betty: 7:00 a.m. in hong kong. i am yvonne man. welcome to daybreak asia. the top stories this tuesday, facebook slumped over user data. they are accused of handling information that could influence elections. mark zuckerberg has lost 5 billion dollars so far. lawmakers on both sides of the atlantic want answers.

betty: from bloomberg's global headquarters, i am betty liu in new york, where it is just after 7:00 p.m. on monday. corporate america vowing to fight against terrorism. uber pulling the plug on all, this -- on autonomous vehicle tests after a woman was killed by a self driving car. yvonne, today, we are talking about big tech. where facebook goes seems to be where the technology sector goes on this news about this data breach during elections. g #btv 811. it kind of shows you these blue bars here represent facebook shares. the white line are the fang tech shares like facebook, amazon, netflix, and google. when facebook goes down, look at that.

the thing index goes with it. if you want a benchmark or proxy for the tech sector, it is really facebook being hit so hard today, really dragging down the entire nasdaq in the session. yvonne: still a lot of questions on just how this data was misuse, how was it actually used during the election as well? plenty of questions and a lot of pressure for mark zuckerberg to testify. that is what lawmakers will do now. theas apple which was concern on monday. it seems like facebook really weighed down on the sector overall. lookinge how things are in asia. we are following the weakness we are seeing in stocks. the index 50 down .5%. getting underway as well. we are expecting rba minutes to kamal out. the aussie continuing to lose. iron ore's slump has been weighed by the commodities.

269 for the aussie. 10 year yields ahead of the fed meeting this week. we are counting down to the opens in japan and korea. could we see more pain on the nikkei 225 after the almost 1% yesterday? we are expecting 1.5% down on the open according to futures. 106.04. strength coming through to the yen after abe's popularity slumps due to this land scandal in japan. more to our top story. facebook shares with the steepest drop as officials are reportsg answers over that a political advertising firm retain information on millions of the networks users without their consent. let's get an update from sarah frier. she is on top of this story. tell us a little bit more about what investors are so rattled about this gamble or the -- scandal or controversy?

this is a long list of data issues surrounding facebook. sarah: this is just the latest bungle in a long line of things that have happened to facebook this year. we have had so many public concerns. there is the russian use of its platform to manipulate voters. there are coming to, facebook's response to that. this issue, for some reason, has really resonated with lawmakers. this is an instant with facebook did not know that this data firm retained this information through the firm itself says it has not. this is really going to be the last straw for a lot of lawmakers. they have called for zuckerberg to testify. they want the executives to come and answer why they did not understand that this was happening with the data, and honestly, when it comes to regulation, robert the -- privacy is probably facebook biggest weakness. we might see it later in the

u.s.. yvonne: i think that is the concern, that we really have not heard from mark zuckerberg or latestsandberg in the developments here, so how likely is it that mark zuckerberg is going to stand in front of this and go to the sea on this -- d.c. on this? sarah: my guess is the reason you have not heard from zuckerberg and sandberg is because facebook has not independently verified their reports that the news organizations put out on saturday. they proceeded -- preceded the reports with a blog. it gave the impression that they were looking into this and had somehow verified it themselves. they put out a post saying they are going to do an audit and see whether the data has actually been deleted or not. are notthe executives likely to speak until the audit is complete, but certainly, that

shows how the company has bungled the public relations front on this. betty: how about the reaction from u.s. lawmakers? does this mean you'll see more regulations coming down the pipeline? sarah: we heard grassley say whether he's considering to hold a hearing. listen. this is something that there is went to be a lot of noise, a lot of concern from lawmakers, and we could eventually see some regulation, but it is difficult to get that sort of thing through congress right now. when it comes to facebook, it does seem like a bipartisan issue. we are seeing both republicans and democrats speak out over the weekend on how they feel like facebook has mishandled this. betty: sarah frier in san francisco, bloomberg technology reporter. let's get to the first word news with jessica summers. jessica. jessica: thanks.

uber has halted all autonomous vehicle test after one of its cars hit and killed a woman in arizona. she was crossing the road away from a recognized crosswalk when the car struck her. the car was traveling at about woody miles per hour. there is video evidence of the crash, although it is not been released. the firstght to be pedestrian fatality involving self driving technology. clinched, the u.k. has a deal to buy time in brexit talks. emmett brussels says it is a decisive step. they decide to a transition period that is due to start on march of next year. it is contingent on a solution of northernborder ireland and the republic. we do not rush through contingency plans based on guesses about the future deal. now have certainty about the terms that will apply

recently after our withdrawal, meaning they can continue to operate with investor confidence as the design of our future partnership with the european union becomes clear. jessica: president trump to opioid abuse academic, including seeking the death penalty for some drug dealers. it praised -- he praised the clinton program. the maker of the drug surged as much as 56%. the u.s. reported more than 64,000 drug overdose deaths last year. china's national people's congress wraps up later tuesday after the biggest government shakeup in two decades. the clearest message is that president xi jinping has tightened his grip on all aspects of power, amid references to him not seen since mao zedong. he is expected to make a short speech to delegates.

hours a day,24 powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. betty: jessica, thank you so much. corporate america warning president trump against terrorists, saying they could raise consumer prices, and hurt the stock market. charis and protectionism will be high in the agenda as central bankers meet at the g20. mike mckee is there right now. atther thread on the ministration from trade. yet more pushback. where is this headed? what are you hearing at the g20? mike: it appears the u.s. is committed to doing some sort of sanction program against the chinese for intellectual property theft. what that comes down to, we do not know yet, although the president has been reported for a series of strict tariffs. the other issues of the g20, do

not think that will be effective and could tip the u.s. and the world into a trade war. they would prefer some sort of coordinated international action, but that does not seem to be the path the u.s. is choosing. betty: last night, you suggested steve mnuchin would face a frosty reception amid all of this. you can imagine why. that appears to be the case so far, right? mike: yes, that is what happened today. in the meetings, minister after minister told the united states that they do not believe in the course the trump administration has set, that trade protectionism, even with one country, is a bad move for the rest of the world, especially because the united states is such a big economy. they did not seem to make any ofdway and do not seem to be come up with a language that satisfies the u.s. in terms of a communique. breakup with no advancement on the trade front. the onlyrade not just

contentious issue. i'm in, all of this tech selloff. a lot of concern that perhaps catching apple and amazon as well, especially in europe, how is that dividing the g20 now? mike: there is a divide. there is a feeling that the tech companies are not paying their fair share around the world, particularly in countries that don't have big digital champions at the u.s. does. there is a move to impose taxes. the european union going to be first out of the gate proposing a 3% tax on these companies earnings. it will take some time for that to be ratified and adopted by the e.u. i talked with pure moscovici today. he says they will not be put into place until 2020. let's all work towards some sort of harmonized agreement and maybe get there by 2020. frome a year or two away taxes being levied, so maybe investors got a little ahead of themselves today.

yvonne: still not seeing much harmony on both of those issues surrounding g20. thank you, mike mckee, joining us, our international economics and policy correspondent. coming up, a look at the future of uber's so driving technology as it is blamed for the death of a pedestrian in arizona, later on this hour. betty: up next, how trade tensions in the text route on wall street -- text route on wall street could play out in asian markets. this is bloomberg. ♪

betty: this is "daybreak asia." i am betty lou in new york. yvonne: i am yvonne man in hong kong. the facebook data breach and geopolitical concerns combined to create a risk-off day that added to market anxiety ahead of the fed decision on interest rates. let's get the latest with su keenan with what we saw for the price action here overnight.

it really was the nasdaq that took the biggest blow. >> what we saw was a major drop in the nasdaq fighting to hold on to its 50 day moving average, which it did. take a look. closing off the low of the day. the nasdaq 100 was the risk -- down for the fifth day. facebook and apple, the big story. we did see treasuries close off their low. they erased earlier losses. gold advanced on the weaker dollar, but look at the losses on the nasdaq and the dow. the dow out of lois was down more than 2%. let's go into the bloomberg and g #btv 811. let's take a look at how facebook brought down the fangs, the stocks heavily favored by private investors. facebook, apple, amazon, netflix, and alphabet's google. what you see is the s&p 500 index of the fang stocks versus

the blue, which is the huge drop in facebook. if you go into the movers, you will see it. the low point of the day, it closed off the low. the declines in these stocks were significant. that as interesting is one of these stocks falls, traders tend to sell them all off, and that created more of a tech frenzy. go into the bloomberg one more time. g #btv 9581. actually, i'm going to go one more time and bring up 9561. and what you see here is the s&p has had itsellow own struggles. the blue boxes are where you see the tech stocks really falling, and today was a huge story. it werelysts said if

not for facebook and apple, it would be the trump concerns weighing on the market. we have the fix up some 20%, the most in five weeks. that certainly adds to the anxiety as investors look ahead to the once a rate hike. betty: investors already on the edge. facebook is addingthat to those concerns. thank you so much, su keenan. you have got that. you have got the fed coming up as well. expected to raise rates on wednesday. jay powell will be coming out in his press conference. here is the senior emerging markets strategist. things, didside of you -- does it seem at the markets were kind of looking for an excuse, really, to take the markets down, particularly in tech? or is there some real, substantive tailwind behind these tech stocks and the drop we saw with facebook, given these upcoming regulations?

>> i think there is a great deal of their business at the moment, and we have seen this in the last several weeks across the markets. and that has been exhibited in the vix index. after yesterday's rout, that will have impact. there is probably more momentum in this as we move into the open in the asian session. it could way on markets -- weigh on markets in the region. betty: why do you think the markets took this facebook do so hard? going as i said, i think into a fed meeting where we do expect the fed to hike rates. there are questions about how hawkish an upbeat the fed will be. withnervousness together ongoing concerns and worries about the tech sector in general. that manifested itself in this movement we saw in stocks overnight. i don't think this is a one-off.

clearly, there is risk aversion. it seems to be creeping higher in general. it could weigh across markets in the near term. yvonne: i think the timing has been very interesting as well. we have a chart here that shows g #btv 4654 that tech, before the selloff, he became the biggest industry when it came to global stocks. talk about how they are weighted in the msci world index. we continue to see how this has just become such a big theme for many investors, the darlings of many foreign portfolios. can you still be long on the portfolio this year? mitul: look, i am not an equity analyst, but clearly, as you said, if we look at the flow of money, it has been significant into equity markets in the last year. that has seen substantial gains across global equities, and perhaps, when you look at valuations, there are questions marks that valuations are becoming more stretched across the markets, and you can look at

some currencies and other markets, so this nervousness, perhaps, also reflects some of the news out there, as you mentioned, but perhaps valuation center looking a little bit more extreme. >> right. talking more about the fed, you are still in the base case that we are going to see three this year. how big of a hurdle is it that we were actually jay powell sway the doves into going from three to four. is that a likelihood the markets are not pricing in? mitul: the markets are pretty much fully priced in. a hike at this meeting. for anot much of a hurdle fourth hike. i think, clearly, the growth numbers, you look at just the recent data, has been very firm. inflation is edging higher, and that has added another layer of fear for markets. it would not take much to push the fed into a fourth hike this year, and that is what markets will be looking for.

any potential hint that the fed may be inclined to go four times this year. if there is any significant change in the dot plots, for instance, i think that will be a real focus, so as you said, our base case is three hikes this year, but it does not take much. betty: let's bring you another issue that has been hanging over the markets, which are these punitive theyw might be against china and other asian countries. for you see a relation between how severe they can be and the rate hike path and the trajectory in the u.s.? we could see clearly global growth being hit by the sanctions and trade tariffs, etc. it depends on where things move from here. a great deal of uncertainty. skilled harris and aluminum tariffs have been the big focus. have warned china that

there could be a broader wave of tariffs on china. badly.uld affect very exports,obal trade and and the u.s. is the biggest trade destination for this region. almost all countries have a trade surplus with the u.s. except singapore. it would hit asian growth for sure you're the u.s. will not escape unscathed. we could see cap to tariffs in various countries. u.s. exports.ect we have heard from europe i saw that they may levy some sanctions. this is going to be -- if this escalates and the administration pushes further tariffs -- this could get a lot worse an effect global growth effectively. yvonne: there is a lot of questions about what this actually does to the dollar. people say trade tariffs should

be positive when it comes to the dollar. are there em currencies you would be avoiding at the moment? inul: it is a bit ambiguous terms of the dollar. clearly, in the near-term, the dollar might be getting more upside from this, but i think further out west, relatively negative against most currencies, but that said, if we do see an escalation of tariffs, we have got big trading nations in asia. the likes of singapore, korea, taiwan, thailand, could be affected, but at the moment, it looks like the biggest vulnerability's are those countries with direct account deficits that rely on portfolio flows such as indonesia and india. they have been amongst the worst performance of this year in the region. and that is probably because of the volatility of the risk aversion that has an afflicting markets in recent weeks. betty: we have got to leave it there. thank you. the senior emerging markets strategist joining us from singapore. you can get a roundup of the

stories you need to know to get your day going in today's edition of daybreak. don't to dayb on a terminal. it's available on your mobile in the bloomberg and interact. -- bloomberg anywhere app. focusing on that tech route here today. check it out at dayb . this is bloomberg. ♪

betty: this is "daybreak asia." i am betty liu in new york. yvonne: i am yvonne man in hong kong. oracle fell after hours after reporting sales that underwhelmed investors. revenue rose 6% to $9.8 billion in the fiscal third quarter. the third-quarter outlook topped forecasts. oracle has spent years trying to transform a traditional vendor into a cloud contender. betty: standard chartered has been fined almost 5 million u.s.

dollars in singapore for failing to meet money laundering requirements. the penalty comes less than two years after the bank was punished for a similar breach in the city state. says theary authority fault happened when trust accounts were transferred from the channel islands to singapore . indebted hna's group struggling to fetch even close to the $2.2 billion it paid for 245 park avenue. it bought the tower last year. it is home to j.p. morgan chase. the price tag was among the highest ever seen for a new york property. values have since fallen in the building is said to need improvements that could cost at least $1 billion. we are counting down to the opens in japan and korea. they are going to be opening in 90 minutes time for now. see, japanese nikkei futures in chicago trading down following the declines that we saw here.

the nikkei 225 closing lower, hit by some of the tech concerns led by apple yesterday. this time around, it's facebook. drop,llar continues to weakening against the yen, getting closer and closer. still on australia time here. yvonne: this is bloomberg. we will be back. ♪

>> 7:30 a.m. tuesday in hong kong. 30 minutes away from asia's first major market opens your the tech selloff way on asian stocks. we could be shaking the rochus to china as we are expected to hear from president xi jinping as he wraps up the npc here. betty: 7:30 p.m. in monday evening. spooked by the news this morning, including the news on facebook. down by 1.4% at the close.

i am betty liu in new york. yvonne: i am yvonne man in hong kong. you are watching "daybreak asia ." first word news with jessica summers. jessica: thanks, yvonne. facebook saw its biggest faults in 2015 as u.s. and european officials demanded answers to reports that millions of users had their data held by a political advertising firm without consent. calls are coming from both sides of the atlantic from mark zuckerberg. they want him to explain to lawmakers have u.k.-based cambridge analytical was able to harvest the information and help donald trump when the white house. meanwhile, the trump administration is said to be putting pressure on america's allies to work against china. that is in exchange for relief from u.s. tariffs on steel and aluminum. washington has laid out five conditions that countries must address to win exemptions. they include actively addressing china's alleged trade discerning policies and cooperating with the u.s. in wto cases against

beijing. bloomberg sources tell us amazon has looked at the possibility of expanding its retail footprint by acquiring some locations from bankrupt toys "r" us. the online giant wants to use the seem to be vacant spaces for its purposes. it would expand amazon's brick-and-mortar presence after its purchase last year of around 450 will food stores. foods stores. the prince has moved on from being caught up in the kingdom's crackdown on corruption. he and other prominent, wealthy saudi figures were held for weeks at the ritz-carlton. vastwere said to have paid sums to gain their release. he says he does not bear a grudge. >> i am for the anticorruption mentor place in saudi arabia. unfortunately, i was out of that is back tolife

normal. i am out the person who will come and say, you know, i forget but don't forget. i say i forgive, and i forget at the same time also. jessica: catch our exclusive interview with him later on daybreak middle east at 3:00 p.m. sydney time or midnight in new york. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. yvonne: we are counting down to the open in tokyo and seoul. sophie kamaruddin, we have been following these from apple. they spoke be weighing down as well once again. sophie: the tech sector has several clouds gathering. focusing on the apple store, i will be watching how susceptible asian suppliers are to these developing concerns regarding micro led. samsung shares falling along with other display makers.

jeopardize the relationship with the tech giant. jpmorgan says the negative stock reaction may the overblown, forecasting apple is three years to five years away from commercializing in-house tech. the likes of samsung and lg display -- earlier this year, samsung unveiled its micro led tv technology. plus, apple does not have the mass manufacturing capacity. bloomberg intelligence pointing out that apple will face stiff competition given the lead others have. let's pull up the board to check on how the kospi will open. a weak start for seoul and tokyo. in sydney, a two day rise ahead of the rba minutes and data. betty. betty: outside of technology shares, asian traders focused on china more than usual today.

it wraps up finally. what's on the radar? sophie: front and center is going to be xi jinping's discussion. the speech of the closing session. we have the annual press conference. dangling carrots, saying other countries could perhaps find relief from this tariffs which are due to kick off on friday should they play ball with the u.s., enforcing tougher stance on china trade policies. with the fomc decision pending and the pboc governor being confirmed, i want to highlight this. #btv 938own -- g eight. you can see the narrowing spread between chinese and u.s. treasury yields. growing concerns that the pboc will raise a money market rate soon. betty. betty: thank you so much, sophie kamaruddin come on the markets and what to watch in the session

today. markets were slightly spooked. tests of self driving cars after what may be the first pedestrian death caused by an autonomous vehicle. i want to bring in eric newcomer from san francisco. first tell us what do we know about this tragic death? a 49-year-old woman was killed by a self driving uber crossing the street in tempe, arizona. the police are investigating it. federal regulators are looking into it. has pausedsed -- their testing programs while they try to figure out what exactly went on. the car was traveling about 40 miles per hour when the woman who had a bicycle with her was struck by the uber, which was operating in autonomous mode. betty: how big of a setback is uber'sbe or's -- to

autonomous driving plans? eric: it's one of those situations everyone expects, and it's really upsetting when it happens. on the one hand, the industry knew that, at some point, this sort of first pedestrian death, some of the outside the car getting hit by a self driving car, was inevitable. at the same time, i do think it is going to get people bonds we will have, and to watch and see how regulators decide whether they need any new rules or laws to control the rollout of self driving vehicles. yvonne: i know there is still a lot of questions on how this came about. was, but isdestrian there a sense that there was a technological failure here? perhaps this type of technology's awkward to be safer on the roads? -- technology is not going to be safer on the roads?

eric: our standard for robots is different than for humans. there could be a failure on the self driving car just that, you know, it could have responded and did not. that could be a failure. even if it responded as well as a human would have, right? it becomes a deeper question of do we expect self- driving cars to operate better than human drivers? we don't know whether if it were judged as a human driver, whether it operated effectively or not. there is first the question of how severely we judge the vehicle, and then, sort of the fact pattern. we don't have the answers. one, to this philosophical question, and two, to the fact question, just yet. yvonne: there could be more regulations. there seems to be a divide on

how to even approach this type of technology. eric: right. they are pretty divided, and then, sort of, states have passed their own rules. the california dmv put something out snarking about arizona's rules being weaker. this hodgepodge of testing. and definitely, arizona has been the place where companies went and felt like they have the most latitude to really experiment, attendeeow, the mayor said they -- of tempe so they want everyone to be safe. they are going to look at it. we will have to wait and see. i think it is too early to say. it gives anyone who wanted an to talk about regulation to do so today. that is certainly an unfortunate incident. eric newcomer, thank you. joining us from san francisco. after fell after hours reporting sales that

underwhelmed investors. revenue rose 6% to $9.8 billion in the fiscal third quarter while profit was $.83 a share compared with the average estimate of $.72. let's bring in analyst william wong, who joins us from san francisco as well. unpack these earnings rise. what do you think was driving the stock lower here today? william: when you look at the results, they were pretty much in line with a lot of expectations on the sales side, but if you look at the forecast for the fourth quarter, the 1% to 3% total revenue, it might have been a little bit of it is women, and if you think about the forecast of some of these salesforce,dobe, autodesk, that have reported the last couple of weeks, they put in pretty solid numbers. everyone was expecting the backdrop in software specifically to be stronger than

what oracle has forecasted for the top line. again, the cloud services business in the third quarter, which they just reported, was above their guidance last quarter, so it came in at 29%. guidance for cloud is a solid number. a deceleration from what we saw, and folks were looking for a little bit more on the cloud side, so the one thing to remember as well is that when bey moved over, there will some blending of what you are seeing on the official trip structure cloud side, and they have blurred the results of little bit, but all in all, a little bit of a disappointment with the 1% to 3% forecast for the fourth quarter. yvonne: we were expecting some strength when it came to the new licenses after what we saw coming out from salesforce and adobe. that decreased. what does this all mean for the future now in oracle? william: they have had some new recently.hat rollout

the autonomous database is something they just released. they were really bullish on the autonomous database in terms of having the database, security patches, software updates, so basically, you don't have to worry about a human being in charge of that. with everything in the news today about these security patches that just did not go, were not done, they were really pitching that. it takes a couple quarters after a new product is launched to see those results. that 1% to 3% total revenue growth, again, because of the blending, maybe a little bit conservative as they see the benefits of the autonomous database rollout. we will see some shakeout. stock was down almost 7% after hours. today is probably not a good day to be reporting earnings below expectations. that's probably part of it as well. i think what they talked about in the cloud side, the application side of the cloud business is performing really well.

15% of their current customers have moved over to some sort of cloud application. business of of the their customers, actually still to be converted over. that is a huge opportunity for them at this point. betty: staying on that, as you mentioned, it could partly be bad timing here with the tech route we saw today. the cloud guidance up to 25% growth. so what happened? william: the cloud guidance for next quarter, the 17% to 21%, it's going to be choppy because of their own license. you'll see some of that taken away from cloud to the licensed side, and overall, you are seeing pretty strong options. there are growing the cloud business and talked about getting to $5 billion on the cloud side. it will be the gradual progression as enterprises get more comfortable with moving more things to the cloud.

mostly on the application side. you are going to see oracle with their 400,000 customers on the enterprise side being in opposition. a lot of the startups are using amazon web services. think, over time, as enterprises get more comfortable and evaluate their database needs, were a will be in the lead for that. betty: thank you so much, william wong, bloomberg intelligence software and tech services analyst. three hikes or four? what investors need to be looking at. this is bloomberg. ♪

yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new york. the first policy meeting tuesday, facing a classic challenge. jay powell must decide if it is

time to move faster on rate hikes or wait and see if inflation finally budget is. kathleen hays here with more. the question of course is three hikes or four hikes, right? >> put this in context. we have been talking about this for a few weeks now. the fed will hike the key rate from 1.5% to 1.75%. it will be six rate hikes in december of 2015. but think about it. think about what we have been blessed with under janet yellen. it was not speeding up the pace of a hike. hike?time to now, it is a different point. it is a turning point for jay powell. he has to wait and see. can i really count on that? is it time to hike more and faster to avoid overheating? i want to have a chart that

summarizes what we have to look at as the debate. #btv 7373. right now, that blue line is well below the inflation -- the fed's 2% target. it has only been up to the target once in five years. we are seeing the 10 year breakeven rate. it has come off of it. obviously, a lot of economists, investors, labor markets are tight. try to get inside jay powell's head and the debate first time as fed chair is that in his testimony in february, he said it looked like headwinds in the economy, all of the things preventing it from speeding up and holding inflation down into tailwinds. this is something investors think is leading towards moving faster, and that is what we will be waiting to hear. if he is going to leave

the door open to four hikes this year, that will be the big question. what will the fomc be looking for as they meet? the data has been mediocre and of course, you have the trade concerns, too. kathleen: it is not just jay powell. it is the federal open market committee. i want to start with what they are looking at. let's look at the case for four hikes. wages are starting to rise. were people saying inflation is going to hit 2% this year. it is want to get there by the middle of the year. maybe that encourages the fed. the hawks are saying we cannot let the economy overheat. we can push the economy into recession on this speed up argument. this is more leverage and all kinds of bubbles. keep a consensus at three hikes like you had in

december. inflation still below target. as you mentioned, yvonne, tariffs, trade uncertainties. when theying the time white house is trying to speed up the economy, if the fed is hiking rates faster, maybe it looks like they are trying to slow the economy down. that would not be good. what if the fed raises its march?us to four in maybe trade has made more of a problem. that could be embarrassing. it's another reason people say jay powell -- we will watch and see how strong the tailwinds are and keep our consensus at three for now. yvonne: kathleen, looking forward to press conference. our global economics and policy editor. he can watch jerome powell's first ever rate decision and news conference right here on bloomberg. we will speak with former fed officials, plus jeffrey rosenberg and diane swonk.

our special coverage begins at 1:00 p.m. wednesday in new york. betty: up next, move over e-commerce -- move over, e-commerce. a company demonstrating new tech for retailers going virtual. this is bloomberg. ♪

betty: las vegas is hosting the leading global retail conference. a payment company is there to demonstrate new technology that represents virtual-reality commerce. we will speak to the coo. thank you so much for joining us. a huge gathering there for retailers and technology. exactly how could virtual-reality, which i think of more as gaming right now, how is that going to change retailing? >> i think it changes retailing because you can tell the most

immersive story in terms of branded content in humankind's history. any platform in which you can communicate your customers in a better way is game changing. thathe ability to monetize and connected in a way to your customers in this new medium is going to be another version of e-com. betty: what is your role in this with payscout? juan: payscout partnered with visa and showcase for the first time a virtual reality is areas where a user can make the payment experience using visa check out to a nonprofit. you enter your credentials into a mobile phone, put on a vr headset, and in this case, you go through the journey of a u.s. olympic hopeful, and you are then transferred into a virtual store, where you make a payment to support future olympic

hopefuls, and the reason why it is so significant is because it is the first time we are seeing immersive payments all contained in a virtual reality has set, where before, you had to open up your wallet, open up a computer, mobile phone, and donate. that is changing. today, you can make an immersive payment while in virtual reality. vrnne: the art itself, -- itself, is it dead on arrival already? ar seems to be the thing already. vr is really just something nice to have cured how can you ensure that this is going to be a necessity for not just consumers, but retailers, too. the biggest barrier will be consumer adoption getting to critical mass. follow the money. pouring money into virtual reality. even the chinese president has mentioned virtual-reality as part of their innovation

strategy, and mark zuckerberg just talked about in 2017 a goal to introduce one billion users to virtual-reality, and the biggest barrier of vr adoption is price point. the price point was too high. for the high-end headsets, that price point has 2018,own 50%, and now, in there are standalone headsets in between a low-end experience and high-end virtual-reality experience, starting as low as $200. yvonne: so that is the consumer side. what about for retailers? setting up virtual-reality could be costly. how is payscout narrowing that gap? juan: it does not have to be so costly. it uses a lot of the same assets in a calm and augmented reality. with the technology that is advancing, it is cheaper to produce from a development standpoint, from a contact

virtual standpoint, and reality content that it was 12 years ago. there was a significant reduction, better development kits, and that's reducing the friction as it relates to the cost of reducing virtual-reality in the retail space. betty: pretty exciting stuff. thank you. joining us from australia spirit coming up in the next hour, morgan stanley gives us its outlook for asian markets as jay powell gets set for his first policy meeting as the fed's new chair. we are following this tech selloff in asia first sparked by a apple and now facebook, which left the steepest slide. we look ahead to jay powell and the trade concerns. washington post reporting we could see washington hit by the u.s. tariffs of up to $60 billion by as early as friday, there's certainly a lot weighing on investors. we have to look ahead to what is going on in china as well.

we had to hear from president xi the annuallowed by press conference. let's take a look at how markets are right now. we are seeing red on the screen. new zealand, -- like this.ooking shares down 0.5%. the market open in tokyo, seoul, coming up. this is bloomberg. ♪

♪ yvonne: 8 a.m. here in hong kong, live from bloomberg's asian headquarters, i am yvonne man. welcome. facebook has been embroiled in scandal after cambridge and america was accused of meddling in the elections. fundtecheigh w may again.weigh on tap once

betty: trade tariffs and trump talking about protectionism will be tempering talks as economic leaders meet for the g20 talks. president xi jinping tightening his grip on china. ♪ yvonne: betty, first and was apple, now facebook. over all, sentiment when it comes to global markets is down. this chart is a g #btv which ontions the twitter mentions facebook with this ongoing controversy. the data breach of 50 million users admitted to by a professor who works with a consulting firm which did

business with the trump campaign. twitter mentions skyrocketed here in the bottom panel, negative mentions outweighing the positive. it really sent shares plunging here overnight. the big question really is, are these company-specific moves that we are seeing or could it have an bigger effect on the tech sector in general. going to say i was that somewhere, jack dorsey is a rubbing his hands together, thinking what kind of opportunity there might be. but i think that it might be a bigger than facebook issue. these social media platforms, we have seen as of late, snapchat roasted by celebrities, you have now facebook and the data issue, and all his complaints about twitter it self. the sentiment is certainly turning against the tide for these companies. yvonne: right.

let's get the update on the markets with the camaraderie did. we will hear from president xi jinping as well as the fed all this week. sophie: that's right, we have a lot going on. we have the countdown to trumps tariffs being implemented this friday -- president trump's tariffs being implemented this friday. focus, with much in facebook, uber, the oracle story which is micro, but it also had an effect on the region. probably going to dent their 7% year gain so far. we have minutes from the deck, and the bank of korea will be sharing its minutes later this session. we are also counting down to the fed policy decision. as you can see in the region, some losses.

nikkei 225 losing 1%. the kospi, .2%. consumer staples are leading the drop and the tech stocks are losing. samsung losing over five points out the gate. let us check in on samsung as well as other apple suppliers. display makes about screen for the apple watch, which could be the first device to be upgraded to micro led technology. apple doesn't currently have manufacture capacity for its in-house production and could potentially outsource about to minimize the risk of hurting its bottom line. is ready for tech the world to see, apple will continue with oled. lg is also preparing to release its second phone coming up this year. apple is likely to commercialize

the micro led technology. over to sydney, we are looking ,t recruitment player seek following news that there could ,e earnings growth for jobs which prompted morgan stanley to cut the stocks for the company. betty: thank you so much. sophie kamaruddin there, checking on the markets. first word news at this hour -- uber halting its self driving autonomous vehicle tests after a woman was skilled in arizona. she was crossing the road when of the autonomous vehicle struck her. the car was traveling at about 40 miles per hour. there is video evidence of the crash, but it is yet to be released. this is thought to be the first accident fatality involving a ton of vehicle. will beinformation

coming out of the county attorney's office. once we decide whether charges will be filed or not, we will tell you. facebook seeing its biggest fall in stocks since 2013 after answers were demanded from the company regarding data mining from a political mining firm without consumer knowledge. tim bridge analytic a was able to harvest the information and ultimately help donald trump -- a was able tolytic access this information and ultimately help them out trump when the election. yvonne: by 21 months transition. brexit --greed to buy by the united kingdom for brexit. the deal will not be legally binding until a treaty is signed. outlined trump has

plans to combat u.s. opioid abuse epidemic, including seeking that death penalty for some drug dealers. he also praised the hillary clinton foundation program which produces and providesn narcan free to colleges and other groups. global news, 24 hours a day, powered by more than 2700 journalists and analysts, in more than 120 countries. this is bloomberg. corporate america is warning president trump against sweeping trade tariffs, saying that it could increase business costs and hurt the stock market. protectionism are behind the agenda as financial leaders and central bankers meet at the g20 in one is eris. jody -- in one of cyrus. aires. in buenos

are we waiting to see what the clarity is in china? guest: yes, they are concerned about the additional effects. talks and reports of a proposal of as much as doubling inbarrel -- $30 billion tariffs that have been proposed. the president is said to have been considering this, no decisions have been made, but clearly, they are looking at serious trailers -- serious tariffs on our range of products. that includes companies like walmart and amazon who are concerned about the effect it would have on consumer prices. stock prices as well. it could ripple through the economy and they say that it could undo the beneficial effect of the tax cuts that were passed at the end of last year. yvonne: the reports in the washington post saying that

president trump wants to double the recommended tariffs earlier. what are we looking at? : this is just a proposal of a range of products -- consumer electronics, clothing, shoes, all kinds of products which would be widely targeted for tariffs. the administration is of course considering this as punishment for what they view as intellectual property abuses by china. betty: why did treasury secretary mnuchin take heed -- he was expected to have a frosty reception of their? jodi: frosty is an understatement. he was really blasted by the other ministers for the tariffs that have already got into effect. this is what has already happened. the steel and aluminum tariffs that have been imposed against the number of countries. not just china.

of course, china was the main target. one of the minister said that it was really upending international trade rules that are there for a reason. that the america first trade policy could have serious repercussions on the world stage. this is something that they are quite concerned about. the actions,nded but clearly, it was a very chilly reception for him. -- chileilly and did indeed. china's national people's congress is wrapping up tuesday as we mentioned, a with one of the biggest government shakeups and years. president xi jinping is said to have tightened his grip, and no way not seen since the days of chairman mao. muchboc governor, how clout will he have at home, but also abroad?

guest: betty, i think it is interesting to point out that the pboc has an enormous firepower, in terms of its assets. a balance sheet of about $5.7 trillion, the largest out of all the major central banks. the role it is playing domestically, but also increasingly internationally to support china's geopolitical prowess. like we justks lost of the signal there to tom in beijing, we will try to get him back online in a moment to talk more about the wrapping up of the npc. looking ahead as a mentioned on the uber story, a woman killed by one of uber's self driving cars. we've a look at the feared but expected moment. yvonne: plus, we will discuss asia being the top equity market

region by 2027. more on the latest report by morgan stanley next. this is bloomberg. ♪

♪ betty: we have tom mackenzie back online from beijing, he of course has been reporting on the national people's congress wrapping up today. the you were talking about elevation of the pboc governor, the reception at home but also ?xternally tom: i think it is worth pointing out that the pboc itself has been given additional powers over the last couple of weeks. broadly, it is playing a bigger role domestically and also internationally. it has a new balance sheet of about $5.7 trillion in assets. the governor and his team will be involved not just in shaping

reforms must agree and ensuring that that does not get out of control. like interest rate overseeing, but also playing a role in supporting china's geopolitical agenda. whether it is supporting the belt and road initiative, or the inater role of the yuan global markets. it will have an international role. him yesterday and the view from him is that he will be continuing the policy agenda laid out by his predecessor. executehe experience to on policy, but he will not be writing the policy itself. the view is that that will be done by president xi jinping top economic advisor. he will be ensuring that there are further measures about opening up the markets here. he also said that the monetary

policy would remain prudent. a sign of continuity from a man who has the technocratic's gills to ensure that the -- technocratic skills to ensure that the policies being drafted by president xi jinping's top economic lieutenant our past. china we should be reminded, is the largest holder of u.s. treasuries, $1.2 trillion. that could be used as a pressure point in the trade tensions continue to be exacerbated. yvonne: tom, run us through some of the key posts that have been filled. there are some familiar face s? tom: that thread. familiar faces like the foreign minister, he is running for a second term and was nominated. probably one of the most high profile chinese policymakers. names, theesting

national supervisory commission. version of formal the anticorruption campaign which will have jurisdiction, not just on government officials, but also hot the workers, teachers and executives -- hospital workers, and executives of state-owned enterprises. there is also a number one and only female vice are mere. .- vice premier there is also a new head of the national development reform commission, which is a state agency. we will hear from the president all ofis evening, and this will be happening at the great hall of the people behind me. so much.om, thank you as we look ahead to president xi jinping's speech as well as the premier.

in the meantime, asian stocks are facing more volatility when it comes to trade tensions and that tech sector. joining us in hong kong is jonathan garner, morgan stanley's chief asia and emerging markets strategist. were some sweeping overhauls here in the central government. the biggest we have seen in two decades. what is the biggest take away that we have for investors, do you think. jonathan: i think it means that the trajectory we see for reform continues. supply-side reform, capacity reduction, greater focus on environmental protection. formations government going on in china, we have not really seen any chinese response to what is coming up from the u.s.. but i think we will see that over the next few weeks. yvonne: level will be the trigger for that, jonathan? so far, the response has been

that we will not retaliate, we will let american consumers, i guess i'm a he victims of all of them bewe will let victims of all of this -- how likely is this going to change now. jonathan: nothing that has been done so far is in unilaterally against china. some of them are affecting korean firms more than china on the washing machine side, for example. steel and aluminum, there has been some carve out for nafta, but it affects the european union significantly. section one is specifically about china's alleged -- on the u.s. side, -- property theft. and will tariffs in the amount of $60 billion. that is far larger than anything we have seen up to now. markets,e cautious on and this is one of the reasons

why we are not excited about markets right now. yvonne: obviously, there has been this tech selloff overnight, companies such as facebook as well as uber. apple certainly, will be the big headwind when it comes to asian suppliers as well. you do not see this as a buying opportunity when it comes to attack at all best when it comes -- not a buying opportunity when it comes to tech. jonathan: now, we downgraded tech. revenueook at the growth, as much as 70% year on year last year, and that cannot be sustained. i valuations have been on an all-time high. on --aluations have been valuations have been on an all-time high. i would say, the protectionism

issue is producing huge uncertainty about how these measures will affect supply chains. they industries which are much more integrated in terms of how thereoduct gets produced, is a potential of significant interruption of supply chains with his tariffs. betty: speaking of trade tensions and tariffs, especially in relation to china, the chinese currency has continued to strengthen. maybe that provides some sort of buffer against most critiques from the united states. where do you see the u.n. headed, particularly after this -- the yuan headed after the npc.up of the jonathan: we are expecting about 6.2 by year end. how the dollar is doing. it is actually stabilizing here, as risk aversion picks up.

call on theour markets, you see asia being the number one equity region. jonathan: if you are talking at near-term call -- a call on the markets, yes. longer-term calls suggest that asia will continue to move ahead of other regions and i can't from oven a half of market cap growth over the next 10 years. that is an inter-asia investment story. flows aresci increasing in the region and investment flows are becoming more within the region. it is a region that is much less dependent on the u.s. and in the past, particularly for financial markets development. betty: what does that mean for the u.s. markets, jonathan. jonathan: it means that u.s. ,arkets are still very large obviously. but they will not be in 10 years, if we are right about that. what is interesting is whether

asian investors, and institutional investors who have americansupporters of markets, whether they will continue to back at disproportionate amount of their investments into the u.s.. if you look at the current drama in relation to protectionism -- longer-term, the bedrock of our story is about household wealth, which is growing in asia. when the u.s., it is growing at about 5% but in asia, it is .rowing in the low teens yvonne: i'm guessing financials will be benefiting the most from this shift in how we view the asian markets in particular. jonathan: yes, i think financials have regional capacities that are strong at home, and they also have regional capacities which are exposed -- the development of pensions, insurance, mutual funds.

this is the road that has been troubled historically by the eurozone and before that obviously, north america. it is a good time to be working on this in asia as it takes place. again, i would come back to the current debate about protectionism. missed in all the noise coming out of the u.s., the number of tpp members that have left the u.s., with going ahead with ofginal integration services, without u.s. participation at all, which to that is going on here in asia. yvonne: absolutely, sc change. jonathan garner, thank you so much. -- it is absolutely a sea change. you can catch up with the latest interviews with our tv function. this is bloomberg. ♪

♪ is "daybreak asia," i am yvonne man in hong kong. liu in newi am betty york. standard chartered has been fined billions of -- $4.9 million in singapore, two years after the bank was punished by singapore for a similar breach. accounts were transferred to the channel islands from singapore. yvonne: after reporting sales that underwhelmed investors, -- oracle stock has dropped slightly. they have spent years trying to transform the traditional i.t. vendor to a cloud contender.

coming up next, we'll will break up the minutes of the rba meeting. there is a hike coming soon come i will see a if we'll get it in more hints from phil lowe. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ betty: as you can see there, pretty nice skies there in sydney. we are getting some of the minutes coming out from the last rb meetinga. kathy hayes is here on set with more on that. kathleen: these are the march

meetings, they expected to have overall conditions in the global economy improved. s stillld balance sheet warranting careful monitoring. this is a big deal for the rba. when you distillate, what is happening in australia is that the labor markets are improving but wages are not rising as much, they have stalled. you can see the australian dollar is having a bit of a reaction there, coming off a bit of the bounceback. i don't think there's any big signal hearing what we are seeing from the headlines on the art dei -- of the rba minutes. the point is that they are wholeed to remain on the until next year at the current rate. they want to see inflation at

the 2.3% -- two or 3% target. i have one of our reporters speaking to the treasury official there and he said that we are on a different monetary ack.cy tr they don't seem to be worried about rates as much. they see growth rising, but for now, no need to cut rates, labor marketave a that is improving, as one economist told me. another thing is you don't need a hike because you have the big boost in growth and wages, so they are just going to sit back and wait. betty: one headline there about gdp growth expected to exceed potential growth over 2018. thank you so much, kathleen hays there with the rba march meeting minutes.

time to look at the markets in reaction to these headlines. .ech shares are in focus are, broadly speaking. take a look at what is going on with seek, the stock falling 3% given that it was cut to reduce on the anticipated competition with another company getting jobs in australia. this other telecom company falling to a november low after posting a 11 percent drop in income. the company has raised its earnings guidance. of this company's australian unit does not expect a crash and he believes demand will grow faster than forecast. the industry is facing a bottleneck on the supply side.

prices going down a little bit, showing the image up to $60 in the fourth quarter. concerns of slowing demand for iron ore been, those are -- iron e causing prices to drop. morgan stanley sees a drop to $60 a ton by the fourth quarter. the big picture for australia, aussie shares are on edge. this is the 50 day moving , and it crossed below the 100 line last thursday. the last time that we saw this, two of the last three occasions, the index fell 50% or more within 10 days of such a move. the aussie share market is certainly under pressure there. yvonne: it certainly is. a lot more downside potential there. thank you, sophie.

paul allen in sydney has the first word news now. paul: thanks yvonne. an eu official tells us that washington has laid out five conditions that the countries must address to win exemptions which include actively addressing china's alleged trade distorting policies and cooperating with the u.s. and wto against beijing. amazon is said to be looking at the possibility of acquiring some of the locations from toys "r" us. we are told that amazon wants to use the soon to be vacant spaces for its own purposes, and has no interest in maintaining the brand. that would expand amazon's brick-and-mortar presence after about 500 -- after it bought about 550 whole foods locations last year. after the biggest government

shakeup in two decades, the npc looks to wrap up on tuesday. president xi jinping is expected to make a short speech before the premier holds his annual news conference. talal saysrince bin he has a ready moved on from being caught up in the kingdom's crackdown on corruption. he and other prominent and wealthy saudi figures were held for weeks in a hotel and some of them are said to have made vast sums to gain their release. he says that life is back to normal and she does not bear a grudge. anticorruption -- i am for anticorruption. now, unfortunately i was added to that group, but fortunately, i'm am out of it right now, and life is back to normal. i am not going to come here and say, i forgive, but i don't forget.

i will say, i forgive, and i forget at the same time, also. paul: catch our exclusive interview with the prince later on daybreak, middle east at 3 time or midnight in new york. global news, 24 hours a day, powered by more than 2700 journalists and analysts, in over 120 countries. i am paul allenthis is bloomberg. ♪ yvonne: failing to catch even close to the $2.2 billion paid for the new york tower. the tower is home to j.p. morgan chase, and the price tag was one of the highest ever seen for bloomberg drop -- for real estate properties. talking about this fire sale, david, it not only started in allu.s. -- it started across the world, but it has come back home to the u.s.. how much money do they need to raise now?

>> the numbers ahead spinning. this is a company that will not many people had heard of until it started to have the debt troubles, and now the numbers are stacking up. they targeted $16 billion of assets for the first half of the year. but our estimates, there are about -- they are about $13 billion on the way there. salesncludes land asset at their sales value, or of the assets.alue of those he just mentioned the $2.2 billion violation -- valuation for the park avenue property, but it may actually not go for price. investors will be watching the actual price, because it will determine how much further the company has to go to make its goals. more broadly, the company had about $29 billion of short-term debt as of this month. that is quite a stack that has to be down. some of it can be rolled over,

and as the company makes progress on these asset sales, it may be able to borrow money much more cheaply. prior to the last round of sales, the bond yields -- they were raising money at the highest rates, costing them a lot to borrow. that infringes on their ability to roll over debt. betty: do we see any light at hnsend of the tunnel for a? david fish there are some good signs. we have heard that they are paying their fuel bills. a company having debt problems, it appeared to be having problems meeting its operating costs, with cash flow and all of that. that seemingly has been set aside. they are getting close to their $60 billion target which they

had set for the first half. if they reach that target, you have to think that investors will start to have more company, andth the maybe it's borrowing costs will come down a bit. that being said, it will defend what price these assets actually sell at. ever reporting shows that this park avenue building needs maybe $1 billion of upgrades before it can be sold. that is going to impinge on the final price. also, when you're talking about a building of that size, the number of buyers shrinks. pressure onve this the price, and they may have to end up le letting that go. betty: thank you very much, bloomberg asia conglomerates editor there. after publicly warning let week -- last week, that it does intend to pay the $379 million bond due on tuesday -- noble has

decided it is not paying. ramy, why are they not paying? ramy: there are basically trying to hold on for something tastier and sweeter, a restructuring plan that we have been talking about, to the tune of $3.5 billion. they talked about it on friday, saying that they would not pay any of their upcoming bond payments, that it would be for the benefit of their shareholders. at least, the ones will be left theanct if restructuring plan comes through. we know that the bond payment will not be paid as of what they said on friday. not only that. march 9, they said they were going to default on this one and there was a 30 day grace period for the bonds to expire in march of 2022. in mid-may, there was another repayment coming up, but it

there may be a restructuring plan coming through and that may not have to happen at all. pay $379 million, i don't see how they can pay $1.1 billion. i would like to head to the g #btv come this chart here shows the look of the bonds. $.56 on the dollar is where we are here, this file in may of 2017. in large part, this is because the ratings agencies cut it. s&p cut it by three notches to triple c positive. if you are a bloomberg terminal subscriber, you can see hit by hit, news by news article, what exactly happened. we are looking ahead. noble decides to default on its bond, we are expecting that this is going to fall even further. it might not have any value left on it after the end of this day,

going into tomorrow. yvonne: so what happens after noble defaults. what is next? legal action? ramy: it could be, but not necessarily. assets, the trustee for the company could move ahead. it will certainly feel a bit it is notdened, but required to go into any legal proceedings, at least until 25% stockholders actually say that yes, we want to go into legal proceedings. if that does happen, they could also jeopardize the restructuring plan that we have talked about. that has been called complicated, controversial, and possibly, it might not happen. if it does, let us flip this one more time, this is what it would look like. 70% for the senior creditors

here. thet now, they are not in pie, but if it did happen, they would take the majority share of the stake. the current and existing shareholders are not very happy, they would go for the majority share which is squeezed into the 10%. management would come in at 20%. in the current state, they have 18%, so they come out on top in terms of maintaining what they have. but the shareholders and senior creditors, they would be the big rumors. we are looking ahead to see if and when and they do default on repayment, we are expecting that to fall. the latest twist in what has been happening, in terms of a ofpany that has lost 99.3% its value in the past seven years. yvonne: it certainly is eye-opening.

ramy, thank you. we are following the latest on noble. this is bloomberg. ♪

♪ mrs. "daybreak asia," i am betty liu in new york. yvonne: and i am yvonne man in hong kong. japan-koreao our economy editor joining us live from tokyo this morning. henry, we have been talking about how australia got a free pass on these trade tariff tensions. japan has been left in the cold. what is the country's approach on this so far? henry: so far, there are pushing very hard for an exemption from the u.s. on these tariffs. they argue that first of all, they only make up about 5% of u.s. imports, and due to the

specialized nature of some of these products, they actually contribute to u.s. industry and jobs. they don't pose a threat to national security, which is the grounds for the u.s. declaring these tariffs. in part, because japan is a treaty ally. they are pressing the u.s. very hard on all of these points. yvonne: what is the hold up here? if we get any kind of response from the u.s., in the meantime in terms of possible scenarios, on how japan can respond to this, what are the specific options for them? henry: they will continue to talk for now, try to leverage their status as a treaty ally. appears to behat good ties between prime minister abe and president trump.

couldpossible that they come to some agreement on ,xemptions for certain products in exchange for an agreement for japanese investment in the united states. so far, japan has not threatened any kind of retaliatory action, although, the trade minister says that they have been consulting with the eu. it is thought that if the eu seeks consultation with the wto, that japan could join them. betty: what is the broader impact of the tariffs on a japan, henry? henry: it depends if exports of these products are directly to the u.s. -- the japanese exports to the u.s. are pretty small. it is about 5%, actually.

so, even if they didn't get the exemption, which many analysts believe that they will, and i believe japan thinks they will, then the immediate impact, the direct impact would not be too big. the bigger concern is that other woulds and economies implement retaliatory measures, and this could escalate into a broader trade war that weighs on the global economy. betty: while all of this is being discussed, there is one key japanese official, the finance minister who was not there at the g20. he is embroiled in a property scandal. what is going on there? been: that's right, he has the key player, particularly in trade talks with the u.s.. this is obviously not a good time for him. he will be in parliament and is

expected to be answering questions all day about an alleged cronyism scandal, involving the sale of land to a school with links to the prime minister's wife. the ministry of finance is alleged to have altered scandal. in this so he has his hands full with that, as does prime minister abe. you so much, henry, our japan-korea economy editor, joining us from tokyo. that story more of in today's edition of "daybreak." bloomberg's the prescriber's -- bloomberg subscribers can access this through dayb . you can customize it to get only the news and industry assets that you care about. this is bloomberg. ♪

♪ asia.: this is "daybreak ." i am yvonne man in hong kong. betty: and i am betty liu and new york. is planning a periodic action service which will allow companies to trade stocks which have been suspended from dark , offering traders a legitimate way to hide orders until there is enough interest

to trigger a buy or sell. yvonne: bitcoin has long been declared to the.com bubble. morgan stanley says that the performance is like the tech boom and bust on steroids. it says it mostly mirrors that movement of the nasdaq in the lead up to 2000. prices of bitcoin have fallen 50% each time they have dropped, before rebounding. betty: united technologies ceo sending his retirement but not until he has competed the merger with another company. he says that he discussed his exit with the board, a process that is expected to take up o to three years. staying in tech, uber has suspended tests of its self-driving car after the first pedestrian death was caused by

one of its autonomous vehicles. bloomberg's eric newcomer has the details. eric: a49-year-old woman was hit by a self-driving uber in arizona, the first amatrice happen. haltedfaulted -- uber its testing around the country after the accident. arizona police and investigators are investigating the incident. the car was being driven by the atonement's technology. a was so-called -- there was so-called safety drivers sitting in the passenger seat watching the car, but the autonomous technology was driving the vehicle when the woman was struck. police say that the car was going about 40 miles per hour. they are still investigating the details of the incident. the incidento and raises questions about the safety of autonomous vehicles area tesla has had fatalities

involving drivers using their autopilot technology, but this is the first time that a pedestrian has been killed by a safe driving car. that will definitely raise questions about the pilot programs that these companies are testing regarding autonomous technology. eric newcomer, bloomberg news, san francisco. yvonne: a look at what is coming up in the next few hours. rashad is following the tech seeing with what is going to .ontinue with the selloff rishaad: we had apple yesterday, today we had facebook, apple supplier stocks on this part of the world are certainly on the way down. facebook, hownd far can you go with that? how much of your data is being used? that is the question here. we will be talking with bob o'donnell, president of tech

analysis research. we will look at the cambridge analytica story. also, npc, the final day. yvonne: a big day for the national people's congress. premiers press conference is about to start within the next 30 minutes. a guest,so have international chief strategist bocom he always has something interesting to say on that. also, we will be talking to someone from jp morgan. this is what we have coming up on "bloomberg markets" betty. betty: bloomberg markets continues straight ahead. yvonne: stand by for rishaad, next.

this is bloomberg. ♪

rishaad: it is a sinking feeling . markets across a somber way down, driven again by tech. first, it was apple making its own screens. now, it is facebook and a mishandled data scandal. mark zuckerberg in the headlights. lawmakers are demanding answers. tariffs and trump. a chill in the air as finance ministers converge in argentina. protectionism