haidi: the forecast signals the pickup in the face of hikes as they list the benchmark rate 25 basis points. >> jay powell says the u.s. economy is doing well with inflation near target and unemployment low. u.s. stocks close lower in the trend year -- 10 year yield recs love it >> donald trump reignites trade tensions think he is about to confront china " very strongly."

sydney, thisfro is just past 8 a.m.. i'm haidi lun. we're 12 away from the opening of asian markets. >> just past six :00 year. -- six a got here. we will look at how the asia-pacific training day is going on. only in new york but also in washington. the fed when of 25 basis points. that was expected given we are looking at new ranges for the gdp as well as the. for future rate hikes -- the dot for future rate hikes. let's go to what the chairman said to some of the economy. >> the economy is doing very well. most people want to find jobs are finding them. unemployment and inflation are low. forrest rates have been low some years while the economy has

been recovering from the financial crisis. ramy: what does this all mean looking ahead? we will get to that in a ce of minutes. first, a quick reminder of how u.s. stocks ended. as the news dropped from the fed, we also saw stocks drop from the news. with interest rates going higher, that always has an effect on equities and risk. the dow is down about .5%. the s&p 500 is down loth that and the nasq trailing by about a 10th of a present. we're looking at something on the order of about two weeks or so. this also is not unexpected. every ti we see rate rise. that, weer the top of have had a trade rhetoric roundup again again -- republican. -- ramp up again. beijing' is reaction is not helping the mood. the biggest reaction we thought was going to be in the bond market. the flatning of the curv

whichever way you look at it, that was a pretty strong reaction to it to start talking about curve itake a look at howe setting up and asia pivot a big session given largely guided by the performance of the u.s. dollar. we had the dollar spiking to ssion highs before paring back and treading lower against most of the g10 space. we see new zealand weaker at the open. the qa dollar is trading lower sydney is looking softer going into what will be a largely guided china domestic numbers. took a bit oflar a whack from the stronger u.s. dollar session overnight. 580 is where it ended when trading comes to the aussie. ramy: let's take a closer lo at the u.s. markets because we include theion deeper into the fed's decision along with what we saw was a rebound in oil

as well as a for the decline in bitcoin. su keenan joins us. let's start with the hawkish was mily hawkish but hawkishhe bt -- nonheless. and of the do. even though it was baked in the cake when they said hey we were expecting this, the reality of two more rate tax -- rate hikes, we saw the standard & poor's 500 going down after being mildly higher. , one go to the bloomberg of many charts on the fed. this is the fed fund future spread. there's one prominent list that suggests the aouncement that it was already baked in. investors are off to the races to readjust. this is the spread between july 2018 and october 2018 on features. this is toward 2019 january. you can see everyone is

adjusting to this reality. kathleen hays will be here for more on that. let's go to the active stocks we mentioned. time warner, at&t, merger, you typically see the stock down and that continues to behe case. off a h opening floodgates for merger frenzy. get fox up in a big way as comcast comes in with a $65 billion offer in a showdown with disney. netflix set a new record. there's a big evaluation by goldman sachs that will overtake the market value of many other companies that already took over disney earlier ts month. date to seeting to the follow-through in the thursday session. haidi: sue, let's take a look at su, let's take a look at volatility for bitcoin, four days, 20% decline. su: a pretty sharp drop. let's go to the charts.

alone, we havek seen a drop in more than $1000. to go to the big picture crt a spike in price before the new year. we have come down dramatically, 70% since the high on host of concerns. there is concern about manipulation of the currency. there has been a cyber hack in the korean platforms. there are many that say evaluation issues continue. speaking of volatility for the market in general, there is a famous trigger called 50 -- -- 50 singer called $.50 cent and it may be him back with a $5 million bet. getting a little credibility because the last that was on the money. haidi: su, peggy so much. the fed is picking up the pace and tightening this year's key rate in a clearly telegraphed

move in taking the further step of snaling for rate hikes in 2018. kathleen hays is here. it is certainly looking like a more hawkish area for people here. kathleen: we have to remind ourselves that as our economic team put it, it is a baby step of hawkishness. remember, it is a very slight change in the number who we are seeing with four hikes versus 30. it is significant -- versuse 3 hikes. they are looking at a change in the forecast and they think gdp will be 2.8 this year. they see unemployment down to 3.5%. currently at 3.8%. inflation, the pce core, italy 2.1 this year and 2.0 currently -- it will be 2.1 this year and 2.0 currently. looking at your bloomberg, you see these two are thee

here is mebody appear that sees more than four hikes. this is six versus six. now it is five versus seven. it is a narrowgin, tilt toward more hikes for sure. i think we have to puthat in context. jay powell is saying here that he thinks that the path is still gradual. you might say really? are you liking faster? he thinks the fed is being careful on tightening too quickly. >> we have a really solid economy on our hands here. what we are doing is we are trying to conduct monetary poli in a way that will sustain that expansion, keep the labor market strong and keep -- right at,ve or sorry, not above, at%.that is wr woi like the sults so far. kathleen: wages are rising even

though they are clearly only rising a little from where they have been in the recent employment report, he shrugged off the flattening yield curve. it's interesting you mentioned that, haidi. --know why that is havg hiking because the feds are hing rates. you can see the trouble with the yield curve. the spread between two and 10 is down biss.if it goes below, that people in the marketd bond maet are clearly worried about. jay powell said we will watch it closely. it is not a concern and not something that would slow the fed down. he is asked a couple of times about trade and the tensions building up. he says he is hearing that they get a lot of reports of regional banks. it is not hurting the economy. there is a risk it will. but so far just a risk. another back burner topic. things beingthe

raised, they are raising the number of live meetings. i think that will be starting next the january. kathleen: i think jay powell really put h mark on the fed at this meeting. they usedll, he said to always said, he is standing, he is standing at the podium and saying i want to describe the ecnglish. other difference and yes they will have press conferences after every meeting instead of just half of the meetings. he said there is no policy significance. we won't happen -- we won't have and more often, because of rates are the policy statement had been telegraphed and they make widely accepted move in the way they manage the funds with terest on excess reserves. i will spare you the details, but it is technical why they think they need to do it in the current circumstances.

ramy: we can get into thatnthe . kathleen hays, thank you so much for the details there. let's get the first word news with courtney collins. courtney? >> president trump says he will confront china very strongly over trade in the coming weeks. as his administration prepares to follow through on terror threats.- tarrif he praised the personal relationship with xi jinping. the administration plans to issue a list of tariff targets on friday. comcast has made a long-awaited offer to acquire much of 20% three fox. -- 21st century fox. the largest u.s. cable tv it values fox's entertainment assets at $65 billion. bid35 a share, the

represents a 19% increase of premium over the disney offer. volkswagen will pay a $1.2 billion incurred by a german prosecutors for teaching regulations. it closes -- for cheating regulations. the world's bigg ys settlement of the criminal case will have other proceeding impacts in europe. british lawmers have rejected proposals by pro-eu politicians that were intended to lock the u.k. into the customs u. and a single market after brexit. as a victory for changes by the upper house. still a leader of london's financial district has to know there is a mood of frustration in the city. >> you can expect a lot more

turmoil over the next few months. the fact that this week put out turmoil is a good thing. >> global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 counti'm courtney collins and s bloomberg. ramy: donald trump says he will talk to south korea on being paid for the u.s. troop presence on the peninsula. in addition, donald trump says he would love troops out of south korea but he adds "not now." parently backing away from lines he earlier said after meeting kim n. he said the military isot " in south "at all

korea. regarding the first meeting after meeting kim jong-un, the leader of north korea, and we will get more lines as they drop out of the fox news intew we get them to read -- them. haidi: certainly watching the interview. they're saying they probably have a good report with him and talking about russia joining the g7. so they can talk directly. we will get a lot more on the story as the details become available. out on't want to miss our exclusive interview with the marketarket -- asia leader -- citigroup asia-pacific ceo. ramy: after at&t proval for the time warner cable takeover, comcast is now offering $65 million to take over 26 fox. are we seeing a wave of media

consolidation? analysis of the fed's rate outlook and we will be speaking to one man spending a crafting policy at the fed. this is bloomberg. ♪

ramy: the message to the fed is leaving them alone which has and what he has done. hinking, he has done almost everything wrong except the fed. >> where streamlining the economy this year. -- the probably the most strongest expansion. but we have a high rate of uncertainty on the future and ause odeficit -- de >> what powell is trying to convey is the idea that we are

recalibrating monetary policies, not new news, we have been doing that since listing off from zero years ago. and we're not doing this in the hope or expectation of halting this economic expansion. just keeping pace with it. that is not bad news. >> i think that a powell fed seems to be more reactive than anticipatory. ultimately that will have to change in 19. ramy: some of the reaction we have been getting on bberg let's go to washington and bring burling.o our editor, with us kathleen hates. roberto, things for joining us. i want to get your initial reaction out of the fed. as my are catching it, this is a slightly mildly hawkish fed. your thoughts? roberto: that's how the market interpretative and i would be

careful before to conclusions. i think the markets are focused a lot on the dot. moved from three rate hikes to four. but it was one person. -- that know that is that is a strong signal. in two dozen 14, it's move up a. but it was just two guys. it is not a solid signal. i would think about it as more noise than signal. i think at what the powell fed will do as we look at the data and take it from there. i think dots are an exercise in forecasting and it is not always accurate. ramy: sometimes the dot is just a dot. you're looking at dots , that's one movement upwards there. one of the reasons for this possiblecceleration or desire to accelerate, roberto, is the

pce rising through 2020. the 2.1%. is that sustainable? roberto: i think the fact that they put out three months ago ad confirmed today a forecast few years out above target, i think it is interesting. it is almost unprecedented. we have no problem running the economy a little warmer than we thought before. with no problem with overshooting inflation and i think that is a good signal that the fed will not be aggressive. they have good reason why they want to have higher inflation rates moving to move the nature rate from zero balance and i will explain it today well. with a forecast like that, you cannot say the fed will be super aggressive. i think they will let inflation run a little higher, and the 2.1% is an important

signal. kathleen: and the press conference, he was asked specifically, what do you say to workers out there whose paychecks are not getting er? who are concerned about jobs. libraryto our bloomberg . it is a lovely chart that shows employment at 3.8%. in average hourly earnings the latest reading, which i believe is up to 2.8, it is kind is there any dangers of the fed overestimating the forces that are pushing inflation is higher -- inflation higher? it has not broken above two since 2012. agree that ll bhard for inflation to move up a lot. the reason why wages are stuck in that range is because the productivity is low.

unfortunately, there is not much the fed can do to push up productivity. is that the fed's job or central bank job. until that changes wage pressures on inflation well be contned. i think they are concerned tha we are probably not going much higher than that and so why should we tighten aggressively if that is the outlook? haidi: i want to get more on these structural changes going through. maybe they aret -- maybe this is the reason why the traditional model is not working out. i nt to look at the curve inversion that the markets have had. this is the chart of the two and 10 year. regardless ofha or the five and 30 year, we saw the flattening at levels we have not seen since 2007. does this prelude a recessionary. to come or has that model also broken down as well?

rignet -- recessionary period to come or has that model also broken down as well? roberto: i don't think we should be concerned at all. i think chair powell explained it saying curve inverts simply because the fed tightened some mechanical effect, mechanical byproduct of that. the fed titans toward the end of the cycle -- tightens toward the end of the cycle. by definition, the session happens at the end of the cycle, therefore, the curve flattens and inverts before the other session. it is a correlation, not a causation. o bed atlike i'm going night, and the sun rises in the morning, and i'm going to bed and i'm going to bed

and that causes the sun to go down. ramy: mr. powell had uncertainty when it has to do with the neutral ray. popping into dtv, as we approach the plunge right, nearing the neutral, we know we are getting closer and that committee is discussing it and they are a wide uncertain bands. roberto, where do you think the neutral rate is? roberto: the best answer that we get, that we have is look at the models of the fed itself and what they put out. so, they are pointing somewhere in the range of 2.1 up to 2.5 nominal. i think that is a very reasonable estimate. there are other models of their where the points are more or less the same rate. i think that is a fair estimate of where we are and what is reasonable to think that because of fiscal changes andy regulaonalate might increase a little bit. i don't think it will increase

by percentage points. i think it will increase by bases points -- basic points -- basage points. kathleen: you have a very important position under previous fed chair, and he wanted to describe the economy and planning burress. there are going to be more press conferences. it seems i jay powell has taken charge of the fed. what is his style and what will this mean compared to janet young or others? i work in the division of moderate affairs but i think look, every chair eventually asserts his personality or views . i think that is what powell is doing. i think was terrific that he i think his style in terms of answering the questions is different and i think it is very appreciated by investors. it is clearer.

it's clear, direct, to the point. not many convoluted answers. i think that helps people understand what the fed's have fed, the -- helps the investors, and the general public david -- public. haidi: roberto, should we expect more volatily if every meeting is a live meeting? roberto: on some level you can say yes. right now we know there are only four live meetings and in january that will be eight. 't think the number of rate hikes will change just because we have a press conference. i take powell at his words when he says we would've done that if we wanted to do it faster. the fed will continue to communicate well with the public

and when there is a hike and when it is, i think we will know it ahead of time from the communication. i do not think it is a big difference. it is a welcome change the kids -- because he gives us an opportunity to understand. it is a good communication strategy. move: roberto, i want to forward to the ecb. it is it too early to talk about exiting qe? roberto: i don't think it is early at all. i think it is about the right time because the only told us qe will continue until september. isy have to tell us what going to happen unless they want to reprise the markets. it's good they talk aboutt. i think they will not sound particularly impressed if italy decides to go off the rails one

way or another. roberto, thank you so much for joining us. funny mo to come on "daybreak: auralia. this is bloomberg. ♪

haidi: it's a dirty -- a: 30 a.m. here in sydney. -- 8:30 a.m. here in sydney. theof the biggest things on calendar is domestic numbers out of china expecting to be resilient. i'm haidi lun in sydney. inocencio in new york. it is just past 6:30 a.m. and you're watching "daybreak: australia." let's get the first word news with courtney collins. has upgradeddot the predicted number of rate hikes to four. unployment falls and inflation overshoot its target factor.

forhe secondised time this year with jay powell saying the main takeaway is the economy is doing very well. he also promised a news conference after every meeting starting in january. >> as chairman, i hope to foster a public conversation about what the fed is doing to support a resilient economy. that istical step into to have a press conference like this after every one of our scheduled meetings. we are going to do that beginning in january. that will give us more opportunities to explain our actions and answer your questions. courtney: bitcoin extended losses of as much as 20%. questions are mounting whether the biggest cryptocurrency was manipulated during last year's price surge. one researcher says a digital currency tether they have been the to boost the going to high. the justice department has already opened a criminal investigation into illegal trading practices.

president trump claimed in a tweet that there is "no longer a nuclear threat from north korea." he has been getting criticism over the they statement issued at the end of the summit with kim jong-un. his secretary of state would only say he expects north korea to take major steps toward disarmament by 2020. pompeo meets south korean and japanese leaders in seoul before heading to beijing. the biggest sirting event on the planet kicks off on thursday with soccer's world cup in russia. the host will face saudi arabia and the first of 64 matches. culminatg in the final in moscow on july 15. the big corporate winners are likely to be brewers, tv manufacturers and companies. while they are at heads over nafta, the u.s., canada and mexico have been able to come together in the sporting arena when the rights to jointly host the 2026 world cup.

global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'courtney collins. thoomber haidi: thanks for that. a quick update on the markets in new zealand. the qe comes to stocks, a meandering session. we had u.s. stocks falling along with the bond markets as well on account of the slightly more hawkish tone coming through from the fed. we're setting up to the slightly lower open going into the citi open. dollar tradingie here. it g whacked overnigro the spike in the u.s. dollar. let's take a look at a broader look across the asset classes. you're looking at the dollar-yen the u.s. tenure a sewing --

soaring. just a reminder, that is how we ended up when it comes to u.s. markets overnigh about a half a percentower icomes to the s&p 500. we also had negative sentiment about a potential finalization of tariffs on chinese goods as soon as the end of this week. let's get more on what we should be watching is turning its underway in asia. david stringer is with is in melbourne and look ahead. em stocks currencies are retreating on the fed's decision to raise rates. where do we go from here given the dollar was bouncing around as well? we will see pressure in the broader that will we see pressure in the broader em space -- will we see pressure on the broader em space? david: we will see ithe is a continuation of the downward trend. in the emerging market currencies, and equities, we certainly saw overnight argentina's peso fall.

etf's decline as well, as well as equities in the markets and the two-day rally. one of the key indicators we saw is an index tracking emerging market currency. it fell below the moving average which is the first time since 2016. many analysts see that is a signal of for the loss. we can certainly see an illustration if we look at the chart.gtb this why to the cost of servicing external debt an to the pressure of emerging economies. whether that is rising inflation, potentially rising political risk. the outlook isn't great for some analysts. they see the decision by the european central bank as a greater risk. there is a chance that any tearing back of bond buying will and those days of easy money.

you see flows moving into emerging markets after the financial crisis. bright spot for em, i understand the world bank is looking to list its predictions for thailand's economic growth, but this is already at a five-year high so that begs the question how much higher can th go. david: that is right. we are seeing quite impressive growth in thailand. in an interview in bangkok, the said thek's director projections from gdp in 2018 could rise. they are currently forecasting a 4.1% climb in 2018. there are a couple of things the banks identified that they will need to do. the together early to list the rate of expansion 25% or 6%. 6%to 5% or

they also need to make the public sector more efficient and deal with the challenge of an aging population. pretty impressive growth so far in the first quarter. a present. that is -- 8%. great stuff, david stringer their timid the latest on what we can expect in the markets in asia. they are set to open. in the meantime, ticket our -- check ouour dtv -- gtv on the bloomberg terminal. heading to the d.c. now, president says he will coront over trade strongly" in the coming weeks sending a warning to the president. >> china has been helpfu the last two months, less so. we are a little bit more open and effect with today's negotiation. i think the border opened up a little more because china could

be upset about trade because we are strongly ramping down -- clamping down on trade. ramy: let's bring in a bloomberg editor with the latest. what is the white house planning here? >> this doesn't seem to go beyond what they have already announced which is new duties on $50 billion worth of chinese goods from television stats to washing machines. word on putting forth new measures. trump is supposed to be meeting at the white house with some of his traded visors. to discuss what they are going to do with -- which might include putting the tariffs, releasing them on ay. potentially if we do get the finalize the list, when would we see implementation? >> i would say at least a month. we are talking about july 1 for the tariffs to take effect.

that does give room for negotiation with of the chinese on these tariffs. china has threatened to retaliate with their own tariffs on u.s. agricultural products and other goods, so they will be probably coming down the road with -- if they all do go through by the end of june. haidi: why the timing of this now, joe? china got a pretty good deal out of the outcome of the kim jong-un summit. why is he doing this now? >> thell be relying china to some degree to help enforce whatever deal ultimately comes out of north korea. there are two things going on now. the ongoing negotiations with china on trade and the tariffs and goods, and also political brighter -- political pressure here for trump. he is under a surprising bit of

pressure him republican lawmakers in congress as well as democrats over his decision to allow chinese communications manufacturs back into doing business in the u.s.. congress is poised to put some language on a defense ization bill that would prohibit him doing that, and require that she go to congress to list any sanctions on zte. he is trying to look tough for both his voting base and for lawmakers of congress who are a little bit upset over what he did with zte. hai: joe, thank you so much for that. our bloomberg congress editor withhe latest out of washington. comcast has made a $65 billion feto inquire 21st century fox topping the previous proposal by disney. they are setting up for quite a bidding war. our reporter for the latest event one of the key terms that we are talking about?

it is a5 billion headline figure which compares 52.5 which disney has offered given the other key things is whatthey are matching disney offered if the deal gets blocke twoey said l point $5 billion. comcast will match that and not only that, it will reimburse billion of what they would need to pay disney to break up the deal. they hvetees on regulatory pathways to reassure fox shareholders that their deal can get through the regulatory process. they have talked about diverting u.s. assets, diverging networks the at&tking back at in hulu as and time warner deal, that was the key that opened the gate for this and possibly more. >> exactly.

comcast said that today, and he said the ruling gae them the confidence to come forward with the bit today. he looked at what happened last year when comcast made an offer that was a disney's office. in november and december, when we was talking to rupert murdoch, they had three main isss. theyas regulatory, one was felt disney' stock was better than the old cash bid from comcast. they think they have addressed all three points and on the regulatory fines, they think the decision yesrday allow them to go through with this. ramy: let's dive deeper into the regulation aspect. what are they really looking to get on whether they allow this one to go through? nabila: one of the key things i think regulators will lookt his comcast a dominance in the market. they are the number on provider in the u.s.. they are also really big and broadband.

they're the number one internet provider as well. it is concern from regulators that they could use that control to thwart competition from digital giants like netflix and google and etc.. nabila.eat stuff much for that. our daily reporter. i want to call your attention to an interesting story on the bloomberg today, haidi. looking at infrastructure holdings proposed $9.8 billion we were talking about yesterday and we broke this down on the show. bid?"s titled "why this a nearly $10 million bid may acly falter. before and there infrastructure was barred already a couple of years ago. there are trying to get back in

2016 by the treasurer stock -- scott morrison to buy another power company. they were barredthat. there are a slew of reasons why this might falter according to this bloomberg news article. another when being that t government is pushing back, especially china and foreign interference in domestic companies there. there are walls that appear to be gich really calls into question whether this $10 billion deal might go through. haidi: you see analyst reactions saying there are significant barriers when it comes to regulatory approval on the antitrust fun. also foreign investment here. if you take a look at the reaction in stock prices,t s the outperform in the session in sydney. up 21%. it is closing shy of the day three. that reflects the jubilant reaction and a sense of caution that this may not get through the regulatory gate.

as you alluded to, this is coming at a pretty sensitive time when it comes to china, australia relations. backlash been domestic in terms of the amount of chinese investment across key sensitive strategic areas of which obviously energy falls well withith area and -- that. it wasn't that long that they were struggling with the energy crisis. we fell in the middle of that with the prime minister saying we may have to curb gas exports of we cannot get domestic pricing to come back to reasonable levels. this deal is far from being done. a lot of the political sensitivities when it comes to the diplomatic changes could come into play. ramy: that is right. there also concerned about a monopoly. anotherstructure bought energy company for 7 billion aussie or so i believe.

try to put a love those together, the company is saying .hey could divest haidi: victor e is following the same strategy of taking up ck infrastructures, the portfolio, and this is very much up in the air. ming up next, critics say kim jong-udid not make any real commitments at the summit. ump says they are no longer a threat. christopher hill is joining us next to red this is bloomberg. ♪ -- next. this is bloomberg. ♪

ramy: welcome back. i'm ramy inocencio in new york. haidi: i'm haidi lun in sydney. you are watching "daybreak: australia."

mike pompeo has been defending the outcome of the trump summit saying he expects north korea to take major steps toward nuclear disarmament during president trump's current term. the president we did kim jong-un's regime is no longer a nuclear threat. christopher hill is on the line serving as u.s. ambassador to the countries including south korea. he headed the delegation to the party talks aimed at resolving the nuclear crisis. are we in a better place than simonths ago? ambassador hill: we are definitely in a better place. the buzz around washington with the so-called "bloody nose strategy." of hitting north korea with a missile strike and hope for the best. this is clearly a better situation. that said, there are a lot of unanswered questions. i think the real problem is the fact that the president talked

with the south korean military between the u.s. and south korean military and talked about it to the north koreans and went ahead and canceled the exercise without thinking to tell the south koreans. that is an issue and that is part of the damage control that secretary pompeo will be engaged in in the region tonight. deficit been trust built to some extent? north korea has a long history of reneging on things they do agree to. are you optimistic this is a small step toward a framework towards denuclearization? i never thought the north koreans woulnded to us on a platter. question the statement was week. in any event, it all had to do with t implementation and for

that reason, i think it is very important that secretary pompeo was there. he is putting together a team of veryte people and i hope at they llether plan for what this will look like. one issue they have to address though is, do they think this could be a u.s., north korea, or do they need china, south korea, japan involved at minimum. i would say they do need that and i would say the trump administration is not sure yet. that is something pompeo needs to deal with. ramy: ambassador, being the top envoy to sth korea, i'm curious if anyone has reached out to you in the currently to ship he reached out to them. if not, what would you advise them now after the eyebrow raising comments about the stopping of the "wargames" the donald trump has been in. ambassador hill: i have talked to people and my concern of course is the soutre

relationship. i think we have to be very careful not to create a situation where south korea thinks we were taking them for granted. a lot of people have pointed out that the south korean president is very concerned that the show will go on. it is something he has pushed for. he is equally concerned about showing to the south korean public that he can manage the u.s. relationship. so, if there is a major disconnect likehi that is not going to help him. i think it has been appropriate that secretary pompeo goes to south korea first. there are also big issues with the japanese who have real concerns about the fact that there is nothing in the agreement about this -- about missiles. finally, if this is ever addressed and we get traction with the north koreans, we look back and say how do we do this, china is going to be part of the picture. i think that is also something

and something they had trouble getting their minds around. ramy: in the last 32nd, ambassador, mike pompeo has said he expects north korea to take major steps to the nuclear is asian -- the nuclear is asian -- enuclearation. how likely is that? --assador hill: the don't that does not seem to be evidence of that, it is a hopeful experience. i think it is the right way to approacht and see what he conceived sitting down -- if he can keep sitting down with him, it is the right thing to do. i wish there was more in writing. the north koreans tend to be literalists on all of this. it would have been helpful to get some of this in the joint statement. thether one certainly gets

sense that this was put together atheast minu. maybe even the dictation of our president involved. we will have to see, but no guytion that pompeo is the in the hotspot here. ramy: as he has said, he is the person driving the process forward. korea,bassador to south ambassador hill, thank you very much. wherever you are, we teamed up with twitter to launch a talk. this is the first global news network designor social media. video bring live coverage, hourly updated top news reports, verified by us. if you're on twitter, make you follow tictoc on bloomberg. this is bloomberg. ♪

: welcome back. i'm ramy inocencio in new york. haidi: and i'm haidi lun in sydney. this is "daybreak: australia."

ivanka and rainy are up next at "bloomberg daybreak: asia." taking a look at the next two hours, yvonne? >> we're going to continue to digest the fed rate hike happening a couple of hours ago. it seems like during the press conference, jay powell dial back the expectation talking about how inflation still not mission accomplished yet. the president of the company -- the president of the fed says they are not going to have to raise rates much. we also going to talkbout the ramy: federal elizabeth the county -- she the next for non-chinese reign-policy. i want to ask her the latest on what is happening with this white house report on picking up the tariffs. haidi: we will continue to look

at the north and south korean situation from an epic -- economic point of view. of thea new reaction anticipated fed rate kite -- fed rate hike. this is bloomberg. ♪ ♪ retail.

under pressure like nev before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed acroulple locas.

every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. yvonne: it's 7:00 a.m. in hong welcome to "daybreak: asia."t the fed signals a pickup in hikes as jay powell says the economy is doing well. u.s. equities, treasuries, and the dollar retreated. bloberg's global headquarters, it is just past 7:00 p.m. in new york on wednesday. president trump says he is about to confront china "very strongly." comcast outbids disney with an all ca