a look

the hong kong banks are seeing a huge opportunity. >> they are offering services and edging tools for financial companies that connected their profits up and the dividends out of the country. that $50,000 annual quota goes up pretty quickly. of course for individuals but also for a company. safe, they say they are not stopping businesses and remaking their profits out. in practice, it is that they are stifling them. the european chamber of commerce , a lead of concerns their companies in the chamber is having problems it in money and profits out of china. look at this chart, i think we can bring this up. fora is generating profits tons of businesses.

they rose 12% last year, that is n.7 3 trillion yua this is a result from carmen, she oversees this business. this is all about how to manage their trap cash. you can see the training -- trading in over-the-counter options. an facessee how the yu the dollar. we have another quote here. rise, demands are on the i number of different ways they are increasing. this is where foreign banks are much more active here. hurtingre they really things, --

>> you and i -- >> yes and yes. is increasing the price. others.rting the it is hurting us. we can bring up the chart will we talk about it read this is though live acts fine wine index. as the prices of the world go up with wind. these are surging. these are back in the territory we saw in 2008 when asian buyers help hike up wind up prices. that asia is looking at a global center for wine. they have a low-tech environment. >> thank you very much indeed. next, fighting the forces of

protectionism. we are seeing how the debt i would is able to see this. that is on the way. ♪

♪ quick check of the latest headlines, the founders of britain have asked the question about executive pay. a severalking about companies that have asked why the ceo has hit with increases last year. paid $6.3 million for 2015. they rejected the climb this year. fidelity and guaranty life are up, after they failed to meet a second deadline with the u.s.

insurance. this deal was originally and november, than it was in this new -- this week. are new bidders in the deal, is a holy and weighing up. , is trying tonant figure out who is behind this unsolicited bid. cvb senator received an offer from a company. a did not include any information about the bonus funds or the state. they had $560 million. this would be the highest level in 11 months. singapore has unveiled strategies to cause growth after what they saw a dark shift away globalization globalization res

comes after the trade minister said that this remains vital for the nation. let's head to singapore correspondent now. will it take to secure the economy, with a country the size of singapore, trade is the lifeblood, isn't it? >> you are right. that is why singapore needs to resist protectionism. they need to remain open now more than ever. given the anti-globalization asia,ent read in all of where the most of this is taken place. seeing the trade minister say he also met the committee. it is good to have you with us. give us a sense of how singapore will look like 10 years from now. how will the economy be like? >> it is hard to predict with

great accuracy. there is so much change happening in the world. i think what we have tried and emphasize to do is some court fundamentals. cost defensive strategies. one thing is being open to trade thisnvestments trade happens to be an important part of the value proposition. certainly in the world and in our region. that is one imports and i mentioned. capabilities, we can invest in the capabilities that allow them to integrate.

and also for our people. they have deep skills and knowledge for the uncertain dynamic environment that we are in. >> you may justify the private sector in going forward. like the private sector to be doing more that it is not doing now? n >> i see a private sector doing more for the public. is because once you look at an environment. there is no more. what is happening, where the changes are occurring. actors have different impacts in different ways. get theneed to do is parties working together, sharing that information and getting it to a regular basis. that is one of the things

singapore has always done. >> which sections are important? >> i don't think we would say too big to fail. build on the sectors that we have in our economy. gdp, we 20% of our think we will continue to have a role in manufacturing. holding on the strength that we have rid similarly in the services sector. with the financial services, there are trade services. at the same time, we also are looking at new areas. there is the economy and how that relates. there is cyber security, these are areas which offers new possibilities. seeing something we can play with other values. >> hang, we are going to a short break. we will have more with this trade minister. this is bloomberg. ♪

♪ >> welcome back we continue our conversation with the trade and industry matter -- minister. offshore,king at oil doesn't like it should be supported, and how will it fit into the new age? >> look at what singapore has evolved. we have moved into the hole offshore marine. we have two of the leading companies in the world. attitude for the core capability over the years is to see how we are needed across the world. can see how the industry goes to the cyclical adjustment, there are core capabilities that we want to ensure it this is

seeing a loss in the fourth quarter we introduce some measures to support lending packages. >> can we see more support? >> we can see more as a false. at a financier consulting all the problems, there has to be motivation for these things. in the meantime, it should not be something where we are losing capabilities that have developed over the years. with the u.s. pulling out of the agreement, is it viable for it to continue the way the u.s., proposing?as been >> i think the tpp the way it was originally structured was based on a careful assessment of values. pulled out, it

changes the equation. it is something all the countries have to revisit. do you proceed on the basis of the original deal? >> singapore's initial reactions were say they wanted no point in pursuing the tpp without the u.s.? is to allow economic integration. the tpp is an important part of that. specifically china and many other countries around asia. the important thing is what ever is whatever happens goes forward. whether it is going with the original deal and keeping it open for the u.s. to come on board later. here.k we have to go on the path has to be adjusted.

thank you for your assessment today. back to you. >> thank you so much. coming up, a signal for chinese trade. ♪

♪ almost 10:00 a.m. in singapore, 1:00 p.m. in sydney, and 9:00 on thursday evening in new york city. i am rishaad salamat coming to you from bloomberg's headquarters in hong kong. this is "bloomberg markets: asia" ♪ awaiting china's january trade data anytime now. it economist expecting a jump in exports. asian stocks surge, japan having its best day of the year. donald trump set to take his travel ban fight to court.

taking you around this part of the world and beyond from singapore to beijing, mumbai to new york. let's kick things off in hong kong with sophie kamaruddin. sophie: with the promise of a phenomenal tax plan, appetite in asia this friday, regional stocks back to the highest level since july 2015. the dollar set for its first weekly gain. , the oil rally continuing for a third day ahead of the month report out of the iea and opec. higherave chinese shares , helping the hang seng rise .5%. the shanghai composite up .1%. weaker. yuan fixing

, thee nikkei 225, up 2.3% yen above 113, the dollar helping exporters get a blue state today. this ahead of talks between p and prime minister abe, set to discuss infrastructure investments. climbing.hares , watchingarmakers talks between donald trump pensions are a hobby, shares up almost 4%, 15 in that space on the up. yamaha up over 7% after net annual income beat estimates. despite a 50%se drop in quarterly profit, and it plans to make to

the infinity in mexico. the bond space, we do have u.s. treasuries extending the drop, 10 year yields rising one basis point to 2.4%. --see yields on the rise austrian yields on the rise. year jgbhanged, but 10 endds could rise by years driven by a rebound in the u.s. economy, bringing treasury yields to 3%. he does not see the boj doing anything for some time. rishaad: thank you very much indeed. that is sophie kamaruddin. let's get first word news with haidi lun. the white house plans to turn down its rhetoric when president trump meets with the japanese prime minister on friday. shinzo abe landed in the u.s. a short while ago and is looking

to reinforce an alliance rattled by donald trump's tough talk. accusationss said of currency manipulation against japan will not be priority. the main focus is the auto industry. reports that judge neil gorsuch's said he was dismayed by the president's attack on the judiciary. public byism was made richard blumenthal, whose credibility was attacked by the president. said an another senator attack on one judge is an attack on all of them. the philippine central bank says inflation is manageable, rising in january at the fastest pace in more than two years. the japanese deputy governor said monetary policy -- the deputy government said monetary policy remains data dependent. it is expected to hold fire on a rate hike thursday, but it is

seen as the first asian economy likely to tighten. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am haidi lun. china's january exports expected to rebound following a december slump. we should be getting the official data at any moment. tom mackenzie joining us for a preview. at this time of the year, they can be all over, can't they? tom: absolutely right. it is difficult to pin numbers down because of those seasonal effects and a low base for year on your numbers, and exports for january were down 15%, so a flattering base. forecasters are doing the best to get the numbers right. numbers expected to increase 3.2% for january compared to a

decrease of 6.2% in december for exports. feeding intoactors forecast, one is the global demand picture, reflected in the increase in south korean exports. the other is the yuan, still pretty weak against the u.s. dollar, week on a trade weighted basis as well, so those are some of the impacts we have seen. a pickup in orders reflected in the pmi data earlier. 10% for a pickup of in december.s 3.1% as you say though, it is difficult to nail these numbers down. we will get a clear picture by the end of the quarter. , presumably a key risk for china and its exports is of course the new man in the white house. the number one risk,

because otherwise if you take donald trump away from the picture, you have what looks like an improving domestic situation, improving demand in the u.s. for chinese exports, and they gradually improving picture for the sector here in china, but trump is the number one key risk. goldman sachs have been trying to add clarity and strip away what this might mean on a practical basis if tariffs were imposed. 10% tariffs would reduce exports by 25%, reducing china's of gdp by 1%. the most likely scenario is that washington will do targeted tariffs, looking at steel, big manufacturing products, auto that faceell, sectors a lot of competition in the u.s., and they will want to try to tackle them. the trade balance is key, particularly the deficit. we have a chart we can bring up rishaad: #btv

yuan rupiah euro rishaad: yuan rupiah euro. deficit was down 5.5%, so that is worth remembering when talking about the potential impacts of any u.s. trying to change war and the impact of any tariffs trump might impose, but still waiting for that number. it is difficult to know when it will hit the wire, but we will update our viewers when we get them. thanks. tom mackenzie there. indeed talking about the man in house, his travel ban inching closer to the spring court after a federal appeals judges rejected administration's attempt to reinstate the order.

ramy inocencio is standing by with the details. what is the latest? ramy: that freeze is still in effect on the and that was put in place on sunday thanks to that executive order from president donald trump. as the details, 829-page ruling by those three judges over the ninth circuit court come all three ruling unanimously to continue the freeze of this immigrant travel tweet, asn a expected, president trump reacted with than half an hour or so after that ruling came out. "see you in court" he said. after that, a legal team for washington state arguing on behalf of immigrants and businesses came back and said that this was a win and praised that decision. >> the ninth circuit court of appeals in a unanimous decision effectively granted everything we saw. -- we sought. we are a nation of laws, and as

i have said, as we have said, from day one, that those laws apply to everybody in our country, and that includes the president of the united states. >> it is the role of the courts to say what the law is and serve as a check on the executive branch, and that is what the court has done in this opinion, in this excellent opinion, this well reasoned, careful, thoughtful opinion that considered all the arguments and rejected them. that was the solicitor general of washington state, who argued to that ninth circuit court of appeals just a couple of days ago, but looking also at reaction from congress, there is not too much. interestingly, the republicans seem to be very quiet, and we have only one democratic congressman coming out of this, and that would happen to be the senate minority leader chuck schumer, basically saying this decision and this pushed by the white house is unconstitutional, and he is pushing for the

president to come out with a bipartisan plan. on thea lot of people republican side staying on the sidelines for now as this case ones to record. through court. rishaad: tell us about the ramifications of this decision. ramy: it is a victory for immigrants. those immigrants coming from the seven majority muslim countries from the middle east and north africa, but on the business side, it is also a win for businesses that rely heavily on immigrant innovation. on sunday night, about 97 silicon valley companies filed an amicus brief to the ninth circuit sang their businesses would be hurt by this ban, google, facebook, and apple, and by one account, one out of three silicon valley residents are foreign-born, two out of three

workers in the area are also foreign-born. to see theesting reliance here, but looking ahead, we do have more court cases. if this does not immediately go to the supreme court, it will fall back to washington state to hash out the finer details on what to do next. if the supreme court does take it up, we could see that happen, 4-4, socourt is divided that could be a stalemate if it comes down according to political ideology. rishaad: thank you so much. york.nocencio in new right, we take a closer look at china's latest rate numbers. hopefully getting them, and asking what lessons the economy can learn from the u.s.-japan trade friction of the 1980's. this is bloomberg. ♪

rishaad: a quick check of the business flash headlines. china'snew buyers after anbang failed to meet a deadline. it was moved to november, then this week, now extended to the end of may, but does allow for new bidders. anbang has struggled to win approval for the deal, and reports that anthem is weighing a bit now. a 58% surgedicting in profits after suffering from food scandals. atdoes cnet income for 2017 $76 million. this report does come as its american parent considers a stake sale. mcdonald's japan says no up

dates and claims the sale process is a confidential one. seeking to rein in car rebates what isnited states, behind this is the third consecutive drop in operating profit, the company's pending the most among japanese automakers on u.s. discounts. nissan did maintain its profit outlook, while competitors raises their forecasts. -- raised their forecast. l more cars than trucks, however, the ratio is reversing and we will focus on producing more trucks. north american operation will main resilient. china's we are waiting january trade data any moment, exports expected to have risen 3% compared to a decline of 6% in december. joining us is the chief asia economist at mitsuru securities.

we are waiting for them. they should have been out at the top of the hour. the point being, these numbers are very volatile this time of year, get skewed all over the place. indeed, the hangover from the previous year. >> that's right. december his quite better for chinese trade. in january, because of chinese new year, it could be a little it could bebut around 0%, because it is still very challenging and firemen globally. rishaad: it is, but you say cfo, my guest previously is of maersk asia. he seeing things a better story than the middle of last year. rishaad: definitely, the global

economy this year, the u.s. economy, the forecast for u.s. gdp growth this year is around 2.3%. last year was 1.6%, so that is quite clear pickup in u.s. growth, and that u.s. is china's biggest export market, so from that perspective, things are looking up. also, emerging markets, india, brazil, russia, all seeing growth pick up this year, so that is pretty good news, but is china, the only challenge the rising costs, the labor costs. theaad: they are going up value chain, aren't they? it will take its toll, but we are still expecting exports to have risen here. but more so, the domestic demand picture, and how imports are faring in many ways. >> for imports, much better than export performance in the last few months. we are looking forward to even better import performance for chinese economy because the domestic demand is pretty strong, not only in regard to

consumption, but also investment. imports growth will be around 10% higher than export growth. rishaad: if were talking about the trade picture, how worried are you about protectionism in the u.s. and that being replicated in other parts of the world, looking isolationists, dangers from europe across america and here as well. the point being that would have a big impact on the chinese economy were there to be a trade were between china and the united states, but then again, in whose interest would it be? one'swould be in no interest to have a trade war, china-u.s., only but other countries that supply the components to china, said definitely it would be a bad thing and a major risk for china for this year. although as we discussed, the outlook for the global economy is looking up, but the problem

for china is that we are already protectionist measures against china. china is the main target for all of these measures already last year, so there are hundreds of ,ases like anti-dumping charges anti-subsidy charges against chinese products, so the worry allhat they be there is no out trade for, but these kind of measures can still be quite significant. that is why i say the trade environment for china is still quite challenging despite the pickup in growth rishaad:, global growth. we have been here before. u.s.ve had japanese and trade frictions in the 1970's and 1980's, then we had an accord that sort of that out to some extent. is it time for plaza accord mark two, the trump plaza accord of course, between the united states and china on this

occasion? >> to can be quite different this time, because the chinese market is also very big, so for example regarding automobile industry, chinese auto sales are 27 million, but u.s. only 17 million, so in the japan case, the u.s. market is so much bigger, so it can that be some advantage over these negotiations, but for china, i think to agree to this type of agreement -- rishaad: a new agreement, some sort of accommodation needs to be reached? >> yes, that is the case. if you look at the chinese currency, it appreciated against the dollar instead of depreciation is the market expected, so this already is a measure by the chinese fendnment to preemptively off the straight for, so it is maybe not a return agreement,

consensus.e fact of china will maintain a stable currency as a way to persuade the u.s. government -- been activelyhave doing that. not just trade with the u.s., but against the world, so they have that sdr basket, but also foreign exchange reserves have gone down below that $3 trillion mark, just indeed a psychological number at the end of the day, and going down by a whisker probably makes no difference, but they have been defending the currency in both lot ofons with a letter clou fortitude. pressure,ot only u.s. but domestic consideration. when china allows the currency to depreciate, then there are massive capital outflows, then the decline in reserves will be higher than otherwise, so that

is why from their domestic consideration of financial stability, they have an interest in maintaining a stable currency , but as you said, $3 trillion -- rishaad: a nice round figure, isn't it? >> for china the real problem is trillion, save$2 for a chinese reserve level. rishaad: thank you very much indeed. we have to take a break. on the other side, no trump bump for twitter, shares tumbling as the outlook for revenue and profit falls short. we will be digging into the numbers when we return. ♪

twitter shares tumbled after quarterly revenue and profit outlook miss estimates, the social network having

trouble luring advertisers to the platform. difficult quarter for twitter, which is so 1% revenue growth, compared to 40 8% in the prior quarter. it's a lack of demand as user base growth continues to slow. did not add users in the united states despite the constant tweaking by the new president donald trump and all the impact that his tweeps have had in putting twitter in the national conversation. went through a restructuring of its sales force and lost to see-level sales executives, and it has been spending off parts of its business that don't matter, selling fabric to google, and cut 9% of its workforce, and it shut down vine. the company is looking for a road to profitability, but analyst on expect the company to

be profitable and tell 2019. the earnings estimates fell short of what analysts estimated. jack dorsey will come under increased scrutiny as he takes on more jobs at twitter, including products and engineering, while also running square. twitter as it loses some of its market cap may be considered for a takeover target once again. ok, well, there we go. that is twitter, trials central relations they appear what about this world, japan heading towards that lunch break, up 2.3%. well over that psychologically important 19,000 level. hang seng, shanghai, lagging that at the moment, president donald trump promising to overhaul business taxes in the next few weeks adding to further optimism surrounding that reflation trade. nasdaq, and out.

coming up, shinzo hobby a man on a mission, but will trump -- ♪ ♪

>> it is 10:29 a.m. in hong kong, 1:29 p.m. in sydney. "seedent trump has tweeted you in court" after judges rejected his bid to reinstate a travel ban, meaning the united states remains open to travelers from seven muslim majority countries. trump's tweet indicates he will ask the supreme court to step in on the case. economists surveyed by bloomberg expecting a 3% rise in china january exports, that's after a 6.2% decline. wreak havoccould

with the data. it is due later on friday. james bullard says the central bank should not be an a rush to raise rates. he says continuing uncertainty over trump's policies is clouding the economic outlook. the fomc meets in march with a chance of a rate hike. james bullard is not a voting member, but he says the low rate environment should remain. low policy rate will remain appropriate going forward. >> global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am haidi lun. this is bloomberg. me.aad: you are back with have a look at what is going on market wise. from donald trump

reigniting that inflation trade in the u.s., making itself felt in this part of the world. sophie: that's right. we have had japanese companies difficultyar having and in the firing line. it is boosting the dollar, sending the yen of both 113. above 113. japanese carmakers climbing. nissan rising despite a 15% drop in quarterly profit. nissan did say it is paying attention to the trump-abe summit. its mexicoing to plant. honda up 3% as well. according to bloomberg intelligence, honda's margins will be the most protected against u.s. trade policies

relative to other japanese auto to 80% ofcause 70% honda's u.s. car sales are manufactured there. risingtrain makers ippon rising after donald trump lamented the lack of fast trains in the u.s. shinzo hobby may be discussing infrastructure investment at the upcoming summit. -- shinzo abe may be discussing infrastructure investment at the upcoming summit. rishaad: he is expected to stress the importance of the ongoing alliance in the face of hostile rhetoric. seems, this is the second time he is visiting him. why is shinzo abe so anxious to ring trump a package of goodies. he is looking a bit desperate at the moment from the outside.

yes, indeed. any japanese leader has to be concerned when a new u.s. administration comes into power, being neglected by washington, or privileging its relationship with china over japan, and in this case he is facing a u.s. president with fairly anti-japanese comments about currency policies, trade imbalances, most recently about the cost of basing troops in japan, so shinzo abe has reason to be worried when you look at the way president trump has dealt with some people you would americanas traditional friends, such as the prime minister of australia. so, ok, he want something in return, doesn't he? i'm guessing it has a c in front in a.and iends >> yes.

he needs security reassurances. he needs reassurances that the u.s. will support japanese administered territory, islands claimed by s trumpand he also need to back off on some of his economic criticism of japan. he will not get what he really wants, which is a revival of tpp. his second best option is some sort of bilateral free trade is notnt where japan push to make greater concessions than it has, and thirdly, he wants trump to make clear that japan's contributions to the relationship, both militarily and economically, are sufficient. he can take that back to his people in japan and be more confident. rishaad: is there anything wrong with this approach? does it show that trump's

getting results, at least for the united states? is one way of looking at it, and i'm sure that is the way the white house will pitch it. negotiator and his comments have brought japan and line and brought these benefits to the united states and look,an workers, but there is a danger in treating foreign policy in a clearly transactional manner, especially if you are the worlds a superpower. japan brings much more to the exports and imports. they extend u.s. power in asia. their military is very important to the strategic balance in northeast asia, and shinzo abe has great personal credibility with leaders from india, southeast asia, deep trade and investment links with these countries. evens influence in that the u.s. president may not have at certain times, so they are a

friend, and they are a tool for the u.s., and something the u.s. needs to appreciate. rishaad: so how should the united states then as a result the treating japan instead with what you just said? >> right, well, it has gotten off on to a better start in recent weeks. the secretary of defense james mattis went to japan, reassured them about treaty guarantees, reassure them that japanese contributions were sufficient. that is the message that president trump needs to reiterate publicly and clearly and without any copy else. -- any caveats. it should be in u.s. interests to help revive the japanese economy. in u.s. interests to have a strong japan and asia, and that hopefully means in the long run finding some way to get back to the tpp.

you can call it something else, changed details, but that is the key for japan, and a good thing for the u.s. as well, and hopefully if they build a good personal relationship, they can get back to that at some point. rishaad: thank you very much. let's move it along and tell you inut these capital controls china, because having all sorts of unintended consequences. they may be a growing headache for multinational companies operating in china. beijing has been tightening restrictions on transferring profits out of the country. we are looking at an opportunity that comes along with it, and it has to do with hedging and these banks in hong kong trying to make the most of it. >> they are offering different tools for multinational companies that want to bring out their profits and dividends out of china, but have not been able to necessarily because of the raft of capital controls the chinese government has put into

place to stem the outflows and its stem the the climbing value of the renminbi, so a number of banks have offered these hedging tools. quote,ring up a a and i will get to some of the prophets in a minute, but she says, "our dialogue with clients now is all about how to manage their trapped cash in china. i know all about that is welker die had some money trapped in china for quite some time. it is difficult when they're closing off the valve. yuan trading over-the-counter currency options in offshore versus the dollar have surged to come and that is a sign of rising demand for these hedging tools. here is another quote, "client demand for hedging and deposits is increasing, and this is where foreign banks are more active. we can paint this against the backdrop of what we have seen

with foreign companies, and that is rising profits in china, even though the economy is slowing, we can bring up a chart and see in yuan terms how china generated profits of foreign industrial companies, including those in hong kong, taiwan, and 250u, rose 12% last year to $3 billion, 1.7 4 trillion, so a lot of money that potentially could be repatriated the companies could use overseas that the not going to be investing in china and would want to remit that, and even the european chamber of congress last others as recently as month have expressed that they might not have the same capital controls as individuals, but we are having trouble as well getting the money out. , wine is going up in price as a result of this. if they can't get their cash out, they can buy tangible assets. wine is coming back.

rishaad: like bitcoin. >> not as satisfying. like 2008, we can bring up a chart where this is a fine wine index. in 2008, that is that mountain upwards where asian buyers drove , ande price of fine wines now you are seeing it up again on the right side of your screen to more than a five-year high as chinese who perhaps cannot get diversify out can into more liquid assets, if you will. rishaad: thank you indeed. now, singapore has announced strategies to drive its growth after what it calls a dark shift away from globalization. the committee led by the finance and trade ministers say free and open markets remain crucial for the country and the global economy. let's get to haslinda amin. tradere talking to the

minister, and you were asking him what it would take to secure singapore's economy over the next decade. what did he have to say about that? they needsimply that to resist protectionism. it is a trade-dependent economy, two thirds of its gdp comes from trade. noweeds to remain open more than ever. i want to show you this chart which shows how dependent singapore is on trade. it is more dependent than any other country and all of asia, and increasing the, singapore has to go deeper in his relationship with australian partners if it is to ensure 2% to 3% growth going forward. it is a difficult environment for the country. we talk about anti-globalization, and heard from trump now it is pulling back trade with the likes of tpp.pore, pulling out of

such sentiment is detrimental to the future of singapore, so singapore needs to explore other trade relationships with the rest of the world. re-skill its to people. when you look at the future of economy, digitization comes to mind, and singapore needs to scale and re-skill. reliant upononomy its resources, and its main resources people. the strategy has reinforced what singapore has been doing over the last 10 years. is there any change from previous practice here? traditionally, singapore has identified certain sectors like pharmaceuticals and manufacturing to drive the economy forward, but this time to the it is leaving it private sector to drive growth and drive innovation. it says the government will play an enabler role as opposed to a

leading role. the other thing that strikes us is also the changing mindset when it comes to risk-taking and failure. it recognizes the fact that in order for innovation to thrive, singapore has to change the way it views risk and failure, but that is one thing that will take time, probably a generational is instilling in the private sector among the people that this has to change going forward. thank you very much indeed for that. that is of course haslinda amin joining us from singapore. coming up, back in balance, maersk lines, we hear from the shippers asia-pacific chief executive right here on bloomberg. ♪

rishaad: let's have a look at the latest business flash

headlines with twitter shares tumbling. there we go. 12.3%. it is down to quarterly revenue and the profit outlook. it is shy of what analysts thinking was. inres closed down the most four months. the social network having trouble bringing in advertisers and users to the platform. a 2 million in the fourth quarter, but many more were expected. sources have told us that s around executive pay for infosys. infosys revenues projected to climb 10%, compared with 17% previous year. isg kong broadcaster tvb

trying to figure out who is behind an unsolicited bid for 30% of the company. it received an unsolicited offer , but did not include information about owners, source of funds, or proof of financial soundness. we have been looking at global trade and freight great ticking up this year, ending last year on the way up, but stricter trade and immigration measures perhaps dimming recovery prospects. the asia-pacific ceo of maersk told us that the world needs to focus on the growing global trade that is there. don't think we should underestimate the impact of 2016 on the industry. you know that we ourselves have announced a loss for that year, but it has been a decisive year for container shipping, not just because of the financial climate, but also because of the mergers and acquisitions taking

place in the industry the regrettable bankruptcy of han jin. would argue and necessary bankruptcy because there are too many. >> there are changes that continue to take place in the industry and paved the way for a more successful year in 2017, so it is about supply-demand imbalance getting better, but also got shippers understanding the need for a healthy supply chain and a need for the shipping industry being in a healthier situation, so we see the discussions we have with shippers at the moment are not just price, but the quality of service and the need to sustain a healthy supply chain because they seen the impact of an unhealthy supply chain. rishaad: freight rates, where are they headed? >> they are headed upward steph maker to expect the same to happen on pacific trade. it is pointing upwards based on healthy economic growth. rishaad: let's bring in the prospect of donald trump and

protectionism, and everybody is worried about this, especially when the first taxi promised to do was get out of tpp. now are you worried about that? >> tpp was not enforced to begin with. rishaad: i mean your general perspective on protectionism. >> with the signs of global trade and the impact of global trade on global gdp, let's not estimate the global trade is 60% of global gdp, so all countries involved have a vested interest to grow trade rather than shrink it. globalization, so we think that eventually there may be a realignment of arrangements, but there will be a win-win situation that will continue to boost global trade the way it has over the last 20-30 years. people are talking about the possibility of a trade war between the united states and china. of course, there is the other side of it, which people say would be of some of the ridiculous because it is not in anybody's interest to be doing that, but stupider things have happened in the world. how would a trade spat affect

this part of the world? trade war ishink a likely to both the nations have vested interests and growing trade rather than diminishing it. the interdependencies globally and also between china and the u.s. have grown considerably over the years. china needs to export more to the u.s., the u.s. looking to export lng to asia, so a trade war has no winners. we see glowing global trade in a mutually beneficial way that benefits u.s. consumers as well as china. i think that is the only way forward. rishaad: there is often this other aspect, moving from multilateralism to bilaterally some, how does that affect things? as the arrangements boost trade, we don't necessarily have fun opinion on how those arrangements should be reached. the importance is to keep growing global trade. 60% of global gdp is trade, so if we don't grow trade, then

global gdp will grind to a halt, and that has no benefit to anyone. rishaad: coming up, india prepares to vote, what is at stake for prime minister narendra modi. this is bloomberg. ♪

rishaad: india's prime minister testing public opinion on his in state elections. a few have had their say, but the big one to watch is a

northeastern state. rosalind chin has a look at why it matters. rosalind: it is at the heart of its economy, and held one of the world's best-known landmarks, big part in a politics. it is india's most populous state, with more than 200 million people, and that gives its voters power. it counts for nearly 15% of the seed in india's lower house, political leaders have been working hard to capture this battleground. prime minister modi's approval ratings are high, but his controversial cash ban left millions in lines, shuttered factories, and slammed the brakes on growth. remains divided. some praising his efforts to curb corruption, others calling it a authoritarian. a win would strengthen prime minister modi's push for reform, see apoor showing could

change in economic policy ahead of elections in 2019. rishaad: indeed, let's get more on this and get over to mumbai. this is a biggie, isn't it? a big election. india's most populous state. that me take you to some of the key contenders. fighting to be reelected. the party is led by his own father. the congress party will be fighting the election to stay relevant and national politics. will hold the key and the verdict of state elections. voting will be held through the course of this month. but the big one is what this

means for prime minister modi. hasde-monetization drive political ramifications, but not yet known, prime minister modi will be hoping that a good showing will make prime minister modi stronger. a week result would in a sense raise questions about the election and set the tone for national elections in 2019. rishaad: thank you so much for that. i had on bloomberg markets, an update on the big stories of the day so far. shery ahn, what have you got cooking? fory: i'm still waiting china's trade figures. they are supposed to improve. exports expected to have gained 3.2%, the first time they have turned positive since march last year.

as well, we had a weaker yuan helping those exports. trade surplus expected to have widened as well. we will also be looking at prime minister shinzo abe shinzo abe touching down in the u.s., expected to hold a meeting with president donald in the white house. saying yen they're manipulation will not be a priority in the talks, but we are seeing considerable yen weakness trading around 113. also the trump travel ban has been rejected by a federal appeals court. we will dissect what that means and its implications. this is bloomberg. ♪

♪ >> from our studios in new york city, this is "charlie rose." jeff: i'm jeff glor of cbs news and we begin this evening with the controversial immigration order. the ninth circuit court of apeals has turned it -- ruling on whether the lower court stay on the executive order will remain as expected. an appeal to the supreme court is likely. joining me from washington is adam lind tech -- liptek. no decision today. do we have a timetable on when to expect it? >>