♪ it is i am here in hong kong. this is bloomberg markets: asia. ♪ the bank of korea's holding rates, they are revealed. that is going to be revealed or soon. despite theking off deity being optimistic. as the stocks soaring,

buyback. to renew their talks into china. let's indeed start with our breaking news. to be expected we do have the interest rate is coming out of korea. we're seeing no change in the central bank, they saw the interest rate staying at 1.25%. this is all than forecast, all but one of them suggested no change. let's go, and get some reaction. kathleen hays, what is your take? >> and think it is not that hard for economist, to see that the bank of korea watchers for them to get it right. there is a lot of moving parts trade a lot of countries in this

world, there is a lot of politics, it has consumers, it also has credit issues. as you just reported keeping that rate unchanged, that is what the bank of korea has decided. inflation as you may recall has quite a bit of a jump. to 2% year-over-year. that is the biggest jump in about four years. meanwhile though, there was a january, but an political scandal are on the president, samsung, people were waiting to see the fallout. just that will give you a little bit more perspective. it is 56.97. the white line is the key rate. you can see how that is moving over the past couple of years. they came way down. it was going so low, that the

bank of korea had to reduce its inflation target to 2%. he went from to it have to 3%. one of the big issues for korea is household debt. in -- it is a record from last year it is still high. the gdp is supposed to pick up, to theuld that do household clear that debt, that will be one more reason for the bank of korea to see how a lot of these forces play out or it rose about lending have been tightened up, that is supposed to close down over the course of the year. that that that that mountain has people worry. fromd the minutes february, showing a move from

fairly soon. >> the go, you left out may, that was where there was a press conference. there was going to be more talk about a particular move, we get to that main meeting. let me just renew a meeting. many market participants expressed the view that it may be possible to raise the federal fund -- a federal rate. if this is in line with our expectations, there should be maximum employment increased. a bloomberg columnist read all there isnd said that too much uncertainty with trump. they are content to wait until the second quarter. it sounds like june for me. we want to take another look at

a bloomberg chart. i love the title of this one. it is 2678. what you see on that white line, those last three weeks of december 2016, the certainty of a hike was almost 100%. that turquoise line, the odds were very low last year. they have moved almost 50%. lindsay to be at same sense of uncertainty. the governor of the fed board said today, a hike could, relatively soon. that i am looking, but i do not see any signs of the economy overheating. he said that there is a lack of people in the labor market. one thing they can do to heal this market, is to be patient. it is that's a like a man who is ready to raise that rate.

what is he watching for the next three weeks, retail sales. he says that is the all important job. it is open, but it could take some strong data to push them through. june is likely for that next rate hike. >> the reading of the tea leaves continues. we are about 30 minutes away from the opening of the markets in asia. singapore is really joining the fray. as well as japan did let's go get a look at the action. about i just want to talk the decision we got, there is no surprise there. low, with that policy rate. the won trading considerably lower. it at 1200 or

dollar. --king at the equity speed paste, we are seeing this leading the drop by about one half of a percent. on the economic data front, we do have taiwan's industrial januaryto forecast in at around 1:00 p.m. , we arexpecting this seeing it turn into the red just a little bit. certainly a difference with the type of performance. , it isesuming today plunging in seoul, korea. that is a record. this stock is connected to

samsung electronics. that is up over 5.5%. of australia, they scrapped their ipo. back up a four-day losing streak. the bhp is shrinking again. that is a stockpile of copper. it is marking its 14th day. the ceo told us that we cannot wait for construction to boost prices paid he seemed confident, more on that later with paul. >> we will talk more about these are needs and continued to talk about this world. let's go to first word news. tophere are changes at the

with the current ceo and chairman to remain as ceo. co-ceo said they will be, soul ceo of nissan. this comes after the recommendation in june. delaying hismp is newfound immigration plan until next week. trump is said the new executive order would be out this week, it temporarily banned people coming into the united states of seven muslim majority countries. it was blocked in the courts. smaller chinese banks have sold thousands of dollars of debt. have $230 billion just from this month. more banks are rushing to borrow

, as this measure is making it harder. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. i am rosalind chin, this is bloomberg. >> thank you. we are seeing shares get a lift and it optimistic outlook after some shares dropped 7.5%. we have alan here who just came after. he seemed fairly optimistic. the numbers were pretty good, it was bang on the line. what qantas is dealing with is a lot of competition. there is not a lot of bad earnings, it is at a lower price.

here is what the ceo had to say about it. >> we all want to make sure we have protection going forward. need it beinge hedged on our oil consumption for the rest of the year. iscourse, what we always do have that adaptability depending on conditions. interest -- interim dividend from qantas. alan joyce says it will be a regular feature. that is i think going to be me, paul. i think they are the biggest producer. there?s been going on these minerals are just a little bit better than estimate.

of a proxytle bit for the copper price. 79%, allsomething like of that revenue comes from copper. is not complete without a question of where the asking that copper prices headed. >> we have a crisis strategy in place. greatnk copper is a commodity. the fundamentals are long-term very good. when you look at the supply and demand side. >> it is interesting looking at the share prices with the copper drop. they do seem to move. it does look like there is enough moving. had, shares of storing a 43%. into theng to drop numbers a little bit later on.

jim lad joins us to talk about the company's outlook for their work in china.

♪ >> you are back with bloomberg markets: asia. imf sydney, we have some last imager with the bank of japan. unreasonable it is to raise these rates because inflation is too low. there seems to be a normalization of this strategy. the side effects of an unconventional policy, with that upper pressure on rates. long-term rates

could cripple the economy. there is an analysis, these are really interesting warnings coming through. [inaudible] >> we will get back to her in a little bit. there largest sportswear manufacturer in china is only up 17%. this company that sponsor the chinese team in the u.s. olympic -- the winter olympics. jim lad is with me now. how is it going? released ourst results yesterday.

since our ipo, the profit was almost four times as compared to what we saw a year ago. >> how does this translate for-profits? we see a growth of almost 17%. as you sponsor the olympic games, is it something which you can exit quantify? saw it as an effort to thed up the brand during olympics. there trying to increase long-term value of our brand. sensee been the partner

2009 for the limbic committee. >> are you planning to extend that partnership agreement for tokyo? >> we have a portion of the revenue each year. know whether or not we will see a sponsorship yet. authorize thel billing and early 2017. didn the last interview you , your vice president said you are looking to acquire new brands. you have a korean joint venture that was just released. nicherget these high end brands, what are you looking for? we wanted to differentiate

our brand portfolio. multi-brand is a platform. that would be can have different segments. our goal is to become the largest sportswear company in china. what are you going to do with that name it is very unfortunate? >> we have three major brands tra. focuses on high-end fashion in china. we actually acquired the trademark for the china trademark in 2009. it is about these various

france, you have the low end and high-end. you are moving on the supply chain as well. people are going to look out for themselves, that is what you capitalize on. >> we are treating the equity of of brand and hiring a letter assignments, we are looking at a lot of technology. we need to improve the technology. this.ck around with to hear the mexican it comes out of your rnd. he is going to be back with us for more, right after this. ♪

♪ this is bloomberg markets: asia. i am in hong kong as we continue this conversation with sports branding. talking about what comes next. what is the next big thing for your company? >> weaving through the continued demand for our new materials. we have been focusing on that in our and the. i think we will continue to produce more of that. >> do you know what specifically it will be? things that are like neo cloth material. .t is much more comfortable di competitive u.s.

, chinalike under armour has jumped 17% in that market. it seems like the chinese market prefers these foreign brands. >> i think china is a very diverse market, it depends on the positioning of the brand. for example, we don't have that much internationally. of price point is about 60% that of the international brand. we also have other brands like fila. we need to just know the positioning on the particular brand. >> you have a lot of cash in your balance sheet, what you going to do with it? >> we have been paying a fair

ratio, we are going to continue opportunity. we are actively looking for more opportunities. >> how much of that are you going to go in other opportunities? >> it is very difficult to gauge. >> it depends on the target. >> we are trying to build a very large logistics center. we would have to improve the responsiveness of our facility. to use theng facility this year. e-commerce is becoming huge and china, there are difficulties when it comes to e-commerce sports branding.

you do not want to buy shoes and a don't fit. >> i think absolutely have to work on. we have to have the off-line .usiness we need to paste the order of the online. a lot of the stuff we're working it is the major e-commerce, trying to promote products. for the past that several years. >> what is the weakest part of your business? in 10 seconds. improveed to further the technology of the company as a transitional brand. we are not to global company, we do not have as much. >> thank you very much.

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the oscars, live sunday, february 26th 7eâ4p on abc. >> it is 9:29 a.m. in singapore. we are covering bloomberg's asia headquarters. sydney, we are kind of playing this guessing game when it comes to the fed rate you can see something happening in may, with the bank of korea holding steady. issuing a warning. they are trying to influence rates. they are destabilizing.

>> the future is looking at trying to normalize. that has been a abnormal for well over a decade now. now, wel we have right are going to look at the adjustment rate. perhaps it is in the green. it looks like we are seeing that with angst saying. i am sure they can do that. we are checking on some of the movers here. we are looking at the new world development, we asked bankers , thisommunication performance despite that we saw the hong kong section rallying.

we do have china's top brokered saying it is applying into hong kong or i. we are seeing fault 1/10 of a percent. this is leading the drop in the we did have a shaky morning so far. far,some of its drop so let's compare this to how it is inparing with other players the shipping space. for example what is going on with cost so. this is up about 1% here. the chinese shipping stock has been surging and midst conditions that they were expected to create some of these shares are up 35%. jumping 9% in

singapore. the second biggest oil rig built. certainly change and midst these markets. >> fortunes there, let's get a quick check of your first word news. >> with korea central-bank policy unchanged, there are concerned that concerns about the political scandal. that was widely expected. the political scandals have now ensnared the south.

some officials are thinking they can raise rates party soon. talks about the trump administration and the rising dollar. there is a 2% chance with the treasury stock. recentlyal bank has opening funds.he the money market rate has been arriving again, with the cash that was gained over the holiday. sources are also telling us that the investment bank has been gaining for the third year running. cuts,n part due to job increase. sought an

ceoill be speaking to the here on bloomberg television, the bank is 3:20 p.m.earnings at hong kong time. that is very early or very late in new york. --global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. this is bloomberg. this, there back to was a policy in the bank of japan. the is a need to normalize policy. let's bring in kathleen hays from new york. cap lane, 2% should be a long-term goal.

it is essentially unattainable. part of this is that there has been a simmering debate, especially when you talk with officials. goy will ultimately have to or modify the policy, to keep that yield. they are craig fugate anchored to zero. the have been the center of policy. they have been trying to's eke out against this today. -- they are saying there is many negative aspects of this. they are trying to keep the tenure of around zero, it could actually destabilize japanese market. they said the upper pressure on rates, they are talking about global rates, that puts more of a challenge on the face of japan.

he says the policy is going well. said the key rate is anchored around zero. ,his whole thing with inflation it was unreasonable to expect a notable increase in wages. we are coming up on negotiations. more of theirng eggs in a basket, more than they are willing to push. would expect he is not looking for that kind of confidence yet. he is looking at that 2% inflation rate. why it is not really going out into the public, out for the headlines of bloomberg news. because it isly heating up to the next bank of japan meeting.

>> it is interesting, because publicly they have said that these inflationary rates are coming from wage growth and sentiment is not really coming in as quickly as they hope for. we are also seen this kind of --lity play out a class across the global markets. we are seeing that in australia as well. you are focusing very closely on that. interesting to see where they yen goes from here. weaker yen it could help your exports worried it becomes much more expensive, they could blow through two japanese inflation. prices, theenergy emphasizingn is

higher oil prices, anything it can do to help them. it is an important question to know if they can get some traction, to try to boost the expectations. consumers who are more confident with their jobs and are willing to spend more money with these changes that have occurred. sarkozy says he does not exactly agree. there is a pretty powerful crack that is taking place. he is saying look these negatives have aspects. there is parts in the negative market there. this.e been concerning loring craigie is stepping down.

is a profit of $1 million. we have a coming through that the company opportunity to retreat from the chinese market. that is really interesting. we were expecting a lot of that to be on the burning, but with these delays. >> precisely. we are seeing 15 rather than 18, that takes the number 214. that is new today, that probably should be clarified. picture,of the bigger there is that marketing in china. they have to move that two other places, it could be an option.

they are very much saying it is a pause. scrapped the hotels. it is another change and strategy. , the state in milk oh crown said they do not need the proceeds from that ipo. it is in-house for now. date on thisany up stuff. , john alexander who was saidxecutive chairman there are legal processes underway. he said their employees have

been arrested and they need to tot for the legal processes run their course. it is going to be a waiting game still more to play. almost haves is here. this comes down to the consumption and china? >> it is a little bit of both. it comes to that, china has gambling.it on the there is not as many highroller gamblers that are coming from china, having to hit the bottom

line. seem to have try that out today. 8% saida little over this was mostly the special dividend. there is still pressure on the bottom line. guest is up our next , she to have a closer look is responsible for a few million dollars with of assets. next. ♪

♪ marketsis bloomberg asia. i am in australia.

>> a bit of your flash headlines , the shares are highest since the brexit vote. this after the surprise profit jump. billion dollars, breaking expectations. they are trying to hold above 2.2%. >> they expect oil to stay in the same range this year. war, as see a cup of opec plans to cut output. he says this will see a short to medium-term $30 per barrel. you are seeing a flaw happen in the market right now that is under $50. the high will probably get up to $60.

you will see that rebalancing coming, then you will see gradual growth. then we will see that drop 18%. you have not seen those lows since the asian financial crisis. there is not really a key concern there. is the most we have seen in the aviation world. at 10:41e joining us a.m. hong kong time. guest is shaped by the rise of those interest rates. ce oh -- coo, you talk about

and the rates changing. what do you go from here? >> i think generally we are in a pretty big fade, we are in this synchronized growth environment. with japan and europe emerging as markets, they are not picking up quite strongly. that is looking quite good. likeerm of some issues europe and japan, all of this is very positive. equities,a need for however there is this world of new politics. there is new normalization of this is oftes,

course very apropos. we have elections coming up in your up this year. i think what you need to really think about is protecting portfolios in a certain way. they are very cheap. time, protecting portfolios and buying photo of the. >> we are seeing the fed expect to move at least three times, will we see a repeat when it comes to emerging markets. >> it depends clearly on the speed that it is going. look at china, it is important to see what the other measures are when it comes to

the financial industry. you take the u.s. and this normalization half, what matters is do we see growth picking up. we see that the men picking up from all over the world. when you look at your up, for example, with the numbers that came in yesterday. inflation, youof ,ee some kind of continuation but there is the normalization happening in a normal way. helping the is market. clearly it can happen much faster than people expected, along the way.

that can be quite difficult and create an air pocket. it can have irrational politics popping up as a result of the structural inefficiencies that we have seen. this is irrespective to policy, if it is not working on now, is never going to work out. >> i think in terms of normalizing, you have to stop normalizing. clearly in terms of the timing and size, the way we normalize is very important because the environment is very fragile. not only coming from a macro environment, we are looking at these new politics of they are talking about. the fact that when you take in process,hich are

there is a need to take up this separate political process to have a may be tighter framework. japan,se in europe and we are at a very different stage of normalization. haveve not even started to a normalization of rates. it is sort of falls with this background of improving growth and seeing how we discussed politics. ceo --ou are >> my cup thing is you want to be engaged, you want to be diversified. as i mentioned, you want to have volatility prediction. an emerginghave market that is quite interesting. the rebounded about

growth that you are seeing in europe and japan, but if you look at absolute growth, clearly the absolute growth is the highest in the emerging markets. as we have this year of , there are markets that are still very cheap and attractive. they must have a place in the portfolio. thank you for joining us. next, it is the chinese social media service that is no bigger than twitter. on the way. ♪

♪ >> this is bloomberg markets asia. i am in sydney. i am in the bloomberg asia headquarters here in hong kong. that prove that a

chinese social media network is bigger than twitter. it is a very good report here for them. numbers,look at the fourth-quarter revenue is included by 34%. >> they are probably wrong aren't they? >> they are. for their net revenue it hit $212 million. the increase by 33%. steadyve been seeing a gross of 33% of active monthly users. twitter invals like china have seen stagnating numbers for the most part o.

both is seeing a pretty good growth in china. streaming, video, this is an area in which they drive them into the future. as well as the marketing revenue will keep it profitable for them. create -- bit like comparing apples to oranges, when you look at these two companies, with over taking twitter. >> it is largely based on the twitter is not having not so great results for the court order -- fourth quarter. we are seeing the market value competed against each other.

you can see the market cap was just under $4.4 million. >> thank you for that. after the break we will be discussing what is going on.

>> it is almost 10:00 a.m. in hong kong and 1:00 p.m. in sydney, 9:00 in new york three-time haidi lun in sydney. rishaad: and i am rishaad salamat in hong kong. this is bloomberg markets: asia. haidi: the bank of korea holds rates after the fed reveals official see a hike fairly soon. crown resort surging as it announces a buyback and scrapped a planned hotel ipo. xp has improved performance ahead after 18

percent profit. we will be speaking with its ceo, ishmael. rishaad: we are in mumbai with the latest on the telco wars. haidi.ing on, the overall picture is that to present target proved so elusive, that perhaps it should be a symbol. that is what it has been, hasn't it? haidi: we have been talking about this for so long now that just looking at completely the wrong indicators when it comes to whether you are getting that recovery in the japanese economy, but certainly, there is at least one policy makers a net what you're doing now with the control, it is an unconventional monetary policy and could be quite damaging. let us get to the market action so far today. sophie kamaruddin had all that for us.

sophie. sophie: major markets in asia today on the decline had by the nikkei 225, lower by .5%. shanghai losing 1/5 of a percent. we have the pboc adding funds reverse repos this thursday. the shanghai comp in the red. we are seeing real estates on the rise in that index. take a look at the hang seng. we have the likes of hsbc falling for a third day here. the world number one pc maker, lenovo, slipping. side, we have hong kong property players continuing to power ahead after the budget unveiling on wednesday. the government refrained from adding on to cooling measures. that is seen as a boon for changes. anticipated increase of some 70% in the next five years. some stimulus there for property

stocks in hong kong. certainlyyen strength weighing on that index. some exporters in fact dragging there, but we have seen volatility for the nikkei 225 fall to its lowest since august 2015, and to achieve a falling today after surging -- and toshiba falling today after surging. it is withdrawing from four nuclear units according to the nikkei newspaper. we have yamato climbing over 7%. ofkorea, we have a day swings so far. that is coming down to what we are seeing with hanjin shipping falling as much as 66% earlier today. certainly a change in fortunes in the shipping industry not helping hanjin there. the stock will be delisted on march 7. bank of agreement -- and with that big of an -- and with that

bank of korea announcement of the won rising. it is stronger for a third day against the u.s. dollar but there are concerns this rally has been overdone. rish. thanks, sophie, absolutely, and a look at the bank of korea and deal, it is using it to keep his interest rates on hold for the eighth straight months. theleen hays, tell us motivation behind this decision. it was pretty much universally asked that did -- universally expected. kathleen: the bank of korea has to juggle a lot of factors right now because they have many things they have to contend with . inflation has just jumped in the month of january, jumping 2%. it has not been that level in many years, and at the same time, we do see the consumer sentiment fell sharply. let us take a look at some of our bloomberg chart to depict some of the forces they are

dealing with, and what you have got here is the white line showing the key rate now down to 1.25%, a record low. look at how it has gone steadily down since the financial crisis engulfed not only the u.s., but the world. meanwhile, inflation, which has also been on a steady downturn since the global financial crisis, is now starting to pick up again, but the question is, will it last? there is higher food prices. will that last? exports are rising, gdp is rising. these are good signs for the bank of korea, but they have high and rising debt. household debt hit a record high in 2016. it will all come together and the bank of korea can stay in petition for a wild. as economists look at what the bank of korea has done so far, they are saying that they think over time this year, we are going to see rate cuts by the

bank of korea. they know the gdp growth is going to slow down. they are not going to stay here. the korean economy is going to need more stimulus. haidi: kathleen, we have other central bank news, minutes from the fomc february meeting policy door is at least a jar fairly soon, so we are looking at margins being live properly now? kathleen: i'm glad you used that word, haidi. they go back and forth. it does not mean they have to hike a rate just because the meeting is live. this is the sentence read around the world. many meansipants, probably more than halve, express of you that it might be appropriate to raise the federal funds rate again fairly soon if incoming information was in line with or stronger than current expectations.

now, this led to a debate among fed watchers. columnisview, said that columnists -- bloomberg view columnist's said there is a 50% chance. goy said the fed is going to slowly and there is too much uncertainty about donald trump and they do not detect any urgent or imminent hikes in the latest set of minutes and they say the fed is content to wait until the second quarter. they are waiting for the next interest rate increased to come in june. however, jay powell -- i should say, following on that line, said governor jay powell speaking in new york today did say a hike could come fairly soon and the u.s. economy is close to full employment, however, he also said he does not see the economy overheating through the fed can be impatient labor market

lackluster. unless you see strength now in the next three weeks over the data he and the others at the fed are watching, retail sales, inflation, and jobs, he make be content that she may be content to say, let us wait a little longer. he may be content to say, let us wait a little longer. rishaad: let us get to the first word news. >> president trump is delaying the release of his immigration plan until next week according to a white house official. trump had said the new executive order would be announced this week. the original order temporarily in the u.s. from seven muslim majority nations. triggered protests and was blocked in the courts. co-ceo president and chairman to remain us chairman on may from april the other co-ceo will become sole ceo and

company president. shortcision announced a time ago was at the recommendation. he will seek a renewal of his mandate that chairman in june. sources tell us that are klees -- barclays was reduced by a similar amount to last year's 7% decline in part because of cuts and a hiring freeze during 2016. the production mainly affects senior officials and traders. the ceo laterto today on bloomberg television during daybreak europe at 3:20 p.m. hong kong time and 7:20 p.m. in london or 7:20 a.m. in new york. powered by more than 2600 journalists and analysts in more than 120 countries, i'm rosalind chin. this is bloomberg. haidi: thanks. with an optimistic

outlook. 7.5%.ngs dropping we did hear from the ceo early this morning about how we are in the final stretch in the turnaround. >> it has been a long hard road. everybody has gone quiet on that now and he says he'll stay in the job as long as the shareholders and board want him to, so take a look at the numbers. pretax underlying profit, bang in the middle of guidance from qantas coming in at $825 million. did have a lot to say about competition. it is down for everybody, so competition has driven down fares, increased capacity as well, so the hedging program, more important then ever for qantas. here's what alan joyce had to say about that. sure we havemake protection go forward and we are 90% hedge on our oil consumption

for the rest of the financial year. of course, what we always do is just maintain our flexibility and adaptability to pentagon conditions out there. after a long break, he says dividends are going to be, regular feature of qantas earnings now, paying a dividend every six months now. rishaad: paul, just having a look at what is going on with vsx, -- the asx. rather -- vip turnover plunging going on as well there. what is happening? >> a lot is happening with crown. the net profit up 75% of 359 million australian dollars, but year and revenue down 5%. vip turnover down 45% to 19.6 billion dollars. there will be a dividend from

them, $.30, and a special dividend as well of $.83 and paying for that because the ipo has been abandoned as well. paul: as if that was not enough, the ceo is also stepping down and he will be replaced by the executive chairman, john alexander, stepping into that role, and he says crown is not going to be walking away from china despite the detention of its employees. so much news out of crown. they are taking it pretty well, up 8% now. haidi: finally, we also had reporting. they must be sitting pretty given the situation right now. paul: that's right, cover makes up 79% of all minerals revenue spirit where the price of copper minerals.oes aus we had the ceo or speaking a short time ago. here is what he had to say on the outlook for copper. >> we have a growth strategy in

place so we think copper is a great commodity to be end. the fundamentals for copper long-term are very good when you look at the supply and demand side. paul: a net profit for oz minerals and a dividend of $.49. haidi: very good this season when it comes to commodities. paul, thank you for that. still ahead on bloomberg markets: asia, we will be speedy to the ceo of air asia. posted a record annual profit despite its 80% slump in the last quarter. ameritrade could consider the biggest retail trading company by volume was almost $800 billion in client assets. what the clients are thinking right now. the questions they are answering as we talked to the asian ceo. ♪

>> this is bloomberg markets: asia, i'm haidi lun in sydney. rishaad: rishaad salamat in hong kong. numerous says it is rate -- nomura says it is raising and improving its work culture. 1500 employees, will rise an average 2% from april. nomura wants workers to contribute to the recovery. haidi: reliance regained. india's second-most valuable crunch many -- company. the stock was up 11% at the close. almost the company at $60 billion. reliance has ended its free data plans and will begin charging in april. the company has spent money on its fourth-generation wireless data network. sembcorp marine chairs

rallying in singapore after came out with a quarterly profit which was better than expected. weather theto industry slump. revenue down 30%. capital among the companies that cope with thet to drop in crude prices. people don't have the resources to go out exploring. the world number two oil rig builder with a rising global demand for gas and non-drilling solutions. our next guest says u.s. equities outlook is still attractive and the next height will come in may. brankin.s now, chris we are looking at march and have been looking at june. there is a press conference in may. are you going to go there? i think a couple key things

are going to happen. i like to look out at the fed funds futures and most likely, they are predicting that june rate hike at about a 75% probability right now. that you have janet yellen is going to speak march 3 in the states, march 4 in asia, and we will see what kind of rhetoric and tone she has around that, into the march meeting, if they do not hike rates at that march meeting, if we do get some type of hawkish undertones, i think may really comes into play, and i would anticipate the next hike comes at that meeting rather than wait into june which gives them more flexibility going out into the year, and keeps them cautious by not hiking here in march. rishaad: yeah, and christopher, let us take a look at one of the things the fed will probably be looking at, the earnings season. give us an idea of what corporate america has been doing. clearly encouraging, but not

really, you know, i guess, hitting it out of the park. well, sure, i think there is areas of relative strength, so you have, s&p 500 , upround 5% for the year over 3% of the month of february. some areas we see our customer base at td ameritrade asia focusing on are the financials and energy sector. couple big stocks in the financial sectors that we see kind of being bellwethers to isch way the target is going bank of america and jpmorgan. these have been some of the most actively traded stocks by our customer base in the u.s. and across asia. and also on the energy sector, it continues to be exxon mobil and chevron, you know, giant energy stocks that also have relatively decent yield around 3.6, 3.8% respectively on the two. haidi: chris, you know, i know we said earlier your view on

u.s. equities being still attractive despite the market being pretty expensive, let's be fair, does that suggest you see this trump reflation trade continuing? in that case, do you really suggest rc investors buying the ?ext few dips that we get christopher: do i see is buying, absolutely. what looks relatively attractive and is their optimism in the markets? if you look at the forward ratio on the s&p 500 right now, historically, we are around 15, but right now we are pricing out of 17 level, so there is optimism put into the price-earnings going forward for earnings for companies coming out your there was a remainder of 2017. -- coming out through the 2017.der of with the s&p 500 dividends being around 2%, and a 10 year yield only a little bit above 2.4%

right now, you know, it makes them relatively attractive, so i trend higher, to and we see our customer base at td ameritrade asia have been net new buyers of basically across most asset classes for all of 2017. rishaad: optimistic at least, and that is good. i think optimistic specifically when it comes to the u.s. or what is do with going on around the world. let us say, the likes of oil. christopher: sure, i think more optimism around the u.s. right now, more kind of wait and see in terms of what happens with some of the trump administrative plans of what is going to happen around asia. europe is a different ballgame altogether. we are waiting in terms of what happens with some of the elections and some of the geopolitical things going on throughout the whole region. other regions have potential, you know, relative strength or even weakness.

strength of the energy side, i think, as we have seen oil kind of in its tightest range since and there has been a tug-of-war in terms of which way the market is going to head. we have optimism around the opec and non-opec production cuts, and we have concern around the ally building surplus on their oil really in what they are holding. which where we headed? , andously optimistic globally, we see customers kind of keeping oil all, the wti oil around that 52 percent to 54% range, so tonight, an important number coming out from the eia in the u.s. to see what is happening with the u.s. inventories and i think that is going to give investors and traders a better idea which way the underlying commodity is

going, which is going to help kind of gives an idea of which were the overall sector for the stocks within that sector are headed. haidi: chris, appreciate you coming on. we will leave it there. chris brankin, ceo of ameritrade asia. losing a senior executive. we will break down the company's earnings and hear why it is on the right track. this is bloomberg. ♪

rishaad: this is bloomberg markets asia am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. tesla shares rising in extended -- posting aarmaker narrow quarterly loss and sending us the much anticipated model three which remains on schedule. tesla reporting

fourth-quarter results and it was always an interesting one with tesla, shares at $2.2 billion. the losses for the company, cannot call them fourth-quarter earnings, the company continues to lose money in the quarter, losing 121 million dollars, but of course, sales, it is worth noting, vehicle sales down 9% sequentially from the third quarter sales of the model s and the model x. it is all about the model three, the much-hyped, allegedly cheaper car, when they put it on the market, but the company says , sticking to its guns, it is going to get a few of the cars out, at least one in july. the third quarter looming very large for this company. cory: they are going to have to spend two and a quarter billion capex to get those cars onto the market. with the combined businesses of tesla and solarcity, we saw $960

million burn in the first weeks of the company. you do the math. h 1.25 billion dollars. that would dilute current shareholders, but there was big news. the chief financial officer is bailing from the company and the old cfo is coming back to fill the job for the time being. the cash flow issues continue for this company with no plans to raise cash at least announced in the conference call today. cory johnson, bloomberg news, san francisco. one coming through from the ministry in china saying we are going to preventing large fluctuations when it comes to the property market there and they are going to keep differentiate property curves in cities, too. that is what we have coming through from the ministry of housing.

coming up, what is going on out there. what is giving twitter's chinese rival a boost. we will have a look at that and get a full market update as japan heads into its lunch break. ♪

>> it is 10:29 in hong kong. i'm paul allen was the first word headlines. south korea's central bank left its policy rate unchanged for an eight month as inflation offset concerns over political scandal. paul: the be ok held be 7 -- the bok held the repurchase rate at -- the political scandal surrounding president park jay y.e has ensnared lee. fed officials are confident they can raise rates gradually while a hike fairly soon might be appropriate to avoid the risk of an overheated economy. showatest fomc minutes

them uncertain with the trump administration. traders now pricing and a 32% chance of emaar tight. the dollar and stocks fell while treasuries advance. stephen mnuchin says a strong dollar signals confidence in the u.s. economy and its appreciation over the long-term is a good thing. however, he has told the wall street journal that short-term gains can have effects that are "not so positive. " recent gains to the dollar for support of president trump and said before winning the election, he favored a weaker currency. smaller chinese eggs have sold record amounts of debt this month before possible new rules would make it harder to do so. he sold $230 billion of negotiable certificate deposits this month. smaller banks are rushing to borrow as the pboc may force all sales too add new ncd

their measure of interbank borrowing, making it hard for them to issue securities. global news, 24 hours a day, 00wered by more than 26 journalists and analysts in more than 120 countries, this is bloomberg. haidi: this is limberbutt with asia, i'm haidi lun. rishaad: the latest on the -- this is bloomberg markets: asia. i am haidi lun. day for markets with major industries. nikkei 225 going into the break about 30% -- a third of a percent lower. taking a look at what is going on with the kospi, a day of swings itself are given what we have seen with hanjin shipping shares. 66 stock plunging as much as percent earlier today. it has been a bit of a rough ride for hedges. it was declared bankrupt. over the course of the past

year, the share has dropped substantially despite climbing somewhat in january, and on march 7, the shares will be delisted. this is compared to how global shipping stocks have been faring . the shares are trapped by bloomberg intelligence, up 18% year, but the drop in hands and weighing on the gauge this thursday. falling today after surging some 10% on wednesday. chinese shipping stock has been climbing with expectations there the be profit recovery for sector and other shipping equities and focus. we have mitsui engineering advancing for a fifth day in tokyo. this company builds and repairs ships and over in singapore, sembcorp marine jumping 13% after jump into the black. it is the world's second-biggest bigger of oil rigs. it has turned profitable after cutting operating costs by

count.g head they try to grapple with the downturn in the industry. rush. rishaad: thanks very much indeed for that. that is sophie kamaruddin. the chinese social media service that is bigger than twitter. who is it? fourth quarter, a very good one eibo.e bow -- w offering a lot more than twitter. videos, my streaming, and all these areas which bloomberg intelligence say make it good for growth in the future. 43% year onup by year, $212.7 million, and adjusted earnings for share, $.34. users up by 33%.

fourth quarter ads and marketing revenue up by 45%. this is where it is going to make a lot of its money from. first quarter net revenue forecast at $190 million. weibo shares up 250% this year. rishaad: huge. haidi: possibly going to continue. rishaad: 283%. haidi: [indiscernible] being focused on one market obviously in china, weibo has overtaken twitter in terms of market cap. haidi: it has. some of that is partly due to less than great fourth-quarter results from twitter and of many peopleone, thinking there is a lot of growth to go for weibo. rosalind: really, to differences in the outlook for the company

here. twitter has the market cap. this chart will show you weibo against twitter's market cap and you can see there that weibo's market cap was under $12.4 billion. at $17 per share and just over $57 i believe, $58 per share. twitter being white, blue is weibo's market cap. it has only been in the last few months or so -- last week, i think, last couple of weeks -- for twitter, the share price dropping. i think the differences are in outlook. twitter for example is seen as -- numbershly active user are stagnating whereas for weibo, those numbers have been growing steadily.

30 plus for several quarters now. probably going to continue growing at of course, not yet really fully made the most use of its subscriber base and that is where a lot of analysts are seeing revenues are going to come from in the future. haidi: all right, thank you for that. woodside is among the energy producers enjoying a jump in profit thanks to a rebound in oil prices. this has been the theme of her spite this earnings season -- of piteite this art -- of re this earnings season. >> in the market of course is this other concern out there which is what happens over the next two years as this comes into the marketplace and what i say to you is in fact demand has been meeting it. it is not a thing that you stockpile. every day that you stockpile it of course it starts to evaporate and boil off and you have got to

use that in another product, so it has a much higher cost per storage, so it gets used. the good news is that as supplies come into the market, of course what has happened is demand had stepped up. i think that will happen for a period of time to read that is having an effect on people's stock price because they have not got a lock through it yet. it is easier on crude pricing. they are not quite sure. haidi: where'd you see the demand coming from? >> everywhere, places we would not have thought of five years ago. one of the big players in the market right now, companies like egypt and pakistan, for example, and more recently in january, we have seen the 13th five-year plan come out of china, and china is committed to more gas in their energy over the next five years. the important part of that is the details, and what you are seeing is gas coming out of ofsia, less coming out unconventional in china itself. peter: that means it is bigger. haidi: there is two things at

play here, put the case forward for developing the offshore -- entre rather than floating. do you think other venture owners, shell, exxon, are going to embrace that? will you see that cost-cutting come through? known in the upstream part of it, so the answer will be, whatever is the best commercial outcome, so what we're saying is, let's put the best competitive case forward weekend for the onshore and use the infrastructure and try to get the best out of the capital. if floating turns out to be the best case, that is simply because it is the best commercial outcome, so either way, woodside investors are winners in this. haidi: windy you expect that to be brought forward in terms of the start of that project? -- when do you expect that to be brought forward in terms of the start of the project? the first cargo is coming

out of the wheat stone project. if we can repeat what we did, we are on the upside of that. respect to costs, we are at the low part of the cost curve so all the equipment, the things that will move costs are in place now and it is simply commissioning it, so it is people cost at the moment so we don't see any real pressure on cost at the moment when we look at our contingency going forward. rishaad: peter speaking to haidi on daybreak australia earlier. coming up, after annual profits, what does asia x have in store for 2017? we will be talking to ben ishmael. this is bloomberg. ♪

rishaad: ms. news conference taking place at the moment in

seoul, the bank of korea governor there, speaking about the possibility of the united states naming the koreans as being for the change manipulators and talking about authorities not intervening for other purposes. the fx rate is as determined by the market, haidi, so that is what we have at the moment coming through here, and of course the backdrop of those interest-rate being kept on hold. right.that's a low possibility of the u.s. .aming korea as a manipulator this shows you how intertwined global trade and regional trade is in waiting to see whether president trump makes good on the rhetoric and threats he made a labeling china and other countries as currency manipulators. governors saying china being named as a manipulator would be hurting korean exports, and overlap when it comes to regional economies, and the be saying they the bok

do not participate. he is speaking at the moment in seoul after the bank of korea {on hold. we will be getting back to that in a little bit but let us get a check on the latest business/headlines for you. shares in lloyds banking group jumped to their highest after the lender posted a surprise jump. britain's largest morgan lender posted a profit of $2.2 billion, topping expectations. it expects lending margins to hold up above two .7% despite u.k. interest-rate that record lows. 2.7% despite u.k. interest rates at record lows. the big new energy financing investors installed 3.8 gigawatts of turbines in the u.s. last year.

market share topping ge's 40%. ge had been a dominant supplier in the market since it entered. haidi: a slump in the ringgit plunging.rofit net income fell in the fourth quarter as malaysians currency hit levels not seen since the asian financial crisis. the low cost carrier warned a keylity remained concern. a large portion of its borrowings and operating costs are denominated in u.s. dollars. rishaad: joining us now from -- islumpur is been islam ben ismail. related to the currency. it is down to the oil prices as well, to some extent. benyamin: nice talking to you. yeah, i mean, in terms of the currency, we are coming into a year where currencies will be slightly higher.

few i think were quite comfortable. they used up a little bit, but the key thing that we hedged on the lower side close to 72%, so any increase is in the money, so that is a good sign for us. rishaad: right, well, how much of course are you hedged right now and i will price? benyamin: we are at about 72% about 64ull year, and u.s. dollars per barrel and that is where we are now, so that is the price on average, so we are quite ok. what is your comfort level when it comes to oil prices? benyamin: our comfort level, we are far off. the past, we started sweating when fuel was about $130, one

hundred $50, but now, we are comfortable where we are, so i think it is going to be -- $150, but now we are comfortable where we are. still an oversupply of fuel, so i do not think there will be any pressure in the fuel prices other than volatility moving forward. just saw this monument president trump's travel ban is being delayed, push out through next week. do you see a threat to your business coming from any sort of travel or immigration ban or do you see opportunities that could be maneuvered? benyamin: it is an opportunity. i will give you a example. hawaii, there were some concerns when i was there as well in the u.s. there will be no travelers going on our flight, but first of all, the travel bans are more linked you know, towards the middle east. there is nothing in asia, southeast asia. two, on my flight in hawaii, it has been record sales for us in

the last two weeks. we are up to 80% and predominantly for that travel, passengers or from japan, but it send of that is from japan, but also, i mean, that exceeded our expectations because we never thought there would be many travelers coming from southeast asia, but they had actually our expectations. people from malaysia and people willing to do a to stop just to go -- a two stop just to go to hawaii. you think it is a worry. i think it has been going really ok for us. rishaad: how did yields play out and all of this? yields are seemingly under a bit of pressure because of a variety of things, not least of course, the oil prices we only discuss here as well, and how are you driving to change that. been, i: yields have mean, we spoke last time, for the last three quarters, fourth quarter, actually, the yield have been inching up, but i think the yield you see in this

one, it is really just a slight decline, but that is alf-inflicted because we had lot of capacity in the fourth quarter, 34% capacity. a lot of that was really seasonal increase, like for , weple, melbourne, taipei went to three times a day, but boys was still on the high. it was a dilution in terms of the yields. it was really just employed instead of the market itself. rishaad: what about requirements for planes, new routes, and will you be starting your london route, for instance? benyamin: we are doing analysis into that. direct,e, you cannot go so we may have to look at a third-party aircraft when it is available, but the key thing is about finding the right aircraft and yields. i know you know as well that

london is a very high competitive route. the yield on that route are ourly low and yields for us bottom line. if we can make money out of it, we will do it, but if we don't, we wait until the right aircraft comes and a more fuel-efficient aircraft that we feel will make the route. if not, we may look at a one-stop are somewhere, but a one-stop has to make sense for us so you can make traffic from the market rather than just relying on malaysian traffic. haidi: if you were looking to expand your fleet, who would you be talking to? wide bodies, narrow audience, purchasing or leasing -- bodies, purchasing or leasing? benyamin: airbus. i think predominantly, we are looking with them, but of course, it does not rule is out for going to look at other types of aircrafts. 30.are coming out with 3

we are working now in terms of ,he aircraft, the seat count and that can take us to london, but of course, we are still two years away, so it is a bit of patience. if we can get something in between, why not? rishaad: is the next year going to be a better one for you, do you think? strap your ready. the next part would be, talking about your load factors, what percentage of the planes are you filling up right now on average? benyamin: on average, first quarter, we ceded what we did we did lastd what year, 82%, 83% for first quarter. that is driven because of the chinese new year and holidays in this region, so of course, it has moved up.

it has been quite good, actually. we, ar stillr ahead of where we were last year, but it gets to be quiet second quarter, so we just have to make sure we fill up the plane, but this year, we are a almer in trying to push capacity. this year, we are looking at 30%, so for me, it is just to make sure we inch up factors for this year. haidi: ben,n -- thanks for coming to speak with us. have won round one when it comes to india's telecom tussle. this is bloomberg. ♪

you are with bloomberg markets: asia, i'm rishaad salamat in hong kong. lun in sydney.i we will be watching reliance industries when trading kicks off in mumbai in just about one hour. reliance regained its rank as india's second valuable company on wednesday on news it telecom unit will be dumping its free data plan. pricee been tracking the wars from mumbai. what is reliance doing, what is the next move? from april announced

1, it will start judging for their services. you do know that reliance was until march,tember so they are sort of finally saying we are going to start charging for services, so that is a big move. question has got to be, are investors happy about all this? siddharth: i think investors would be happy about this because of the company finally making revenue. they have 100 million customers but no revenue market share because they do not have sort of any paying customers at the moment, but from april 1, they will do so. they are banking on the fact they will get customers who will pay for it. haidi: what about their rivals? it looks like it is setting up to be a pretty protracted war and they might have to get creative to get the step up. sure.should -- siddharth:

they had tried to match the offers. they have been fighting a court battle as well. they want to get reliance's stock offering. the free services have dented services. get a bit of also consolidation in the industry. we are hearing another company may exit the market. there is also talk of consolidation. india is a very crowded telecom markets are you have 11 carriers battling it out, and the top three carriers control about 60% of the market, so yes, there is consolidation. already, water ford talking about consolidating to create a new largest carrier, so we have lots of consolidation at the moment. haidi: that is just about it from us today. will be telling

us about her radar. take it away. of central bank news to go through today including the bank of korea leaving the rates unchanged. we are also going to be talking to singapore's second-largest developer, city development. the executive chairman will be joining us. we will ask him about fourth-quarter results. chinese regulators putting on a unified front to look to beat the growing risk. we will discuss this on bloomberg markets: asia. ♪

>> from our studios in new york city, this is charlie rose. >> good evening, i am anthony mason, filling in for charlie rose. donald trump's path to the white house was energized by a andlist campaign message, vowed to take action through a series of initiatives, lowering tax rates and connecting a major infrastructure spending plan. donald trump already pulled the united states back from international trade. joining me now is a columnist for bloomberg