trade for the morning session. trade tensions still in the mix, though easing in washington, darling back the rhetoric. president trump says he sees great progress. and, he takes responsibility. zuckerberg defense facebook on capitol hill and says they must accept of their role in society. let's give you a look at where markets are right now. down in singapore as well. long story short, we are losing a lot of momentum heading into the european session. we are still up compared to yesterday. as you can see, msci has been range browned. -- range bound. $80 for oil. might be a problem for countries like india, for example, which imports a lot of its energy needs. japan very much in the mix.

inflation coming out of china, a big mix on consumer prices. down about 12 points. the yen at a stronger level then it started out. trading at the 107 number. that is right, david. the big news from china, the new pboc governor says china will implement a range of new financial reforms this year. yi gang told a panel at the boao forum, domestic and foreign capital will be treated equally. yi added ownership restrictions from foreign banks would be removed in november and outside investment would also be encouraged. >> with this new, open door policy, i am confident china's financial markets will be more competitive, better regulated,

and serve the economy better. it is a fair competition and a level playing field. chinese companies and form -- foreign firms can compete equally. david: let's get it over to beijing. tom mackenzie is there to talk more about what yi gang said. his boss said it yesterday, i am guessing he was just echoing what xi jinping said in boao. tom: reflecting what xi jinping said, but moving it just a notch around what these policies promised will be implemented. it was interesting to hear him say the london to shanghai stock connector will be implemented this year, because it was something that seemed to be placed on the back burner. the shanghai and shenzhen connectors would be quadrupled.

the caps on foreign ownership of chinese banks would be removed. oferlying the strengthening what he said would be a wide opening of the financial sector. chinese policymakers on the reform side have long argued they are getting more foreign players involved, will help in transparency and in terms of generally the competition in the sectors. it is the second time he has speak and in public -- spoken in public. surplus, about the which is something of a bugbear for president trump. the u.s. have asked china to reduce their trade. take a look at what yi gang had to say about the surplus. >> the trade imbalance between the u.s. and china is a complicated issue, a structural problem. china is on one end of the value added chain. you have to look at this from a multilateral perspective, rather

than the usual bilateral solution. tom: he said the insurance sector, there would be changes. foreign ownership to be changed to 51%. president xi reiterating those policies around autos. we are expecting to get potentially more details in the weeks and months ahead. it is and does come down to implementation timeframe. many trade partners looking at this. haslinda: talk to us about today's inflation numbers and china. what should we be reading into those numbers? that is the top line to be looking out, factory price index, which is sans increase of 3.1%.

that was below what we saw in february. a softening for the fifth straight month in terms of factory gate prices. that has implications for corporate profits and means it may be more difficult for some of those companies to continue to pay down some of their debts. we did see factory inflation pick up in 2017, that helps with deleveraging. these numbers suggest in terms of china's impact on the reflation story globally, there may be less of an impact. it was not altogether surprising. we did see softness in the metals prices, around steel, copper and iron ore. we saw a pickup of consumer prices in february. year on your numbers. we may get a -- year on year numbers.

it may push up the consumer price number. the target for the pboc is around 3%. monetaryeiterating the policy is prudent and neutral. mackenzie, thank you for your insights on today's action. joins us from singapore. a lot to digest by the market. what do we make of everything we are hearing today? mark: a lot of interesting things, especially from the pboc governor. he willhe key things find comforting is that cpi it shows the pboc do not need to get too aggressive with their interest rate policy. i noticed there were questions raised during these panel discussions about what the pboc is going to do with monetary policy. up until now they have been

following the fed with small increases. the fed has raised with 25, the pboc raises with a moderate of its own. the pboc governors are relatively new and their job. pboc can do five or 10 basis points to follow that. course, helping these numbers come out a day after the president spoke. brought the car markets down, trying to get them refocused on chinandamentals, and that welcomes foreign capital coming into the country. all in all, a good day for markets. i wanted to ask you and connect what we were talking about the day before yesterday. the renminbi, whether that is jpy, is china not going to use currency as a weapon in the trade war?

has that disappeared, essentially? mark: you can never say it is completely gone. something china could use if they felt they were in tough enough situation. view,heir point of something they would probably only want to use as a last resort if other tactics failed. they are doing so much to open their markets, the domestic china bond market, they are trying to get more foreign participation. established get it within a major global indices for fixed income. one thing they need for that is a strong and stable currency. if they think the currency is going to become unhinged. it is wild swings for the currency. we can see as a last resort, they tried to get more foreign investment in the market.

we are looking at sterling yen, aussie yen, there is money coming out of that haven, to a large extent. let's get this up, please. what is so important about this right now? euroyen is a good indicator for the financial health of markets around the world. when euroyen is rising, it is a good sign investors are reasonably happy with the face of markets. we are seeing that pick up the last few days. it is also a reflection of different monetary policies. marksis also question about abe. there is a lot of uncertainty about japan. as you can see, weakness on the yen, even against the pound. also, dollar-yen forming a base as well. a cloudy outlook for the yen

over the next few months. mark cranfield, live for us out of singapore. you can follow everything we have talked about across the trading floors, changes across the regions. dayb . and for our clients, mliv . one click commentary, analysis. see what is affecting your investments right now. let's pivot and see what is going on with the rest of the world. facebook rose as strongly as zuckerberg defended his company on capitol hill. he agreed at the data sharing scandal is facebook's fault and that the company is responsible for content on its platform. he added the social network must take a broader view of its responsibilities. crisis management experts say zuckerberg looked shaky at times but said overall he did a good job. mr. zuckerberg: there is a common misperception of

facebook, that we sell data to advertisers. we do not sell data to advertisers. >> you clearly rented. mr. zuckerberg: we allow advertisers to tell less who they want to reach and then we do the placement. >> the white house says it has been advised president trump has the authority to fire special counsel robert mueller. the president complained again about the russia investigation after fbi agents raided the office of his personal lawyer. adding quote, we will see what happens. senior republicans said it would be political suicide to fire mueller. china struggling hna group postponing a sale, two weeks after a similar plan for its swiss airport plan. swiss port ipo announced in january before the surge in volatility. it was shelved, due to market instability.

it had to pay down massive debt. lyft president john zimmer considering a move into japan, one of the few big markets where ride hailing is yet to take off. lyft is investigating the plan. ,ivals uber and didi chuxing have already tried, but they say is dominated by traditional taxi companies. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. ♪ thank you so much for that. work, mark this at zuckerberg faced a grilling on capitol hill. deliver what lawmakers were looking for? also, we speak with of the asian development bank. chief economist joins us to talk the latestions,

forecasts on the region, china, india and the rest of the world. this is bloomberg. ♪

♪ welcome back, let's get you a check of the latest business flash headlines, singapore exchange says it plans to list indian derivatives after a deal with the stock exchange of india. it could happen. they said they are exploring cityto bring it into the -- meetsthat means regulatory requirements of clients while growing the overall market. finance, let's look at financials, in talks to raise $10 billion in a funding round that could value the company at around $150 billion.

we are also told they want to be the lead investor ahead of that ipo from aunt -- ant. alibaba rode strongly on plans stake in ant. glencore said to be done, loosening ties with russian oil taken deripaska. won'tmmodity trader proceed with a plan to swap its stake for trades in another deripaska company. the ceo has also left the company. glencore has a multiyear deal to buy metals and said it is evaluating all of its contracts. the price of bitcoin hovering around its lowest point since november, momentum leading some analysts to say the bubble

has burst. the --t guest is one of was one of the biggest bitcoin advocates back in the day. bitcoin.com, joins us in hong kong. you were once named bitcoin jesus. it seems bitcoin has fallen from grace. are you still holding onto bitcoin, do you still own bitcoin? >> if you look at over the last couple months, maybe you could say that. but the last year it has been 100%. i am guessing a lot of the hedge funds at this event were not up 100%. was a hugehere decline. shouldn't investors be concerned? >> it is up 300%. roger: it is an exciting,

brand-new product for the world. today i am more bullish about bitcoin cash than i was about bitcoin, it is about more and more adoption. it is easier to use. anyone anywhere in the world can $.10 of bitcoin cash just by going there. it is awesome technology. the long-term trend is for the price to go out -- go up. bitcoin cash is useful in commerce. haslinda: do you still own bitcoin? roger: i used to do that. i do not put all of my eggs in one basket. the vast majority i converted into bitcoin cash, in most closely resembles what made bitcoin the giant it is today.

you can use it for airline tickets. incredibly i am bullish on bitcoin cash, not bitcoin core. haslinda: it is about scalability, that is not happening yet. when you see it happening, what would it take? roger: i think they are getting traction. you fell out of love with bitcoin because of scalability. roger: i think anyone who is paying attention knows and loves my work. differentk at the two ideological camps, one believed bitcoin could not change, another believed it could. turns out they were both right. -- bitcoinnot be scale for the entire world, but bitcoin cash can.

almost everyone involved in the coin cache are the same people like myself, involved in bitcoin from the earlier stage. haslinda: how do you feel about that? roger: it is great. it is a scary sounding name for an -- a software upgrade. that is what is going to happen for bitcoin cash. it will become more useful than it is today. haslinda: what do you think about people who say bitcoin cash will have the same problem as bitcoin? roger: they are not paying attention to reality. it is clear, bitcoin cash can scale to the entire world. if you are not willing to try, you never will. it was impossible for amanda fly in an airplane and never tried, guess what, you would be right. if you believe it could become money for the entire world, it will. haslinda: you talk about how volatility is part of the excitement of it all.

when do you see a reversal in the price of cryptocurrencies? what would it take for that reversal to come? more adoption in commerce will lead to an overall higher market cap. i am in this for the long-term. i have been in bitcoin almost eight years, i am the ceo of bitcoin.com. i am not going to quit, ever. we are witnessing before our eyes in the first time in human history, a separation between money and state. people have choices which currencies they will use. haslinda: will there be a game changer? will george soros provide what you are looking for? he has given the go-ahead to trade bitcoin. would he provide the impetus for this widespread acceptance? the more course, people get into it, the more acceptance.

when we're done with the show, i would love you to get your first bitcoin while it. haslinda: there are a lot of wannabes out there. how do you differentiate between those will make it in those will fail? roger: you will have to see those who are useful in commerce. david: what is the criteria? roger: fast, cheap, reliable. david: the challenges they face would be what, regulation? roger: regulatory is a big one. designs, they could make it illegal, but that does not stop the blockchain itself. they are grappling with how to regulate cryptocurrencies. what would you say to the federal bankers? roger: i would say it is like trying to hold back the tide of the ocean. it is impossible, you need to embrace it with whatever you are doing in life. imagine if you said only certain

people could use the internet or email because terrorists would use it. maybe they do use it to communicate, but it does not mean a male is not a net -- it does not mean email is not a huge benefit. david: there you have it, bitcoin jesus himself. [laughter] roger: i have never met -- jesus,i have never met but i that one day we will meet our creator. [laughter] one down, one more to go. zuckerberg's first session in congress. what came of the five-hour meeting. this is bloomberg. ♪

♪ let's get more now on one of the day's top stories. facebook's mark zuckerberg

making his first visit to capitol hill. talking about this five-hour marathon and grilling he took. key takeaways for you? basically he went out and earned his lights. he put on a suit, sat in front of 45 senators and offered the right answers. we got a photograph of his notes. it was a solid delivery. we certainly saw the response and facebook shares, which rose on his testimony. he is stilloned, smack in the middle of a two-day testimony. he has another day to go, but so far it looks like he has done what was needed for facebook. we will come back with more once we get the second part of his testimony. david: absolutely. thank you so much.

to one bloomberg television, 10:00 p.m. tonight if you are watching out of hong kong, 10:00 a.m. in new york. this is bloomberg. ♪

>> it is 11:29 a.m. in hong kong, i am paul allen with the first word headlines. russia has vetoed the u.s. draft of a u.n. resolution that would that wouldted the -- have established a new body to determine who should be held responsible for chemical weapon attacks in syria. favor, toas 13 in live adjoining rusher in voting no and china abstained. >> this is not an issue that more time or more consultation could have resolved. at a certain point, you are either for an independent and impartial investigation, or you are not. >> saudi arabia has beaten

to the debtar market, raising $11 billion in bonds. 140 basis points over similar u.s. treasury's. it also saw bonds maturing in 2030 and 2049. saudi arabia is sold the bonds without a roadshow. investors andg the you -- in the u.s. and u.k.. brussels is says agents are likely to remain through wednesday and possibly thursday as part of a european investigation into competition. fox is trying to win permission from u.k. regulators to complete the acquisition of sky, a deal that already has e.u. approval. volkswagen has abruptly ended mueller,e of the ceo saying they want a leader to make deeper changes.

leading vw through the initial emissions crisis, but shareholders say they cannot wait for his contract to expire in two years time. he was always a reluctant ceo and agreed to step aside. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. ♪ china headed into its lunch break, japan coming out of it. 30 minutes left in hong kong for the morning session. it is a topsy-turvy day for asian stocks, after the recent rally, morgan stanley throwing in the towel, saying cash out right away. for sevenrgets targets in the region. tokyo coming online. a firmer yen is weighing. geopolitical risks seen capping the upside, and minute u.s. airstrikes against syria, which

has dragged on u.s. futures. machine orders jumped in abruary to beat estimates, boon for profits for japan inc. the kospi eases gains. aussie shares are sliding, along with the aussie dollar, as well as the renminbi. factory inflation slowed while cpi retreated for a four-year high. the hang seng extending its rise for the best reading a month. checking in on the bond space, chinese 10 year yields ticking up. the commodities complex looking -- aluminum now under pressure after posting its best again in about a decade. oil rally, that stalled after brand reached a high overnight.

raisead ambitions to barrel -- $80 a barrel. petrochina and other energy players, the biggest boost in those markets. anticipating that will benefit from china's 25% proposed tariff. first quarter retail numbers jumped. chinese pharma stocks are slipping. softbank shares in focus. we have reports sprint and t-mobile have talk for a deal. david: thank you so much. let's dividend have a look what sophie was mentioning, trade tariff tensions. when you look at markets and how we traded over the last 48 hours, there seems to be a cease-fire priced in. we talked about a looming trade war or trade tensions a couple days back.

maybe not. president trump welcoming president xi's discussion to open the economy. it may be a temporary lull. our bloomberg gadfly columnist , david, to talk about why there is less change than meets the eye here. david: that is right. it is fairly clear when you go through the four key points from xi jinping's speech at the boao forum yesterday. up autos about freeing and the financial sector, those have been under consideration more than a year. nearly five years at this stage. the sectorsducing where investment is restricted, that is an ongoing discussion, has been for 23 years. thirdly, ip protections, has a

if of people excited, but you look back to speeches at xi jinping was delivering in july last year, that is something that has been a priority of the government for a while. finally come this issue of increasing imports, think about the core ideology of xi jinping, the chinese with a moderately prosperous society. there is not very much new there. david i.: what about the proposed reduction in tariffs for cars? is that what you point out in your article, warming up from trade leftovers? david f.: that is a genuine change. i think that is what president trump is responding to, in large measure. he made a specific point about the markets for the speech. consider how much it affects u.s. companies.

companies do not export minicars to china because of terrorist, they do not -- because of tariffs. it is not really the profound issue to them. if you look at the companies likely to benefit most, bmw do export quite a few numbers. it may help them, but it is essentially helping companies like that, that make fairly high-margin, premium cars. tesla may do well, but gm is already made in shanghai. lincoln, ford, looking to establish a plant there anyhow. not that much for the u.s. david i.: it kind of does bring u.s.nd a lot of these jv's companies have with their chinese automakers.

people in lot of washington upset, the forced transfer of technology. that brings up the issue, do we see a ramping up of tensions because, after all is settled, that still remains? absolutely. that is the core of the uncertainty. we saw in president trump's tweet in response to this, he wants to do deals and declare victory and go home, i think. in that sense, he got what he wants. is a deeplyhizer experienced man on trade issues. he has been involved in this a long time. if you look what they are saying, they have ambitious things they want. they want to stop the technology transfer. beyond that, they want to stop china acquiring technology generally. these are extraordinarily radical.

they are going to the heart of party state relationships, existential issues for xi jinping. donald trump -- he should not the -- he is not as well advised, but we hope you prevails. david i.: you have to imagine they are barking up the wrong tree, asking for radical changes from a country that values slow changes. thank you, for joining us outside of sydney. let's talk more about the story for the global economy. the asian development bank recently released an economic report midmorning today. let's bring in the chief economist. he joins us right now to talk more about that report. thank you so much for coming here. before we talk about those specific forecast, what is the

adb's underlying assumption about how this ends? of world warend ii, the global economy has benefited from the open trade and cross-border groups and services. asia has been the number one beneficiary of this multilateral trade system. tradet sense, i think policy changes and the debate is a somewhat worrisome situation, measuree take this under discussion, [indiscernible] lesson 1% if you compare u.s. and china gdp. you do a lot of your

analysis on this. developing country that stands out to you that might be worth it? things are changing right now, it is difficult to figure out one country. largely speaking, those countries rely on exports of developed countries. hit are more likely to be by this current policy change. exposureof policy not aso be rather small, high as what many people are thinking. in that sense it is not necessarily riskiest. your report right

now, will continue to deliver solid growth. what is that solid growth forecast for the region? yasuyuki: asia this year, according to our forecast, 6% growth over the region. behind this, is the domestic demand. trade.lobal that is the driving force. china,i am looking at 6.6% forecast from the adb. we heard from the pboc governor this morning they will have a tight leash on monetary policy, we know they are deleveraging. can they realize anywhere above the 6.5% doing this? china, actually 6.9% of growth, according to our data. moderated down to 6.6% because of chinese

authorities, priorities for financial stability. that 6.6% number is implementation of the chinese government implementation of potential. david: 7.3% on india, if they get there, that is good growth. there are lots of risks in india, things could change. what would you say is the key risk to that projection for you? last year it was 6.6%. we see a strong rebound of india. the region for 6.6% indian the economyyear was 2016, and of limitation of goods and substances last year. these slow down a little bit.

now, because of the expanded tax revenue, and fiscal space of the government, that is why we upwardly revised indian growth to 7.3%. david: that latest budget out of india, very supportive of growth. thank you very much. yasuyuki sawada, chief economist at the asian development bank. much more coming up. the central bank in singapore, we will be talking about artificial intelligence within the central banking system, preventing the abuse of data. this is bloomberg. ♪

♪ haslinda: this is bloomberg markets asia, i am haslinda amin. i am david ingles. we are about 40 seconds into the

session in india. here is sophie with the numbers. mumbai, we are seeing stocks gaining growth for a fifth straight session, gaining about 0.2%. we have pnb on watch after being downgraded to double d minus. the ceo had for an early exit. check out in bonds, they opened lower tuesday as state run banks have been, indicating caution about market losses in the recent rout. the 10 year yield rising to 7.4%. you can check it out on the terminal. you have financials leading losses among sectors, consumer staples under pressure. i am also watching health care stock, that segment up 0.8%. morgan stanley sees a steady fourth quarter for the sector, estimating 7.7% growth in net cost.

they are overweight on stocks like bio come but underweight in pharma. specifically watching health care. pulling up the board to look at that stock. mahanar gas on the reader, when the owners to sell 12.5% of its stake in the country. haslinda: thank you for that. singapore developing a guide to promote responsible use of artificial intelligence and data analytics to prevent misuse of data. the monetary authority of singapore's working with banks, insurers and asset managers, and the guy should be ready by the end of the year. let's bring in the chief officer, joining us from the lion city. david, good to have you with us. why the guide now? what is the goal?

ai and data analytics are fundamentally going to transform the financial industry, we believe that for the better. there are things we are immensely supportive of. we have already launched a $27 million ai data analytics grand to promote the usage of ai. and concurrently to that, what we have done, we have brought together industry leaders to effectively put together a guide of principles to promote the ethical and accountable as well as transparent use of ai in data analytics within the financial industry in singapore. what particular areas of focus? david h.: the areas of focus we are currently looking at, essentially, if you think in comparison to gdp in europe and

so forth, it is not just in terms of ownership or privacy, these are issues naturally extremely important, but already in motion. fundamental questions posed, what does it mean when you use the data? within wealth management, marketing, when you look at products, more regulated activities or analysis of risk models, how do we make sure ultimately [indiscernible] the guys will be developed in cook creation with of the industry and pushed out toward the end of the year. we have difficult questions, some have yet to be answered. relevant to make sure there is ethical use, there is fairness? consumers we are

not negatively impacted from ai? leveraging and benefiting for the potentiality of it? haslinda: this comes amid the facebook scandal. one, what is a key takeaway? what do you make of that scandal? does it impact your strategy? i think one of the key takeaways is, it further reinforces the point, this is still a very new area. while we have companies and it for decades, researches even longer than that. the honest truth is, we're still figuring it out. mistakes or errors along the way happen. from a strategy point of view, , rather thanorces waiting for unfortunate events to happen and only then respond, to take a much more proactive approach. rather than dictate, this is

what should happen, to co-creating an industry such that, on the one hand we are allowing for innovation to happen, because at the end of the day that is what we want. however, assuring there is a responsible use and ethical aspect to it. david: david, these are very potent technologies. put in the wrong hands, this can do a lot of damage. do we know a lot about these smart technologies for us to be able to apply them to an area like financial services, which we all know is a very conservative industry? david h.: absolutely. perhaps it is a combination of personal point of view and belief. i believe so. if you look at the depth of research in ai, the amount of ai used is only scratching the surface of the potentiality. view, technical point of

from a potentiality of technology point of view, we do know. from a financial perspective, it is a heavily regulated industry. we understand it. the challenge is, we need to put these two people together. we need to understand what can happen when this technology is used in a manner, put in the wrong hands. concurrently, what are we trying to achieve from a financial perspective, products, risk management, engagement point of view? at the end of the day it is a discussion. by no means are these guides meant to be a doctrine. that principles, things need to make common sense and towardme will evolve further better practice of use of ai within finances. david: david, we have to leave it there. at the monetary authority of singapore. coming up, we talk oil, $65 a

barrel. this is bloomberg. ♪

♪ let's do a quick check of the headlines. spotify is said to be developing a new version of its free music service, likely the first big change since going public last week. we are told it is making tweaks to simplify the system for users of mobile. the announcement may come in a few weeks. spotify needs to attract large numbers of new listeners to attract shareholders. sprint and t-mobile surge in reports of resumed merger talks. the wall street journal says discussions are back on, five months after grinding to a halt over disagreement.

sprint to jump to buy the most since the middle of last year. t-mobile sides biggest intraday rise. softbank surged the most in 10 months. --id: let's have a look at boeing and embraer likely to have a deal. of defensence minister says negotiators are closer to an agreement after months of talks. he thinks it will end in a tie up. any deals would find -- follow airbus. airbus is lending to flights, with the beds in lower deck cars. flat by the end of this current decade. makeys he wants to

long-haul flights more bearable. they are designed to be swiftly removed during a typical airport turnaround. lots of corporate stories to talk about. as far as macro data, we had data coming from china. -- take as busy with look at what we are following. take a look on your bloomberg, quickly. one char you want to watch closely, credit impulses down, downward momentum picking up. that is happening at the same time. you have copper inventories on the way up. let me shift to this quickly and have a look at 8929. hong kong dollar trading toward the weekend and -- weakened end. think about those things as we head into the end of the trading session.

that is it from bloomberg markets: asia. haslinda amin has a big interview with christine lagarde. middle east is coming up next. this is bloomberg. ♪

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