anna: good morning from bloomberg's european headquarters in the city of london. matt: i am matt miller in berlin. this is "bloomberg daybreak: europe." saudithe billionaire businessman talks to bloomberg about hunting for deals, reshaping his empire, and his relationship with the kingdom. vindicated.en we do have a confirmed understanding with the government. matt: jerome powell kicks off his first policy meeting as chair with a rate increase.

how many more hikes does he see this year? anna: tech trouble. facebook's scandal hit shares. a fatal crash. ♪ good morning, everybody, it has gone six clock a.m. in london and seven in berlin. with matt miller. let's talk about the asian equity session. a number of reasons not to be cheerful in asia markets overnight. the msci down .251%. tech sessions are weighing on the markets. that is having an impact on the stocks in the asian session. in the u.s. we saw the technology story in particular around facebook starting to hit

markets. the technology sector has been the best performing sector year to date which is why this has so much residents. the scandal engulfing facebook, that does not seem to be going anywhere anytime quickly. that is something else to watch. another leg down for shares in technology. other futures, the dow and the s&p futures suggesting a little bit higher at the start of the u.s. trading day. the dollar spot index up .2 of 1%. we're looking ahead to the two day meeting's from the fed. most people are convinced we will get a rate hike. it is a question of the guidance from the dot plots and will the dots suggest we will see three or four hikes this year, what will they tell us about next year as well. matt: i have a look at how badly technology stocks performed. if you look at the chart in the library today you will see something amazing. line is the s&p, the

blue bars are the weekly techrmance of the s&p info index. that group holding the tech stocks. all of these bars are weekly with the exception of this one because they have not treated yet today. this is the first day of the week at the end down 2.1%. you can see that on one day tech stocks have performed worse than they have in almost any other week with the exception of three that came in the beginning of february. it was a very rough day for tech stocks. we will continue to get analysis about that particularly in the second hour of our programming and we will bring you our exclusive interview with the founder and chairman of kingdom holdings. let's get the bloomberg first word news with juliette saly. in the u.s., federal

reserve chairman jerome powell and his colleagues gathered for his first policy meeting as head of the central bank. economists surveyed predict a quarter-point hike this week plus similar moves in june and september as well as december. respondents said policy will pencil and three rate increases as being likely in 2018 and their updated orderly forecast. tariffs plans to impose as much as $60 billion on chinese products at least -- early as this week. the administration is said to be considering wide ranging on everything from consumer electronics to clothing as well as restrictions on chinese investments in america. the move is aimed at punishing beijing for what the u.s. perceives as intellectual property theft from american businesses. the european union's economic affairs commissioner has told bloomberg that protectionism is a major risk to the global outlook. -- ate the comments that

the g20 meeting as the eu prepares countermeasures to u.s. trade tariffs. >> nobody wants to enter into a trade war. everybody is looking at the way to bridge that gap and find common terms, especially on trade. we are in a delicate moment. we need to prepare a possible response to american measures and the eu is preparing for that. avoidnk the best is to [inaudible] or scale up. juliette: u.s. president trump has used the annual white house statement to criticize iran and sharp languageth rarely seen in a celebratory presidential message. he attacked the revolutionary guard and criticizing corruption and mismanagement of the academy.

he said the average family is 15% poorer today than it was 10 years ago. warned president has that efforts to widen divisions with time one would be "punished by history" in a nationalistic speech to mark the start of his second term. his country had the capability to stop any attempt to formalize the island's independence. this came days after donald trump signed a law allowing high-level official visits to time one, a move which would elevate its diplomatic status. global 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 . fangede calling it the flu. in the u.s. and it seems like the asian tech players have caught that the -- caught the fever.

also other electronics makers in japan, the nikkei closing the session lower by .51%. upside coming through in the china markets although they are fairly flat in late trade and we saw the kospi with again toward the latter part of the day. players, tech tencent is turning positive but it had been trading negative for most of the session. goldman sachs updating its target on tencent by 22%. that is giving the stock a little bit of a boost for the last part of trade. also seeing a surge come through in chinese health care players listed in hong kong. the gauge having its best gain and [inaudible] years. and also some upside in stocks in india. this is on the fact that a lot of investors are starting to bet the returns they are getting from the indian market which has

been trading toward record highs is going to be better than any tax on equity gains they make that will be put into effect when the tax changes come into law on april 1. matt: thanks rematch, juliette saly in singapore with your news and markets. the chairman of saudi arabia's kingdom holding, the first .nterview erik schatzker started by asking him about the secret deal he struck to end his incarceration after 83 days. erik: why were you in the ritz-carlton for so long? guest: you have to ask the government. i do not believe i along their it all. imagelways in negative but not all the time. sometimes they listened to me and they sometimes do not. interaction between

mean on the government. i do not believe i should have been there yet i am there, i respect the government, except i supportsaid and saudi arabia. erik: what did the government want from you, did they make that clear? guest: i will not dwell in the discussion. erik: they must have wanted something. wast: i read what written. it was all rumors. erik: according to one report it was $6 billion. guest: all these are rumors that i will not dwell in the arrangement between me and the government. erik: did it cost you anything

to leave? guest: i will not comment on the agreement between me and the government. erik: did you have to hand over any land or money, did you have to surrender shares? guest: when i say it is confidential and secret agreement, and arrangement taste on a confirmed understanding between may and the government, i have to respect that. i'm a saudi citizen. the king is my uncle. this is the role of saudi arabia. my interest is to maintain this kingdom and my kingdom also and to maintain the relationship between me and them. understand why i am asking these questions. there are people, fellow detainees who signed settlements and paid large fines. i want to know whether you are in the same boat or you are in a different camp. guest: that is why i did not

want to be there. some of those people were there. i will not name names but i know them. quite a bit of them. that did commit crimes of theft and they were involved in bribes stealing funds from the government. we all know them very well. i know them. i am for having these people there. i am for the anticorruption that took place in saudi arabia. unfortunately, i was out of that group but fortunately, i am out of it right now. to normal. back i will not comment say that's come and say i forgive and i forget at the same time. erik: i want to know if you are retaining control of your companies, whether you still on your media company, whether you are still in full control of

your investment portfolio. guest: i am the chairman. i did give the power to our ceo. powered -- empowered the leader over there to manage the process. i am the chairman and they are functioning as usual. even when i was in detention, they were still functioning and it was a blessing in disguise. it was conclusive proof that all these operations, kingdom holding or my private office, as much asnctioning possible even in my absence. erik: are you still the controlling shareholder? guest: very simple, public holding his public and saudi

arabia is part of the g20. our markets are transparent. you can go to the list of holdings and look their at how much is my holdings there. you will see it is 95%. you go there and you see what it is right now i do can verify that independently. you: your royal highness, maintain your innocence, you say you did not sign a settlement acknowledging guilt. different frome many of the other people. guest: we confirmed understanding. we have signed something, yes. areanot quote settlement others may quote settlement. that yout to me is made something wrong. it is a confirmed understanding with the government. erik: you realize how important it is to be candid and honest with me. the circle of knowledge is too

wide. too many people know too many things and if all of a sudden, a different story emerges, your credibility will suffer. everything we are saying, everything you told me is 100% true. i have a confirmed understanding with the government and it is ongoing. i will elaborate on that. it is an ongoing process. erik: what was it like being held by your own cousin? easy, i have not to confess that. it is not easy to be held against her will in a as your will in a location. -- against your will in a location. when i your cousin and left, very strange feeling i had. told my confidence, -- confi

and noi have no grudge bad feelings and twice for hours after i left, we were back in communication with the king's office, with the conference, and its people. that is a very strange situation, not easy. erik: that is because you had to move forward? guest: i am a nationalist, i believe in this country. this country was established without -- with our grandfathers' lead. -- blood. [indiscernible] and my people of this country. see anyone while

you were there? contact or other people. representatives. you how would you describe your relationship? is not only strong but stronger. it is shocking to everyone, not only to you but my people. as strongs not only as before but stronger. this is shocking to many people. erik: you have forgiven them. guest: it is behind me completely. erik: how often are you and he and contact? guest: barely three days come without me texting are calling. very few days happen.

we text a lot. we talk less frequently. barely a week goes without is communicating. profileur about your domestically or internationally, will the have to change? guest: many of the ranks i deal with, they all are in touch with me. europe and ins in the far east and many were in the u.s. [indiscernible] gates,buffett, bill lloyd blankfein, president carter. erik: they checked in on you. guest: bill gates issued a press release.

of my friends. i appreciate what they did. all those in the political arena nationally and internationally and in this community. i thank them for they care about me and i say i will never let you down. anna: that was the saudi arabian kingdom holdings chairman speaking to erik schatzker. and his first interview since being released from detention. fascinating insight into the experience of detention and beyond. let's get a bloomberg business flash. here is juliette saly. juliette: the data from that facebook accused of harboring caughtk profiles was bragging about how a kid use hostages and former spies. channel four news filmed executives talking about their illicit tactics to sway campaigns including the u.s.

presidential election and the brexit referendum. ceo said a lot of the allegations that have been put to cambridge are entirely unfounded and extremely unfair. all of thomasd and vehicles after one of its cars hitting killed a woman in arizona. she was crossing a road away from a recognized crosswalk when she was struck. the fertility, the first one known to involve an autonomous test vehicle and a pedestrian comes at a critical junction for the nation industry. investingare billions of dollars to develop the technology. saudi arabia is reportedly scaling back plans for a public offering for aramco and moving ahead with a listing next year so on the saudi stock exchange according to the wall street journal, citing government officials and others post to the process. the report comes as the crown businessepares to woo

leaders during a trip to the u.s. that is your bloomberg business flash. anna: thank you. jerome powell is chairing his first meeting today. economists surveyed expect the fomc to stick with signaling three rate hikes for 2018 but and up raising rates four times this year. that is the expectation from our survey. morning to you. you are the head of the fed meeting. i was reading goldman sachs expected for hikes to be signaled. maybe three. they will move up to three next year. what do you think the emphasis will come from? guest: our forecast is they do three in total, when this weekend another two at the remainder of the year. the expectation that they do four is immature.

each time you do a rate hike it is context dependent and we do not know what the context will be six months or nine months from now. to go from the three to four, it is marginal at the moment. there is a little bit of stretch too far. our expectations of a fed hike has been rising. what about if they try to catch it around the policy changes we have learned? guest: the mandate is inflation and unemployment. i'm not convinced. there was some disappointment on the inflation and wage growth we got a bit of a pickup in january. given that uncertainty, i do not know why they would go for a fourth rate hike. the could argue it is

impact of the stimulus. we will see with the, with tomorrow. matt: what do you expect from the u.s. economy given three rate hikes that you expect? what kind of growth should we be looking at and what kind of earnings appreciation should we be expecting? guest: we will get probably 2.6%, 2.8% this year. you are seeing decent growth, no question. be the added impetus should 0.1. it is decent growth, not spectacular but definitely decent. matt: what are the other things we have been hearing about the possibility of further tax cuts, further stimulus on the fiscal a bumpould this be worth in stocks, a bump in for for above in growth

expectations for the u.s. economy? guest: expectations are elevated from where we are. look where share prices are at present. we could get a little bit of a bump but it is not that significant. especially this late in the cycle. engaginghave been services -- gauging nervousness. spoke to the european commissioner for economic and financial affairs, let's have a quick listen to what he had to tell us about the european response. >> that is the best way to do with that case. there was a global case. this should be sold globally. , we are ready to respond, we are prepared. haveuld be also ready to measures. anna: how much do you take it

much do value and how you see it as tactics? we had another story talking about the u.s. is willing to give exemptions to allies around the steel tariffs if they agree them on china on a broader range of complaints. do you take the policy statements at face value? peter: i do not really. if you look at what we have seen so far, there is a lot of talk and not that much action. then they have not done that much. we saw some tariffs and the recent issues on steel. it is a small negotiation tactic. the bigger worry would be what the retaliation function is. anna: they set out what they could do. china and the eu. that this is a lot

of rhetoric and it does not develop into anything, is that a wedge in a policy sense? n -- seen as see being detrimental to global growth. the dollar may appreciate but that is because of the change of the balance of payments. you are assuming it works, the trump policy would work. peter: if it was done at a larger size and scale. more i wonder if it is concerning for european executives, european policy makers, if you look at the euro, at 120 3.40,p and a lot of people expected to climb even further. what is your expectation and what does this do to european exporters? the euro will continue to appreciate and we could get to

levels at 127, 130. for european exporters i do not think they will be all that concerned. there have been able to deal with the euro at 140 or 150 and it has not proven to be a large problem. if you look at global growth, it is very robust and most of europe's trade partners are doing well. the relative pricing impact is not that severe as it was two or three years ago when we saw much lower global growth. you: who does get hurt when see the u.s. dollar continued to fall lower, what other currencies are going to be too strong? ones, it is the standard your emerging-market currencies which will experience severe appreciation when you see a weaker dollar. they -- and they are less concerned because commodity prior -- prices are a lot higher today. the relative pricing and of the

argument is not as severe as it was two or three years ago. much, peter very stick with us.ll we have a lot more to talk about on this tuesday including the facebook drop area there is a breakaway gap. 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. anna: this is "bloomberg

daybreak: europe." the dollar against the yen on

the move continuing to focus on the political situation in japan. more analysis of that and two days of fed meetings. all of that useful information for dollar-yen. let's talk about breaking news. we have commented in email statement on investor day and that is making it across the bloomberg terminal. this is the advertising agency aiming to the deliver 4% organic growth rate in 2010 -- 2020, seeking an approved operating and talkingear about cost-cutting and claiming market leader status with a boost to its growth target. this is a sector that has been under pressure from rivalry from online providers of advertising and consultants in the advertising space and changing

consumption patterns. the day ahead leads with angela merkel greeting the irish prime minister in berlin. meetingstart the policy with jerome powell. we are listening for the rate decision that more importantly what we see from the fed later this year, how many hikes will there be and the saudi crumb prints meets donald trump at the white house. -- crown prince meets donald trump at the white house. let's check in on the markets. an hour and a half to go before we see the open across europe. nejra: we saw a drag coming from tech stocks. as we look across the region, the kospi and hang seng doing ok.

a little bit of a mixed picture but let's talk about tech areas what we saw with the nasdaq dropped for a fifth straight session is the worst losing streak since november 2016. facebook had its worst day in four years. what we saw with the drag from takingh stocks, it is people question whether this has to do with fundamentals or the selloff will see a rebound. it put pressure on facebook shares. it has been underperforming the tech sector by quite a bit. toward its 50ing day moving average. this chart people say this is an argument that a rebound will come. this is calling -- showing the percentage of tech stocks on the s&p tried -- s&p 500. 80% but itre than has dropped.

the fundamentals making people think the selloff is not going to last. we will see. moving on to the dollar, we are unchanged on the bloomberg dollar index. it was stronger against the yen but the bloomberg dollar index 2017, itr sliding in has been in a tight range for much of this year. what will cause it to break out of that? we have a crucial fed meeting this week. that is something to watch. speaking of central banks, we have the minutes from the rba. we also got comments from the us trillion treasurer, the g20 , this is the spread between the 10 year treasury and the aussie tenure at its widest sense 1984. is it going to widen even more chilled fromawkish the fed? what will that mean for the aussie dollar? we have seen some weakness and

it is down, one of the worst reforming g10 currencies this year already. thanks for that. the british pound is holding gains above the dollar 40 after the u.k. and the eu reached a draft agreement on brexit, a transition period. the u.k. would be treated as a magic -- member of the block but would be allowed to strike new trade pacts with other countries. peter kinsella is still with us. what, every day we have some new revelation on brexit that usually is turned around. what do you expect as far as a transition? this seems to be something we can be sure of. peter: they signed off on it yesterday and we are going to get the transition going until the and of 2020. what you will see is the u.k. remaining within the european

union. they will exceed to all of the acceed to all the laws. from -- at that time the british will be able to go into strike trade deals but not implement -- implement them until the transition ends. it is as you were and gives businesses the time they need to get planning. matt: what about after that? the idea boris johnson seems to think the u.k. will have free trade agreements with europe and be able to strike agreements with everyone else's well. is it going to be the land of milk and honey for the u.k. after brexit? peter: i would not put it that way. trade deals are difficult things to achieve. it is a big bargain from what acseed. willing to a

that sticking point. there will be some sort of friday will be the -- there will be some sort of free trade. the europeans do not want to give a lot away and do not want to allow the perception that the british are able to cherry pick. the situation we have is we are in the eu with opt outs and now they want to be out with some options. above 140ere yesterday and held above 140 for the pound yesterday -- this morning. howown talked about yesterday is the positive surprise but this is a market that focuses on the next obstacle. as we head toward the end of the

week, there will be a lot of politics. how much strength does the pound have? peter: there is a lot of strength to come. it will continue to be the case. sterling is the plea undervalued, one of the most deeply undervalued currencies. it fell from where it was. given where the dollar is fair value is around 155. anna: we are expecting to get cpi data and the bank has been hiking to tackled the weakness in the pound and the high inflation that has resulted. inflation is expected to come 2.4% by8% and you say the end of the year. does that sound like a bank that will have a lot of hikes left? peter: not a lot. they will do one or two this year and two next year. theh seems fair given where

economy is. that is not an awful lot. you are get to -- owing to get to highs at 1.5%. would not say that is aggressive. anna: why is the price -- pound undervalued? brexit related uncertainty. we do not know what the future trade a range -- arrangements will be. skepticale taken a view for sterling. matt: what if there is something horribly gone wrong at the end of the day and there is no good trade agreement? the u.k. does not stay in the single market and trade deals are awful. should it still be at 155? it seems rather high. that: there is an argument in a hard brexit style scenario, it will not do an awful lot from here. furtherthe case for

appreciation would be limited. the downside is not all that significant. it is so cheap and there is so many bad -- much bad news priced in. matt: thank you. we appreciate your time with us this morning. let's get to a tech story now and the story of a big drop. facebook shares plummeted by the most in four years after reports that a u.k. coveney kept information on millions of users without their consent. strongly analytica denied reports it had offered to ensnare politicians and influence elections. joining us now is our technology editor. is growing into something even more than what we thought it was going to be with facebook's statement on friday. facebook made this worse by

coming out and almost confirming reports in the times and the guardian observer that its data was leaked and is being held illegally? >> over the weekend things did seem to get a lot worse. one of the key issues here is this is not a breach. this is an instance where facebook is also a victim of a hacking attack or something like that. this was a misuse of user information that had already been given outside of the organization. what it does is it shines a spotlight on how facebook monetizes its user data and how andoses control of that people's privacy in the process. him concerning a few hundred thousand people because

of their connections and the links they have within the social network itself. the reason why this is becoming a big issue is twofold. legislators on both sides of the atlantic are looking at this and making noises about regulation. impactuld probably facebook's bottom line and that is why you saw the shares fall in the latest trading session. bit: we did see quite a from facebook arguing about what a breach is and if this was a breach. maybe one of the things that led to a breakdown of trust between facebook users and the social network. what is facebook going to have to do to regain trust, do we need to hear from the senior management? now, facebook has been reacting to the issue. probably any good pr professional will tell us and

them to get in front of the issue, probably give a full accounting of how something like this happened, and also what steps they are going to take to fix any flaws in terms of how they let other people use user data. also what kind of safeguards it will put in place and what kind of new policies. that is probably the only way it will be able to address that before finding itself subject to some serious regulation that is going to go straight to its bottom line. anna: thank you very much. we will see how this plays out in the u.s. session later. the news keeps coming thick and fast. we will be talking about this on bloomberg radio. if you have to switch off tv, you can find bloomberg radio on your device or on the dab digital radio. they will be talking about the

fed and u.k. inflation readings. we will be covering that facebook story with other guests. china's president kicks off his second term with stark words for taiwan. we are live in beijing. matt: we will bring you our exclusive interview, more with first sincehis being freed from detention in the ritz-carlton. this is bloomberg. ♪

matt: it is 7:47 a.m. in berlin, 2:47 a.m. in new york city. "bloomberg daybreak: europe this -- this is "bloomberg daybreak: europe." captured in secret footage, channel four news filmed cambridge analytica talking about their influence. said "a lot of the allegations put to cambridge are unfounded and extremely unfair." uber has halted all autonomous

vehicle tests after one of its cars hit and killed a woman in arizona. she was crossing a road away from a recognized crosswalk when she was struck. the fertility, the first one known to involve the pedestrian and economist vehicle comes at a critical juncture for the nascent industry. are investing billions of dollars to develop the technology. back arabia is scaling plans for a public offering for aramco and moving ahead with a listing your on the saudi stock exchange according to the wall street journal citing government officials and others close to the process. the report comes as the crown politicalpares to woo and business leaders during a trip to the u.s. that is your bloomberg business flash. anna: thanks very much. president xi has begun his second term by sidney a warning

to taiwan saying china has the capability to stop attempts to formalize their independence. we are joined by tom mackenzie. aim at taiwan or was this a message to the u.s. -- to the u.s.? >> a bit of both. he was firing a shot across the .ow when this is a warning shot for those in washington who recently signed off on changes to regulations allowing official visits between the two, washington and taipei, making those easier. it is a warning to both. a bit of a winner when it comes to the domestic audience. the chinese people like to hear this red line being reiterated

by leaders and a reminder that taiwan becomes -- remains a flashpoint for washington and beijing in the future that may have to be addressed with president xi in power. matt: has beijing addressed reports of trump's plan to impose $60 billion of tariffs on china? >> the premiere was on about this at his annual press conference and he reiterated the line we have been hearing from policymakers, china does not want a trade war and it sees a trade war is being damaging to china and the u.s. the policymakers are less concerned about steel tariffs but they are concerned about the reports of $60 billion worth of tariffs. there is deepening concern about the movement, the direction of travel from washington and they are concerned about moves to

further restrict chinese investment in the u.s., but for inflaming thebeen situation. china has tried a mixture of diplomacy, sending over policymakers to washington to dial back. and putting washington under pressure to work through the heavier tl. they have also tried to make a play of their commitment to open up and reform the markets. we heard that from the premier again today saying they would manufacturing and services sector and reduce tariffs on a range of imports. it does not seem to be pushing back washington from this course on taking a tougher line on china when it comes to trade. matt: thanks very much, tom mackenzie live from beijing. peter canelik, -- with us. kintella is this has to be important to

the global fx trade. what happens if trump imposes $60 billion in tariffs on china? how does the global ethics picture look? peter: there no question, it would be adversely affected. many of the higher growth sensitive currencies in emerging markets would definitely we can aggressively. the yen would find is would see some severe appreciation. also the swiss franc. scenario.e a risk off this would be longer-lasting. you have seen some severe correlation breakdowns. in china's case in particular, some depreciation pressure. matt: you are seeing depreciation or what people run

for safe havens? ater: appreciation, that is safe haven. that will see some appreciation in that scenario. you mentioned the yuan. what the -- with they have to step in to defend the currency? talking about the difference in 10 year yields in china. even without the imposition of tariffs. people are asking when do we see the pboc increased interest rates, how with the escalating trade war play in? eater: the chinese have been stealthily increasing their interest rates. mainly foren domestic focus, they are encouraging money to corporate and to do leverage. they have been successful. that is a tightness in financial conditions. if you look at that is going

down. which has been a clever move. they avoided rhetoric that they are manipulating the currency. it has been flat for the last number of months. after depreciation. anna: you had some thoughts on this in your notes. the school scandal around they a .- the abe government the cabinet was less popular than it had been. how significant is the story when it comes to the currency market? peter: you would think it is not that significant. this is a storm in a alter which should not the monetary picture. we have not heard anything from the doj to suggest otherwise. matt: do you expect everybody to

get on the same page with raising rates? are there central banks that need to continue easing? peter: continue easing, it is the boj at this juncture. their inflation is just so low and we are hearing increasing chatter that the boj are trying to engineer a situation where next year or the year after they exit the stimulus policies. it is not something that we see any time soon. inflation is so low that it will keep the boj where they are for the next six or nine months. it is pretty much the boj. everyone else is getting back to a normal policy setting. anna: thank you for your time. joining us this tuesday morning. sarabia'rman of saudi

kingdom holdings gives his first interview since being released from detention at the ritz carlton. he has a lot to say about the terms of his really's and his investment strategy from here. his release and his investment strategy from here. this is bloomberg. ♪

♪ matt: good morning from berlin. this is "bloomberg daybreak: europe." i'm matt miller. .nna: i am anna edwards these are today's top stories. in his firstd interview since being released from detention, the saudi businessman talks about hunting for deals, reshaping his empire, and his relationship with the kingdom. >> i have been vindicated. we have a confirmed understanding with the government going forward. anna: jerome powell kicks off his meeting as fed chairman today with the rate increase almost guaranteed.

but how many more hikes does he see this year? tech trouble. facebook data scandal, and uber suspends test driving cars after a fatal crash. ♪ matt: good morning. taking a look at what futures are doing after the big drop we saw in tech shares yesterday, pulling down on the s&p 500. we see s&p 500 futures rising right now, but we see european futures -- we also see european futures across the board, remember they are not to tech heavy, up. cac,e gains on the cap --

and the dax gaining. we see again in futures after the tech meltdown in the u.s. yesterday, mostly caused by facebook. anna: european equity markets are stopping talking about their revenue. in terms of where we have been in asia, and tying into that futures story, msci asia-pacific 0.2 percent. the technology story is speaking to japan and taiwan. some of the suppliers for u.s. tech are being hit in today's session. facebook story was gaining momentum from yesterday's session in the united states. we got a number from oracle around uber. in terms of sentiment, does that give us a reason to sell technology? nasdaqs weaker on the

futures. other futures looking positive. -- the decision in terms of where interest rates go tomorrow. we will hear all about this. what will the expectation be for the number in the median forecast from fed officials? will it be three, or will it move on to four? matt: take a look at the bond futures. for further evidence of the future of equity markets today, you will see bund futures are down. the u.s. 10 year is trading down. yields are rising as investors theonger feel they need perceived safety of government debt. that is another indicator we will see gains on equity opened this morning.

let's get the bloomberg first word news in singapore from juliette saly. juliette: in the u.s., jerome powell and his colleagues gather for his first meeting as head of the central bank. economist server-side -- surveyed by bloomberg say similar moves in june and december. policymakers will pencil in three rate increases as being likely in their updated quarterly forecasts. the u.s. plans to impose tariffs as much as $60 billion on chinese products as early as this week. the administration is said to be considering wide tariffs from consumer electronics to clothing, as well as restrictions on chinese investments in america. the move is aimed at punishing beijing with the u.s. sees as intellectual property theft from american businesses. the european unions economic affairs commissioner has told bloomberg rejectionism is a

major risk to the global outlook. the comments were made at the g20 meeting in when a series as they prepare countermeasures to u.s. tariffs. >> nobody wants to enter into a trade war. everybody is looking at the way to bridge the gap and find common terms, especially on trade. we are in a delicate moment. we need to prepare a possible .esponse to american measures the eu is preparing for that obviously. we think the best is to avoid a scale up. president trump has used the white house statement marking the persian holiday to and its military was sharp language rarely seen in a presidential message. he attacked the revolutionary guard, criticizing corruption

and mismanagement. trump highlighted iran's high unemployment, saying the average family was 50% poorer today than 15 years ago. china's president has said to a nationalistic speech to mark the start of his second term. china's threeto thousand member parliament, xi jinping said his country has the ability to stop attempts to formalize the island's independence. this comes days after trump signed a law allowing high-level visits to taiwan, a move which would elevate its diplomatic status. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . regional index is lower for a third session. we have seen a turnaround in some of the markets. in india we are seeing gains.

china's stocks are closing flat. a little pickup in the hong kong players, which means the index -- we see the japanese electronic makers hit hard. the nikkei closing down by 0.5%. samsung rebounded. we had the aussie dollar and australian sharemarket falling with no change in its minutes. some of the stocks we are watching, the tech rout, apple .uppliers in taiwan robot makers in japan are coming under pressure on the concerns of tariffs on china, that they could blow through to demand for robot makers. cspc pharmaceutical is up. had betterter we than expected earnings from a number of those companies.

that stock is up by 11.4% in hong kong. much,thank you very juliette saly in singapore with your news. story ton amazing share with you this morning. halal hasaleed bin given bloomberg his first interview since being released from detention. about theo him with secret deal to secure his release after 83 days in royal incarceration. eric started by asking why he was incarcerated in riyadh for so long. >> i don't believe i belong there at all. i am always in agreement with my government. i give advice to the government in certain cases. sometimes they listened to me, and sometimes they do not.

there is an interaction between me and the government continuously. i don't believe i should be there. i respect the government. i accept what they said. what did the government want from you? did they ever make that clear? >> i will not dwell into discussion between me and the government of saudi arabia. >> they must have wanted something. it was all rumors. >> you realize how important it is to be candid and honest with me. the circle of knowledge is too wide. too many people know too many things. if a different story emerges, your credibility will suffer. saying,ng we are

everything you have told me is 100% true? >> i have a confirmed understanding with the government, and it is ongoing. i will elaborate. it is an ongoing process with the government. heldat was it like being captive by your own cousin? >> friendly speaking, it was not easy. i have to confess that. it is not easy to be held against her will. i used to say, this is your uncle, this is your country, and this is her cousin. when i left, a very strange feeling i had. i gathered all the seniors in my companies and my close confidence, and i told them, i have complete comfort and no grudge.

sure enough, within 24 hours after i left, we were back in communication with the king's office, with the crown prince and his people. that is a very strange situation. not easy. anna: that was saudi arabia's bints -- prince alwaleed talal. more of that is available throughout the day on bloomberg television. let's move on to other matters that are market related. jerome powell is said to chair his first meeting today. him to stick with signaling three rate hikes at this meeting, but actually to end up raising rates four four times this year. let's talk about what we expect to hear from the fed. i have pulled up the top function on the bloomberg.

many rate hikes we will see this year and next year, do you expect it to change when we get the details. >> we don't think we will have a change from the meeting tomorrow. we think probably they will stick with three rate hikes this year. they are talking about getting closer to the 2% inflation target. saying, we think this is potentially going for four hikes this year. anna: how must you think they will dwell on other matters?

we have tax legislation passed by the trump administration. how much is that going to change? filippo: that has been recognized by chairman powell in his testimony to congress. are quite significant on gdp growth in the united states. human -- matt: you mentioned the dubs. you can enter your own variables here, i put it at 0%. -- ian put in your own have 3.5 because this is what

chairman powell suggested in front of congress last week. the taylorr that, rule shows we should be at 0.67. the fed is at 1.5%. his jay powell more dovish than the markets expect? task of thehink the chairman of the fed is to strike a balance between an economy aich is potentially -- on potential to easing. looking athey are the trade across the globe. i think the chairman needs to strike a more balanced town -- tone. matt: what do you expect this to do to the dollar? a lot of people are forecasting weakness, but also four rate hikes. if we get three, would we see a

weaker u.s. currency? filippo: that is the risk. it was a little unexpected for the weakness, especially in january and february. potentially if you end up with three rate hikes this year, it could build up more pressure on the dollar. matt: thank you very much. coming up, unfriending facebook. a u.k. companies secretly kept information on millions of users that it was not supposed to have anyway. sterling stability. the pound holds above one dollar on and the eu reach of deal

brexit. this is bloomberg. ♪

♪ anna: this is "bloomberg daybreak: europe." we are 40 minutes away from the start of the european equity trading day. nothing tech heavy in the european markets. go to bloomberg business

flash with juliette saly. juliette: amazon is in the news. the possibility of expanding its retail footprint by acquiring locations from bankrupt toys "r" us. notonline giant is interested in maintaining the toys "r" us brand, but has considered using the vacant spaces for its own purposes. representatives to amazon and toys "r" us declined to comment. weinstein company, the troubled movie company has filed for bankruptcy with plans to sell its entertainment assets. weinstein will sell to a dallas-based partner. that is your bloomberg business flash. thank you, juliette saly

in singapore. let's talk about facebook shares, plummeted after a u.k. company kept information on millions of users without their consent. cambridge analytic at is accused of harvesting data, they strongly deny reports to ensnare politicians and influence elections. europeane now is our , seniorlippo alloatti credit analyst, hermes fund managers. what is the story here? filippo: things have exploited. -- things have escalated. they reported that they were offering to ensnare politicians. also the new york times is coming out with a report.

one of the people who is more open and transparent is set to leave. facebook has hired auditors to alytica.mbridge an u.k. regulators said they want to look at the servers. it is a mess that is escalating quickly. for cambridge analytica, things do not look good. it is beyond a legend, you can see the evidence. as far as facebook it is not clear whether cambridge analyt ica still hold this information. they deny strongly that based -- that they still have a data. is that one of the issues? >> yes it is one of the main issues. you could ask why facebook went

into the offices to search the servers. if the data has already been wiped. the u.k. is keen on getting a warrant to go in and search the servers. they are clearly looking for something. it has wide implications. if you take it in isolation, perhaps they can manage it. there have been so many of the stories in the past few years. they had been in front of committees. the senior executives have to step up and answer some questions. matt: thank you very much. it is a broader story.

i have to that google has a lot more information on me then facebook. twitter and instagram have info on me as well. probably hundreds of millions of people. there are a lot of companies impacted by this. the pound is holding gains above $1.40 after britain and the eu reached a deal on a brexit transition period. the u.k. will be treated as a member of a block but will be allowed to strike new trade deals with other countries. these are expected to sign off on the agreement at a summit on thursday and friday. still with us, filippo alloatti, senior credit analyst, hermes fund managers. what do you see as concrete developments here? day there is new breaking news on the brexit story that does not move the ball forward. have we finally done it? filippo: your point is correct.

we are used to having a daily brexit commentary. this 21 month transition period is positive in the sense they can smooth out the disparity between the two parties. the u.k. transition is a little , i don't think there is another country that has the mutual recognition. there are different degrees that transpire and equivalents. anna: let's get up-to-date with that. this morning we have new reporting.

the eu is offering improved equivalents. alence,ed equivq allowing appropriate access to financial markets with financial stability. some of the uk's arguments around stability, and the need for the city of london. does this sound the u.k. is getting something it is asking for? filippo: potentially. that will be the concern down the road on thursday and friday. it is true the u.k. has been , if there were to be at a departure cap -- we know that some other european government --

anna: we will see if they remain united. filippo alloatti, senior credit analyst, hermes fund managers. that is it for "bloomberg daybreak: europe." this is bloomberg. ♪

♪ guy: good morning. you are watching "bloomberg markets: european open." cash trade is less than 30 minutes away. ♪ guy: prince alaweed reveals the secret deal he struck. reshaping his empire and the hunt for deals. >>