i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. i am in singapore. the philippines in 1983, a high-profile fascination.

>> a chinese immigrant who built from nothing. educated within the finance industry before the call came to run the family business. expanded, diversified into other businesses. angerk the company public profits by more than 60%, and intensely private man. he agreed to this rare interview.

welcome to high flyers. known in the philippines, his beginnings were humble. he fled china and the conflict there, and started with nothing in the philippines. the diversion, and how it all began. christopher: he landed in china in the early teens. he only knew three words of the english language. a, b, and see. a, b, and c. to support my grandmother. they were supporting each other. they took up this job of , a translation job

for the chinese newspaper. translating the news into english. he basically taught himself english. he bought a dictionary, and word for word started translating, and then over time learned english. from there he became a journalist. beat,lowed the political followed they number of business personalities. through that, made a number of contacts. from a journalist, this is the entrepreneurial part of him. he became an advertising man. he set up an advertising agency. using his business and political contacts. at that time, there were up-and-coming businesses that were basically leaving chinatown into the mainstream. those were his first clients. the logo, hegoes,

claims that he was the designer of that. then he became a stockbroker. of a jack of all trades, jumping from one thing to the other. he did well for a while. of 1973, oil crisis and he lost everything and was actually negative. he eventually stumbled on manufacturing. he had the supply of competitive labor, and put demand and supply manufacturing. together, and the business was started. few people knew the idea of canned tuna. it was a foreign concept. it was marketing. >> he got his start in food manufacturing, tuna, because there was a shortage in the developed markets, markets that

the u.s. and europe. at that time the production base , japan and taiwan, and labor costs in the 1970's were going up. the industry was looking for a new manufacturing date. labor with the natural case to do it. >> how involved ryu in the family business when you were a young boy? >> i had a front row seat. .oing to the ups and downs what did i learn, my father is a role model for working hard. >> you are hands-on as well? >> yes, there was very little boundaries between his work life and his family life. it all intermingled. with thewas going on

company, we knew. we would talk about it over dinner, or whenever we were together. what is going on in the company? in hindsight, it was a great training. we talked about his high points and his low points. wish i had spent more time polishing my tennis game. worked in the, i sardine line. i still have horrible memories pre-teen, putting in eight to 10 hours. i think there are laws against that now today. but i was there. in the manufacturing line i work in the warehouse stacking boxes. around, in the philippines we have mom and pop

stores. i spent the summer doing that. at that time, you had no intention of running the family business. i am number three of four brothers. i guess we never really talked about it, but the expectation was that the older brothers would take more of the heavy lifting. so, there was a point when i thought, i would try to do something on my own. whether in business were going to the corporate route. that is why -- >> you are in managing consultants. you did a fair bit of work outside. what happened? this is all really good experiences for me. out is all trying to figure

where i fit in the world at that point in time. >> you are with guggenheim one day when you received a call. yes, i was sitting in my office and the phone rang. sitting in my office and the phone rang. i was asked to attend a family meeting where, at that point the business going through intergenerational transfer control. we were planning that, and when all the dust settled, they asked me to be the one to leave the company, give me the title. >> why do you think you are the chosen one? >> the chosen one comes with a lot of baggage. i have threeching other brothers, and each of us would have our own strengths and weaknesses. arrived at ay decision that there are certain

things the company needed at that time, where i had some of those things. that is how it happened. >> a friend of mine wrote a book called, " been there, bungled that." whenever there is a setback, keep going forward. ♪

♪ haslinda: now, chris, it all started with a $2 million loan, 11 workers, and 20 tons of tuna. now, it is an empire valued in excess of $1.5 billion. what do you think has contributed to the tremendous success of the company? chris: a friend of mine wrote a book called "been there, bungled that." [laughter] so it was an interesting journey. i was seven or 8-years-old when we started with 20 tons and 11 workers, whatever it is. every possible mistake was an

educational experience, at least for the family. and i guess, collectively, now, we sort of bring it with us today. and it is just -- whenever there is a setback, just keep going forward. my father is a role model for hard work and enterprising, entrepreneurial spirit, so there is always this motivation to keep going forward, doing something new. he would always say, you know, you should always have at least five different new projects in your drawer and be ready to bring it out when you have time to do it, so there is that mindset of always pushing forward, doing something new. i think that, along the way, we made a lot of mistakes, but we are better for it today. haslinda: is there one mistake that comes to mind? chris: i would say it is a series of things.

i think the most painful ones would be the ones that involve people, people you trust, people that are supposed to do a certain thing, and then they kind of fail you and conceal it. there have been a few of those. but we have not lost faith. today, it is a cliche when you say that a company is only good as the people in the company, but i completely believe it. human capital is the most important kind of capital and most important kind of resource. finding that having the right people with the right beliefs, the right values -- obviously marry that to the right sort of experience and capability makes all the difference. allows me, for example, who has multiple responsibilities, to leverage my time a lot, so this company was not built by one person but was built by a team of people. haslinda: it started with tuna, but it has diversified.

you are into shrimps, you are into meat, other forms of food as well. tell us the thinking behind the diversification of the company. chris: sure. the company was founded more than 40 years ago -- about 40 years ago -- by my father. and at that point in time, there was a shortage of tuna in the developed markets, so we had the raw material. in the philippines, we have our competitive labor in the country. and so he started off as a purely export-oriented company. haslinda: exporting to the u.s., germany. chris: yeah, the big brands and the retailers in the u.s., europe, germany, japan, etc. and then came -- they say that, in crisis, there are opportunities. so then came the assassination of our previous president aquino's father, and there was a

dollar shortage. previous to that, we would import -- the philippines would import our canned products, especially sardines, which was a staple. there was a vacuum in the market, and we were in fish manufacturing, so at that point in time, the business saw the opportunity, and instead of exporting and selling to the local markets, that forced us to develop our distribution infrastructure. so over the course -- that was during 1983, when we had that import ban, the dollar crisis, and for a stretch of about five years, we were just kind of developing the distribution infrastructure, building the relationships with retailers, wholesalers. and after that, we figured, you know what, we had this pipeline into the market now. we should add on more

categories, spread out the cost, help us diversify a little bit. it was at that point in time when my father, who was still very active -- basically pioneered the tuna category in the philippines. so did that for a few years, then later on realized there is still more capacity within our distribution system, so got into the meat business. shortly after that, became market leader, and then got into the dairy business as well. so it was that dissolution -- distribution structure where today we recently acquired the the hunt's brand, the hunt's license, in the philippines. getting into another vertical. so finding other items, grocery categories, that are adjacent to our existing categories. haslinda: is it fair to say you are looking for more acquisitions to further expand your reach? chris: yeah, so acquisitions is definitely part of our toolkit,

when we think about what is next and how we grow. haslinda: what is next? chris: what is next? a lot of things are happening. our dairy business is growing. haslinda: are you going to do coconut water? shakey's pizza? chris: yeah. so all of this, i think, is because we believe in the consumer story in the philippines. we have a large, young, and happy population. right? and the philippines gdp is around 3000 gdp per capita, now, so that is sort of the inflection point, economists say, so we should see a growth spurt and consumer behavior changes and becomes more sophisticated. we are very excited about that. we are in the last few years where the philippines has been growing, and it is consumer driven, so most of our businesses are hinged on the philippine consumer, and we are looking for to the growth of the middle class.

so that is sort of how we are positioning ourselves. ♪ chris: i think a lot of family businesses where they falter is when there is no harmony in the family, and we have taken a lot of effort, making sure we are always aligned and have each other's backs. ♪ ♪

haslinda: so, chris, four boys in the family. what was it like growing up? chris: it was fun. it was fun. my youngest brother -- i still say that -- he is bigger than me -- is seven years younger. he just turned 40. so i am seven years older, so there is a bit of a gap. no, it is great. we think alike, because we are very close. carried it today, the way we work together. we complement each other. i have one other brother who is very active in the management of century. that would be ted. and my older brother ricardo is active in shakey's. and leo, our youngest brother, is very hands-on in the real estate business, so we each have our own character, strengths, weaknesses, and we have each other's backs. so i think being able to grow up together and have that shared experience and common values is very important in running a company. i think a lot of family

businesses where they falter is when there is no harmony in the family, and there is an issue, and it is not resolved. we have taken a lot of effort making sure we are always aligned. in fact, worked with consultants to make sure that we always try to be on the same page. we have our family constitution. we have our family governance structures, to make sure issues are discussed and resolved. haslinda: has it been difficult stepping out of your dad's shadow? chris: so i rejoined the business of 11 years ago and was given the title and the role. my father, at that point, was in his mid-70's, and he was ready to hand over the reins. and i don't see myself as kind of the only one sitting in the

driver's seat. i see my brothers -- we co-run the different businesses. and stepping out of the shadow -- there is a big shadow, but he was very ready to hand over the reins. basically empowered us, allowed us to make our own mistakes, so, yeah, i never really felt that i had something extra to prove, because he was very supportive. today, when we make decisions, rarely would he have a different opinion. he would ask questions, make sure that we, kind of, did our homework, but then 99% of the time, he would be fully supportive. haslinda: your dad has said before he is confident the next generation will take it to the next level. what is your vision for the company? chris: i don't think my father has a choice.

[laughter] he has to say that he is confident. he has already turned over -- given us the keys and said here, you drive it. the vision for the company, or basically the group of companies, we, as a group, we believe in the long-term growth story of the philippines. we have a -- haslinda: that is not to say you would not look to becoming a global company? chris: i think for the next five years, most of our investments will be in the philippines, in the branded space, because we have a passion for building and nurturing brands. and probably also very much in the consumer space, where brands like century, shakey's, these are all consumer brands, and we think we have some experience

building and nurturing these types of businesses. so obviously we will have our kpi's, we have to make sure we are very efficient with how we are using our investors' capital. looking at a return on equity, midteens to low 20's types of return on equity. but where we think we have demonstrated some ability would be in the branded consumer space in the philippines. so that is the next five years. beyond that, if we are looking for growth, then absolutely we need to look outside of the philippines, and we have a certain affinity and understanding for asean or greater china. that is probably where we would look first. haslinda: are you preparing the next generation? chris: absolutely. i am in my mid-40's. so this cohort -- 2g, or second-generation, we are in our

40's. our next generation, we are -- the eldest would be 26, and the youngest would be about to be born, actually. and i think i would be -- myself and my siblings would still be very active with the businesses for at least another 15 years, maybe longer, so, at this point in time, we would want to be able to recruit some of that next generation. there are 12 in 3g, third generation, and we would hope to be able to recruit maybe a handful to be involved as responsible owners. they may not necessarily have to be in management, but they need to understand the business, the culture, the dna of the company. haslinda: the po family is known to be very low key. is that intentional? is that part of the company, and the family's, dna?

chris: we follow our father's lead. he is a very low-key person. and then, yeah, there is a lot of work to do. and part of our, just, working habits or practices is just keep your head down and do the work, and then everything else follows. we celebrate more publicly our brands rather than personalities within the group, so that is sort of just a practice in the culture, and so far it has worked. so this is kind of an aberration. i don't do many interviews. [laughter] haslinda: i am honored. chris: well, i am honored. but yeah, we represent a couple of public companies. this is just part of the job description. haslinda: and on that note, christopher po, thank you for being on "high flyers." chris: thank you for having me. ♪

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emily: they started the company in a windowless closet at a warehouse in san francisco. now, 12 years later, along with their cofounder renaud visage, julia and kevin hartz have turned eventbrite into a global business. for the first 10 years, kevin served as ceo. now, julia is in the chief executive office driving the company towards an ipo. joining me today on "bloomberg studio 1.0," eventbrite cofounders julia and kevin hartz. you founded a company at the

same time you were planning a wedding together. that is a big risk for a future husband and wife. why did you decide to do it? julia: i have to say that when kevin and i first met, i did not know where this was going to lead. and it was part of a two-year-long evolution of getting to know each other and understanding how we might work together. ultimately, we had complementary skills. when you find yourself in that situation and you realize you can be a powerful duo, i think it is a shame if you don't go for it. emily: kevin, you were a tech investor, invested in paypal, founded a company called xoom, a money transfer company. kevin: i love technology. i had a front row seat to paypal and the great things that happened there. finding the right partner to do this, and we can't leave out renaud, our third cofounder, but it just felt very natural. we were not entirely sure how it

would work out, but it is 10 years later. here we are. emily: did you set ground rules, who does what? what happens if we get into a fight? julia: one of the best things we did was find renaud, our cofounding cto, and i like to say the bravest person on the planet. as we started to work together, we had this agreement that we would, first of all, divide and conquer, and that we would also always check in. i was the customer support, marketing, and finance department. kevin was the product department. and renaud was the engineering department. we were just three founders for two years. emily: why events and ticketing? why did you think that the problem that had to be solved or had so much potential? kevin: it was addressing this market that had been unaddressed and kind of left to itself. and what is exciting about eventbrite is we were meeting these people and creators who would come together and hosting

these events they could not do before. so enabling this broad, many different categories of events, many different geographies, it was really a greenfield opportunity for us. emily: when you disagreed when kevin was ceo, how did that get resolved? julia: we always have the pact that the ceo is the final say. i could provide a divergent opinion. others on the executive team could provide their opinions, and ultimately kevin would make a decision. and at eventbrite, we benefited from coming at problems from different angles, so kevin may look at a problem from a product angle. i may look at it from a customer angle, but we meet in the middle, and similarly now i feel that autonomy. and i have the support of kevin and of our board. kevin is the chairman of our board, and my executive team, that i have not only recruited and developed, but i have been in the trenches with some of

them for up to seven years. emily: talking about the opportunity, when you guys started raising money, it was the middle of the financial crisis. it was not a good time. kevin: we said let's bootstrap this company. let's not not take outside funding. let's build an efficient and profitable business. emily: is that something you learned from starting xoom? the challenges of dealing with investors? kevin: just seeing in the previous cycle the crash of 2000 to 2001 that it was dangerous to be reliant on capital and we have seen that consistently through this cyclical period. we are in the period of a ten-year expansion. right now everything is up and to the right, but we like to be the masters of our own destinies. emily: but at a certain point you need to do raise money? julia: yes, we chose the worst time to go out. going out in late 2008 was a really special experience. it taught us a lot.

we met with 27 or so venture capital firms, and we were turned down by all of them. so that experience teaches you a lot, right, going into the room and having to answer really critical questions about your business model. sometimes it takes a down market to create that critical question asking moment. and i think if we had gone out during a frothier time, we would not have faced that. so what we did, and i attribute this to you, is we lost everybody to our 2009 annual plan. and we just came back towards the end of 2009 and showed our results, and that spoke for itself. it was a very different experience. it wasn't easy, but i think that people were surprised by how much traction we had in such a difficult market. emily: sequoia led your first round. kevin: that's right. and we were really excited -- i

was excited to work again with a person i knew from paypal. he worked with us at xoom and eventbrite, and he has been fantastic. ♪ julia: most people we talked to, they say, i can't imagine working with my spouse. i can't imagine it. we would kill each other. ♪ emily: so kevin, you step down

as ceo in 2016 due to health issues. how are you feeling? how are you doing? kevin: i am feeling great. i am 100%.

serendipitously, oddly, it was really a great transition because we had a founder in the building in julia that had been impassioned and really had this great insight about the business, who has really great perspectives, and she stepped up during an incredibly tough time personally where she really was kind of taking care of me at that point, but also really took the baton and has been fantastic. emily: i know this was a moment for you, julia. there was a vacuum in leadership to fill, but you also have this personal situation in your life you had to deal with it. julia: it is hard for me not to get emotional when we talk about it. it is like i am right back there again. it was difficult. the most difficult part was the notion that we would not be sitting side-by-side every day. i know that sounds cheesy, but we actually have sat at desks next to each other by then for a

full decade, and so that was probably the scariest part. for some people, or most people we talk to, they say, i can't imagine working with my spouse. i can't imagine it. we would kill each other. that is what we hear all the time. that was the normal for us. that was our normal. i was terrified of what it would do to us as a partnership when we didn't work together every day. it was sort of the opposite. and so i think that is the thing i was afraid of most, and i have to say that now almost two years into this new normal we have really found our stride as being, co-operating in this new contract. -- construct. emily: i want to talk about how you became ceo. because it wasn't actually obvious. it wasn't an automatic now julia is going to be ceo. in fact, you had to propose this

idea. julia: it was important for us to be very objective and to rely on our board to make the right call, but i did need to tell kevin that i was ready, and that was scary, because you just don't know what is on the other side of that. emily: how did you tell him? julia: we were on an airplane. and i had a glass of wine. i said, i think i might be ready. i think this is something i would like to propose to the board, but i wanted to the board to know they had the space to make the decision if they wanted to run a process, if they wanted to take time. emily: kevin, how did you react when she told you she wanted to be ceo? kevin: i thought it was an ideal situation, not just because she is extremely talented, but also because typically when you have these ceo transitions, the first job of the new ceo is to explain how horrible the past ceo was, but because we live together she kind of could not get away with that.

so, this is how you unload to the board all these challenges, and unfortunately she was restricted from doing that. julia: i was also there for the 10 years, so any mistakes we have made or lesson we have learned is something i was a part of. emily: you are one of the few female ceos and founders, and i know when you took the job there were nerves about whether people would take you seriously. how did you overcome that? julia: i put my head down and focused on what we needed to do as a business. this has been a tremendous growth period for eventbrite and i had to get to work. and so i sort of let all of that fall away and i just focused on building the right team for the future, on executing, on making sure the culture, which is global, right? everyone understood we were going to be ok, because i think these big moments of transition can be unnerving and create

uncertainty, even if there is nothing wrong, and so i needed them to know that i was aware of that and that we were all in this together. and then as you take the helm, i felt the difference of beingat e watched grow their companies. it is sort of like when you have your first baby, and you go back to work and you have immense respect for the women who have children and work. i felt the same way about taking the reins of ceo. emily: the company eventbrite is actually pretty solid when it comes to gender diversity. i am curious to hear from both of you how you did that. julia: we are actually still almost 50-50 despite -- we have acquired some companies that have different gender ratios. we have always been focused on

trying to build a company that looks like our community, and our community of creators is global, right, so diversity has to be embedded in what we do. so me being a female ceo certainly provides a great embedded role model at eventbrite, but inclusion is entirely a choice. and you can have great diversity and really not great inclusion. kevin: i think just as a company needs a competitive advantage, whether a technology or a network, there is a recruiting advantage that needs to be built, and all the great companies have come up with specific recruiting advantages, whether it was microsoft recruiting from young students out of college in the 1980's. we saw this unfortunate bro culture here in this very competitive san francisco environment, and we saw all this talent available, so for us

hiring moms and looking broader than people that looked just like ourselves was a competitive advantage. emily: so how did you do that? kevin: there is the stereotype of the 20-something male engineer, and you have these incredibly talented women in the bay area that have maybe had children and maybe unconsciously get written off. we saw that as our competitive advantage. julia: the maternity leave is a great time to recruit someone, by the way, because you have this moment of reflection and there is a varying degree of which companies decide to support people who are going through such an important milestone, and don't even get me started on it. this is a great subject for me to pontificate on. it is very curious to me that especially in the u.s. corporate

culture we basically penalize people for procreating, which pregnancy is a medical condition. emily: it is a disability. julia: despite anybody's broad religious beliefs, i'm pretty sure we're supposed to be procreating on some level as humans, so that i think is curious. when you look at it and say this is not only a moment where somebody is going through a major life transition, and this is for men and women, but they are also fearful of what their life is going to look like. are their careers going to go off track? are their peers going to think about them differently? will they not be able to juggle or put the jigsaw puzzle together? there is always a piece missing under the couch, right? just life, balancing kids and career. and so all of our sort of policies around that are great, but it is really about how we treat each other. it is about how we show up for

each other, and so part of that is identifying that talented candidate, especially in competitive markets, may be reflecting on what their experience is at their own company, right, during that leave period. emily: what do you think the biggest risks, challenges that lie ahead? we hear about things like scalping, or the fact that you can't get a ticket to hamilton if you are just a regular joe. kevin: if you just look at the blockchain, there you have a means of actually assigning ownership and having clarity of who actually owns a ticket and being able to transfer that properly, and not have it end up in the hands of a scalper that then the artist does not benefit, the creator doesn't benefit. it is a third party taking a big cut. it is a scalper taking a big cut on a third-party platform, so

there are lots of ways technology can address that. it is up to us to build or lose to a competitor. so it is on our shoulders and that means continuing to build the best team we can do. emily: you have been straightforward about going public. you have said it will happen. when will it happen? julia: when i think about what we have accomplished in the last decade plus, right, we have had in excess of $10 billion in ticket sales flow through eventbrite, and we are just getting started. so if you are sitting in my seat and looking out over the horizon, you are really thinking about how do i build this for the long term? and we have never shied away from saying that when the timing is right, if eventbrite is ready and it is the type of company that can be a successful public company, we will go for it. kevin: i would just add that we are in an environment -- someone and it is the type of company said -- that after six quarters

of revenue growth, it was time to go public. that was the sentiment of tech in the 1990's, that you would be out really quickly, and now we have swung in the other direction where companies are staying private for a long time. that can have a detrimental effect because you don't have the light, the sunshine of the public markets to shine in and breathe more accountability and a lot of bad things can happen, so i see personally a lot of benefits to going public, and the company is ready when julie is ready to make that call. ♪ emily: you invested in paypal, you invested in youtube. you invested in pinterest, pretty good hit record. what is your secret? ♪ emily: kevin, i want to talk to

talk a little bit about your investing career. when you stepped down as ceo, you became a partner at the founders fund, and in fact you have been investing for a really long time, starting with paypal. kevin: i have always seen investing as a sort of selfish endeavor in one sense. i love to learn from bright, talented founders who can give me a new perspective, but what i love about it is helping to pay it forward. emily: you did this on the side, right? kevin: it was pretty natural. instead of going to some type of club or playing golf, it was working with young founders and new companies. i could pattern match and learn a lot. emily: so you invested in paypal. you invested in youtube. you invested in interest. kevin: paypal, airbnb,

pinterest, uber. emily: a pretty good hit record. what is your secret? kevin: what is my secret? again, i am just looking for really talented people that look at the world in a different way and are so impassioned about what they do and want to have a positive impact on the world. emily: i think you said something like you met with 900 companies your first year? kevin: i think it was 951 companies. emily: wow. you met with 951 companies in one year. that is dedication. kevin: obviously, we did not fund most of those companies, but i think what is exciting about this period is that the capital available is a wide variety, whether it is synthetic proteins, space travel, this is an incredible period to build and really impact society.

emily: how did you end up going with founders fund, which is one of the more controversial funds? peter thiel known for his support of donald trump, but also investing in out of this world ideas. why did you choose that? kevin: i knew peter while at stanford. i was involved in student politics. i was chair of the stanford democrats, and peter was staunchly conservative libertarian, but i loved the diversity of opinion that existed there, and while i did not agree with a lot of his views, i was keen to hear his perspectives because they are insightful. i would say it is unfortunate. it feels like there is a bit of groupthink in the valley right now that maybe muffles or dims other perspectives that we could be more open-minded to.

the second reason is really how this is a partnership, a group of real dreamers truly investing in really world-changing ideas, whether it was an initial investment in facebook or being the first institutional backers of spacex and elon musk, it is great to see these independent thinkers that take risks in this manner. emily: peter has caught a lot of flack for supporting donald trump. founders fund has been dragged into that. what is it like to weather that behind-the-scenes given that we are in the heart of the left-leaning west coast? kevin: i try not to get caught up in the drama of the headlines, albeit exciting, salacious headlines. emily: it was never a distraction? kevin: perhaps here and there.

i would not over exaggerate it. emily: so peter is now moving to l.a., as we understand, because of this groupthink and his dissatisfaction with that. what does that mean for founders fund? kevin: that is peter's choice. founders fund is a partnership. so i think often incorrectly it is viewed as peter, but it is made up of a diverse set of investors. and we will continue and work along with peter, but there are other great team members, whether it is scott or lauren or brian, it is a partnership and not around one person. emily: what is it like being married to a venture capitalist now? julia: what is it like being married to kevin? sometimes you feel under accomplished just by the sheer number of meetings he takes, and then to realize that even

despite him meeting somehow 951 companies in the first 12 months, he is a 50-50 partner to me at home. we co-raise our parents -- sorry, children together. kevin: we do co-raise our parents. julia: we also co-raise our parents, sorry mom and dad. and just how involved he is, so i do have to say, i don't know where you find the time, but it has been great to watch him. kevin: it pales in comparison to what julie has done over these last two years at eventbrite as ceo, and how the company has grown and expanded, and i am so excited for the future. emily: kevin and julia hartz, cofounders of eventbrite, thank you so much for joining us on "bloomberg studio 1.0." ♪ retail.

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anna: i am anna edwards. matt: i am matt miller from berlin. daybreak: eumberg rope." blocking the bid for citing national security concerns. matt: publicly accusing russia poisoning us via nuclear soil, written asks the woman to respond. anna: china's central bank is put in charge with writing new financial sector rules.

we are live in beijing. matt: good morning and welcome "bloomberg daybreak: europe." coming out with earnings, adjusted income better than the street had expected. 1.23 billion euros for 2017 at the adjusted net income. the street was looking for one to two point -- 1.2 2 billion euros. forecasting net income of 700 million euros to one billion

euros. that is the outlook for 2018. also raising its ordinary dividends to 70 euros a share. most importantly the public ater has been made by e.on 40 a share. lose jobs.s energy and do what it likes with it and hand the assets rwe needs. well talk to us after 930 -- 9:30 a.m. ceoill talk to e.on's joining us later. more on this shaping of

the german energy space. this is the picture in the asian session. msci asia-pacific up by point two of 1%, a little lackluster in terms of its moves, lacking conviction in the asian session --ing to work out whether where the tariff story leaves the global economy. we did see a dip in u.s. stocks. we have a lot of chinese data later on this week which might give us more of a clue on the global growth story. auctions taking place in the u.s. yesterday. we are higher on yields, lower in price in terms of what we see in the treasury market. it was described as in line with expectations or decidedly average depending on which copy you were rating.

not a ringing endorsement of increased supply. we get cpi data later. those are the numbers we are looking for, the estimates that we looking for confirmation. we see some dollar strength across the board. the dollar gaining against its peers. i have a chart because we will be talking so much about donald trump, his protectionist band that has some in the market worried and i want to remind people that the market axon something like the tax cuts they put into place. you can see here in this chart going back through the beginning of november that earnings estimates and that is what this light -- white line is, earnings estimates absolutely soared, just took off when the tax cuts came into effect december 29. i suppose you could say they

have stalled a little bit and we do say that. only since every 14 was just a couple of weeks ago. the impact -- amazing part is the pickup in ats estimates from less than 135 to more than 155 in the span of a couple of months. that is pretty amazing and shows that the market is most concerned with the actual tax bill that passed and seemingly less concerned with the protectionist rhetoric we will talk about today and have been for a couple of weeks. let's get to the bloomberg first word news with juliette saly. guy: rex tillerson said they substance used to former russian spy and his daughter came from russia. and warning that the event will trigger a response. the british government blamed moscow for the agent and gave president lujan until midnight today to respond to the accusation.

>> russia's record of conducting state-sponsored assassinations and our assessment that russia views defectors as legitimate targets for assassination, the government has concluded it is highly likely that russia was responsible for the act. republicans have ended an investigation into the 2016 elections saying they found no evidence of collusion between the u.s. campaign and russia. the probe by robert mueller continues with four people connected to the president's campaign facing criminal charges. u.s. president donald trump may name larry kudlow as his top economic advisor. they say he has emerged as his favorite to replace gary cohn,

according to two people familiar with the situation, trump has spoken by phone with him about the economic advisor roles including once of the weekend. giving it central banks the power to write the rules for the financial sector. they will be merged in the biggest industry overhaul since 2003. some of their functions including drafting key regulations that prudential oversight will move to the piece of -- pboc. it is aimed at closing ringgit globallatory loopholes news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . we had that very solid session coming through in asian markets yesterday but some caution in the u.s.ts as we await

cpi report. you have seen the young dip back some gains on that turmoil in japan. the nikkei closing higher by .7 of one cent -- 1%. we saw them them futures in shanghai weighing on the resource heavy asx 200 market but you have the pickup on the nasdaq and similar in taipei, the type it -- taiex is up. in terms of other stocks we have been watching we have been focusing on the banking sector. add bank surging the most in a year after a $15.8 billion chair sale plan that will be the largest ever. inc. of india leading again against state run lenders in india after recovered $1.1 billion over the last two months in bad loans and universal in by 7.7 percent. when resorts going to drop its case against the billionaires cofounder of the company and that follows from the sale of

their stake in wynn resorts. anna: thank you very much. president trump has blocked broadcom's pursuit of qualcomm. his executive order scuttled the hostile bid and came hours after broadcom attempted to ease washington's concerns. only five takeovers have been blocked on national security grounds since 1990. gadflyet to our columnist following the tech industry closely. the u.s. seems to be worried about giving up grounds to china and telecom technology. what are your thoughts on this, you talk about this in your column and how this is starting to happen so what makes you think so? >> the amount of patents that

are being filed internationally through a provision called pc allows you to apply for a patent in than it would apply globally. we see that huawei and zt are constantly at the top of the list. qualcomm is in the licks -- in the list. seen is they have been pushing hard and we are seeing more and more and applications. which is an indication that they are working hard to build up their technology and they want to go global. is, what kind of step do you expect five g be from 4g if we talk about generations of mobile telecommunications quantum leaps because 4g was over gsm.3g and 3g is 5g that big a deal and is it

important to keep dominance in this? eel for a be a big few points. 4g and 3g for about streaming video. we wanted fedor pipes to stream video. people are not using mobile phones or make voice calls that much. moving into the internet of things where we have more devices rather than mobile phones connected to the internet. that will have to -- have security implications. locks and evenr cars connected to the internet without a human involved, there are a lot of security issues involved and they will be issues that globally government and cooperation -- corporations, everyone will be looking closely at. that is why the u.s. and china wanted developed the -- dominate the technology and they're worried about the other side having any kind of dominance in

that technology. that is the implication, it is about devices connecting to the internet and security issues that go with it. much,thank you very joining us there from with his's gadfly analysis of what we heard from the white house overnight. joining me for the market view, the global head of fx strategy at rbc. other presidents have made the point and we have suggested other presidents have blocked deals. there was -- this was a substantial one. of slightlyple unpredictable policy? >> if we go down this route it may well be less disruptive to markets in some way. in that blocking investment is something several countries do on national security grounds and the part the u.s. has been relaxed about as you mentioned but going forward

we can expect to see a lot more of it. thinking about its strategic competitors in key areas and protecting those little bit more. that would be a lot better for markets than going down the route of tariffs where economists agree everyone is a net loser. anna: does this have any dollar into bigs the u.s. u.s. tech or does that overstate what we have seen? the u.s. does need to track capital from abroad but at the same time we are not going to see a wholesale blocking of oil m&a. we will see the u.s. be much more strategic about the deals that it blocks. it is a very big deal, over 100 billion but it is a drop in the ocean for the global m&a. matt: if i look at the bloomberg . you think that we

are going to see a lot more m&a from foreign sources? not every deal is singapore-based gigantic tech company trying to buy a gigantic california-based tech company. exactly. another thing worth mentioning is the tax reform passed at the end of last year. that was the center for u.s. companies to relocate production abroad. they may be a lot more of the reverse happening. people look at the cat -- tax rate and think that is a pretty attractive place. think abouto you the tax treatment? is that going to be a big bonus? we showed earlier that earnings estimates for u.s. corporations have skyrocketed since the tax reform passed. what is it going to mean for the dollar in this relationship to other currencies?

not donee dollar has too well since the tax bill passed. the yearbad start to and then stabilized in february and early march. be dollar positive. if you worry about the u.s. a long-term fiscal sustainability, if you treat it as an emerging market, you worry about the sustainability of policy, how much the deficit will explode, whether that will mean a larger current account deficit. you could start worrying about the dollars status. if you look at the composition there is no grounds to think this will be like the 2000 or we had between deficits. what is missing is the private sector so we have a lot of work looking at this and highlighting the fact that we have tripled deficits. that should be more dollar positive going forward. anna: how does that fit with what we have seen with

treasuries when the markets are having to adjust to more supply, there is a story about bond vigilantes. we get inflation data later. i have this chart that shows inflation and the u.s. and treasury yields getting ahead of the cpi number. how high do you see the inflation story getting and building in the u.s.? guest: we are still looking at yields below 3%. we are a long way from real inflation fears. the market has to reprice a little bit. we had a long-standing call for fourth fed hikes this year but also next year. that is where the market needs to catch up. us, wehanks for joining have a lot to talk about this morning. shifting goalposts. impossible tot

hit in the eurozone, and most other places run the world, as it time for the ecb and other central banks to reconsider and completely question mark we will speak with eo.n's ceo -- e.on's c teyssen after ten, e.on before. this is bloomberg. ♪

anna: it is 6:20 a.m. in london, 7:20 a.m. if you are in matt with -- with matt in berlin. juliette saly has your bloomberg business flash. juliette: donald trump has issued an order blocking broadcom's 100 $17 billion bid

for qualcomm on the grounds of national security. after the ceoame met pentagon officials in an attempt to address washington concerns. that is credible evidence it would threaten u.s. interests. e.on will shed 5000 jobs in the deal to come over energy. the transaction agreed with its will sharpen the focus of the two leading gas providers. after 9:30oins us a.m. u.k. time and we will the ceo i've outon's -- a half hour later. e-commerce giant has been in talks on a friend of

credit card. amazon is hoping the new credit card which will feature rewards points for purchases will also add offerings such as business insurance. jeffreyelectric paid him out to more than $8 million in his final months with the company even as it stumbled through one of the most tumultuous stretches in its 120 secure history. he will step down in august and quit the board two months later. shares were under pressure but fell hard after he left. jesus john flannery will not receive any onus for 2017 because of the company's performance. that is your bloomberg business flash. thank you. juliette saly in singapore. central eggs around the world are failing to hit their inflation targets forcing some to shift the goal post either officially or not. norway's decision to lower its target is the latest example and

in new zealand which is the birthplace of inflation targeting, the central tank is shifting to a broader goal which means employment. i wonder what you think about this because i was at the ecb last week, they took out there easing bias in the face of u.s. tariffs and even as they lowered their inflation target. forinflation expectations next year, what is the point of having a 2% target officially, you almost unofficially admit you are never going to hit it? are: i do not know they unofficially admitting that. explicit out the easing bias. it is still their exquisitely. there is no chance that the ecb are going to change this mantra. of a 2%at do you think

inflation target? it difficult for the u.s. with 4.1% unemployment. how easy is it to hit in the european union or frankly, anywhere else? is this a whole new world when it comes to that kind of inflation? else that: it is a different world and it has taken a long time to get back to levels of full employment and there is a debate about what this means for the phillips curve? is it dead as some argue or is there a kink in it? fullu get close to implement you have a flat phillips curve and then the curve steepen's and you can see inflation accelerate. there are quite a few central bank it -- bankers who think it is the latter. some time for workers to get used to the idea that the employment market is tight again after lots of years of this very

and a slack int the economy. we are only at one point 5% core pce in the u.s. and you have 4.1%, we have had the lowest inflation since either of -- employment since either one of us has been alive. at what point do the get to two? 30% away from where they want to be. inflation has taken time to react to changes. look at a 18 to 24 month horizon. that is where they can influence inflation outcomes. anna: i have this chart that

says how the euro has been doing pretty well, even inflation expectations have been coming down. inflation catch up with the euro or bring it down? you look at the slope of two slides, that is the expectation that policy will tighten over the horizon. if we do not get inflation, there is a lot of slack in the economy in europe. if we do not get inflation, it will be hard for the ecb to deliver in line with market expectations. they would be more caution on the european side. ,nna: thank you very much staying with us on the program. the u.k. blames russia in the poisoning of an and warns of reprisals. we also heard from the u.s. on this. how will russia respond, will

russia respond? we expect to hear from russia earlier -- later this morning. will we get any response? this is bloomberg. ♪

anna: this is "bloomberg daybreak: europe." 3:30 p.m. in the afternoon in tokyo. we see dollar against the yen on the move but dollar [inaudible] softnesse are seeing some come through in asian equities after the gains yesterday. you can see it is a picture, some weakness coming through in china and australia, strength in japan and south korea. the msci asia-pacific index up .11%