>> good morning. i am anna edwards. >> live from unit i am matt miller. this is daybreak europe. these are today's top stories. anna: a rate hike is almost guaranteed. what clues might the new chairman give on the path ahead? matt: facebook loses friends. shares slide again as the data scandal rattles investors. trumps steelw says and aluminum tariffs are risky.

he speaks to us in an exclusive interview. >> these tariffs are risky. u.s. me what it means for u.s. china. it is much bigger than that. once you start putting tariffs in place that other countries do not think our fair, the risk of retaliation is very real. the world does not need a trade war. ♪ anna: good morning. welcome. it is wednesday morning. the markets are still concerned about facebook and technology, at least in the u.s. session. in the asian session, we are seeing some upside. we are up by 2/10 of a percent on the asia-pacific debt markets. energy companies, one of the sectors that is helping these markets to rally up yet. we are without japan.

there is a public holiday there. s&p futures, pretty flat. we are waiting for the fed. jay powell is going to give his first said today statement. keep an eye on facebook. that story continues to gain momentum. to social network manages get the attention of u.s. regulators. we have seen some energy companies listing markets over in asia. nymex is up overnight. opec accelerating the timeline for curving the supply gut -- glut. we are still caught. a lot of focus on commodities. we will pick that up. we will talk about tightening conditions in the money market. matt: i'm looking at that live spread.

you can see yourself. the interesting thing we will see, we have seen the spread already blowout to the widest level it has been since the end of 2011. it will be interesting to see how that moves after the fed. will be interesting to see how the short-term financing costs are affecting people around the world. they are not out of control yet. we are not talking about 3% or more. there getting up there. bank still have liquidity. there getting to get more expensive as the u.s. issues a bunch of t-bills. they need to hold money and short-term industry -- instruments. it will be interesting to see how that short-term financing expands and starts to affect the global economy. let us get the first word news. u.s. senate majority leader has raised robert mueller

and said he should be allowed to finish his job. breakmcconnell's comments his three-day silence. gop senator lindsey graham has said that stacking miller without cause would be an impeachable offense. in texas, police investigating a string of explosions in austin. a new incident and a goodwill store may not be linked to the others. a package exploded yesterday at antonio,enter in san causing minor injuries to a worker. explosions were discovered -- explosives were discovered near to the airport. u.s. president donald trump has welcomed the saudi crown prince as a friend of america and a big purchaser of american arms.

trump also hinted at a perk euro from the international agreement curbing iran's nuclear program. it will be welcome in saudi arabia. we really have a great friendship, a great relationship. to put itonship was, mildly, very strained during the obama administration. the relationship now is probably as good as it has ever been. kuwait's first deputy prime minister has told bloomberg how the country plans to transform its economy. he made the comments in his first interview with an international news outlet after taking office last december. >> there will be an international stock exchange. there will be an airport where everybody can come.

we are close to singapore. global news 24 hours a day powered by more than 27 happen -- 2700 journalists. find morend -- stories on the bloomberg app. anna: want to check in on the markets you're in asia. we have had japan close today. it does not look like we have the boards about the moment. here we go. there does. japan start of spring. we have seen a good game come through on hong kong. you are seeing a rally in energy stocks. let us have a look at certain of the stocks we have been walking -- watching in the region.

we have also seen this huge rally coming through in energy stocks. opec up by an impressive 4%. a milk provider in new zealand of for the first time. prices inen home milk new zealand rise by 2%. we also had an increase in milk production in the u.s.. there is a strong movement coming through on the commodity. matt: thanks very much. president trump's tariffs on and clean energy has put america at loggerheads with china and the eu. lew is the latest to join the chorus of voices warning about the threats of a trade war. tom mackenzie spoke exclusively with lew in beijing. >> putting a global tariff --

we're seeing exemptions buildup. the idea that there was a .ational security risk it does not make sense. our european allies are asking the same thing. this is a question about the u.s. and its place in the world. it is fed day in the united states. a hike is almost certain. how many hikes are going to be expected in 2019? joining us now is the head of asset allocation and macro research. good morning to you, kristof. let us talk about both of these things. the latest commentary on trade from the white house.

is it going to be a close call, whether they increase the forecast for 2018? expect for this year. not three. 4. jay powell has insisted improvement in the u.s. economy in the past week. today, the fed will hike for the first time this year. anna: what is it going to look like? what does hawkish look like? do you think he wants to sound hawkish? if he does for, will it be a dovish hike? >> short-term interest rates are so low. to have shorter interest rates. create ais not to

negative shock on the u.s. economy. cuts continuing to boost economic growth. to not be leftt behind in the curve for the fred. it is a matter of credibility for the fed. maybe just to complete my answer, regarding the u.s. economy growth this year, to expected percent. it is well above the 2% we have had in the past nine years. it is a complex regime shift. consequence, we have to expect the regime's shift to be run by the fed. anna: ok, matt. matt: what happens to your

growth predictions if we do see a trade war start? does it affect the near-term projections for this year? tariffsart to see trade being lobbied back-and-forth from the eu to the u.s. and china? >> it is a good question. theave an issue regarding economic policy driven by the current situation. boostx cuts continue to the u.s. economy growth. if they impose tariffs to europe or to china, in a way it was -- is an anti-growth decision. what i would expect about tariffs is a political rhetoric. we have a midterm election at the end of this year.

it is important for the trump administration to engage in this midterm election. it is a promise as a candidate during the presidential campaign. today, itat we have is a tug-of-war between rationality in terms of economic policy decisions consisting to boost economic growth through the u.s. tax cuts. we have aer hand, negative force from a political point of view consisting to attraction ofg the electorate to the trump administration in the midterm election. matt: you also have recent stock market volatility. it is not any longer look like a one-way trade on the s&p 500.

that the fed put is not as strong with jay powell in the chair? i was explaining a few minutes ago, regarding the fed normalization, the idea is not to create a short-term economy growth. the idea is to be behind the curve with regards to the economic growth. but also as the international conversation. if we have a restoration in the u.s. economy growth with job the wake-up could create a sudden rise in inflation. it would increase the credibility of the fed. this is the idea that is a very tricky situation for the fed to management. expect why markets

interest hikes by the fed. most economies expect four. matt: you are going to stick with us. there is a lot more to talk about on this fed day. coming up, more from our exclusive interview. the hunt for deals. future business plans after his 83 days of royal incarceration. this is bloomberg. ♪

♪

anna: let us go to bloomberg business flash. host: he is likely to face questions about usage data being obtained. the social network is now drawing scrutiny from lawmakers on both sides of the atlantic. was suspended. amazon has jumped ahead of internet rival alphabet in market values for the first time. it is a shine of growing investor optimism. shares of the seattle-based e-commerce giant rose yesterday, giving it $768 billion. that is the world second most valuable publicly traded company.

has voiced his concerns over the potential implications of brexit for the italian aerospace and defense company. >> we are little bit worried for brexit in terms of cost for people. it will be a lower possibility for engineers. moving from other countries to the u.k.. it will increase our cost basis. reporter: that is your bloomberg business flash. matt: thanks for a much. juliette saly there in singapore. now more from our exclusive interview. the first timeor

since his release from detention and saudi arabia. shares in his company plummeted 20% in the days after his initial detention. the stock price has since recovered and now the prince is on the hunt for new deals. he told us about some of his plans for the business. >> since i left, we are now in touch with the government. they have a big project in military. and they will have resorts. we were invited to be in the other projects they have. i huge entertainment center. since we are involved in hotels, in media and entertainment. no competition. we complement each other. reporter: if you become involved with this resort in the red sea and the entertainment complex that is being built in riyadh, this will be by choice?

is this part of your ongoing relationship? >> you're very start. this has nothing to do with any conditions. we were invited to invest in the four seasons. even though tour -- even before the detention. reporter: what about coinvestment? while the public investment hunt -- fund invest together? >> a very good question. yes. this will happen. we are in discussion right now. on certain projects. we can coinvestment certain projects. reporter: domestic or international? >> we have talked about domestically first to begin with. the discussion right now was on the domestic arena. reporter: will you invest in the

futuristic 50 -- city they want? >> they are still in the design phase. it is going to take a few years. there will be business opportunities. we are investors. we are open. kingdom holding was the biggest investor locally. we invested $1.6 billion in the saudi french bank. we invested in the local community. that will continue. we will continue for sure. kingdom holding company by your company is seeking to raise something in the order of $1 billion in debt. what are you going to use it for? >> we are raising between one to

$2 billion of debt. we have some cash at kingdom holding company we are now looking for a second deed for us. we have had a few big deals. -- it ist right now not overvalued. the prices are not where we wish them to be. we would like to get some firepower ready for us. we're on the verge of getting the financing facilities. reporter: you are thinking about a deal of what size? >> we are willing to do anything from one to $3 billion. reporter: what industry? >> we are open. reporter: i have heard that you are working with goldman sachs. >> yes. goldman sachs. support.hem for your

right now we are working through them and others to find the location of other places for kingdom holding in the region. that was an exclusive interview. you can test the full one-hour interview for the first time on friday at 8:00. kristof is still with us. a conversation about oil would be worthwhile. before we delve into oil, let me ask you about industrial metals. do you see anything for global markets? i have a chart here. they are apparently breaking

down. is this a worrying sign for you? some concerns.- chinese uplity of a lending. this is not the first time we experienced this kind of concerns about china. china is trying to avoid an excess in credit growth. by doing so, you create a certain slowdown in the chinese economy. from this point, markets are concerned about lending again. annualnese economy needs gdp growth constantly, year after year, in order to absorb the immigration from the land to

the cities. matt: i was wondering what you think about the price of oil here. can the russians told the line long enough to keep it steady? >> the chinese economy needs 6.5%, as i said. it, you need tools. the first one is to increase interaction when the chinese economy needs it. the chinese government is ready and prone to spend. right. thank you very much. he is going to stay with us for a little bit more. there is a lot going on today. we will hear exclusively from

lee are no -- leonardo ceo about how brexit will affect the italian defense company. this is bloomberg. ♪

♪ anna: this is "bloomberg daybreak: europe." it looks rainy in tokyo.

the equinox day is celebrated. the japanese markets are not opened today. a little less volume than you might expect as a result. let's talk about what is coming up today. midday, theresa may takes questions before heading to brussels for a summit. meanwhile, the european commission is due to unveil its plans to tax digital companies, something steve mnuchin went to defend against. get the policy decision followed by jerome powell's first news conference. that will be an interesting q&a. that's check-in on the markets with nejra cehic. morning.od japanese markets closed. we have taken them off the screen. the msci pacific asia index gaining slightly given what is

happening in other markets. hong kong is outperforming somewhat. we have seen gains in australia. a little bit of a rebound in asian equities. it's look at what the dollar is doing. we have seen dollar weakness ahead of the fed meeting. you are seeing the canadian dollar outperform on some slight developments around nafta. asian equities, energy stocks are outperforming. we will talk more about oil in a second. , it is at aeakness nexus point. are we going to see it breakout of this downtrend when we get the decision and the guidance later? chart, thethe next markets have been focusing on in he libor.teh

acrossas reverberated various markets. i want to show the libor spread, this provides uncertainty around the hong kong dollar tag to the greenback. the monetary authority might step in. since 2008. highest tightening,he fed the repatriation of the tax changes. issuance at bill the front end. finally, let's look at this chart. an oil hold at a three-week high. we have the api data and we have to talk about opec changing some of its measures of success around supply. what this chart is showing, it's

head is out of a triangular pattern. does this mean it will push higher given that it has broken out of that triangle? matt: i think the libor intelligence is absolutely key for markets right now. investors continue to put those stories at the top of our most read list. leonardo chief executive officer he hasdro profumo says concerns about brexit for the italian aerospace and defense companies. he spoke to francine lockwood. -- francine lockwood. -- francine lacqua. there will be a lower possibility for engineers

to move from our countries to the u.k. and vice versa. this will increase our prospects. francine: do you know by how much? allesandro: today we received a .ot of reassurance this is one of the worst we have. clearly, there has been a significant devaluation of the pound, and this can create some constraint. the u.k. government is an important customer for us. it is important that the u.k. remains part of the european province. no decision has been taken. in the case for us it will be important that the u.k. remains.

francine: do you think they will be part of it? when the negotiation we hope theyized, will remain part of the european programs. i think this is better for the u.k. in europe. francine: how is it going in aerospace? it is performing quite well. we are working quite well together. we are always trying to understand how we can improve our commercial capability.

was somethinge out of your plant, one thing to show investors they were back on track, what would it be? think what we achieved with car is important. -- i think what we achieved with atar is important. some people were thinking we are now focused on the growth and revenues. .e have a strong focus we have to demonstrate we can do both. revenue growth and management. matt: that was allesandro profumo speaking exclusively with francine lacqua. i want to get back to christophe donay, head of asset allocation

& macro research, pictet wealth management. a lot has been made of the u.s. defense industry. what do you think about the european defense industry. judging from german readiness, there is a lot of stuff that is needed to buy. if european growth continues to be strong and sustainable, won't european governments be sending -- spending more money on weapons? christophe: yes, probably. is supposed tone be able to did -- to defend by themselves. germany is not a big spender on weapons. you have more leeway in the budgets to spend in different , whichncluding weapons are long-term for the european

community and the eurozone especially. anna: in your notes you talk , you that gdp growth, 2.3% say there is upside risk. where does the upside risk come from? christophe: it comes from the fact that the growth, incorporating the growth which was lacking dynamics in the past decade. isthe global level, it improving thanks to that. thanks to acceleration investment growth. the corporate investment growth is the key driver we need to make growth sustainable.

anna: a focus on investment from european corporate's. ,tay with us, christophe donay head of asset allocation & macro research, pictet wealth management. we started by asking about the brexit transition deal. issue of the irish border needs to be sorted. there is the issue of our disagreement with the eu legal text, it was projected by michel barnier. i had the opportunity to visit him a few weeks ago to elicit why that was the case from an northern irish perspective. creating a border down by the irish's, and that is

not something we could allow from a constitutional point of view, but also in terms of economics it would be catastrophic. 56% of our goods from northern ireland go to great britain. it is incredibly important that border does not exist. and we that in the text, are pleased the prime minister has been clear about that as well. >> what is missing from the text? what parts from the draft statement do you disagree with? >> in the protocol that is there in terms of northern ireland, obviously there is still work to be done. we will continue to support the government and help them to get to a place which is good for northern ireland in particular, but the u.k. in general as well. we are concerned what happens to the nation as well. that was an exclusive

interview. later today we will continue the brexit conversation in the u.k. trade secretary liam fox. you still look for something that you term a hard brexit. so long after that though, what does that mean now? some in the parliament are arguing, what do you define as a hard brexit, what does it look like? steps,phe: you have two -- the second step is implementation. years toake time, two implement the decision regarding brexit. the second thing regarding brexit is the cost in terms of

economy growth. in terms of political costs, the political stability of the u.k. zone. this is what i nicknamed the hard brexit. whicha painful process , probably a long time a decade, not two years. anna: what you heard this week is softer than last week. the transition of arrangements. there were negotiating guidelines that talked about , even if itrvices is not as much access as the u.k. government would like. we will have a hard

brexit are nothing. ,ecause of the cost on one hand and it could be from a political point of view as well. it could look like a no brexit. two questions, do you think britain keeps gibraltar? but more important, where do you see the pound headed? christophe: i did not catch you. matt: i was wondering about gibraltar, because it looks like it could be a snag for this transition deal. it is the tiny territory at the bottom of spain. britain wants to keep it. the spanish would want to have it back. i wonder more importantly and

realistically, where do you see the pound going? we heard from an analyst 5,sterday who sees it at 15 which seems to me relatively high. you see the pound being underpriced right now? christophe: yes, but we have pressure on the u.k. economy regarding inflation. inflation today is up 3%. 2% for the rest of europe. inflation in a way is connective for pushing forward. what about the boe towards inflation? it could be stronger and quicker than expected, which in another u.k. economyon the

growth, because u.k. economy growth is not strong enough to rates short-term interest , and tightening by the boe. , it is aeconomy growth kind of process. matt: thank you very much, christophe donay, head of asset allocation & macro research, pictet wealth management. we will keep him with us for a little longer. if you want to know more about the gibraltar story, go to the bloomberg. coming up, the data crisis deepens for facebook. shares slide again as it draws the attention of the u.s. and

european officials. exclusive, the former treasury secretary warns about the dangers of a trade war. one more voice to add to a big pile. this is bloomberg. ♪

♪ matt: welcome back to "bloomberg daybreak: europe." you are looking at a dark picture of the big apple with the empire state building dimmed.

the equity futures are gaining right now after tech shares took a hit again yesterday. maybe investors are a little more optimistic this morning. let's get the bloomberg business/in singapore from juliet sally. juliette: amazon has jumped ahead of internet rival in market value for the first time. optimism about the prospect for the world's largest online retailer. shares of the seattle-based giant rose yesterday, giving it of $758 capitalization billion. peter peterson, the wall street rainmaker has died at the age of 91. the son of greek immigrants, peterson served as commerce secretary under richard nixon. after a tumultuous turn at

lehman, he helped create blackstone and make it the world's largest private equity firm. that is your bloomberg business flash. anna: thank you very much to juliet sally in singapore. headlines, vivendi was completing its placement of yuba soft shares. they say though shares have sold at 68.56. $60 billion inst value in the last two days as its data crisis deepens. firm has -- cambridge analytica has suspended its ceo. to christophe donay,

head of asset allocation & macro research, pictet wealth management about the tech sector. we are watching the fallout from facebook. you think the fallout is substantial for tech companies that have grown too big relative to the space in which they operate. christophe: exactly. we are in an innovation wave. we arei would say continuing to regulate. then you have where is the power? are we in a transition consisting to a shifting power

from the states to the global companies. it is fascinating in a democratic context. and any other political context. we have this chart that compares the valuation of $.10 -- ten cent. is the center of gravity going to shift away from the u.s. tech companies because of regulation? in asia, we have new giant companies, global companies on the rise, for example tencent. we probably have in the next few years a continuation of this ,orld with an innovation wave

and we have the same innovation coming from the chinese companies as well. it is interesting from markets perspective, the value ent traded shares, but from a consumer point of view they do not care about that. facebook users are not going to or other tencent chinese social media. that is the button that most people click the most on their phones to which they are addicted, regardless of fake news or not. isn't this a buying opportunity? christophe: yes, it is a buying opportunity. this global innovation wave coming from china is a disruptive innovation wave.

the consensus is to change the business model. the business model is now .mplemented points just the starting of this disruptive innovation wave. we still have a lot of leeway to go for the disruptive companies creating this business model and bringing this innovation wave. thank you very much, christophe donay, head of asset allocation & macro research, pictet wealth management. he has helped us out a lot this morning. it is great to get your views. there is so much going on on this that day. -- powell's first that day

first fed day. 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. munich. this is "bloomberg daybreak: europe." i am matt miller. anna: i am anna edwards. these are today's top stories. matt: a rate hike is almost guaranteed, but what clues might the chairman give on the path ahead. anna: facebook loses friends. shares of the media giant slide again as the deepening data scandal rattles investors. treasury former u.s. secretary. he speaks to bloomberg in an exclusive interview. >> these tariffs are risky.

start putting tariffs in place, other countries do not think they are fair, the risk of response and retaliation is real. the world does not need a trade war. ♪ matt: welcome to "bloomberg daybreak: europe." i am matt miller, here in munich. here in europe across the comment, we are looking at games , slight gains, whereas in the u.k. we are looking at a bit of a drop as indicated by equity index futures. not a lot of direction from the futures trade. you're not getting a lot of direction from the rate trade either. are lacking direction

in terms of the asian equity session. let's talk about the breaking news we are getting from the luxury goods maker. it is ahead of the estimate for this business. confirming their goal might be belying the interests. let's talk about the lack of guidance we are getting from markets. that is clear in the asian session. the japanese are not trading today, the public holiday going on there. we had seen some energy companies a little earlier. we saw a rally in crude prices. s&p suggests a lack of direction , perhaps a little upside. the fed meets later. jay powell will be leaving that

press conference. fascinating to see what language we get. says aboute dot plot expectations. they spent continues to be a focus in the u.s. session. keep an eye on that. it continues to gain attention from regulators in the u.s. and the eu. timelinelerating the for curbing the supply glut. out of the broken 60, 60 five dollar range. range. matt: is it going to move out of that range anytime soon. will russia be able to tow the line. across seen a lot come this wednesday morning. or -- seeing if talent

telenor -- we are getting more a maker ofn gkn, automobile transmissions and airline parts. they say the offer of melrose does not come close to reflecting its value. not even in the ballpark. let's look at bonds and see if they give us any indication about what direction trade will take today. selling off, so it does not look like investors are seeking the perceived safety of government debt. blend futures are down a little bit. u.s. bond futures are trading down a little bit. we should see u.s. bonds start right about now in the u.k.. we will see a yield on that. is it going to hang around this level, or will that yield start

to finally rise? talk about another corporate. ,he retail chain in the u.k. kingfisher. it comes ahead of estimates. pretext, we are getting that number for the full year. in terms of the outlook, they say they are confident in the ability to deliver their 2020 and 2021 plan. the outlook in the u.k. is more uncertain. go to bloomberg first were news with juliet sally. juliette: the senate majority leader has praised robert mueller and said he should be allowed to finish his job. comments break his three-day silence on donald trump's attacks on mueller and his russia investigation. lindsey graham has said sacking

mueller without cause would be an impeachable offense. texas, police investigating a string of explosions in austin say a new incident at a goodwill thee may not be linked to others. that comes after a package exploded yesterday at a fedex shipping center near san antonio causing minor injuries to a worker. --er that blast, has president donald trump claimed the saudi crown prince is a friend of america. trump also hinted at withdrawal from the international agreement on iran's nuclear program. we have a great

friendship, a great relationship. i would have to say the relationship was very strained during the obama administration. goodelationship now is as as it has ever been. juliette: the deputy prime minister has told bloomberg how the country plans to transform its economy. the comments were made in his first interview with the international news outlet. >> there will be an international stock exchange. airport wherean everybody can come for a hotel reservation. 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 go. checking in on the world map.

japan closed for the start. markets, it is taking a little steam off the regional index. you have seen great games coming in india. still some upturn in hong kong in late trade. a lot of this is field by chinese property developments. let's look at the stocks we have been watching in the session today. crude.mp in the chinese owner of volvo, geely auto, it did miss what someone looking for. this is one to watch, tencent

coming through with earnings after the bell. price tag upgrade from goldman sachs. tencent is about $72 billion more valuable than facebook. thank you, juliet sally coming to us from singapore. president trump's tariffs have put america at loggerheads with china and the eu, its two biggest trading partners. former treasury secretary jack lew is the latest to warn about a trade war. tom mckenzie spoke exclusively with lew in beijing. >> putting a global tariff on steel and aluminum, we are the exemptions now build up.

to put a tariff on canadian steel did not make sense. our european allies are asking the same thing. there is the question about the u.s. place in the world. anna: united states federal reserve policy decision, a hike is seen as all but certain. will they stick with three hikes in 2018 or shift to four? what will jay powell say today? what kind of message will he communicate? wanted -- he will want to communicate more of the same. will not want to change policy too much. he will want to be seen as serious about controlling inflation.

the message he will give will be slightly hawkish. where we are on financial decisions in the united states. of libor. the spread one measure of tension in markets. there might be fundamental reasons and technical reason student taxes. is this something that gives you reason for caution? how do you view this tightening? tom: i think it is doing a bit of the fed's work. the fear in the u.s. is with the tax cuts coming through that isre is a sense the u.s. pouring fuel on a smoldering fire. we can see that the u.s. economy is in good shape. the unemployment rate is at historic lows.

we are piling on tax cuts as well. i think jay powell is extremely conscious of this. matt: if someone is worried about the economy running too hot, we have a trade war coming. is that going to be the push back against the progrowth tax cuts? tom: it could be. said, a trade war is never a good thing. clearly in parts of the world, it will have more than impact. concerns onhere are .n export led economy exports are up to 45% in germany. this is more of a problem for parts outside the u.s.

matt: what do you think about libor rates?g every day i see it at the top of rea storiesd.st investors, markets are concerned about it, and typically a jump in the short term financing , even agnifies problems crisis. tom: that tightening in policy does signify the potential for a slowdown ahead. that is what we are facing. it is a tricky balance that jay powell faces today in his comments. he needs to be seen on top of the situation. the economynot let run away with itself. at the same time, he needs to not scare the horses in terms of the markets. anna: we are getting some news

from shell. saying 67 billion is the outlook by 2020. they're talking about their marketing plans generating over 2.5 billion. we are getting this revised guidance from the company on where they plan to be in terms of cash flow. the fed is going to be watching on tightening libor conditions. saying he does not like what he is seeing from the white house. the trade relationships between the united states and its trading partners, to underline the size of the deficit they have with china. jay powell is saying he does not think a shouting match is a good

idea with china over trade. what if a shouting match works? drives a shouting match policies and gets some concessions from the chinese, increased access, increased free market use. tom: that is clearly what donald trump is suggesting. he is suggesting trade wars can be won. suggests thery opposite. there are only losers in trade wars. that is the big fear. we get retaliation from the europeans. really in the sights of these tariffs, they will be badly affected. matt: it looks like there are losers in multilateral trade agreements as well. u.s. andved in the ordered european goods, i never tariffs on goods.

you tariffs on u.s. are four times higher than u.s. tariffs on eu goods. the chinese relationship is not unequal. what do you think about the fact , the possibility that this is just a negotiation? negotiation, is a but the answer to trade tariffs and protectionism and to reducing global trade is to not reduce it further. the answer is to attempt to open it up, rather than close it down. stocks,th technology facebook in the crosshairs at the moment, how much of a fallout do you think this will have? possibly in the short term it is a buying opportunity. we identified some time ago that

regulation was the most serious concern facing the technology sector. 1980's,o back to the at&t was the biggest company in the world. it was broken up into eight different companies. this is what faces these powerful companies when they come up against the powerful state. andoutlook is difficult regulatory terms for these companies. no doubt people will look closely at the relationship between the states and these corporate's. thank you to tom stevenson, investment director, fidelity international. tom will be continuing this conversation with us here on bloomberg. let's get a bloomberg business -- -- business class with juliet sally. mark zuckerberg will

face questions on friday. the social network is drawn scrutiny from lawmakers on both sides of the atlantic. cambridge analytica has suspended its ceo. he was caught on camera boasting about his willingness to use bribes, entrapment with sex workers, and other illegal tactics to undermine political candidates. inzon has jumped ahead market value for the first time. there is growing optimism about the world's largest online retailer. shares of the seattle-based giant rose 2.7% yesterday. that makes it the world second-most valuable publicly traded company behind apple. leonardo's ceo expressed

concerns over the applications of brexit for the italian aerospace and defense companies. profumo made the comments. there will be any lower possibility for engineers, asking people to move from other countries to the u.k. and vice versa. this will increase our cost base. juliette: vivendi is selling its stake in french game maker you be stopped entertainment -- ubi soft entertainment. ubisoft will once again be the top shareholder. they will be joined by tencent.

victory for the ceo who sucked toward off vivendi's takeover. russian gas sales to europe is increasing to record levels since 2016, and higher demands from the region. 39 u.s. senators are pushing to pipeline which would bring siberian gas to northern europe. it would minimize the importance of ukraine as a transit route. us, the ceo of ukraine's gas company. very good morning to you. let's talk about -- what are the chances that this is blocked in some way? >> it is difficult for me to

assess the chances of it being blocked. the harm and danger it brings cannot be overestimated. anna: you think it should not go ahead? >> it should not go ahead. anna: there are 39 senators who want to block this project. they do not want to see siberian gas have a holdover europe. are you talking to people who share your views? people, and to many most to understand how the it is goingganized, to be the same gas from the same source. just a different route. companiesou think the working with russia on this pipeline are going to be at risk

of sanctions? >> the way we read statements, yes the risk is high. concern is that the money going to russia and the owners of these assets needs to be stopped as russia interferes in european countries with things like poisoning and assassination attempts. does that bother you? do you think that is unfair? andriy: it is not only unfair but it is dangerous. it is dangerous for the european union. if this pipeline is being commission, the likely of russians being able to use the weapons we have seen so far. to consequences.

for the there a way sake of your shareholders to gas from russia, separate business from the political sphere surrounding russia. we think about gas matters, the practice is such that russia is unwilling to separate gas and politics. from their perspective, gas is important instrument in achieving a wider political agenda. you went to a stockholm --itration it will open a way for

negotiations. anna: how much time do you give them to pay? andriy: the payment is due from the david decision was made. they have already used 20 days of time they should be paying. if you look at natural gas prices, they have been fairly steady over the past year. four years ago we were higher, three years ago we were lower. where do you see natural gas prices going? do you think they can hold this? for you and your shareholders it is helpful, this steadiness because it takes away uncertainty. andriy: it is important for any consumer for any type of energy. our expectation with prices will

grow moderately or stay the same. matt: what is your forecast? 70.are looking at 268, 2 andriy: i would not be able to give a specific number. anna: let's talk about investments for your business. how much gas can you produce this year? needs arer investment quite high. we plan to invest more than $2 billion this year, and our expectation is that growth of approximately 6% last year, it will grow higher this year. our plan is that by then, ukraine as a country should not be needing to import any gas. anna: you are trying to raise money on international --

andriy: we are optimistic, and believed by the end of this year, we will accomplish a turnaround and go from -8 to 1.5 billion in profits. anna: thank you very much for your time. andriy kobolyev, ukraine ceo, naftogaz. that is it for "bloomberg daybreak: europe." the european open is up next. we will continue the brexit conversation with the trade secretary liam fox. there is always bloomberg radio. you will hear matt on their later. i am there in it hour and a half. european equity markets, not seeing guidance in terms of

direction from the asian session. japan was closed for a holiday. this is bloomberg. ♪ mom, dad, can we talk?

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. guy: good morning. welcome to "bloomberg markets: european open." i am guy johnson alongside matt miller who is in munich. castrate less than 30 minutes away. -- cash trade less than 30 minutes away. set face. investors -- sad face. investors unfriend zuckerberg. it is bound to get worse with the eu unveiling its plan