information came from the russian government. term junior says he never told his father about the meeting saying it was a waste of 20 minutes and there was nothing to tell. for i am comeuts earners. the tax measures would generate $231 billion in revenue over a decade that would cover expanded coverage for the poor as demanded by party moderates. delaying the plant summer recess by two weeks to allow more time to debate the bill. the bordereleased wall, it may threaten the government shutdown. the house appropriations committee wants to one point billion dollars to the home security spending bill, raising the total to more than 44 billion. says it is talking to potential buyers about the sale of a flash memory chip unit.

the company says it is speaking to western digital which is contesting the sale on high. stock well in tokyo, but news of the talks lifted in new york. . powered by 2700 journalists in more than 120 countries, i'm paul allen. this is bloomberg. shaping up by trade in korea and tokyo, we have more. more downbeatng when you look at the session in sydney as well as in tokyo here. falling by .4%, the nikkei to 25 losing .25% so far. .1%.s down about the cost be just treading water there.

we seeing bonds picking up nicely following what we saw given the dovish comments out of the fed. to congress on wednesday. take a look at the currency space. given the weakness in the dollar, we're seeing gains gaining about a third of 1%. below that 680 level. and we see that rising for a second day. we get the confidence index coming it and we have the aussie dollar holding from there. take a look at commodity space. we see base metals climb. we had been seeing a rally. continuingoil

momentum here, new york crude adding 1.5% and up 1.2% there. we see energy stocks faring in sydney. metals and mining stocks. the one bright spot, and that segment up. it's not enough to offset the drag we are seeing in the health care space losing over 1% this morning. we could perhaps see some potential catching up from metals and what we have observed instill prices here. #btv 4284 on the terminal. they have been lagging. steal prices have risen more than 20% in that timeframe here.

betty: a bounce back from the worst performers in five years. the movers in the first half of standouts in the world. a 22% game. great to see you. do you think hedge funds are out of the was for now? -- out of the woods for now?

we can continue to outperform in the second half of this year. the company's that we have in our portfolio. betty: would you think will outperform this year? do you have to go back to the mutual fund buy-and-hold strategy? or can you earn a pretty decent return when it comes to top down and macro driven event driven strategies is well? -- as well? been in there quite tight. and it allows us to whether these periods of volatility and we take advantage to the fundamental valuations for them to go back into the market is well. first and foremost, especially in the environment, we are

facing the second half of this year, we do have to be cautious, cautiously optimistic in terms of focusing on the fundamental companies. yvonne: the returns and the techrs that you do like, is an obvious one. materials, utilities, you mentioned companies on the run up to school education programs for young students in china. had you foresee the sectors to work in the second half? we get a pretty muted performance. sectors,are all in each of these companies are growing very strongly fundamentally. it is kind of detached from a lot of the noise in terms of the markets and the economies. are continuingey

to put up very strong numbers in terms of the next earnings. not thattions are isetch -- one good example of a look at amazon versus alibaba. the two e-commerce leaders. both are leaders in the cloud. 30% valuation for amazon but the evaluation is different. alibaba is trading 31 times. it you can see the disparity. amazon is projected to grow 37% versus 33. reward,see, for risk stillmes in china are values for the growth they represent. betty: you can track the

performance of chinese hedge funds and compare it to the u.s. . it is very different. it is tough to be in that business. a couple of questions on this. did they miss out? the u.s. hedge fund missed out on this china rally on the china returns? what do you make of that? that on think it is too late. certainly, the first half was a great time where, because a lot of the names were oversold by the end of last year, we have some tailwind in the first half. if you look at the valuations and the fundamentals of these companies, i think we are going to continue to outperform in the second half. >> we have been reading about chinese hedge funds, given the and comingormance here to the u.s. and opening

offices. the money from these high net worth people in china coming to the u.s. and establishing some satellite offices. do you see that trend growing? there are big opportunities here. that think there are opportunities to go both ways in terms of chinese money looking to diversify and, you mentioned real estate is a great area where the chinese love. and if you can diversify that into the u.s., it is extra icing on the cake. and also for chinese hedge funds, offices in the u.s. can be closer to allow the u.s. investors who may be interested in this class. >> what about shortselling? do you think hedge funds are still a big gun shy after china crackdown? bifurcate. to

hong kong shares, shortselling is fine. i would say even encouraged. certainly the capital going to the right places. we were here, the affiliate fund where i was part of this. starting right in december of 2001 when china exceeded into the wto. same thing. he's underestimating how big it will be. looking back 3, 5, 10 years from now. people are going to see that as a big watershed event in terms of institutionalization.

betty: tech giants take a stand in the fight for net neutrality. we talked to the head of go daddy for his tech, -- take on the high-stakes battle. this is bloomberg. ♪

yvonne: this is daybreak asia. betty: and i'm betty liu in new york. google, amazon, thousands of other websites joining an unprecedented protest on that neutrality. equal access to the internet could be at stake. isn't the last stand for net neutrality, is probably one of the biggest battles before this is finally decided here. is a lot ofexpect messages coming out from 70,000

websites and organizations saying, listen, you guys have to ante up until the fcc you want net neutrality to a. google, facebook. some of the arguments painted dire picture. slower website access in terms of longer wait times to load. censored and blocked content mighte some isps theoretically favor their own content over the content of other providers and there could be higher consumer bills. the money could be used to pay for infrastructure to pad out some better or faster technology to get infrastructure out there, but it remains to be seen. isps say they don't need to regulation and there's too much restriction out there. it hurts the investment for potentially faster service.

as some of these rules are actually out dated. you are looking at july 12. it all these comments to the fcc. there are about 5.6 million that of been gone. it will likely rule later this year. if it is taken down, how will it impact broadband companies? and how likely will regulation ? >> there could be more investment on isps. he went on air earlier this year point that he saw a five 7% drop in terms of infrastructure investment. it was on the order of several billion dollars. the share price for the major isps that includes verizon, charter, comcast, at&t.

some of these are not doing very well. we could see a bump across the board if net neutrality is scrapped. yvonne: let's stay with the internet team, hong kong hosting a rise conference. sherry, good to see you. you can feel the sense of excitement from these startups. what is the mood like this year? still too early to gauge the mood at this point. hundreds of investors about to speak. i hear that they went pretty late last night. it will heat up pretty soon.

i know you have been talking about net neutrality and go daddy has been very vocal about this issue. discuss we will this with blake urban. ceo of go daddy. data equalityis is so important to you and other tech firms. >> our customers are tiny businesses. most of our customers are entrepreneurs and have less than flight -- five employees. they don't have the advantages that large companies do. the great thing about the internet is that it has been the democratize or of commerce where small business can look at giant even though they are two people. if you disadvantage them through

the internet, we are changing the economy dramatically for the negative. the small businesses have been relying on the internet for success and can't be as reliant as they work or they will be decision vantage. >> the fcc it unfairly burdens the internet service providers. what is the preemptive movement nd is that a problem? >> no one would do something nefarious like that. when economics get in the way of pragmatic decision-making because you know your earnings will be better or your top and youwill be better might do the wrong thing. taking the approach that wheeler took saying that everybody will have equal access to the same internet globally.

making sure you don't a government in the middle of it trying to police fast lanes and slow lanes. >> last time we had a similar environment was from the piracy act in 2012 and go daddy took a different approach. what has changed since then? >> the entire leadership team, for starters. happened in 2011, 2010. it was just the wrong thing to do. we made a horrible mistake. get government out of it is much as possible. rule.l let businesses >> you have so many changes to go daddy including changing go daddy's image. you are known very well for these very controversial super bowl ads. you are trying to increase the

number of women in tech positions. how difficult is it to change the culture? >> it has been pretty easy. the culture and people are found in the company were different from the way we were projecting ourselves in public markets. the super bowl commercials that were very provocative and folks inside the company care about their customers. they are fighting the good fight. 58% of small businesses are run by women. shouldn't we be showing them as business people working hard to be successful? we have change that up about four and a half years ago. and that reflected very positively and i am proud of that. >> are you proud of the united states right now? restricting these is in the travel bans? what will silicon valley look like?

>> i'm proud of the united states and i was born in america. i think it was a great country. the we have taken some steps that i think are a little backwards, frankly. there was just another step, something that allows entrepreneurs to come to the country to start their business, get fired up and take advantage of some of the talent we have in the states. in the venture capital we have in the states can get going. and we had an executive order close that down. the h one visas the administration is going in the byht direction, using companies that really want to ,ire great folks from outside hiring computer science jobs that can't be filled in the united states. to go to eastern europe and bring in phd machine learning, ai, things that we are having trouble finding in the states today. the people come to the college system.

we send them home and we make it difficult to come back. >> thank you for joining us. it betty, blake was telling me before we came on the air that it is big in asia including in manila where blake just was. betty: expansion in asia is where the growth is. we will have a lot more guests from the tech startup conference in hong kong. on bloomberg markets, we will speak ceo. it see that interview at 9:40 a.m. in hong kong. yvonne: and tell their a founder and ceo will join us in bloomberg markets middle east at 12:40 p.m. hong kong time. this is bloomberg. ♪

yvonne: let's get a quick check of the latest business headlines at this hour. goober is ensuring investors that recent headlines are not affecting its business. a conference call to say that bookings rose. and a possible settlement without the bet -- with alphabet. losses continue to shrink and they say that it could be resolved before a scheduled court date in october. toyota is setting up a $109 fund to invest in auto related tech

startups. toyota ai ventures will work with the carmakers artificial intelligence and robotics r&d unit. joining investment companies that make car mapping out the rhythms and maker of robotic companions. andants to be attacking defensive at the same time. filled one of its executive positions, naming the chief financial officer for next month. is currently a senior vice president for finance at software maker into it and will replace anthony noto who is going to remain the chief operating officer. sinces held both roles november. they were in banking rub -- before they moved into tech. and that is it from us on daybreak asia. a look at what is coming up the next few hours here on bloomberg markets. janet yellen lost testimony will be front and center. tough questions on the balance sheet of asset prices.

where she is going to be february 2018. to be determined. >> and of course, he is a favorite of donald trump. a bit murky, belonging to tell is about what his thoughts were and what janet yellen might say here as well. again, we are to be pondering over every single word. we will just leave it at that. tbs may be increasing to rein in the risk considering the key role in court mating oversight. and on top of that, -- [indiscernible] a lot of excitement with the go daddy ceo. >> [indiscernible] to come right here on daybreak asia. for market coverage with myself and heidi on the way. ♪

♪ it is 9:00 a.m. in hong kong. i might learned. rishaad: this is for bloomberg subscribers only. check it out at tv . coming to you from bloomberg's asia headquarters in hong kong. rishaad: i am rishaad salamat coming to you from bloomberg's asia headquarters in hong kong. this is "bloomberg markets: asia." ♪ haidi: asia pacific markets in a downbeat mood, but it is adrift, not despair as investors await

janet yellen's testimony. rishaad: t