anna: good morning from bloomberg's european headquarters in london. i'm anna edwards. manus: i'm manus cranny live from dubai. these are today's top stories. anna: asia stocks slide after a selloff in u.s. tech shares. 10-year treasury yields fall. meets kims. china says the north korean theer is willing to give up nuclear weapons and hold a summit with the united states. anna: the trump administration is said to be blocking chinese investments in technology that the u.s. seems sensitive.

♪ anna: very good morning. this is bloomberg daybreak: europe. it is 6:00 in london. we have to check out what is happening on the asian equity session. asia-pacific down by one and a quarter percent right now. this really a reaction to the tech selloff we saw yesterday in the u.s. the s&p down 1.7%. those really being hit, rattled by a host of factories. news around shortselling on twitter. facebook's ongoing news. all of that adding up to concern around technology and spreading globally. we've got a way of telling two stoies. ries. the pound on the right against the japanese yen. just to show you what we have got because the pound is higher.

the times in london is reporting that the u.k. has a solution in mind for the hard border problem in ireland and that resolution is apparently imminent. it did have an impact on the pound. the yen has been weakening generally across currencies because of a perception that maybe political tension has lessened after we saw the leaders of north korea and china with some fanfare coming together to meet. a little bit less geopolitical tension. also, the 10 year treasury yield. i know you will take this conversation further. 2.78% is where we stand after that slew, and really being tested by what we are seeing an asset market technology. technology,ave got both of them dominating the equity and bond story. ratio 2.5 times

highest then september. you have some big trends. what have we got for you -- treasuries nice and simple. deja vu, 2017? the bullish momentum in the bond market is back. the tech market come of the stocks run amok. 2.8%. this is a critical point. we have busted out of the basis point range in the bond market.we have broken below the 60 day moving average. i canthe bullish momentum in thd channel mark barton at 6:00 in the morning and 9:00 in dubai. did the bond bulls just get sent a friend request from facebook? beautiful line we rode up in one of the stories. that is not my own incarnation. the next short position in this bond market at very extreme levels. what we have to ask ourselves is

whether the crisis that could perhaps engulf the stocks worst losses in three years, how that plays into the bond market in terms if that is where you want to go for protection because dollar-yen is saying something very different. it has not contained into the other assetwhether the classes t this point. anna: yes, it is really interesting how we are seeing these dominant themes around protectionism and different asset classes, not affecting them to the same extent. let's talk about u.s. futures. this is what we see in the early stage. what a mixed bag. one interesting point is the nasdaq features are weaker. we are expecting some weakness coming through on that technology story. ofwill be speaking the ceo the tel aviv stock exchange. at halfbe joining us

past 6:00 london time. we will talk about consolidation in the sector. that is a look at the markets. now let's get the first word news update from juliette saly. juliette: chinese state media has confirmed kim jong-un met with president xi jinping. the north korean leader would be willing to give up his nuclear weapons and hold a summit with the u.s. outsideim's first visit the country since taking power in 2011. the u.s. is said to be considering a crackdown on chinese investments in technology america deemed sensitive by invoking a law. according to people familiar with the matter, officials are working to identify areas in which chinese companies would be banned from investing, such as semiconductors and 5g communication. it would be the latest step in donald trump's plan to punish china for what he sees as

violations for intellectual copyright. facebook ceo mark zuckerberg is now expected to testify before the u.s. house energy and commerce committee, according to a congressional official familiar with the plan. he has been the subject of withering criticism from republican and democratic members of congress, as well as members of the u.k. parliament over signs the company he cofounded failed to protect user privacy. japanese prime minister shinzo abe is likely to meet with donald trump on april 18, according to the japanese newspaper. the leaders are expected to coordinate strategy ahead of the u.s. president's anticipated meeting with north korean leader kim jong-un. trump has previously said he wants to meet kim by the end of may. irish officials have reportedly been told to expect new plans imminently from the u.k. on how it plans to avoid a post-brexit hard border. officials have been promised concrete details on what

alternative plans theresa may's government has beyond the so-called backstop plan. the british pound rose on the news. global news 24 hours a day powered by more than 2700 journalists and analysts. you can find more stories on the bloomberg. rout from theh u.s. has spread to asia. the likes of tencent winging on hong kong. nintendo on the nikkei in japan. down by 2% even though we have started to see some yen weakness. ufc in the uyou have seen the australian close. we are awaiting a decision from thailand. there has been some uptick in the asian currencies, including the korean yuan, as we have gotten these geopolitical tensions. stocks are being sold off and the regional index back to where it was on friday. in terms of stocks we are watching to the upside, a lot of

the stocks are rising on the likelihood that if there is reduced tension between north and south korea, perhaps the north would invest on some ballistic missile technology. you have seen the green energy fall,ies like byd predicting a 92% drop in first-quarter profit. china cut some of these subsidies for green energy producers. on the upside, this is another hong kong ipo, media company soaring by 533% at the moment. showing you just how much there is for this ipo market in hong kong. manus: thank you very much for the roundup. the latest on the markets. coveringe been saying, the worst in more than three years. the index tracking 10 tech mega stocks collapsed at 3%. facebook like nvidia,

and asian markets lower this morning. look at the yield. trading 278. mark has more, standing by. great writing this morning on the blog, but it everything into perspective. the map for asia shows a deteriorating situation for tech. story versush geopolitics which is a boost? xi jinping is up there with kim jong-un. politics versus tech. what dominates? mark: at the moment, the tech is in the negative feedback loop. it is important to story versus geopolitics which is a boost? xi remember that the whole global market in equities we have seen the last couple of years has been based around is very strong tech sector and that has helped support emerging-market countries like korea and india. it has been the big names that have really taken over the markets. they have strong earnings and

propped this whole thing up. if the tech sector is going to get hurt, it is going to undermine the evaluation and make equities look less attractive. at the moment, the macro fell first. there were some micro tech stories starting with facebook, but other ones. there was the uber story, crackdown on cryptocurrencies. several micro stories eating into the macro stories and it is not great at the moment because it is hard to see when we will see this. anna: incorrect -- correct usage of the word macro. the facebook story is a macro story given the dominance and has had in the media. what about this relationship between tech and the bond markets? the 2.8% we have gone through. do you see it sticking around there? mark: i think we can go much lower. the important thing to remember is the position in the market is short treasuries.

all the needs now is the narrative to change and suddenly have a lower in yield. have a lower in yield. that shift might happen quicker than we think. there is inflation data out tomorrow and that is one of the fed's preferred measures. we can suddenly start considering the possibility that the fed might be at the end of its cycle. that does not need to become ac case for yields to slump. what we have at the moment is the buildingits cycle. that does not need blocks, the fundamentals deteriorating. political tensions, commodities, all pointing to a slower growth outlook. we are not seeing a massive uptick in inflation yet, and son in the we have the technical break. fundamentals, we could see a very short year of yields if inflation's does not go up tomorrow. anna: we will keep an eye on those numbers. mark, thank you so much in singapore. joining us in set, allen higgins. good to see you.

welcome to the program once again. let's talk about technology. ho do you approachw -- how do you approach the technology sector when you see what is happening in the united states and the contagion that is having globally on tech stocks and market sentiment? allen: i think the key point of what mark said, he mentioned the markets being led by tech, but it is being justified by earnings. the earnings have come through. we are going to see that changing. one of the reasons is it is indisposed. generally, that has not been that much in the way of slows into equities. it has been very fixed income orientated. tech, the sector and tech funds. went through fund, the roof. the classic case of i'm afraid of people buying too late, together with some fundamental

needs. facebook, tesla downgraded to triple the. zc. it has a 50% chance of bust. that is quite ordinary. there is some bad news around. our would be to buy into it. the is a big component of industry and we have more room to add more. facebook is now at 20 times earnings, almost reasonable. anna: almost. the board of equities story then -- i have this chart, investment sentiment measure. it seems to be moving higher, recently.g lower just this is an index. they talk about this as based on institutions, actual trade. the highest since 2016. how do you gauge investor sentiment? alan: state street being a bit custodian having a good feel and data for flow.

again, this looks a bit late because a lot of the institutional investors that they look after from a custody point of you will be pension funds. it looks like they are upping the equity allocation a little bit late in the game. i would say other measures of sentiment have not surprisingly depressed a bit. the american association of individualthe american associatf individual investors, bloomberg as well. they come up a bit. that looks a little bit late. it is aligned with the tech story i just mentioned. flows going at the wrong time. we know the markets tend to punish the great majority. the question is punishment or panic. i like the context you gave her for tesla in terms of 50-50 in terms of it goes bust. let's see what you make of this. our ticker.

this is the vix at 104% this quarter despite all the hubris around credit space. vix up 104%. only two other moments -- 1998 and 2011. it was called the european debt crisis. is it 1998? capris with the 1970's. was not going that but fairpoint. it had been a big vix spike at a very low level. , such ad the credit long flow level. came from a higher level. the overall level of vix was just over 20, it is cause for concern. it is not what we saw in terms of 40. generally what should you do -- involved spikes and selloff

absence of a recession, you should buy into equities. it gives you good opportunities to buy into equities. one of the best ratio should do to buy into it. that would be our bias. notwithstanding, that graph is scary but look at the very low base. manus: jpmorgan asset management yesterday, i had a go with them and they had a go at me saying if you have framed about everything, you would never buy one again. have a look at this -- the bond market, breaking the 50 day moving average. bonds.d be bearish on take a look at this. breaking the 50 day moving average. does that correlation hold? interesting risk off 24 hours where we have seen some signs of slight -- but not

in currency. the dollar-yen, the dollar is slightly stronger. a lot of supplies of the front .nd of the curve maybe some of the fluff going away from the idea of four or five rate hikes. we have seen softening in europe. is that the greatest investment? no, because it is to 78. 3278. from incomeno, because it is st. we would not be bearish on rates structures, we have plenty of bonds in the portfolio, even though we prefer equities. it will be a bit more typical competition and the wealth management industry.

we have the 100 year bond lurking around in the portfolio so we are in the link to embrace direction. why? we buy into what you are saying in terms of inflation. we buy into this concept of a low inflation regime. inflation picking up in the u.s. very gently. manus: alan, i have been told, i have charted you within one inch of your life. alan stays with us. don't be laughing. kim's surprise visit here, that is what we are focused on. live in hong kong with more on the north korean leader meeting with president xi jinping. this is bloomberg. ♪

anna: this is bloomberg daybreak: europe. china has confirmed that kim jong-un met with president xi jinping on a surprise visit to beijing. the north korean leader will be willing to give up nuclear weapons and hold a visit with the united states. it is his first known trip outside of north korea since taking power in 2011. daniel joins us from hong kong for more. strong pictures with a lot of talk about the train yesterday and pictures this morning. what can we see with the comments? give us the significance of what we have learned.

daniel: they weredaniel: they wn the sense he confirmed he would actually meet with trump. ever sincedaniel: they were sign the sense he confirmed he would actually meet with trump. ever since trump made that announcement, there have been questions on whether kim actually meant that gives kim a little insurance

policy. john bolton is the new national security adviser and the trump administration. a month ago, he was making a case for preemptive strike on north korea. this meeting with xi shows trump that china is right inside here. xi said in the meeting we are going to be friends no matter what happens. so, kim has that to fall back on. china has its back here. manus: thank you very much for the very latest. our managing editor for government. our guest host in london with anna. alan, when you see these theatrical moves, i look at dollar-yen at the bottom of the screen. dollar-yen is telling me it is a progressive step. would you agree? alan: i agree. dollar-yen is an absolute risk on risk indicator. the geopolitical news look slightly better.

any kind of communication looks like good news. i would not put too much emphasis on china versus u.s. and china to be good friends regardless. it just looks like good news market and more for the world. the united states is weighing out whether to impose a law for a china investment crackdown. big-name assets that they think are too sensitive. is this something that really moves the dial in terms of protectionism in the u.s.? depressed valuations, tech stocks, remove the flow of dollars back into the u.s. economy. rally has been dominated by these mega- caps which are virtually impossible anyway.over in a way, it is only fair in the sense there are restrictions on what you can do in china, the anyway. in aauto sector, the technology sector. there are restrictions in europe. famously, france with its

yogurt. u.k. is probably the more open economy. look at unity, the netherlands, somewhat more restrictive in terms of takeover codes, etc. if anything, the u.s. looks a bit of an anomaly alongside the u.k. in terms of free-for-all. anna: alan, thank you very much. he staying with us on the program. next, we will be speaking to the ceo of the tel aviv stock exchange. also talking about in terms of consolidation. we will continue the conversation. be aware, we are keeping an eye on comments coming out of japan this hour. governor speaking in japan making comments on the short-term impact of the 2014 tax hike. also, talking about debt levels. japan's debt is high, important to deal with he says. dollar-yet reacting much more

to a perceived reduction of geopolitical risk. this is bloomberg. ♪ retail.

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anna: this is bloomberg daybreak europe. 6:30 in tokyo. dollar-yen fairly flat. we mentioned the headlines we are getting from the doj. abe also speaking and confirming they are raising the sales tax as they are raising the sales tax as planned. manus: let's check in on the markets. we have this on daybreak middle east. this is what you should be looking at for the rest of the day ahead. a host of data coming. later, --

anna: we get the rate decision from south africa and the eia publishes its oil infantry report. uliette: the concern about tech stocks leading through. leading asian stocks lower as they did in the u.s. session. red is dominating the screen across the region. japan really leading the losses. a lot of tech companies in the benchmark but also seeing losses in china, south korea and australia. it is red across the board in the asian equity session. if we switch to the next chart and talk about what happened to tech yesterday, the s&p 500 dropped more than 1% but tech stocks dropped 3%.

what this chart is showing is the tech sector. the tech sector is the white bar. weight on theig s&p 500 and that is dragging the index lower on these big selloff days. what might provide a little bit of concern going forward is the qqq powershares etf. short interest in that has been coming down but the etf is still falling. does that mean we will see further losses? the end it has dropped below the 50 day moving average for the first time this year. this is a key technical signal here.

we are trading at 2.70% at the moment. we have dropped 2.8%. we were not so long ago talking about 3% on the 10 year treasury yield. this is a little bit of a different story here. this is more to do with the easing of fees around trade tension. we are seeing a little bit of yen weakness, dollar strength. above the is back conversion. manus: thank you very much. 71.7% of its shares sold as soon as next month. several big stock exchanges have said -- shown interest already. of -- ben to been set . let me start with the global backdrop. it is a tough sign -- time.

here we are. tech markets are under pressure. how much angst does that give to you in the ceo trying to tell a story to sell stocks? good morning. we have a very strong economy here in israel. 2017 was a great year in regards to our results. we have not seen any impact regarding the tech equity prices. as alieve that this -- startup nation, we have great potential. we believe the dow will be very good. for us and for the israeli public. manus: as you say, you have to be optimistic to fight through the noise. let us talk about the sale. 71.7% of the company is set to go. can you update us?

how do people are interested? are we in the single digits? what kind of in -- information can you give us? with regards to our evaluation, it is relatively low. this is one of the factors that we find as an appealing position. we have had over 10 mds that were signs. we are having discussions with several financial institutions that are well active in the world. this is not a regular process. we are not the shareholder. we want to make sure that we will come out with the best structure for the exchange for the investors and for the israeli companies that are being traded on the exchange. that is why it is a different structure than the regular m&a process. the price is not the most

important thing. anna: good morning. how will israeli companies benefit from this change of ownership? when you absorb the israeli economy and look at how it has 17 good we have had equity ipos last year. we will have much more let -- this year. we do not have enough international investors putting their money into the israeli companies and economy. one of the challenges that we analyze was that we do not have enough connectivity to other markets in the world. we believe that the outcomes of those profit will be that it is easier for us to get international exchange members will help us to get larger exposure for is really companies to attract more money that will come into the economy through the exchange. exchanges,ok at our

they do not compare to the other ones in the world. manus: you mentioned a number. 10. expressions of interest. with a view to try to narrow that down to where makes most sense, what is the big rationale? what is the reason that consolidation will work? doesn't matter whether it is in the european union that you consolidate with? our an american or asian one? does that matter? >> because israel is relatively small country, we have many companies that are exporters. they look to sell the product to many countries in the world. when we speak with them, sometimes they want exposure to north america. sometimes to europe. in many occasions, they are

looking for exposure to asia in the far east. relativelyope is close to israel, people know how to get zero. that is why we decided we believe that most parts of the world are more interesting, with regards to the strategic feeds that they give to tel aviv. because we are running the process, we can either choose to fill the hole 72% to one controlling shareholder. we can do it through various willtutions that everybody have interest in. we can also think about other creative ways. in israel, many of the high-tech companies do not want to be bound. you can do your ipo in tel aviv and at the same time you can do it another selected markets all

over the world. we want to make sure that we are in the best position to give a very good proposition to our client. toexploring to them different parts of the world. and make this process a bit harder. there is not one designated area we are very keen and exploding. manus: i want to pick up on two things that you said. you said you have had 10 mtas. have you had a block bid for all 71.7% of the exchange? >> yes. yes we have. we have also had a couple of blocks been. we have had a couple of bits for minority interest. i reckon that in the next few weeks we will see -- decide which is the west a -- best way for us to proceed. manus: does that give you leverage in terms of pricing? is that turn -- pushing the

market higher in this process? get,st of the fees that we if they are verbal or written bids, they show their respect. that investors have for the exchange and the potential that the exchange has. it is a vote of confidence, the way i see it. anna: i want to ask you a broader question. the rolen relation to of very wealthy tycoons in the israeli economy. tycoons selling down their sakes orbited out of large publicly traded companies. it is israel heading towards the new air out where we see a lesser role for these kinds of key, big stakeholders in these businesses? is something changing their? -- there?

>> we have very good changes going on in the market. we have had a very large reform on our industries. it gave incentive for the large shareholders to sell down some of their portion to the israeli public. the israeli public is not involved enough indirect hit dealing with equities on the exchange. we are now working on getting more direct approaches to the public. there is also a program that is being done by the ministry of finance, doing presentation -- privatization of the best companies we have. the rationale is to show the through theic exchange the success of the israeli economy. we will see more investment banks putting money into the israeli companies.

we are very optimistic about the future. manus: -- think -- anna: thank you very much for your time. thank you for joining us. the ceo of the tel aviv stock exchange. we will also be speaking to the bank of israel governor. you can see that exclusive interview coming to you live tomorrow. saudi arabia has struggled to attract foreign investment. that could be about to change. is expectedmpiler to announce to the emerging market category today. all of this ahead of potential inclusion by msci in june. a lot is changing in the kingdom. justin carrigan, a global emerging markets editor. how big an impact is this likely to have? i was talking to the manager who said that the active ability is going as well. >> that is right.

it probably won't have a huge impact in the initial status. of ais an interim decision minimum of six months before it really kicks in. over that. , you might get some active managers looking more and saudi arabia. the passive investment probably won't kick in until that initial six month. is over. you might see the action really starting. that is going to change the ownership structure. we have had the lady that runs the exchange talking about foreign direct ownership. i have heard 3 billion. i have heard people say 5 billion. this is about changing the structure and the flow of money. it will be fundamental to the ipo of norelco.

>> that are not entirely unconnected. these two elements. you have the decision coming today. you have msci coming in june. what that will do is bring in a lot more passive and active, assuming that the decision goes in the saudi favor. you will get much more interest when the aramco ipo comes, when and if. we still do not have a day. would haveinvestors to have some of that as their benchmark. that is important to the ipo. manus: we have lots of breaking news through the day. great to have you with us this morning to kick off this first week with an and myself together. stay tuned with bloomberg.

allen higgins is with us in our other studio. i think this is one of the most talked about stories. here we are. we are on the cusp of moving gears on the saudi story. it is a huge moment for the saudi exchange. have you look at this in the context of em? >> i think it is an interesting market. it is dominated by banks. you have that rocksolid currency. investing alongside the dollar has not been popular as late. equities, currency losses have eaten into returns. that is not the case when you invest in saudi. love a rocksolid currency there. a good payout ratio, especially from the banks. you were talking about the active. the active managers already have discretion to invest in the

likes of saudi and frontier markets. i think they will. it has been hard to buy direct. you have to get participation notes in order to get exposure. i presume that is being cleared up. i have not looked at that in a while. that is why the foreign ownership is so low. i would expect the active to move. passive will move definitively. of the active managers like to stay quite close to the index. they have a style of owning many stocks. your estimate at the 5 billion level looks more accurate because the active's will move into the market. you can argue: that the saudi stock exchange

has been rallying ahead of this index. it depends on the time you select. how do you look at emerging markets more broadly? you contacted me about equities. our bonds. where is your em appetite? >> after everything i just said about currency, all the currency losses we have seen are now potential opportunities. you want to capture the undervalued space and the yields ago with it. we still have exposure to em equities. we don't have any frontiers. you see saudi exposure and frontier markets. it is a replay of what we have seen in terms of uae. you saw those stocks move and a lot of investors move early. anna: something to watch. thank you very much. up, one of the uk's toughest a sticking point in

brexit negotiations. could today see a presentation of a resolution on the irish border problem? officials have promised concrete details on the uk's alternative plan. this is bloomberg. ♪

manus: it is one: 50 1 a.m. in the morning. technology stocks stumble again. s&p futures down 2/10 of 1%. markets areange turning out something different. we will describe that next. reporter: a plan to create the world's biggest dollar project and saudi arabia. total cost will be around $200 billion. the company will contribute an

additional $1 billion. power will be available by 2030. the project will create up to 100,000 jobs. >> this is the first big investment in saudi. [inaudible] create the world's biggest solar power in the nation. project would not have been feasible without big visions that we share with the crown prince. reporter: apple has unveiled a low-cost ipad geared towards students. a 9.7 inchel has screen and cost $299 for students in school.

the new tablet supports that apple pencil accessory. the company also says it is releasing new versions of its productivity apps that work with the pencil stylus. that is your bloomberg business flash. .anus: thank you iris officials have been told to expect new plans imminently from plansk. who it -- how it to a vote post brexit hard order. they have promised concrete details. higgins is still with us. this could be a game changer for u.k. assets, do you think? the u.k. government having a way to prevent a hard order? >> i would be surprised. i think technology is the solution. everything i read indicates there is no solution. c.

maybe it is just a rehash of technology. a bit like when you are traveling in europe and you have these indicators that you go straight run your car, or something like that. maybe i have a decision. sterling is undervalued. there is way too much pacifism around brexit. it is not the most wonderful thing. the u.k. does have strength. london,ig buildings in interestingly. to trya french looking to buy a sterling euro angle. is the one that looks the most undervalued. this irish thing would be another positive, if it happens. maybe those cars going over the border could have a gdp

light on the top of it. then we would know which ones are allowed to cross. many reflect on the gilt market. this also plays in. if you have that bid coming from the border solution, and a bit coming from david, what do we get? we get the data on thursday about foreign ownership. outflows have only happened twice. foreign investors hold 20% of the gilt market. would you see the yields moving in the gilt market? >> i would be a seller of guilt. it looks like one of the most overvalued markets, very deeply negative real yields. low inflation's coming up the high. higher inflation compared to other markets. rates going up.

it is a bit like treasuries overnight. sometimes you get diversification benefits as you have these risk off periods. anna: let us return to one of our big themes. twin deficits. we is to talk about that. we is to talk about that. citigroup has done some work combining deficits and putting it up against the dollar. making the point that large deficits require a larger deal to attract investors. does that still hold up? >> that is a good chart. we have been talking about the dollar for a long time. the narrative of the dollar, and it's all about interest rates. that is only one factor. the dollar is looking like the fragile one. big twin deficits. it is not the only factor but it is the dominant factor. you never thought you

would get all of that back. we get everything on the road on daybreak. mark with anna and i next. we are going to talk to markets and the dollar. ♪

reporter: good morning. we are live in london. these are today's top stories. >> asia stocks slide after a selloff in u.s. tax shares. 10 year treasury yield falls below 2.8%. china says the north korean leader is willing to give up his nuclear weapons and hold a summit with the united states. >> china crackdown on the trump the u.s.ation and -- deems sensitive. ♪

manus: warm welcome. there is no reprieve in the equity markets. we saw a glimmer of hope at the end of the asia session. sterling is up nearly 142. there can be a solution for the northern irish border. futures are lower. terrible twos. tech and trade dominate the scene. the u.s. looking to block chinese participation in tech. that is more trade worries. looking atking -- the worst day for banks in nearly three years. , kim jong-un goes to china. they're are going to have a

meeting with trump. they all want to be in the room. but the facebook story and tech drop is dominating the story this morning. let us run it over to the bond market. what a five-year option must night. it went fine. treasuries finally give in to the tech term. we drop below the 50 day moving average. we busted the range. we had a 20 bit range for quite a while. we are below 2.8%. we have broken that average. there is a slight bid tone to the european complex. will that hoed -- hold as we go through the day? ? that is the state of play. sterling is big. bonds, are they haven of choice? anna: we will get that in just a moment. we have some breaking news. , andbattle for the iconic

unite business and the united kingdom from melrose. this has been taken up by various political voices in the u.k.. must decide by tomorrow. melrose industry saying that they had constructive tart -- talks. they maintain the headquarters in the u k. shares will be listed on the official list maintained by the u.k. listing. they have offered legally binding commitments to the secretary of state. labor opposition question whether these guarantees are going to be legally binding. let us leave that individual story there. of stories fore the markets to digest. one of those is around the trade story. we areer is around -- down by 1.1%. the other was technology.

down by 1% or more on the asian equity markets. really reacting to the technology story in the united states. a host of factors there. that is weighing on things. different assets responding differently to different dynamics. that is the technology story. if we look at geopolitics and what we have seen on the korean peninsula, that seems to be taking money out of the yen. these two currencies don't have much to do with the same story. i just wanted you to see the size of the mood -- move. it is interesting to see that one moving up. a little bit of progress trade coming through in the fx markets. we will the u.s. in there as well. a connection between what is going on in the bond market and what is happening in tech stocks. a ceo will be joining the

bloomberg team for his first interview after the announcement. a lot of expectation there. appetites of to savvy -- saudi assets. reporter: chinese media has confirmed that kim jong-un met with the president on a surprise visit it today. leader would be willing to give up his nuclear weapons and hold a summit with the u.s.. it was his first known visit outside of his country since taking power in 2011. the u.s. is set to be considering a crackdown on chinese investment in technology. by invoking a lot reserved for national emergencies. according to people familiar with the matter, officials are working to identify areas in which chinese companies would be banned from investing, such as semiconductors and communication. it will be the latest step in donald trump's plan to punish

china for violations of international property law. mark zuckerberg is now expected to testify before the u.s. house of energy and commerce committee. he has been the subject of withering criticism from both republican and democratic members of congress. as well as members of the u.k. parliament over signs of the company he cofounded has failed to protect user privacy. isanese prime minister likely to meet with donald trump on april 18. the two leaders are expected to coordinate strategy ahead of the u.s. presidents anticipated meeting with north korean leader kim jong-il. trump has previously said he wants to make it by the end of may. i wish have reportedly been told to expect a new plan imminently from the u.k. on how it plans to avoid a post brexit hard quarter.

officials have been promised concrete details of what alternative plans. the british pound rose on the news. you can find more stories on the bloomberg. erasing monday's gains and tuesday's impressive rally. due to this tech routes, of course. down at 1.5%.ng nintendo on the tokyo index closing out the session by 1.3%. some weakness coming through in australia today. any marketto see that we track among the major asian once rising today. in terms of stocks in particular, tencent the biggest

drag in terms of index points on the region. number up cutting its price tag for the darling of the hong kong stock market. this is on slower pc grading -- trading growth. there has been a lot of upside in hyundai troops -- numbers. they will become the holding company when they split. hyundai motor itself was lower. this is a fund manager in australia. there was a report from a short seller suggesting they could be a downside to the stock. it requested a trading halt. a close the session in sydney down by 9%. anna: thanks. an index tracking 10 technology

mega cap spell by 6%. twitter and tesla were the worst hit companies. facebook extended its decline. joining us now is our asian equity reporter. good to see you. what was the impact of concerns about facebook? this seemed to be many facets to the tech selloff we saw yesterday. impact is hitting the price. most of the markets, which are heavy with new technology stocks, have fallen more than 1%. china, hong kong, south korea. tech stocks box -- have been weighing on these indexes. impact onk at the price and valuation so far, it all has to do with the trade war. the impact on the earnings have been marginal so far for asia. there will be more that analysts

and fund managers are talking about. that is yet to flow. as far as earning estimates are concerned. companiesf asian talking about data privacy, tencent said they are not expecting any sort of leak when it comes to their data. the growth outlook and the company spending still looks good. they recently held their asian conference in hong kong. manus: this comes down to whether it is the chinese story, the trump-china story. realether it is reevaluation. it is a different contagion story. reporter: that is right.

both the things are weighing on the markets right now. focus,h stocks are in these are the stocks that have led the markets in the last two years. that are the sectors identified as new sectors in the bull market. if there are cracks in the sectors, there are cracks in the ongoing bull market. that we areoblem is so laid into this bull market that most of the fund managers and analysts we have been speaking to our saying that it is futile to think about decoupling a shot, even if they don't have as much earning exposure. even if the asian index stocks are more domestically geared. they is the risk of -- will continue to be on the market. ther than that, semiconductor stocks have been

supplying most tech companies worldwide. they might feel some pressure. the demand might get distracted or distorted. that is what most of the fund managers have been telling us. whether it is trade value or stopping chinese investment, the impact is on most the same. they may not have a very big impact when it comes to world gdp content. it will start filling in. thank you so much for rounding up the scenes in the asian sector. the very latest from singapore. let us bring in our guest host. so great to have you with us this morning. we have a nice start for you. is the tech market a symptom of tiredness? are we have very late stage?

this is one of the biggest routes we have ever seen and stocks. stocks.ch >> yeah. this is a very pivotal moment. what is happening in the tech sector, the trade discussion. it is very much at the center of what is going to happen in the next quarter. if i take a step back and look at what investors have been doing in q1, it is a very different picture. it is still very much a risky picture we get. equities.ws in some parts of that are well exposed to tech. without a doubt, a strong preference. a strong preference for momentum and value. the picture that we got from

investors, what we saw are investors doing, it is for a much at the other side of what we are seeing now. the question is, is this going to trigger a significant portfolio reallocation? we see the information quite differently. it is something that is overall going to pass is one of those volatility moments? they're going to accompany us in 2018. without a doubt, in a very different environment the 2017. manus: you hit the golden number. volatility. volatilityt seen like this since 1998. does that invoke a conversation with clients? it is time to adjust. to people talk about concern? how concerned are they? or not, as the case may be.

>> absolutely. what i am hearing from investors across the world is lots of questions. i don't think people are get -- yet moved into a high volatility regime. we all know that a low volatility regime can persist. that is the central blackrock view for the moment. that is where the consensus is. overall, nervousness on the rise. no big triggers in terms of portfolio reallocation. if we move from a situation of 15, we can still see that it is a pretty normal low volatility regime. we need term ever that.

we are coming from a 2017 which was unusually low. it could simply be that we are normalizing a little bit. what about the technology sector specifically? are investors talking to you about the regulatory threats around the sector? do they think this is going to be a structural shift in the technology landscape? >> the regulatory point is coming up all over. what i fear is specifically in relation to emerging markets. korea think about included in developing markets. that is a big part. i think there is definitely nervousness around the point. the jury is still out. people have not made their minds. there are movements.

i have not seen that flow of money moving. people are i think still buying big-time and observing how the situation unfolds. anna: thank you very much. up, a surprise visit to beijing. more on the north koreans meeting with the chinese president. expected to announce whether saudi arabia will join the msci. this is bloomberg. ♪

anna: 7:20 here in london. we have 39 minutes ago until south europe equity trading.

tesla has said it does not yet know what caused the fatal accident involving its model car in california on friday it has not been able to retrieve the vehicles long. it is working with authorities recover information from the commuter. tesla did not disclose whether autopilot had engaged when the crash occurred. a plan to create the world's biggest solar project in saudi arabia. total cost will be around $200 billion. that won't be one go. the vision fund will contribute an initial $1 billion. the ceo says the total of 200 gigawatts of power be available by 2030. the project will create up to 100,000 jobs. that is your bloomberg business flash. thank you. china has confirmed that kim jong-un met with the president.

it was a surprise visit to beijing. would be korean leader willing to give up nuclear weapons and hold a summit with united states. tripis his first known outside of north korea since taking power. our asian managing editor joins us now from hong kong. good to see you again. try to frame the significance of this. this is north korea going to china. is this china exerting some kind of precedent for -- control over this north korean u.s. collateral conversation? >> they both had a lot to gain here. north korea wants china on its side ahead of the trump meetings. it helps them undermine the maximum pressure campaign. the sanctions that are hurting their country. it gives them a bit of an insurance company of the --

policy if the talks fail. china gives cam a bit of muscle backing him. perspective, it gives them a seat at the table. the president is asserting the fact that, we cannot be ignored in this process. china causes friendship with north korea a strategic choice. what does that mean? does that go back to the messaging around this, directed at the white house? >> yeah. between china and north korea have been very frosty since the president came to power in 2012. this is the first meeting even though they have both been in power for about five years. it is very significant. it represents the turning of a page among frosty times.

there is language in there saying that they will be friends under any circumstances. even if things get really bad on the peninsula, china is saying, we have your back. anna: fascinating conversation. thank you very much for your analysis. tocinating pictures coming from that meeting. it is interesting to see the market responding to various stimuli today. we have the concern around technology stocks. meeting which seems to have, the fx markets a little bit. we are seeing a bit more appetite for selling in today's session. have you read the geopolitics? something to be nervous about at the moment? >> very difficult question. perspective, today is

an important day for emerging markets. for other reasons that you mentioned. but also because after u.s. closes, we will hear about the decision on saudi. but also on china a and the inclusion into secondary markets. that is very interesting. if you think about a year ago, they decided to include china into their mci emerging market index. as of may 2018, a couple of months ago and in the trading is going to go. what is going to happen around china tonight will be very interesting. it could be a divergence across the two industries. we see investors continue to invest in the market. 2013, a hundred 50 billion came out of emerging markets. only 90 came back. anna: we will watch a decision on saudi and china.

manus: in terms of china, this is still a rerun. we have the saudi inclusion on the floor. talk to me a little bit about the mirror image in china. on china, we have seen loads of work over the last couple he of years -- couple of years in terms of being included in nci. there have been very strong signals coming from the market, which i think is indicative of a strong desire to be a bigger player on the global stage. very similarly to what we have seen in saudi, to be fair. if you look at the last few years, tif. anna: thank you very much.

that is it for us. i am off to radio shortly. these equity markets are looking a little bit shaky. we will do it all again tomorrow from london. ♪ retail.

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matt: welcome to "bloomberg markets: european open." i am matt miller. the cash trading kicks off in 30 minutes. ♪ tech tanks, everybody's stock suffering worst day in three years, dragging u.s. equities into a late date selloff. sectorn from the tech keeps spreading. the u.s. is weighing a crackdown on chinese investments in tech.