♪ haidi: mark zuckerberg offers a response to the data scandal site mistakes are made and user information must be protected. betty: sheryl sandberg says it is a violation of people's rights and facebook must work hard to regain trust. haidi: jerome powell indicates another two hikes this year and more to come in the future. betty: you must is giving 2.5 billion reasons to stay in the driving seat at tesla and not go

to mars. haidi: hello from sydney where we are just passed 9:00 a.m.. open the day after the fed. betty: we finally got the decision and is just after 6:00 in new york and we are looking at all the action on wall street and how it plays in the asia-pacific day. one story we are following in the market is the fed. its get straight to the top story. the federal reserve is raising rates hikes for 2019 and 2020 and not this year. kathleen hays is here with details of today's fed chair meeting. kathleen: this is a interesting meeting to parse because the fed did race its rate hike path which is caucus, but they didn't

raise anything for 2018 even though they see faster growth and inflation growing. dot. hop onto the edre is what the dot look like. the three dots moved up, and here is what the three was, you have a consensus for four rate hikes. there was a lot more people under three, but now it is only two. moves up to three hikes, and so has 2020. isomberg research conclusion they left the door wide open for four rate hikes this year and what will let them walk through the door -- bloomberg economics are doing that the fed is a piece more hawkish. get ready to raise more next

year and keep it where you are now and see what happens in the interim. i think it was a interesting reaction to the bonds and the dollar suggesting they saw less hawkishness. and this will play out in the next few months. haidi: what was the rationale given? to they see faster inflation next year? kathleen: they see a stronger economy and the fed said that the economic outlook strengthened in the race their gdp forecast -- every quarter and are changed to reflect, that is where we get the. forecasts -- the dot forecasts. forecastunemployment to 3.8% this year and 3.6% in 2019 and 2020. 2% inflation rates to

coread court bce to 2.1 -- pce to 2.1. let's listen. ofwe're in the cusp inflation and moderate increases in wages and prices inflation. kathleen: the fed is forecasting inflation best and when asked about the dots he made it clear this reflects individual forecast and it is not a fed decision of what is actually going to happen and based on the economy now. the dots could go up this year or they could go down. haidi: global economics policy editor, kathleen hays. let's look at the market reaction, taking into the language of the fed outlook and the approach of the new chairman, coming off less hawkish than what much of wall street was expecting.

to aes contributed battering in new york and was a volatile day. withinan was here outlook of all asset classes. su: a tone of uncertainty and 30% less volume because of the storm and that jews volatility -- juiced volatility. bonds rating higher -- and the dollar added to losses with trade talks in the session. you not the declines in the s&p and dow, even though it looks slightly unchanged, if the look at the doubting up to and 50 points and a gain of 8% before it started to slide with all the little gyrations during the fed chair speech. technically speaking that is a

ugly close. let's hop onto to the bloomberg, and what is fascinating here is -- the title is strong showing. the holdings in ats is the highest since 2013 and rising, which is unusual going into a expected rate rise situation. you don't normally see this pattern, and it has a lot to do with president trump rocking the boat and the stock market continuing to wobble. that is something many are keeping an eye on. also look at oil, a six week and inventory data having a lot to do with that rise. as the weaker dollar, in part because the fed decision juiced the dollar. and then facebook stock, mark

zuckerberg make public comments -- and it managed to end the day with a gain. zuckerberg announcing plans to improve security and he will speak to cnn later this evening. transocean having a lot to do with energy stocks finishing strong. underlying strength. back to you. haidi: sue, thank you for that. earlygo to asia for a reaction. the kiwi dollar paring 72.29 in -- it's strongest since november of 2016, and policy will accommodate for the andiderable period,

inflation remains benign in new zealand. going to the citi open with the aussie dollar falling lower in 2018 with fraction that china is preparing its own retaliatory package of tariffs on agriculture goods out of the 's like ald trump package. -- and crudewe see ofding 3% higher on the back a surprise fall in u.s. crude inventories. let's get you up to date with first wrote news with courtney collins. courtney: president trump is said to be ready to announce sanctions on china later thursday and we are told tariffs will be worth $60 billion, although the plan may still change. the president demanded a

investigation over allegations that beijing steals intellectual properties and forces american companies to transfer technical know-how at the price of doing business in china. sources in china are telling us a new regulator has been appointed overseeing the countries $43 trillion banking and insurance sector. he has been running that see rbc for a year and now takes on a wider and more powerful role. the merger of the two regulatory bodies was announced at the national people's congress and part of president xi's campaign against corporate debt. plans to taxunion big tex saint they must tax companies that make money in member nations. taxplan would impose a 3% on any country at companies annual revenue exceeds the equivalent of $8.6 million.

the commission estimates that up to 150 companies could be affected, about half from the u.s.. is abouts proposal fair rules for oral companies. they are about -- for all companies. they are about future proofing our single markets so that collecting -- rights to entities are globalized in the digital age. courtney: tencent is warning that content and technology will wait and margins after posting quarterly profit that top projections. they plan to spend more on ai should hurt affability but should anchor long-term growth. driven by social networks, including we chat. combined withms

t, it is one billion after the 2018 chinese new year. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. am courtney collins. this is bloomberg. to thethat's get back other story we are following the past two days. mark zuckerberg taking his silence over the cambridge analytica scandal planning to audit the data collected from apps and be more transparent with users in a facebook post. that we have ae responsibility to protect your data and if we can't don't deserve to serve you. we are joined by sarah frier in san francisco. outline for us that thinks zuckerberg said facebook is

doing to try to prevent and rectify the situation. >> zuckerberg came out and said facebook is going to do a lot more to actually examine how much information the start party app developers have for users before they changed their policy. the cambridge analytica situation was being used by 270,000 -- and zuckerberg posted saying 300,000 people -- and all those people gave permissions to see data on their friends. they are trying to figure out if that loophole was exploited by any other developers. they are going to do a broad audit to figure out if larger platforms -- if there were other outliers or issues they should be aware of or any act that violates them will be blocked. betty: we are hearing from zuckerberg and hearing from sandberg and the stock rebounded today.

is this a beginning of them turning things around? spoke to people since zuckerberg's post and there is a range of opinions. analysts are saying this is a good first step. others are saying this is too little, too late. the public has moved on to bigger questions about facebook and zuckerberg's post narrowly addresses the problems with developer platforms. the bigger question is about thate's data and what facebook should have notified people about the breach in 2015. haidi: is not just about public discontent, but within the company we are expecting zuckerberg and insiders to address employees and they didn't. i should say yesterday, the company had a

meeting with employees to try to answer employ questions about what is going on. they sent a lawyer to that employees were disappointed in that because zuckerberg as a leader always tried to say facebook is doing good for the world. sandberg hotspot how it is important to be open and transparent, and neither was at the meeting. facebook new whatever was said the, and zuckerberg is going to speak later today on a new station and yet this post, which was carefully thought-out. we do want the opportunity to ask them questions, and so do employees. haidi: still very much in the spotlight. sarah frier, thank you for that. waiting for zuckerberg to break his silence and you can turn to bloomberg for more on this story. this is bloomberg.

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>> as you already know we decided to raise the target rate by one quarter percentage point. ongoing jobors -- gains are boosting incomes and confidence. foreign growth sunny for trajectory and overall financial conditions. to schedule process has been underway for more than two years and has served and should continue to serve the economy well. yet only sing gradual pressures on inflation and wages despite the very large increase. that suggest the relationship between changes in slack and inflation is not so tight. there is no sense in the data that we are on the cuts of an expiration of inflation. changesno thought that in trade policy should have any

affect on the current outlook. the cost of capital is one of many factors they will consider, it isn't the only factor, but should result in more investment and investment should result in productivity. yield curves predict recessions, and a lot of that was just situations in which inflation was allowed to get out of control and the fed had to tighten and that put the economy in a recession. that is not the situation we are in now. betty: some of those remarks from jay powell, the new fed chairman overseeing his first fed meeting. more into what the fed chair said today with bob was the former vice president and director of research at the atlanta fed, and our economics editor kathleen hays continues to join us as well. bob, what did you make of the fed statement and the press

conference after we got rates looking like they are staying at three here this year, and then a tightening path going into the next few years. what you make of this? an: i think that it is unusual right path as far as i am concerned, given the fact that they are projecting a steady decline in gdp growth to 2.0 inn 2018 down 2020. unemployment actually declines even further and you have 130 basis point increase in interest rates and stable inflation. chairman how make the point that the linkage between labor market slack and tightness and inflation is questionable at this point. that shows up in these forecasts. i find the rate increases they have are inconsistent with the path that they think they are on

at this point in time. how much do you think they are paying attention of a prospects of a trade were given reports china is going to fire something back in retaliation? bob: that is an interesting question. that came up in the question and answer session chairman powell. he said they talk about it but not really in the sense of any way thinking about how it might affect their forecast, one way or the other. it will take it while before that materializes, and most of the fact of that kind of a move in a tariff war will be through indirect products rather than direct products. it will take it while to fit through economy and halftime to digest that overtime, if in fact, and i hope it doesn't, materialize. 1.7% --: the pce is at

that explains the dots, they go where you can see a a lot fewer people doubting will get three great hikes this year. there's almost as many people seeing four rate hikes. there putting emphasis on their forecast for higher inflation. is it a sound forecast? bob: i don't see how they can get their, particularly if they pursue that rate path. they are arguing that the twolibrium rate is close to .75, and our talking of a path that takes them to 3.4 by 2020. that seems to be too much tightening for the kind of economy with a slow growth they are projecting at this point in time. i think those that are reading too much into the number of rate hikes -- that is my take on

this. i would be surprised to see if it goes through that path. kathleen: you think the recession risk will rise? is that maybe why the consensus is so narrow for three or four this year? bob: i think that is exactly right. they don't really know at this point. the model is not producing the kind of results they would like to see. the economy isn't performing particularly as it relates to the inflation situation the way they project it would be our guests it would be. be.uess it would they don't want to cause a recession. i see them airing on the side of caution and not rushing to change rates. betty: this unusual nest that

what kind of, impact do you think that is going to have on the equity markets, more importantly the treasury markets and how they will buy justice -- how they will digest this? it started to digest some of the other news with regards to facebook and everything else that people have been talking about. the proof is going to be an what kind of speeches and what kinds of numbers come out for the first quarter. we don't have a first-quarter thatumber, and i noted there is little difference in in this of the page particular period of time. the words used for growth are modest and moderate and that is not robust.

that is not a growing economy. i think the proof is going to be what happens the first quarter. us.i: thanks for joining us.kathleen hays with you can get a round of the stories to get you going on today's edition of daybreak. when it comes to monetary policy, number subscribers can go to dayb . is available on the bloomberg anywhere app because the mice to get the news on the industries and assets you care about. this is bloomberg. ♪

betty: a quick check of business flash headlines. ukip has quietly introduced tighter restrictions on videos showing guns, causing a backlash from firearms enthusiast.

it will private videos with instructions on how to assemble weapons. google is set to be working on a blockchain technology to support its cloud business ahead of competition from emerging startups. we are told they are developing it's on digital system to allow third parties to verify transactions, sources also say google is looking at acquiring other companies for their expertise. betty: and a smartphone i can it blockchain-based apps, would run alongside android and the plan marks the first foray into a major smartphone maker into blockchain potential begin the technology to the mass-market. staying on technology, consent doubling and retail users chopping one billion, but there is a warning about future fed

ability and details straight ahead. this is bloomberg. ♪

betty: you can hardly see anything right now and that is our roof camera showing the blizzard that is engulfing the northeast region here. american airlines canceling over 1500 flights scheduled for wednesday in the northeast. many other airlines have also canceled flights. trains are running on a slower service or have cut back their service, including amtrak. what a way to celebrate the first day of spring. haidi: that looks like something out of middle earth.

a slushy mess and yet the feel sorry for commuters traveling at this time. it is also the third storm we have had in four weeks across that region, so commuters have been suffering, and markets as well when we see the response to volumes and the dip in volume 20% lower in the overnight session on account of what is going on with the snowstorm. let's get the first world news. facebook ceo mark zuckerberg spoke and broke his silence, promising to add -- audit and be more transparent with users. in a post zuckerberg wrote we have a responsibility to protect your data and if we can't, we don't deserve to serve you. shares edges lower again in today's trading. the new jerome powell led fed

raised rate tax as expected for next year and into 2020. the chairman noted that improving economic outlook in the u.s. but continued to project three rate increases this year. the revision suggest the fed is looking past soft fourth-quarter data and expects a left on the tax cuts announced in december. >> today's decision is another step in the process of gradually scaling back on a kerry policy accommodation as the economic expansion continues. this gradual process has been underway for under two years and has served and continue to serve the economy well. courtney: the trump administration is being told that shouting at china about trade want help, in should be promoting talks instead. the former treasury secretary told bloomberg that conflict of any kind is not a solution and there is risk that redick --

that rhetoric can fire out of control. things asas done many they rightfully are being pressured on. the capacity is at the global scale -- it is a message to need to hear from the u.s. and need to hear from europe, and other producing nations. what the u.s. shouldn't be -- they should be driving discussions to a better outcome. the man passed for drumming up business for the u.k. is told bloomberg the country can leave the european union before a trade deal is a great. brexit is 12 months away and it could happen with no clear idea of the future relationship with the uk's biggest partner. however he is confident the city of london will retain status as one of the leading global financial and business centers. >> i have absolutely no doubt

that london will maintain its position of global dominance in financial services. why? because we have a dirt of capability that is not replicated anywhere else. we have the legal frameworks and reputation of the bank of england. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. haidi: let's get a quick update on the markets. new zealand trading is underway in the aftermath of the decision to keep rates at a record low of three quarters of 1%, were they have been since november of 2016 and inflation looking at nine. -- watching the impact at china trade tariff

retaliation and the potential of sending the aussie dollar to the lowest for the year. at 1.0746.sie kiwi equities coming back into the fray, sterling is at 1.4138. and the u.s. 10 year yield we had at 2.88%. a real whistle session with the s&p closing just a little softer. trading gets underway in asia and with adam haigh with us. you look at the implications and reaction in asia to a slightly less hawkish jay powell than we were looking for. >> the margin is less hawkish and we did see a pronounced move in the dollar, which we can significantly. the yen and asian currencies will get a kick at that.

and the equities market take away for asia is still the goldilocks for them. it is still a story of growth and the fed lifted growth forecasts as well as that inflation story is still not really a problem. ofstill speaks to the idea risk-taking for equity markets and some valuation opportunity and asia that continues to be an alluring factor with global managers wanting to dial back some of that u.s. and moved to this part of the world. and we get back to the china response to the tariffs. if we get an announcement from the u.s. on thursday, there will likely be a response of some kind very quickly. would expect from some of the other partners, in the focus moves to that.

and a few other things on the data front today. at philippines rate decision the aussie jobs number that you talked about. trading.r thursday's betty: in the central bank cap rates steady, are they likely to remain on hold for the rest of the year? adam: it certainly seems like a central bank that is very much in that cap of keeping the neutral position. their hands are tied. we saw a reaction in the kiwi dollar and it didn't have a huge move in the run-up we saw overnight. over the reins, he is in a tricky situation and can't really move at all for the foreseeable future, with the economy playing out as it is now.

it is at the hands of how domestic data points continue to progress in the coming months. also what happens with the global economy and what happens with the greenback essentially. not reallying looking for anything for the rest of the year, maybe even the first or second quarter of next year -- no movement at all. it is against the grain of new zealand and australia as well -- very much behind that u.s. rate curve. you are seeing that in the yield differentials between the two countries with the bond yields and the u.s. as well. they are very much on hold right now. you, ondam, thank central bank watch throughout. a blowout set of results for tencent, and it came with a warning on profits. our chief asia correspondent is covering tencent.

profits doubled but that is not the whole story here. no, it is not the whole story. tencent acquired 600 some companies and they did have three spinoff ipos that added 7.9 billion yuan. which you rightfully said, a nearly doubled to 20.8 billion yuan. but big warnings come in the margins and also on revenue. revenue was good, it was up 51% year-over-year. but that disappointed and revenue was a bit down and costs are soaring, 72% higher. they are buying a lot of music and video content and they are at a race with alibaba and the likes to create a ecosystem. and the chairman speaking in english at the press conference yesterday in hong kong talked

about that and go system they are building. a billion plus users in social media platforms. platforms, combined, increased 11% year on year. after 2018 chinese new year. stephen: that is the bread and butter of the business. mobile gaming and pc gaming and also social media trading and ecosystem to drive them to other services, including payments in the real world. earnings, whatan else it he say about the state of business that struck out to you? and he talk about spinoffs, the possibility of data breaches? stephen: there was a lot in this

press conference. he talked about expanding business to other areas, in particular advertising and artificial intelligence. into retail, even. which isusic business, growing into the spotify of china, tencent has invested into spotify, building out the chinese version of online music streaming. they ares say potentially right for a ipo. also they could be considering a domestic listing, a cd-r which the chinese government wants these big tech titans back. tencent is listed in hong kong. as with data breaches, the executives, were asked about the potential of a data breach at

wechat, with those billions of users. way that canaid no happen at tencent. haidi: thank you so much for that. will have more analysis on tencent earnings later on daybreak asia. research isasia joining us with her views on the risks to growth in the asian tech behemoth. and a exclusive interview that that the has coming up. betty: on how the trump aluminum tariffs can hit the beverage industry. this is bloomberg. ♪

betty: good morning, i am betty liu in new york. anheuser-busch says they

are on tap the announced the 2025 sustainability goals. bloomberg tv executive editor spoke excessively with the ab inbev ceo, asking about his plans to utilize renewable energy and global growth in mexico. amazing,exico has been we have been there for four years and we have had high single digits growth. and today we cap mexico -- not only do domestic markets do well but the export side of the market is also doing well. >> people love mexican beer. [laughter] carlos: i think mexico has a lot of things that appeals to people. mexican music connected to exotic locations. the beach scene, vacation, there

is good escapism and peace of mind. next and beers connect and consumers think of a budget for those beers to carry the position in their minds. >> you talk about the strength of wiser globally. has been tougher closer to home? what you need to do and it u.s. to boost those brands? carlos: budweiser is doing amazing around the world and is what the important this year -- it is the world cup of soccer. that is the year would wiser normally grows. so, we are also introducing budweiser to new markets. is doing phenomenally well. it is a strong brand that carries a lot of the values, that is big in the u.s., like

freedom and option to a better life. music, a lot of american -- iconic, sports and music travels will across the world. >> visit travel well within the united states? what you need to do to ensure its place in the american domestic? the summert we do in when we put america on the label, consumers love it. been in the u.s. and has been around since 1876. it has been in the u.s. for more than 160 years because the 1862.ss started in we have a commitment to invest further -- $2 million, in operating systems and investing in your things in the market like innovation and new

packages. it is a very active market for us and a very important market for us. >> you mentioned putting america on the brand. is there more to come in the way you position budweiser? april nextrting in month, we are going to have budweiser route with renewable electricity. on the package we are going to have a symbol we created that is a battery with 100% on it. all budweiser produced and sold here is going to be brewed with 100% sourced energy from renewable sources. that is our commitment to have on a global basis, not just budweiser, but for all of our beers who want to have 100% renewable resources. want to carry the flag of renewable energy around the world. still our top carries another

artois what's to give water to communities where families spent the whole day trying to get water to their families. buy, you chalice you support somebody in one of those places, those committees, five years of water. we have helped a million households so far. ceoy: that was ab inbev carlos brito speaking to bloomberg executive editor, jason kelly. roadrusk success paved the for gold, in what may be the largest ceo compensation deal in history. this is bloomberg. ♪

betty: good morning i am betty liu in new york. haidi: and i am haidi lun in

sydney and you're watching "daybreak australia". asia wakes up to a expected rate hike, and jay powell's first meeting, we see reactions. he sees little impasse the markets coming through the rate hike, closely monitoring fund flows as asia reacts. we will see most of the reaction taking place in asia currencies given the fault of the u.s. dollar. betty: it is interesting to see that reaction in the dollar and the steepening we saw in the yield curve here as well. -- how issing through a different central banker and unlike others. sorting through what he is like and also what the statement said as well. someone who is always under scrutiny and people parsing what he is like his elon musk. he is not short of the odd dollar come and shareholders approved every pay package of

$2.6 billion. compensationcutive -- this is the against corporate compensation package of any ceo? tell, 10 as we can figures. betty: shareholders don't want him flying off into space? is that a legit concern? it has been raised that he has so many esoteric interest that he seems to jump into new projects every once in a while so there's concern about that. he is stretching himself too thin, but this for work ensures they locked him in for another decade. betty: what does the package and tail? -- what does the package and entail? >> if you raises the market cap up to six and a $50 billion, which would be a 15 fold

increase, and increase revenue andearnings before interest arthur items, the goal is to essentially make tesla one of the biggest companies in the world. the plan does it contain any details of how they are going to get there, just that is the goal. betty: this guy is already wealthy, and he clearly has been successful, not just with tesla but space ask and several other companies he started. is this bigger pay package something that is going to keep him focused on tesla? >> is something shareholders are questioning. has $20 million of net worth already and have his type tesla stocks, so is more money going to make a more motivated? a majority of shareholders agreed that shares broke after the news broke that they approved a package and that signals that most will stick around. withe don't have a problem

elon musk getting richer if they get richer in the process. end, weo that have a projection of tesla profits for the year? >> the critique of the pay package, in california for example, we have a statesman what hee like elon and is doing but we have a problem with the fact that there is no indication that this package as to when tesla is going to have its first year of turning a profit. a existential question with tesla, is there a concern with the future of the company that has to be incentivized to be staying around? yuan is nothat if around that tesla will not be the same company without elon. i think the big pay package shows how deeply integral he is

thehe company, which raises question of succession and what happens if he were to leave the company or when the 10 years are out and he decides to something else. haidi: thank you so much for that. big incentive package for elon musk. that does it for "daybreak australia", but up next is daybreak asia and will monitor the reaction as asia wakes up. we are getting lines from the be ok and watching hong kong as well for their reaction. is going to be tied to what the fed does so we will watch for a announcement there. of the rate positions emerging, and tencent is going to be in the mix, as the stock starts trading at 9:30 a.m.

local time and lots of things to talk about. this -- andrief topline was missed, and bottom-line beat, but you also get margins, so we will see if this is the start of this once invincible company starting to become immortal. betty: great question, david. up to the premium people are paying for the stock price. i do know if you are following him on twitter, but he met the journey to the snowstorm to get to us. [laughter] he is the ceo of mainstay capital management and he will talk about the reaction to the jayand says that whatever powell said today is a changed his outlook on rate hikes. haidi: that is going to be the view of a lot of people.

and patrick is joining us out of rate on the fed applications. this is bloomberg. ♪ mom you called?

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♪ here in hong a.m. kong. we are live from bloomberg's asian headquarters. i am david inglis, welcome to "daybreak asia." mark zuckerberg offering a response to the data scandal saying mistakes were made and user information must be respected. sheryl sandberg said it was a violation of people's rights and facebook must work to regain the public trust. betty: from bloomberg's global headquarters, i am betty liu in new york. a rate rise at the fed, as expected. a hawkish jay powell indicating another two hikes this year and more in the future.