>> on the record, the fbi director says there is no evidence to support president trump claims of wiretapping. presidency says four hikes this year, the other says, what is the rush? >> the process of leaving the european union. corruption.n of south korea's former leader faces prosecutors over the scandal that brought her down.

and we have about the world covered here on daybreak asia. in seoul wearing part --esident gauck an install where they will impeach president park. with: the riveting hearing james comey. his testimony at that committee hearing. is daybreak asia coming to you from bloomberg's and asian headquarters. i am betty liu in new york just after 7:00 p.m. now. yvonne: it is just after 7:00 a.m. in hong kong. i am yvonne man. some fed speakers, but not much movement in the markets. betty: what is interesting if you are seeing volatility just creep up a little bit and that has a lot to do with now sort of this added uncertainty about where rates are going to go give an use a virgin views you are

hearing from that speakers. we are going to hear from a lot more this coming week. stocks pretty much ended flat to lower today on wall street. not giving much direction to the markets in asia. loss tothird straight the s&p also, dollar fine for a fifth day. in asia, quite gains. that is what our mliv bloggers are saying. themealand is one of today. we are seeing some modest gains on the index, up .3%. the kiwi dollar at $70.51. the $48ly dipped below level, but the aussie seems to be holding on right now ahead of the rba minutes coming on in the next hour. japan, back from its springy when a holiday today. we are seeing six days a gain from the yen. 1252 -- nikkei00

futures, 112.52. betty: that is were all the volatility was in washington. now, the directors of the fbi and nsa testified a hugely anticipated intelligence hearing. we are on that throughout the day in the u.s.. 2016a meddling in the presidential race and donald claims the obama administration tapped trump tower. ramy inocencio has been on these hearings all day long, so let us start with russia. we got confirmation that a probe does exist, right? remy: right. this is the biggest breakthrough we have gotten. we now know director comey has said it has. ramy: it has not just been for the past few months, it has been for the past nine months, ever isce late july, that this

not something singular. this is a broad, wide-ranging probe. let us listen to what he had to say. in terms of why the motivation for russia's meddling. >> putin hated secretary clinton so much that the flipside of that coin was he had a clear preference for the person running against the person he hated so much. ramy: it boils down to something very rural, betty. had blockednton mr. putin, so he said if it was not went to be hillary, it was what to be the other person. in this case, donald trump. it was a connection into the probe going into the links. on one level, whether the trump campaign manager has have any links on a very basic level, but also a coordination aspect of but looking ahead, it looks as if the white house is saying, "we are fine with this and we are going to push back against this storyline,

saying there is no collusion." sean spicer came out after director comey talked. take a listen to this. following this testimony, it is clear nothing changed. officials have gone on record to say there is no evidence of a trump-russia collusion. the obama cia director, director of national intelligence said so, and we take them at their word. ramy: right there, you hear sean spicer saying no collision, but interestingly, mr. comey saying that looking ahead to the future, because of this success on russia's part in terms of your selection meddling, that we should expect more to happen in 2020 if not the 2018 congressional elections, yvonne. yvonne: comey delivering a blow to the trump administration. donald trump's unfounded allegations that former president obama wiretaps trump tower -- i mean, comey poured cold water on that as well. ramy: basically the fbi and nsa

directors, they both are throwing cold water saying, listen, there is no evidence whatsoever in terms of these claims. these claims of course, stretching from march 4 when inald trump set out to -- believe, three tweets calling obama a bad guy and thing the president went to a new low. let us take a listen to what mr. comey had to say in his own words. thathave no information supports those tweets and we have looked carefully inside the fbi. the department of justice has asked me to share with you that the answer is the same for the department of justice in all its components. the department has no information that supports these tweets. said director comey also the wiretap process in order to get one up and running is a , rigorous process, and

it involves all three levels of government, the executive, legislative, as well as judicial. if barack obama decided he wanted to do it, he could not do it unilaterally and other branches would already know about it. remy sensor,ight, thank you. first word news with tina melendez. -- ramy inocencio. thank you. first word is with mina melendez. whether britain can regain powers without derailing trade with its largest market or threatening london status as the leading financial center. the e.u. has said britain must not benefit from brexit. about the pace of rate rises continue with charles evans, seeing up to four hikes this year, however curry says there is no need -- neel says there is no need to rush. the fed can afford to be patient. the fomc voted to raise rates last week. >> i look at us as repeating the

same mistakes over and over again because implicitly, i think we are behaving as though 2% is the ceiling rather than a target, so i'm hoping to remind my colleagues to take a step back and i'll keep repeating the same errors. when the data calls for it, then we should remove accommodations. : indonesia will press ahead with tax reforms after an amnesty program revealed previously undeclared assets. speaking to bloomberg finance , she said discussions are underway with lawmakers about increasing the tax to gdp ratio and she said that protectionist policies would not help anyone. >> any direction on the global economy becoming more inward and protectionist will -- we still have options in the short run. nina: the veteran banker of philanthropist and billionaire

david rockefeller has died at the grand age of 101. he was the last surviving grandson of america's first john daire of rockefeller. david rockefeller spent his entire career in the corporate world, writing to become the ceo where he spent 35 years. news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am nina melendez. this is bloomberg. corruption at the highest levels continues to make headlines and south korea. the former president, park geun-hye, faces prosecutors for the first time today while the leading family denies wrongdoing. joined now by the bureau chief in taipei. what are prosecutors looking to establish? all, let me let you know that there is some

fireworks that will probably begin before the prosecutor start grilling the former president. her lawyer said that she will give a public statement. apologizeshe will again and say there was no wrongdoing on her part. that will come as soon as she makes that statement, she will enter the prosecutor's office, where we are expecting a very .ong questioning session probably, it will last all day into the night. , jay y. lee,cutive was in there for 18 hours. they will be trying to get the extent of the relationship the former president had with the person accused of coercing and even bribing the largest korean conglomerates into donating tens of millions of dollars to her foundation. the question that prosecutors are trying to get at is to

whether part colluded into colludedthose -- park into coursing those and whether they were bribed. betty: i want to tell our viewers what they are looking at. there are pictures on the screen, the scene in front of park's house. security as well as people awaiting her departure to the prosecutor's office, which is expected in about 30 minutes time, so quite a scene there right now, peter, and what we talking about, disruption, what is happening, or what happened family?explained to us more about this scenario. that is another separate corruption case. it was extraordinary yesterday, the trial. i think we believe it is the first time that an entire family , one of the most powerful corporate families in south korea, to be tried together. they were all in the courtroom.

the founder, his two son's his daughter, as well as his common-law wife. really extraordinary moment. photographyn tv, no was taken, but our reporter was there and describe a really dramatic scene in which the founder was brought in by wheelchair and then he seemed confused. he is 94 years old, he remarked about how he had started his $80 billion company from scratch and was wondering why there was a trial, what he was there. midway through the trial, he was let go so he let the courtroom, but dramatic moments there. another major case, scandal case, corruption scandal case, happening in korea. you know, we have another one coming up again, samsung's jay y. lee on trial for corruption charges as well. yvonne: this is an incredible

moment for south korea. betty: thanks so much for joining us. really appreciate it. still ahead, cyber threats with hacking on the rise in china. we will hear how baidu is fighting back on that. u.s.e: on the retreat, stocks cap a third straight loss. market action, coming up next. this is bloomberg. ♪

betty: this is daybreak asia. i am betty liu in new york. yvonne: a quick check of the latest business flash headlines. have held in chile their first talks in a month. they said they would only discuss three points, benefits, keeping current working hours, and not differentiating between existing and new workers. the two sides moves closer last week when bhp improved its pay

offer with an district bonuses. betty: the profit machine has shifted up a gear. the company delivered to under 38,000 cars in 2016 and made an average profit of $17,250 on each one. local rivals mercedes and bmw made about $5,000 profit per car. ferreri is the leader. it makes far fewer cars per year, but pockets almost $90,000 profit for each one that hits the streets. india's largest e-commerce company is said to have raise $1 billion in new funds and aims to raise the same again this year. for cart secure the money to anht rising competition in operation that values the company at $10 billion. that would be a decline on the 2015 valuation of more than $15 billion. backers of the funding are said to include microsoft and tencent. ok, let us get back to the markets. three straight days of the

kleins. joining is now on set is su keenan. what are investors so worried about? su: we saw the lowest volume of 2017 so far. it could be that there is a arect question ahead and couple of technical indicators there could be more volatility. let us go into the close because the nasdaq did briefly touch a record before closing unchanged, but it has been since march 1 that we had the records, so there's one analyst saying that this could be the beginning of a correction. let us look at the movers because the big jumps that you see do not indicate there has been any slowdown. these are very stock specific stories. a very strong analyst reporter on new microchips pushed that higher. jolla pharmaceuticals, a takeover target. let us go into the bloomberg. the tv #6884.

what you see is a very interesting chart on hedging tell risk. that is what a lot of professional investors are paid to protect against. large market swings, and what you see on the far right-hand side is a big jump that surpasses the prior record right after the brexit vote, so where the new all-time high and that tells us that professional investors think there could be volatility ahead. what we are also seeing in legislation traded commodities, rights, oil and gold moving in different directions? the gold is an interesting story because we saw a lot of investors cut their bullish bets on gold and the very next day, janet yellen, let us go to the charts, saying do not worry about multiple rate hikes. gold took off. today was the second of a two-day rally that is the

biggest since november, so a lot of gold traders caught off guard there. we go into the oil chart and you will see it has been on a decline. but the story here is that there is all-time record supplies here in the u.s. and that is outweighing the drop in production in opec related countries. we'll quickly, let us go to -- real quickly, let's go to the bloomberg again. there is a rising correlation between the crude oil direction and the s&p 500. we have seen an uptick in the volatility of oil and the rising correlation between oil and the s&p could be assigned, another one, of more volatility ahead in stocks. , thank you. we are going to be talking markets, including the turning tide with our next guest, coming up. this is bloomberg. ♪

betty: this is daybreak asia. i am betty liu in new york. yvonne: i am yvonne man in hong kong. neither equities, bonds, or cash are likely to deliver the performance outcomes desired. let us bring in kirk west, global head of international offices at sensible global investors, who joins us from sydney this morning. great to see you. speaking on matthew, let us take a look at s&p profit expectations. those are falling as well. take a look at investors pulling out of junk bonds. oil as well. what does that spell to you? are we going to get this big unwind in inflation trade? guest: we do not believe so. i think we are in a period of consolidation. this may go on for some time, buyer see this as a environment. to wear through the next few weeks. ps, but wethe di

are seeing rotation here. you know, it is interesting you mentioned about the earnings front as well because there is a sign a revival in asia that i want to talk about here in this part of the world. e.m. in the sweet spot as well. 12 month earnings estimates, whether you look at asia, japan, but they are still trailing the u.s., so in this period of consolidation, what is going to be the catalyst for asia to catch up? kirk: i think you are right. are right. that is an interesting chart. what it shows is earning revisions in all of those -- market performance and portfolio inflows. the other point to think about both in terms of emerging markets and asia, asia is 65% of

the emerging markets, is from the evaluations perspective. the yearew is that as progresses, you will see more portfolio flows to asia and they will be justified and you should still get a performance there. the improving economic picture, has it topped out now that we are seeing oil with the effects of higher commodity prices that lower base starting to fade? if we see more weakness in oil, what could that spillover effects look like when it comes to stocks, bonds, currencies? oil ise do not believe going anywhere in a meaningful sense. by has been influenced supply and technology and that is going to cap any upside. you may see some downside, but you know, where it is, plus or -$7, is probably where it is going to be for the rest of the year. i think there is other things to

be concerned about, and those would be, you know, what does the new administration get through congress, and things of the the normalization balance sheet, both in the case of the fed and europe, so i would be looking at those issues rather than oil at the moment. speaking about that, i want to bring up this chart that shows you the correlation between oil prices and emerging-market currencies. we know these currencies, you know, have traditionally been impacted quite a bit from oil prices, but what has been interesting is in fact, you have seen emerging-market currencies last twot in the weeks. they continue to go up even as oil prices have gone down. i guess signaling to people, it is circled on our screen. i do not know if you can see that where you are, but this divergence, signaling to people about, you know, perhaps emerging markets are, as you say, at a turning point. this underperformance is a

turning point. they are more resilient to affect like oil prices. we do think emerging markets look attractive relative to developed markets, and that is after many years of underperformance. you have seen a strong start here today. they are up 13%, but we do think there is more in emerging .arkets in the case of the currencies, i think that is margarine by u.s. dollar weakness at the moment, and you have seen u.s. dollars off against the currencies here today. i would be cautious there. one of the most interesting developments last week in terms of the fed tightening was that this was the first time the fed acted without concrete data so that may mean, you might be surprised how many increases in the fed funds rate, and that would be u.s. dollar supportive. >> just really quickly, you mentioned the big risk is u.s.

treasury yields? kirk: i think there is a case that you may see the fed be more proactive. there is a lot of reasons for that. it may be because of the composition that the fed board will change next year. chances of the fed being more past, andthan in the that would be your stalwart supporters, that may cause volatility in the market. betty: thank you so much, proquest, at principal global investors. and breaking his right now coming out. u.s. airline -- the u.s. is said tohas -- have issued rules that will affect travel from the middle east and africa. these rules are limiting portable electronics such as laptops and mobile phones. at the same time news from saudi and airlines posting in arabic on twitter saying that the u.s. is intact banning from cabins,ablets

limiting large electronics. this is all in an effort for the u.s. to take some measures against terrorism. yvonne: more

; 30 a.m. tuesday. we are 30 minutes away from asia first major market opens. eddie. betty: we are indeed. look at that. nice blue. right at dusk. also, quite clear. i am betty liu in new york. i am yvonne man in hong kong. let us get to the first word news with nina melendez. the fbi has confirmed that it's investigating potential links between president trump and russia during the election says there is no evidence to support that his phone was tapped.

james comey was giving evidence before the house intelligence committee addressing white house claims that president obama ordered surveillance on trump tower. >> with respect to the president's tweets about alleged wiretapping directed at him by the prior administration, i have no information that supports the tweets and we have looked carefully inside the fbi. koreans former leader is to be questioned over the undue influence gambled that ended her presidency. park geun-hye will face prosecutor that 8:30 hong kong time. the group family have denied corruption. the charges of embezzlement amount to a quarter million dollars. australian cleaning and catering firm's policy has received a bid to itsgineering firm edi monday they are offering 974 million dollars as it continues to diversify away from resources.

as a singlen dry-cleaning store 1946 and now employs 36,000 people in australia and new zealand. it relisted in 2014 but has fallen sharply since then. a plane hash has -- crashed landed in south sudan. the flight was operated by a local carrier and was flying from the capital to the northwest when it came down in bad weather. it is not clear that what happened. the crew and most of the passengers were from south sudan and there were two foreigners. news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am nina melendez. this is bloomberg. >> thank you. here is sophie kamaruddin. sophie: it is all quiet on the volatility front across different asset classes.

asian stocks are set for a mixed start after weakness on wall street and we did have of course draws evans steering the debate around the timing of -- we do have began holding on to its gains around the 112.50 handle. yields falling below 2.5%. we have all the bonds tracking that move -- aussie bonds tracking the move. we have import/export data followed by rba minutes in about homeour along with aussie prices. we have stocks in sydney falling for a second day with a drop led by property stocks. new zealand stocks recovering some of the drop we saw on monday. in the commodities space, we do have gold steady after climbing to a two-week high. new york crude trading at the biggest discount to brent since january at the 4825 mark.

take a look at the chart here. the spread has been widening between wti and brent as u.s. since 2012.the most u.s. output at the highest it has been in over one year. we did see wti for may delivery at a two dollar and $.72 discount to brent. this may not be the real focus here when it comes to determining market sentiment. take a look at the currencies base. we have the dollar paring its authors ahead of the french presidential debate and the euro , we are seeing weakness coming .1% against the dollar. the pound looking study even after theresa may set the date to trigger article 50 and we are seeing the aussie at around the 77.25 handle here, but a potential trigger to the 78 level following the aussie home

price data, seeing how resilient that truly is. the kiwi falling today. the kiwi could be set for a drop following the meeting this thursday. they are anticipating dovish tone coming from the central bank. we do have the and establishing a bowl trend. but us take a look at the future to see how shares are set for the open in tokyo. we are anticipating a retreat, down 50 points in tokyo. gainsspi set to resume after foreign funds -- betty: thank you so much, sophie kamaruddin on the asian market. come on, we have got to be watching the fed, right? we are not giving them any breaks. they give us a rate hike but we have more questions for them. kathleen hays with more. what did you think? kathleen: it is perfect because

it lays out an interesting dynamic. no question that the fed is ready to hike rates. we know that kari -- that neel has a new member. he has recommissioned a lot of people's minds. a little bit of an aside but when i went on the said president last week and asked janet yellen a question about you are moving now, but you know, labor compensation movers are not rising, a lot of people commented. people said, what a great question. i think it is because some people are wondering why the fed is so determined to go and that neely it kari -- why explained why he defended it. betty: clearly, you were singing his song. i think this was a question waiting to be asked. again, a coordinated with what he said. it is an important question for

let us listen to what neel kashkari said about why he thinks the fed should not be worried. they are not at their 2% inflation target yet. i look at us repeating the same states over and over again because we are behaving as if 2% is a ceiling rather than a target so i'm hoping to remind my colleagues to take a step back and not keep repeating the same errors when the data are the calls for it. then we should remove accommodations. camp is more in the think of saying that we do not have to be preemptive. let us react to actual data. we have time. inflation is not want to get out of control. we can wait. betty: what you think janet yellen would say to that? kathleen: no. we are heading towards the dual mandate, jobs are growing, inflation is getting to the 2% target. not until 2019, it is not going to get there quickly. he's confident enough that it is. he was a very dovish fed official.

a dell comes to the middle with everyone else, it is important. it has improved noticeably since the fomc took the first rate increase in december of 2015. this is an important fact that explains why my dual mandate outlook can allow me to support two or three rate increases in 2017. >> it is really simple. 3476 if you are on your terminal. unemployment at 4%? core pce heading to the 2% target, so that is what he is talking about. two or three hikes, but four hikes are possible this year. if the data really move as much as he expects they will. >> if there is going to be any robust data that continues forward your kathleen: as you saw with the dovish fed hike, they kept the forecast, so this is all supported by a four cost

in the dot plot. least three rate hikes this year, but i want to bring in something else that janet yellen talks about. inflation expectations. it surveys people and their measure of consumer inflation expectations, five years out, all-time low. people are 20 more inflation according to that survey. they are taking less. i want to show you a cool chart. it is 6955 and what you are seeing is, first let us start with that line. this whole reflation trade is boosting stocks all year, right, based on the idea that inflation is coming back so you can charge higher prices. let us look at what some of the things you saw. that is the five year yield, coming down. it is a sign. it is coming down. less inflation at petition.

take a look at the purple line, the five-year inflation break even. another line that has plateaued and even started to come down a little bit. again, this is questioning the are having higher inflation expectations, yvonne. i think it is another point for fed officials to ponder. you can differ on the interpretation, but an important development and great bloomberg chart to study when you have extra time. [laughter] >> we are used to seeing the centers that are more hawkish, but not dovish like the ones we heard from neel kashkari. weekend pledgehe to avoid protectionism. nejra cehic spoke to indonesia's finance minister for her thoughts on that. have a hugey will impact not only for the u.s., but for the rest of the world. theng more, emphasizing on

exclusive trip is actually limiting because many countries are unable to compensate those losing from the compensation and from the global trade properly and that creates resentment, and we getting support for the global trade. were you disappointed that the communique did not include a specific pledge to resist protectionism? minister indrawati: we hope the g-20 wanted to have it exquisite, stronger. the leader meetings, they actually have a much stronger and exquisite commitments among the leaders of the economy to maintain this kind of corporation and resisting again protectionism, because it is not

only good for a particular country, it is good for the world. beonesia is going to continuing to be open so we are able to be ready when the global environment is becoming uncertain and becoming volatile. speaking of volatility, despite global concerns including protectionism, political risk, volatility across assets, fixed income, stocks, affects, is low, and it has been fairly stable in 2017 although it has weakened against the dollar. do you expect it to continue if the fed hikes two or three times this year? minister indrawati: our ability to withstand the uncertainty -- it is different from 2013 when the temperature jim will he happened because of the announcement. i think it is becoming quite clear that it is data-driven.

indonesia has been anticipating the increase of the federal fund rates. in terms of the strategy of our deficit, because we are quite duffers applied in terms of the bond issuance, that is also providing us with a choice, so with the inflation very low, indonesia euro were able to have a slight appreciation rather than depreciation. capital market in general is among the best in the world, so i think we are quite comfortable that we are not inflation. the environment is very uncertain and this way, we have more ambition to deepen our reform. >> and that was nejra cehic speaking with the finance minister sri mulyani indrawati. companies seek to diversify abroad. confidence is trading at home. we are going to go to ellie next. this is bloomberg -- to l.a. next.

this is bloomberg. ♪

yvonne: this is daybreak asia. i am yvonne man in hong kong. liu in new betty york. u.s. commercial property continues to attract interest particularlybut china's expectations surrounding president trump progrowth strategy. i'm going to cross over to margaret hard. the big story -- mark. the big story is china had record investments in the u.s. and commercial real estate, beating out canada as the number one foreign investor. is this really because they just ,annot get enough of of america or because they need someplace to park their money? which is it? guest: i think it is a combination of both. the $20 billion of chinese investment in the u.s. real

estate markets over the past 12 months, we believe, is a prelude to what could be the greatest of foreign real estate capital into the u.s. markets in history. the chinese have realized what other global investors have, and the u.s. is the most stable, liquid, and transparent market, and in return offers the greatest prospects for strong risk-adjusted returns. we believe as the chinese continue to diversify and hedge against their softening economy at home, we will see an incremental capital flow into the u.s.. flipside, $19.2 billion, record high last year. the flipside is that some might say the chinese had to rush in last year because they knew they were going to face capital controls back home, which in

fact, has turned out to be true. betty: you're are not want to see the same momentum this year. withstanding the capital restrictions placed at the end of last year, we believe that the globalization of china over the near and long-term will continue to result in significant inflows of capital into the u.s.. chinese investors are very nimble. they are already figuring out new ways to invest in real estate throughout the capital stack. they are investing in preferred equity and construction lending, joint venture equity, so we think that will continue. betty: that is a lot of different tiers, marc. what are they going after and why? five out of the largest 10 transactions in the united states last year were done by chinese investors.

to focus on three primary types of assets. trophy office buildings, and large mixed-use developments. here in los angeles, five of the six largest mixed-use developments in downtown are by chinese entities. greenland, ocean wide, shenzhen, cg. so we believe the capital will continue to come. it is interesting. we did see transactions, quite a few, that were canceled in 2016 as well. why do you think there is such a political scrutiny on chinese investment in the u.s.? whyhere a common thread by some of these deals have been solved by regulators? marc: i think the larger, higher

profile transactions that have not gone through, i think, are to your earlier point, a result of the restrictions being placed , deals overutflows $1 billion, as we know, are subject to much higher scrutiny. so, that will continue. don't forward. >> i was looking through also at some of the data that came along the the report and it shows top five cities are new york, san francisco, l.a., chicago, seattle. no surprise. almost half of that some of the money was poured right here in new york city. are they looking maybe perhaps this year at second-tier cities? is that on the radar for the chinese? marc: interesting enough, the chinese are invested in 35 to yourn the u.s., but comments, 46% of capital to newion last year was

york. 15% to san francisco and 7% to los angeles. i think you will see some migration of capital to second-tier markets, but for the most part, they are focused on the global gateway cities and the most liquid markets in the u.s.. marc, we got some lines in the last 24 hours about brexit, triggering article 50 march 29. we have seen investment into commercial property take a hit shortly after that vote. they seem to have a vision to build an asian business hub in that part of the world. fpi inexpect chinese europe to remain strong? political uncertainty on a global basis is one of the things we are watching closely. certainly, brexit, the trump win. there are elections in one third

of the countries with major contributions to gdp in 2017, so following those elections and seeing if the trend of brexit and trump continues will be something that we are all watching very closely. >> great to have your perspective on this, marc renard , joining us from l.a.. you can get a roundup of the stories you need to go to get your day going in today's edition of daybreak bloomberg subscribers. go to tv on your terminal. it is available on your phone in the bloomberg anywhere app. you can also customize your settings so you only get the news in the industries or assets you care about. dayb .b ♪

>> we are about 30 minutes away

from former president park geun-hye being questioned by prosecutors. outside the former south korean leaders home right now. we have not seen her leave. in about 30 minutes time, the first time that she will be facing questions from prosecutors since she was ousted less than two weeks ago. now, the former leader has lost her community. she is obligated to do so. if she does not appear to meet with investigators today, they could actually seek for her arrest, but you know, betty, impeachment.ed she said the truth will come out. it will be interesting what she has to say. we could be getting fireworks. betty: this seems to be the year of fireworks coming out for our leaders of the free world, right? what i think is interest-earning and i'm -- what i think is interesting is that we have known that the corruption

has been a thorn in south korea's side and we were talking to peter pae earlier. i wonder if this is one of those jump the shark or turning moments in south korea. you have the president impeached, the group testing on corruption, and the samsung heir, jay y. lee, arrested. this seems to be a perfect storm where the public is coming to terms with, you know, with the corruption good authorities are coming to terms with it, too. yvonne: we certainly saw the anger on the streets among protesters leading up to this impeachment scandal, you know, and it really does leave a question here of whether, yeah. whether we are going to see reform. we have seen this in the past, questioning the cozy relationship between government and business, but i guess with the impeachment of park geun-hye , this brings it to the highest levels among the government, so

we will continue to watch what comes up here. 30 minutes from now, we are expected to hear from the former leader, president park geun-hye. open ashe kospi to asia's first major market open in just moments. we are watching for any stop the action as well. yvonne: there has been quite a bit of resilience in the korean market. a lot of net buying from foreign investors as well. we did see political uncertainty removed after president park's impeachment. a quiet move upward, i guess you can say, in terms of asian assets, and if you take a look at stocks, we have been quite strong here, particularly when it comes to the em space. we can reach those record highs. so we will continue to watch a lot of that, and of course, really, honing into seoul at the next hour. 20 more to come on bloomberg daybreak asia. more to come on

bloomberg daybreak: asia. this is bloomberg. ♪

>> policymakers offer opposing views. one fed presidencies 4 hikes this year. one says, what's the rush? >> a former leader facing prosecutors of a scandal that brought her down, these are live pictures from our home in se oul. she's expecting to be leaving at any moment. launching the, process of leaving the european union. >> the fbi says there's no

evidence to support president trump cross-claims of wiretapping as the rush to inquiry -- russian inquiry continues straight this is the second hour of "daybreak asia." in hong kong it is just after 8:00 a.m. i'm betty liu. we are watching for the former possibly leaving her home to face questioning. >> plenty of news flow, people are causing it -- calling it a soap opera. market movement has been quiet, especially here in asia. let's get to that market open right now. >> we have to check in on what

is going on in korae. -- korea. resuming its gains here for a third day. we do have japanese stocks coming back online, extending the drop we saw on friday down 1/2 of 1%. this is the dollar-yen, seen as a stalemate as paris holdings above 1/12. we do have financials leading the drop of 1% there, too tracking what we saw with the drop in that space on wall street and taking a quick look at what is happening. index, given what we are waiting for with the president facing prosecutors. we have energy stocks leading the rise in korea, up about 7/10 of 1%.

this morning we will get a gauge of how south korean exports and form the first 20 days of march. shipments grew 6.2%. imports rose 26% in that time. let's take a look at how the south korean yuan is faring, up about 1/2 of 1%. this is now for a fifth straight day. is hanging on tightly asia's best-performing currency and this year, appreciating almost 8% against the greenback. this chart on your terminal, #btv showing you how the korean yuan has been ticking up. for an inflows into equities, we are almost fivefold in 2016. correlation that is pretty

consistent and currently playing out well thanks to that yuan, tending to be the highest bidder in the region. betty: why is the korean yuan holding up? is thecentral reason, highest beta currency. there's a lot of other sentiment driving inflows. for bonds asbid up well. we are also seeing business confidence from this chart. the line in blue here the uptick in sentiment among manufacturers. that is coming along nicely. consumers perhaps are framing spending, given the political landscape. we are seeing that resilience continue. we will see what the president has to say. it may rock the boat a little bit. betty: thank you so much.

let's get to first word news with rosalind chin. rosalind: brexit will formally begin next week. the u.k. government will launch the process on march 29, invoking article 50. rosalind:at stake is whether brn regain powers over immigration and trade making. the eu has said britain must not benefit from brexit. the debate about the pace of rate hikes continues. minneapolis colleague says there's no need to rush. kashkari was the sole defender when the fed wanted to raise rates last week. >> i look at us as repeating the same mistakes over and over again because implicitly, we are behaving as though 2% of a ceiling rather than a target.

my hoping to remind my colleagues, let's take a step back and not keep repeating the same errors, when the data really calls for it, we should remove accommodation. rosalind: indonesia will press ahead with tax reforms after an amnesty program revealed more than $330 billion of deviously undeclared assets. -- previously undeclared assets. she said potential trade tariffs and protectionist policies would not help anyone. >> in a direction on the global economy that is becoming more inward and protectionist is also affecting indonesia. as a big country we still have an option in a short time. david rockefeller has died at the grand age of 101. he was the youngest and last surviving grandson of america's billion arare.

david spent his entire career in the corporate world, rising to of chasee ceo manhattan bank, where he spent 35 years. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm rosalind chin. this is bloomberg. an important story we're following right now, happening now. we are waiting for the former president park again hey -- park to leave her home. questioning expected to last all day long card -- all day long. we have not seen her leave yet, as there are so many people there, and security. what is going to happen here? what statement will she make? what will happen today? asshe is still in the house, we can tell by now. she should be leaving soon because she was supposed to be at the prosecutors office by

9:30. it takes about 20 minutes from her home to the prosecutor's office. we expect her to leave anytime soon. the question is whether she will make a statement at her home or the prosecutor's office. the lawyers have said that she a public statement. we expect that to be probably an apology for the political that has been out here for a while, as well as probably denying any wrongdoing on her part. that has been out here for athis will happen before she enters the prosecutor's office, which we expect to go through overnight, possibly, and the prosecutors will be basically trying to get out the question of, the extent of the withdent's relationship her longtime friend who is on trial right now for extorting of millions of dollars from south korea's biggest conglomerates, including samsung. twomoney was donated to

foundations that she ran. the question there is how involved was the former president, could she have or even constituted a bride in the sense of extorting that money in return for government favors to those companies that provided that money. is,ne: the big question will the spring forth some type of reform in south korea now? we have an election taking place in early may. how does this corruption scandal help the opposition parties now? >> the opposition party, particularly the leading candidate, who is leading in the polls, police the polls indicate win the primaryof millions and perhaps the election, he was the runner-up in the last presidential election. -- election against park.

he is considered a centerleft candidate. he has called for reforming which ever particularly trying the long-held cozy relationship of the government with each other. he has vowed to reform them. he has not gone as far as to dismantle the system, it's -- as some have suggested he should do. talkingvonne and i were in the last hour about how we know corruption has been a long-standing problem in korea, it's a reason why we have a korea discount. point forturning companies and families in south korea feeling a pretty cold chill, win the primary and perhaps the given what theyn unfold in the last few months? >> i think a lot of the activists, particularly shareholder activists, hope this is the turning point, this would

be the moment in which actual changes will occur. the sameed before, kind of call for reform happened in 1997, 1998, after the financial crisis. and so, this has been occurring time, for decades now, time, ft really no significant changes has happened. the feeling at this time because of the public sentiment, particularly as we saw over the last 2 months, hundreds of thousands of people gathered each weekend to not only call for park's ousted, but calling for reform. with that in mind, there is perhaps a better chance that some measure of reform will happen. betty: does it feel, at least with this case with park, but everyone that was involved has been caught and named, or is that any sense at all

there are still more shoes to drop here? >> there could be. hasspecial prosecutor already indicted 40 individualst there are still more shoes to which is something to think about. it has involved government and business. to the extent that that has been done, there may be some others, but the allegations have been widespread as to if there were further indictments against others, it remains to be seen. yvonne: great analysis there. we are expected to see the former leader park geun-hye leave her home and head over to the prosecutor's office where she will be questioned for the first time since she was impeached less than two weeks ago. this is bloomberg. ♪

>> this is "daybreak asia." betty: i'm betty liu in new york. a quick check of the latest news flash headlines of this hour. softbank reported to scrap the plan to invest $100 million in smartphone audits and potential products. the wall street journal said the deal was complicated because of the increasingly close relationship between the softbank ceo and apple. apple is a rival of the product and has agreed to invest $1 billion in the check investment vehicle vision fund. in and striking copper miners in chile have held their first talks in a month. a union leader said -- sent an invitation to meet and they would only discuss three points, maintaining benefits, keeping current working hours, and not differentiating between existing and new workers. the two sides moved closer last week when bhp improved its payoff. india's largest

e-commerce company is said to have raised $1 billion in new funds. the money wass raised to fight rising competition, an operation that values the company at $10 billion. backers of the funding are said to include microsoft and tencent, and it looks like right now the former president has just left in the car right now. she's in one of these black cars and she is leaving for the prosecutor's office. she is due there are 9:30 local time. beenhas been what we have waiting for, security they're very tight right around her home. she said the troops will come out, very defiant in her impeachment. will see clearly what she will

be saying and a statement she will make and also what comes out of the questioning by the prosecutors, yvonne, and it has just been a tomorrow to us few months. in fact, if you years there for south korea. -- a few years there for south korea. yvonne: when there were calls for questioning, she resisted right now that she has lost in this case, she is obligated to do so. she said she will cooperate now. she said the truth about her impeachment will come out one day. we are talking about before she even meets with investigators, she will be making a public statement according to her spokesman. what she hear her and has to face here. issue going to change the language? quite defiant, even after this impeachment trade she has apologized many times. she says the truth will come out. that questioning should be happening just about 10 minutes

from now. investors, we talk aboutquite ds em, even in korea they are piling into these developing nation stocks. we take a look at the charts, this is the largest exchange that tracks the emerging market index. it hosted $225 million in inflows last week, the most we have seen since way back in august. meanwhile, the equity gauge raise to the highest since july, outpacing global stocks. joining us to talk more about this is a fund manager and head of asia-pacific core team at j.p. morgan asset management. it's great to have you. it might outpacing global stocks. joining us to talk more about have been one of the most well choreographed fed decisions when it comes to the fed. why do you think there is such a calm right now? in terms ofn em

what is happening, to give it some background, em has been doing poorly for about 4 to 5 years. the reason for that was headwinds, one, strengthening u.s. dollar. second was lack of have been one most well choreographed fed earnings and third was a decline in commodity prices. if you look at each one of them, it is reversing that. one is we see the relative strength of the u.s. dollar calming down. in fact, even after the recent rate increase in the u.s., we seen some more strength coming in from emerging-market currencies. that's one. second, we are seeing a reversal in earnings. earnings have been poor for the last 4, 5 years, largely on the back of instability after the crisis. bettere world getting and capacity utilization getting better, pricing power coming back, earnings is improving. we look at indonesian

stocks, we see record highs. atio thatpratio -- p r has risen to a high level. in terms of earnings estimates, can they justify that at the moment? >> a few things. we are now seeing constant earnings upgrades instead of downgrades. the consensus earnings estimate is now 15%, 16%. we have not seen that level for a long time. we are seeing upgrades continuously. we are not seeing downgrades, so that is a positive signal. it's pretty broad-based. what is leading the charge at the moment, is commodities. also the financial sector which will get better with gdp growth getting better as well. we expect some of that to flow into other areas around a short period of time. the other areas have been very positive, reflective of what is happening globally. and, just touching on one other

thing you mention, valuations. em markets in asia have not been doing great the last 4,5 years. even though we have seen this pickup in markets, we look at price to book, which you look over the longer term, it is still ok. betty: i'm curious if there should be a re-valuation going on on south korea, inc. i can't help but bring back that news. we know that park geun-hye is on her way. what a huge moment for this country. their president impeached, corruption being rooted out, executives being dragged into jail and hearings. this is a big moment for korea. is this a moment also where investors look to revalue korea, inc.? those are very good comments,

betty. a few things you could draw from there. korea, for a number of reasons, has been always put at a lower valuation than the rest of asia. one of the major reasons would be the corporate governance issue. we see improvements taking place over there. of the key things we can look at is dividend payout ratios. dividend payout ratios in korea averaging around 16%, 70%. you look at the average for asia, it's probably closer to 40%. we are seeing increasing -- increasing dividend payout ratios, shareholder return. i can't say everything is happening overnight. everything you talked about is consistent with what is happening in the rest of korea, where there is better corporate governance taking place on a gradual basis. betty: certainly it will not change overnight. i don't think i'm saying anything new year when i say corruption is a problem, not just in korea, but in many asian

countries. all thea, china, political leaders there are trying to deal with that. aes this then -- inject further level of uncertainty, in the sense of might we see more of these leaders in these countries being susceptible to hrarsher -- two stronger authorities, less tolerance of corruption? could that add another piece of instability to asia? >> if we look at the indian example, which is a good the powersthink if to be actually take action against corruption, and this indiademonetization in was linked to reduce corruption and get money into the system, etc., let's look at how the markets behaved. initially they were very worried

it would actually destabilize the economy in the short term. on the ground, if you looked at the economy has not been badly affected at all. a balanced out very quickly. it's actually the public are behind it, as you probably saw, the ruling party led by modi had a great victory. is behind these measures. ultimately the public recognized that taking the steps leads to more efficiencies in the economy. like one of the black cars is arriving at the prosecutor's office now. mean, in this particular when you look at the markets here? it has been so resilient. we see vix very low. em currencies as well. why do you think there is such a low end to global uncertainty? >> looking into the vix, if we

look at it over the last 1 to 2 years, you are right. it has come down and continues to go down. that has been on the back of continuing positive economic numbers that have been coming up. presidente former park geun-hye is leaving her car and heading into the prosecutor's office. she is expected to make a public statement any minute now, before she steps in there to speak with those investigators, expected to be quite a long day for the ousted leader. as we heard from peter pae, our

bureau chief in seoul saying the samsung chairman was question for 18 pae, our bureau chief in seoul saying the samsung chairman was question for 18 hours when he was summoned. this could be a long day. just looking at all those flashes of lights coming off of the cameras, this is a moment in history for korea there. she seems to have uttered a few words just before ascending the steps. i'm sure we will find out from reporters what exactly she may have said. looking very calm, stoic on her way into the prosecutor's office. and very direct. yvonne: very direct. going right in. currencieserms of em quite a bit of strength when it comes to the yuan, as well as the pound. will you be buying the green currency at the moment? >> i think the currency the way -- it is fair value. the equity market is valuations still reasonable in korea. korea a big beneficiary of improving global economy. exports should pick up. we think the currency is fine, it's not overvalued. buying equities makes a lot of

sense in korea right now. yvonne: do you focus on the reform plays? >> yes. there are a number of things going on that i mentioned earlier on. setting the table is a good example of that, if you look at possible increasing dividend payout, increasing shareholder returns. i wouldn't just focus on the tables. there have been interesting companies that have grown, especially in the internet space, consumerism. betty: she did say something on her way in. very short. she apologized to the country and said she will be sincerely answering investigators questions. she said that in front of the reporters and cameras and as you saw, walked right in and turned into the prosecutor's office for

what is expected to be a very long day. was readye said she to cooperate. we will see what comes out of this questioning. this is bloomberg. ♪ careful joe, they've got you outnumbered.

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yvonne: 8:30 in singapore, one half hour away from trading in the lion city. i'm betty liu in new york. you are watching "daybreak asia ." betty: let's get to the first word news with rosalind chin. >> south korea's former leader arrived at the prosecutor's office in seoul to answer questions about the undue influence scandal that ended her presidency. park geun-hye apologized again and said she will cooperate. charges if embezzlement amount to around 1/4 of $1 billion. the fbi has confirmed its investigation into links between

president trump in russia during the election campaign. there is no evidence to support the claim that his phone was hacked. an australian from spotless has .eceived a bid they are offering $974 million as it moves away from resources. spotless began as a single dry-cleaning store in 1946 and now employs or to 6000 people in australia and new zealand. shares are up today. a plane has crashed landed in south sudan with all 49 passengers and crew surviving. the flight was operated by a local carrier, self supreme airlines, and was flying from the capital to the northwest

when it came down in that area. it's not exactly clear what happened. the crew and most of the passengers -- global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. rosalind chin. this is bloomberg. breaking news out of australia, the minute seven released from the march meeting -- minutes have been released from the march meeting. yvonne, not particularly heavily anticipated, this one. the cash rate was held at 1.5% as all economists expected. we have not seen much of a reaction from the aussie dollar. no commentary in the minutes either about the aussie dollar but plenty of focus on perhaps the highlight of these minutes.

the rba saying recent data continues to suggest there has been a buildup of risks associated with the housing market and borrowing for housing over recent months, growth in debt has been faster than growth in household income. we have also just had the house price index out for the fourth quarter and that was a beat. 4.5%,prices up outstripping expectations of a giving us an annualized number of 7.7%. the rba perhaps right to be concerned about this. we also heard comments in the last couple of days from 2 of the regulators. house prices described as being in a bubble giving us an annualized number of 7.7%. the. the rba focusing fairly heavily on housing. yvonne: we did hear from the deputy governor of rba, who said

last week how they are watching loan growth very carefully. a little more about the labor market. we watch those lines coming out from the rba. let's see if there is more reaction with sophie kamaruddin. >> not seeing much reaction in the aussie dollar. pull up the chart to see how it is tracking following the rba minutes as well as the latest home price index -- [no audio] we are seeing the aussie trade around the 7730 handle there. we are also seeing aussie bond yields slide. take a look at what is moving when it comes to the equity space. we do have real estate sliding in sydney down .50 of 1%. city houses more than doubled

since the start of2 009 -- 2009. the top of the regular saying the country is facing risk as speculation is heating up and more lending controls may be imposed. take a look at what else is moving in sydney. spotless surging nearly 50% on the takeover bid that roz mentioned earlier. advancingtailers after china offered to keep the import status quo for e-commerce platforms. today, thislmost 5% after reaffirming its four-year target is all units posted first-half earnings growth. park: the former president as we saw moments ago arriving at the prosecutor's office. tell us what is going on in the korean markets. >> take a look at korean assets. we have seen resilience for the most part across equities,

currencies here. up about 1/2 of 1% here. falling its gains after on monday. the korean you on the best performing in asia, up about 8% against the dollar here. the yuan still maintaining that rise, given that is considered a high data currency against the dollar. not much in the way of rocking the boat coming from the domestic political picture. betty: thank you so much. the fbi confirms to the midst of this probe, meddling during the u.s. presidential election, feeling donald trump a blow today by rejecting claims that the trump tower was wiretapped by the obama administration. ramy inocencio has the details. it has been incredible. almost everyone you talk to says, how can president trump believe this? you finally get this direct rebuke, right, from director call me. >> --feeling donald trump a blow

today by rejecting claims that the trumpdirector call me -- co. >> let's head on over to the russian meddling allegation first. right now we are seeing this first confirmation ever great a lot of people are wondering if the fbi was in fact going into this, looking whether there was any connection, any coordination on behalf of the republicans or the trump campaign with russia. that is the focus here. but we do know is that it all stems back. something is very guttural on behalf of mr. putin when he wanted to try to influence what was happening in the u.s. presidential election. it all came down to one person, and it wasn't donald trump. it was his adversary. >> putin hated secretary clinton so much, the flipside of that had a clear preference for the person running against the person he hated so much. >> the question here is whether the donald trump campaign did

have connections or on a deeper level, had a clear preference for the person running against the person he hated so was there any coordination in trying to influence the election here. do we do have to get in the white house reaction for this. they are saying, our hands are not on this, and there was no collusion. this is sean spicer. >> following the testimony, it's clear nothing has changed. senior obama intelligence officials have gone on record to confirm there is no evidence of bradyump-russia collusion obama cia director said so. obama's director of national intelligence said so, and we take them at their word. >> you can hear sean spicer pointing out barack obama's own people, the democratic side saying there was no collusion there. mr. comey on the stand today saying this will not be the first time, or 2016 wasn't the first time we were going to hear from this and it won't be the last time. he said we should expect more of this in 2018, possibly, and most likely in 2020 for the next presidential election. comey dealing a

political blow for the trump administration, not just on the russian inquiry, but when it came to this whole wiretapping claim that was unfounded, it seems now comey saying there is no evidence to substantiate these claims. >> coming not just from the director comey, by the nsa director also. both of them sitting next to each other for most of the day here. from aly, it stems couple tweets that happened on march 4. donald trump saying that barack obama was bad, or in parentheses, a sick guy, and he had sunk into a new now here. let's listen to what mr. comey had to say in his own words. >> i have no information that supports those tweets, and we have looked carefully inside the fbi. the department of justice asked me to share with you that the answer is the same for the department of justice and all its components. the department has no information that supports those tweets. >> not only that, but mr. comey

saying if mr. obama wanted to do a wiretap, he would have also needed the authorization of the government,ches of namely the legislative as well as judicial branches. he could not do it i himself --by himself. we have to ask ourselves, will donald trump admitted that he was wrong or out and out lied, or does he himself have the evidence to back up his own claims from 16 days ago? we are hearing some republicans here calling donald trump out, saying mr. president, if you have the evidence, prove it right now. if not, retract. namely, lindsey graham. yvonne: ramy inocencio, thank you for the u.k. named the day and the brexit process will formally begin next week. questions over whether britain can regain powers over immigration and lawmaking without derailing trait with its largest market. matt miller reports from brussels. matt: in brussels at the euro group meeting of finance

ministers, the u.k. announcement the theresa may's government will trickle -- trigger article 50 next week in order to from thebritain's exit european union. earlier it was concerned that britain may have to pay dues before negotiationfor brexit begins, the wolfgang schaeuble put those concerns to rest. >> no, the negotiations will begin as soon as the petition to trigger article 50 is filed. requirements will continue as long as the rules of the agreement are set out. great britain is a dependable partner in all international that he meant --agreements, so i have no doubts. matt: another focus for the minister has been the greek debt crisis. a positive note was struck by -- and a lot of areas, would it be pensions, privatization, labor markets. we are now entering into a

process, it is a success story. abe: all eyes are on shinzo as he continues his tour through europe to focus on trade. matt miller, bloomberg news, brussels. betty: up next, one fed president -- this is bloomberg. ♪

yvonne: this is "daybreak asia." i'm yvonne man in hong kong. betty: i'm betty liu in new york. default fears resurfacing in singapore ahead of a wall of ensuring corporate debt. companies excluding banks must repay around $27 billion of local bonds over the next 4 years. maturities peak in 2020, which would be the biggest since 2012. ezra filed for chapter 11 protection.

singapore wants to make it easier to restructure debt at home. alibaba and financial said to be considering a new bid for money gram after the company said a rival u.s. offer could be a better deal. in january, it said it is share in cash. a $75 billionant at last september, while euro net just over $4 billion. net is likely to make another offer. the galaxy smartphone will feature a digital assistant to top users direct challenge apple and artificial intelligence. the device will be launched later this month. samsung is banking on the --to help it bounced back from last year's overheating note 7 debacle.

when the fed raised its key rate last week, it came as no supplies after a chorus of fed officials that said, we should do it. surprised with the dissent against the move from the head of the minneapolis fed. neil cash carry has had no problem -- kashkari has had no problem speaking his mind. >> kashkari became president of the minneapolis fed in january. he held this office for just over a year. he not been a fed official previously. he started out with a plan for i was considered a bit controversial when he first took over, and now he has dissented. he dissented against the rate hike. betty: remind people of who neal kashkari is. >> rose to fame as the guy who helped set up the big program in the financial crisis. that was it. he was kind of plucked out of obscurity.

the former treasury secretary put kashkari -- he ran for governor of california and didn't win. now he's in the minneapolis fed in february. he sent out a big letter explaining why he didn't want to change the rate, and he took a step further and dissented. when he spoke to bloomberg television, talking about another paper he took out to explain his dissent, that came out friday. the city's not a pay as that -- not opposed to raising rates when the data is moving in the right direction. right now they are moving sideways. what's the rush? let's listen to his rationale. >> i focused on 12 month year-over-year core pc inflation is the best guide i have to what is really happening in inflation over time. that has been creeping up ever so slowly, from the prior fomc meeting to the current one, it went from 1.71% to 1.74%. inflation expectations remain well anchored, and wages are starting to creep up. but not to a level we are concerned about trade all this

data tells me we do not have a high inflation threat right around the corner. so why are we moving so quickly? i don't know. >> we did see an upgrade to the inflation forecast the fomc published last week. where do you see core pc inflation at the end of this year, and when do you expect it to reach 2%? >> i would be very surprised if court pc reaches 2% this year. 1.8 off the top of my head for the end of the year. it looks like it will be a few years away before we hit 2%. go back to a risk management perspective. tools, many powerful tools to deal with high inflation. if inflation surprises us, we can always raise rates to make sure inflation expectations remain anchored. we have fewer tools if inflation comes up short to boost it. from a risk management perspective, that means we should be patient and allow inflation to climb back to target and not be in such a big

rush to raise rates. >> the argument was made back in september. it looks like the bias on the fomc shifted aggressively away from their, as that argument moves away from you, or do you really think you can bring it back in? >> i'm going to do a couple of things. one, vocus on what i can control. on theng to vote based best data i see and i will continue to make arguments to my colleagues and with my colleagues, and have them challenge me and i will challenge them and we will see howi it happens. i'm going to keep going back to, we have been saying for years we are data dependent. let's be data dependent, let's be transparent about what data we are looking at, and let's let the data guide us. yvonne: it's a pretty clear explanation by kashkari, what he is focused on, what he thinks the fed should be doing. let's don't be preemptive. he noted also in his

conversation that the fed inflation forecast has been tough the past several years, again a reason to wait and see the move up. faithful viewers of "daybreak asia" will know that starting in february when neil explained why he did not want to vote for a have beene then, we putting up over and over again one of our great charts that shows average hourly earnings not plateauing, employment cost index flat, because that is one of the things he pointed to when he made that explanation. what neal has done now is take it to the next step. i think he's been consistent. you don't see the inflation push others do. he doesn't. really didkashkari speak to -- you look at the bond market, what the dollar bulls are seeing right now. they are just not seeing that much optimism in the long-term here to really see if that dollar could go higher or yield could go higher. the one question -- great question i thought john farrell

asked was -- you see the likes of charles evans, said voter was the majority. >> is clearly in a minority. or maybe be people who are just kind of wondering but they figure, it's time to go in that direction. the president of the chicago fed was a very doveish official. he moved to the center with the majority when he spoke at the luncheon in new york. he said jobs are growing, 200,000 a month in terms of payroll, inflation getting closer to its target, may not get there until 2019 that we see it moving in the right direction. here is how he summed up his views. >> i would say the setting for monetary policymaking improved noticeably since the fomc took the first rate increase in december of 2015. this is an important fact that helps explain why my dual mandate outlook can allow me to support 2 or 3 rate increases in 2017. yvonne: charlie evans went on to

say, he's bold to a group of reporters after the luncheon, the hikes are possible if the data supports it. at the far left you see the consensus line. there's 9 fed officials forecasting 8 rate hikes. then there are 5 more that see not just 3 hikes, but 4 or -- i'm not sure where that last. is. -- last dot is. seef 17 fed officials now at least three hikes in 2017. it seems to me there is a solid majority there. the only thing that can change that is if the data does, short. i think it would have to be something like that great at this point, they have seen pretty much -- they seem determined to move in that direction. yvonne: a strong consensus there. thank you to wrap up those fed comments we got overnight.

if you want to watch more of those interviews with neil cash carry as well as a speech from you can go to dayb go on your terminal. it's also available on your phone. for all ourgo, bloggers out there. you can also customize your settings. you can get the news, industries and assets you care about. this is bloomberg. ♪

yvonne: a chinese tech giant revealed nothing pressure facing from hackers and the steps it is taking to combat them. >> baidu's head of cyber security knows he has a fight on his hands. baidu's defenses every minute of every day. and the most serious case, a gang was put together to try to steal baidu's prized automated driving technology. >> it's very difficult to know who employ them to do that. the we definitely know someone tried to hire someone in the underground market to steal. can come froms automated hacking bots or sophisticated international gangs. 's responded by boosting

its cyber security team. it is also backing what might be called ethical hackers, like ty university's blue lotus team. they showed me how they could open up my phone. >> test out one website, qq.com. and now we see, hacked by blue lotus. >> appointing these guys is one way to keep china's best i.t. minds on their side. the professor says there's a growing demand for ethical hackers. we probed for weaknesses that could be dangerous and then report them to companies. >> baidu teamed up with some of its consent -- competitors, tencent and alibaba, to go on the defense. we must help each other against the whole underground industry. we are not enemy. they are enemy.

>> threats are only expected to china's tech giants are gearing up for the long haul. tom mackenzie, bloomberg, beijing. yvonne: now for a quick look at coming up -- what's coming up on bloomberg markets. we watching what is happening in south korea after a short message from the leader. >> a short message indeed. we are watching. we may not get any answers. in previous interrogations, grillings we have seen with the likes of samsung's head for example, we have had them in there for hours. plus, great guests coming up as well. all that and more, next. ♪

haidi: it is nine and in hong kong, nick day in sydney, 9:00 p.m. in new york. i'm haidi lun, this is "bloomberg markets: asia." ♪ haidi: south korea's former leader faces prosecutors for the first time. he will answer all their questions. policymakers are -- the fbi says there's no evidence to support president trump'