you can move in. scarlet: one point made is that the core inflation is going up at expectations of inflation's are going down. caroline: we certainly had a down day and collapse in the markets. 39 if not 40 points in the s&p 500. nearly everything will industry group is in the red. i.t. is feeling the pain, energy is off, and industrials off by 1.8%. receiver hundred $50 billion wiped off the s&p 500. scarlet: the only gainer of the 24 industry groups was telecom, only up by a quarter of 1%. go back to what jeff rosenberg was telling us. markets were telling us about an empathetic fed, and they did not get it. on in powell's conference, he laid out risks. kind of dovish off the bat.

he didn't clearly say anything like "we are changing our world view." --knowledged risk acknowledged risk. caroline: he was sort of pushing back on what market he would look at. saying not one market would dictate their choices, or one they would look at more than anything else. let's dive deeper into the market action and get the perspective of luke starting a soft. >> i'm looking at something that, at the end of the day, kind of unchanged but had a volatile day. the u.s. dollar spot index. i'm wondering how it has remained firm for the past few months, even as we see expectations for fed hikes go from a little over two to far less than a half. the white line is fed expectations implied tightening for next year. the deal line is the x y index. the yellow is the real two your rate.

-- two year rate. and elevated to your real is at cycle highs. why thented to know u.s. dollar is doing well, the rest of the world looks bad, two, rate support, and three, the growth expectation next year. taylor? taylor: as you take a look at the dollar, i'm taking a look at all things bonds. take a look at what is happening after the fed meeting with the two tens and two 30's. into the fed decision, we have basis points.t 17 we fell down to 13 basis points. we were testing the lows of the 11 basis points which would be the lowest year to date. the two 30's, the longer-term one we like to look at, we are testing the lows of about 833 in the yellow on the right-hand side of your charge before we got to about a 37 or 42 before

the meeting. we continue to grind a little bit slower, and a little bit flatter. all of this is what it means for the fed and for short-term bonds. coming to the terminal here. the fed decision today, we saw them maintain the neutral rate target range of about 2.5-3 .5%. the median estimate did fall to about 2.8% today. that was 3% previously. we have always questioned where is the neutral rate. it looks like we are getting very close to the bottom end of the range that they have set, meaning closer than we thought. romaine: one of the more interesting things is the fact that the s&p 500 dropped below the 2500 level for the first time in quite some time. the rsi is back down into oversold conditions. the first time we saw that below

the 30 mark since the late october selloff. 400 45 members of the s&p 500 finishing the day lower. on the whole, about 80% of the market is below their 200 day moving average, and 50% of the s&p is down about 10% or more from their 52-week high. i want to take a look at the fed balance sheet. there's a lot of talk about this and whether it plays a big factor in the selloff. at what iske a look happening since the fed wanted to wind down the balance sheet and the decline you have seen in the markets since then, it gives you sense the market may be trying to tell the fed that enough is enough. is time to stop. when you take a look at what powell said, maybe it's the fed sending a message to the market. scarlet: thank you to our markets team. let's bring out bob who joins us. we talk about the

catalyst and we did not get it from the fed. jpmorgan does not report earnings until four weeks away from now. what happens in the meantime? where do you go to hideout? is a telecoms? -- is it telecoms? telecom in your portfolio makes sense. when you get yields of five and a 6% in an environment where there does not seem to be a ,ownside limit to the markets defense for sure. you also look at companies that have pricing power, good free cash flow characteristics. they are the stocks that tend to hold up more stable and go down less on a big down day like today. joe: are you worried about a fed mistake? bob: you have to be. the fed almost always overdoes it. we have to keep our eye on that. i'm not convinced they are there yet, but if they keep going

stubbornly next year, we will get there. thankfully, the chairman and knowledge we are at the low end of the neutral range. i think we may be at neutral already. i hope there is not more to come assuming the economy is slowing. caroline: are you worried about an inversion? an inverted yield curve is not the friend of the stock market, although, it gives pretty big lead time between that and the onset of recession. i would rather see a nice steep yield curve, rates at zero. the fed has been a huge friend theye stock market, and are now a little bit of an enemy and became were seven enemy before this was all over. we have to watch and see on the yield curve and credit spreads and balance sheet of the fed has a lot to do with that argument. scarlet: we also have to look at the dollar, which turned pols of its -- positive.

that has all kinds of repercussions. it does. no a strong dollar is a reference point to a lot of things. ist means u.s. growth stronger overseas, it means the market is listening to the fed saying we are not necessarily done while other foreign central banks really have not gotten started. stronger dollar is probably going to last a little longer than we think. in 19, the dollar will weaken again. scarlet: and you wonder how this sets up the boe and boj which will have their own decision tomorrow. joe: so many ripples tomorrow. should the fed be more open to pace of of tweaking the the balance sheet moves as a form of policy easing? i'm in the market, so i am

biased, but i wish the chairman had made a list of things he could think about should the market turmoil and volatility be a concern. i would love the balance sheet acknowledgment of it to be on the list, but that seems hell-bent for we will do what we are doing. caroline: looking what was put out in 2018 for the forecast, you rate yourself on how well you accomplished. one of the key sectors you liked for the overall year was i.t. and technology. i look at the impact on apple today. this is the biggest drag on the s&p 500 for the day. where do you see the future of tack? i know facebook is not technically a tech, it is more a communication services company, but they are having a terrible day as well. they areas been economically sensitive. they have large business overseas, and that has not been the place to be.

year to date technology, in spite the decline -- despite the decline, is an outperform her. if you look on a more intermediate term, you still see , valuationsearnings are not extended, so you just need to be far more selective in tech. more willing to trade them, and they will not be uniformly out performers. a lot of profits to be taken, and that is what people are doing. that would create an opportunity, assuming the economy owes ok -- is ok. scarlet: you also worry about this were companies going public. interest is preparing for an ipo. uber as well. the softbank ipo is not pretty. joe: this gets to one of the biggest questions about the stock market volatility. what is the lack of funding to the real economy? with the ip channel

as that closes and has all kinds of ramifications for private companies and funding. caroline: a fascinating perspective. we also heard chairman powell talk to that effect on whether or not we could see a feedthrough for the market into the real economy. she seemsto say that to say that is what we're tracking as to why we are more cautious going into 2019. scarlet: it will make for a very interesting series of meetings. bob, thank you so much for joining us today. that does it for the closing bell and for me. romaine bostick is stepping in for "what'd you miss?" at facebook'sking growing list of problems including a washington lawsuit. -- including a lawsuit from washington dc. this is bloomberg. ♪ bloomberg. ♪

caroline: live from bloomberg's world headquarters in new york. snapshot of how the u.s. stock market closed. down on the day. $300 billion worth off the s&p 500. not dovish enough. the fed trimmed their forecast for 2019. that sent assets sharply lower. think stocks are feeling the pain. why regional banks could be vulnerable for the economic growth ahead. washington adding to facebook's woes. growinge stresses as they get sued by washington. scarlet: all eyes on the fed --

romaine: all eyes on the fed. here are some highlights. note know the economy may be as kind to our forecast next year as it was this year. attests unforeseen events, as the year unfolds, may call for more than a slight change on the policy projections released today. additional tightening we have seen over the past couple months, along with signs of weaker growth abroad, and let us to mark down growth and inflation projections a bit. inflation has remained a touch below 2%. i think that gives the committee the ability to be patient in moving forward. as i mentioned, there is significant uncertainty about the path and ultimate ratenation of any further increases. political considerations have played no role whatsoever in our discussions or decisions about monetary policy. we will always be focused on the mission that congress has given us.

our policy decisions are not on a preset course and will change if the material data changes. romaine: for more, let's bring in a chief economist, seth carpenter. when you listened to all of that, what we heard earlier today and now, what stood out the most? what surprised you the most? seth: i would have to say that they came out roughly where they thought -- where we thought they were going to. it's important he continued to characterize the economy as strong. he spoke that way in the press conference. we expected them to unwind a more -- a little more of the guidance and do less adjustment in the dots, but they were trying to walk that fine line between telling people there is nothing preset about hikes coming, but we're still likely to hike. joe: they were pretty clear, powell was pretty clear saying if something happens to the

trajectory of the economy in 2019, nothing is preset. the economy might not be as kind to their forecast. ofonder if he was less clear the justification for current hikes now. policy flexibility aside, do you see a strong answer for when he looks at the economy, why more hikes are needed? seth: there's a clearer way to explain what their position is. the unemployment rate is low. if we get the growth they are anticipate, it will fall further. inflation has got to the target and inflationary pressures will continue to build. it is because of that that they want to hike anticipation of the pressures. pce have a forecast of core staying at 2%. the question is, if inflation is only 2%, why are you hiking? the way he could have explained it in their view if they hike,

that inflation stays at 2% as opposed to going higher. i think that's the disconnect. caroline: and their views seem to be hiding -- hidden in their original statement. what triggers that? is that an indication of the hike and he should -- should he be talking more to that? seth: that's a very important point in something i have not seen enough coverage of. they have a view, and where the longer run levels is bashar, but they adjusted that as well. longer run at that estimate of the unemployment rate in the forecast, over the past couple years, as inflation to miss, they continue to ratchet down the estimate of where the natural rate of unemployment is. what they meanis by data dependence. they have an idea of the way the

economy works, but they have to say of the data is consistent -- have to say is the data consistent with our view? they said it was an unanimous decision, but i don't think most people buy into that. wide i think there is a range of views. i worked at the fed for 15 years, and one of my bosses would refer to the ftc as 19 people who don't agree on the color of an orange. a lot of people say we should get to neutral and stop. others think we are already at neutral and we should not need this hike. some people think you need to go well beyond neutral before slowing things down. i think jay powell's challenge and part of why he wants to dialback some of the forward guidance is that we will get to a place where it is a meeting by meeting basis where he needs to do committee management. joe: does the fed ever get to the point where they look at the under shots of inflation, look

at the fact that unemployment keeps following below where they would, whenought it they look at the fact that unemployment went from 10% to three point 5%, and say maybe we need to not just change our numbers but entire model of what causes inflation in the first place? seth: inside of the fed, for the core of the committee that is driving the decisions, the answer to that would be change the model to what? therein lies the biggest problem. the philips curve is imperfect and anyone who has tried to use it will stipulate to that idea. on the other hand, there is not a better model. a few members of the fomc say we need to throw out it entirely. but that doesn't give you guidance on how to do monetary policy. caroline: german powell made clear that he recognized financial conditions are

tightening, and said we look at markets but don't pay attention to any single one in particular of the macroeconomy. is there a feedback loop here? the more bearish sentiment becomes the more we see the market fall off and we could end up having policy mistakes? seth: i think that's possible. you bring up an important point. conditions have tightened since last meeting, but said they are not particularly tight. this is one of the big disconnects on how the market thinks and how the fed things. the fed thinks in terms of levels, not are we tighter than we were before. that's true, but the market is seeing the tightening in financial conditions and that is what they react to. romaine: they are in for a shock then. [laughter] caroline: seth carpenter, great to get your perspective. ubs chief u.s. economist there. facebook under fire.

washington calls for new rules and regulations. that is ahead. this is bloomberg. ♪ this is bloomberg. ♪

caroline: the new york times reported facebook has allowed hundreds of companies access to it users data. the district of columbia sued facebook. maddie patsy joins us now from boston. you are a shareholder in facebook. is this coming home to roost? do you think they will make the changes necessary to start to make users and investors comfortable with their level of privacy? >> we are certainly hoping they will take action. this has gotten much worse than we thought.

level of the privacy breaches and recent news of the fact that they were continuing to sell personal data to amazon, microsoft, and other tech firms is new information. certainly the aftermath of cambridge analytics in the lawsuit we just saw today from the attorney general from the district of columbia was to be expected that we would see some action taken to respond to that breach. at their being corrective action taken by mark zuckerberg. if he doesn't agree to it, there is a problem getting anything done because there is a super majority control he has. joe: from a valuation standpoint, how much corrective action is needed to lift the stock? could we be close to a point where there is so much negativity that even if they plot along with scandal after it is a cash flow

generator they don't need to do that much. validw: that's a argument. 219.ck is down to 133 from the only thing i would argue is that if we want to get the stock going again and getting to a reasonable valuation, we neither to be corrective action on corporate governance. if we look back and say how did we get here, we got here because there is not a good corporate governance structure here. we got here because mark zuckerberg reports to mark zuckerberg. there needs to be some control system in place to make sure we soe systems in place that there is accountability and facebook. romaine: how do you get to that corrective action for a company that has already structured itself this way? facebook is one of many tech companies that have gone public with rather stringent structures that push out shareholders. thehew: when you have

snapchat example of where there was no votes for the public shareholders, that is one we won't invest in. when there is super majority voting, what we ask for is that there at least be an independent chairman of the board. we have a shareholder proposal before the board right now. we asked the board and mark zuckerberg as part of the board to look seriously at the destruction of value for shareholders and how that value could be restored. one of the ways we would argue we could start to move in that direction is by him giving up the chair role in allowing an independent chair to report -- chair on the board. caroline: we are starting to see high-profile's, people saying they will leave the facebook site. they will still stick with instagram and the like but are moving away from facebook. ofs it have to be a vote those that use facebook to push you out of the stock entirely?

what makes you think from a money generating perspective it is no longer attractive? matthew: we are looking at both the environmental, social, and governance structures as being relevant. in the financial side, we think if the company does not restore confidence with the users, they will start to bleed more and we valuationth this starting to be in question because of loss of users. the valuation is low, it looks low, it will only look on reasonable in terms of valuation if we start to see they start to lose users. we are of the belief it is correctable, which is why we stay in it now and continue to press the management team to press those corrections. caroline: matthew patsky great insight there from trillium asset management.

we will the latest fed hike decision. this is bloomberg. ♪ this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. today, paul ryan delivered his farewell address. down after more than three years as speaker and as democrats prepare to take control of the chamber next month. he called on his colleagues to andinue to tackle poverty address the national debt. he spoke of his accomplishments on the economy and military funding, what it knowledge to unfinished work on several " complex problems." of former attorney general merrill lynch testified today that james comey appeared before

them two days ago. before the democrats take the majority, the house judiciary and oversight government are wrapping up a year-long investigation into the justice department's handling of the probes into hillary clinton email use. republicans argue officials conspired against donald trump as they started a probe into mr. trump's ties into russia and cleared hillary clinton in a separate investigation. california-based cyber security firm area one says hackers have spent years eavesdropping on the diplomatic communications of european union officials. the operation was disrupted only after a surgeons discovered hundreds of in documents flying around the internet. the european commission's vice president spoke to reporters today in brussels. report on alleged

hacking into eu communication a that's communication system seriously, but it impossible to comment on leaks. that noclear is institution or country is immune to this type of attack. all communication systems have on abilities. mark: the associated press reports that california firms cofounder says the hackers are working for china's people's liberation army. spentment he said was based on eight years of observing the group. theresa may disguised -- decided not to respond to jeremy corbyn after he was caught on tape referring to her as a "stupid inside the house of commons. may urged all politicians to take the incident as assigned they should pull back on divisive rhetoric. >> i think we should all be

careful about the language we use. thatarticularly concerned is the year that we celebrate -- -- 100 yearhat anniversary of women voting. mark: addressing lawmakers later, he denied making the comments and his spokesmen insisted corbin had said stupid people in reference to lawmakers on the conservative side of parliament. 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 am mark crumpton. this is bloomberg. caroline:caroline: breaking new. tilray is gaining in after-hours

trading on a partnership act bloomberg has revealed with anheuser-busch. this is another beer, alcohol giant dipping their toes into the cannabis industry. the two companies have been jointly conducting research investing millions of dollars each in a partnership. it is limited to canada. we have seen deals in the likes of akzo corp. and constellation brands getting in with canopy growth as well. joe: all eyes are on the federal reserve. chairman jay powell spoke earlier today after the mon -- meeting. >> i think the runoff of the balance sheet has been smooth and has served its purpose. i don't see us changing that. we will continue to use monetary policy, which is rate policy as the active tool of monetary policy. joe: for more on how markets are reacting to the fomc meeting, we

and brianke kawa chappatta. luke, i will start with you because we saw the selloff inequities around some of the times when chairman powell said we are not doing anything with the rate runoff. or with the balance sheet runoff. how come? why did that catch markets off hard? luke: no one expected any sort of news on the balance sheet today. with the fact do that he said we don't even need to consider this. on the larger point, wall street has been -- the effects of balance sheet normalization even though you could worry about -- say what they are worrying about is more of the treasury issue. they have been given opportunities saying we will have something for you in the fall and november minutes. they never got any clarity for any indication that it is coming. this is coming -- becoming a

lucy pulling the football away from charlie brown on the balance sheet over and over. even though we can't explain the mechanism by which it is happening. romaine: what you make of the moves we saw specifically in the 10 year yield and we had a slightly different move in the two-year? >> it was interesting because i howstruck by the fact that dovish were people expecting the fed to be? they lowered their dots for next wer, and powell said look, don't know what the economy will do. it could be like 2016. projected -- in 2016, they projected for rate hikes. take their hikes to zero, but they could delay hiking it. caroline: how big a deal was going to the 2.7 -- 2.7 into 2.8 level in the tenure? brian: i think it was somewhat significant. long bonds are up as well.

it might be a reflection of the longer rate. falling to 2.7% -- rate dot falling to 2.7%. i think it was a natural reaction. the yield curve will be a big focus going forward. joe: besides the balance sheet stuff, what else got equity traders anxious today? it's a pretty big selloff. this is what we saw in terms of the pattern, is what we have gotten on fed days. especially under jerome powell. it is following the pattern and, with this selloff, jerome powell, according to the spoke investment group, has the record for most consecutive selloffs on the day of a fed decision. possible ways that they may be could have found him more dovish, in the statement continuing to commit to some increases in the plural, it is there in the dot plot.

if you wanted to try to preserve optionality, softening the language around that's a little for, people were looking maybe that's, but i don't think that explains the magnitude we have seen in equities. romaine: why is it so hard for the market to adjust to what powell is telling you. what he said today has not been much different from what he has been telling us all year. luke: i think the market feel sad it is not it knowledge. he didn't say specifically that i saw you fall and i hear you. is one market,t but if you look at the broader financial conditions, i'm not going to say you fall in and i hear you and i will change my course. he says i have not seen it affect the real economy, and because of that, i will not say what i have been changing all along. that was the great part of the statement. the entire first graph,

absolutely nothing changed. all of the angst in lowering the forecast. caroline: one that we will mall on for the rest of the year. kawa and brian chappatta, great to get your perspective. tilray trading higher again. it seems there is a joint venture with $50 million invested by both. from new york, this is bloomberg. ♪

romaine: faang stocks are falling again once again today. for regional banks, they have only risen one so far this month. it's on pace for their worst

year since the financial crisis. here to talk more a little bit more about the performance of regional banks and where we are headed in 2019 is an analyst at kbw joining us from boston. brian, when we had the fed meeting today and we saw regional bank stocks selloff, what is the case to be made for regional banks heading into 2019 given what we know about the fed's rate path? >> thanks for having me on. it has been a tough year for faang stocks -- faang stocks. .he regional -- bank stocks the regional has been beat up by debate. when we look at 2019, we see challenges. the three things for the stoxx is slowing loan growth, we expect 3% loan growth next year. at margins we look which has helped buoy earnings in last few years. we are expecting a fizzling out of the expansion next year.

one,hird earnings-per-share growth, we only look at about 8.5% next year. the trends are not great. pe --ou can say from the the pes have gotten very attractive. i think the reality is that aboutis an uncertainty the uncertainty about what the fed did today and what future rate hikes could look like. i think that is why you see such a weakness in these shares. on the moreg down micro levels, are the types of banks you think can thrive in this environment? brian: yeah. the title of our outlook report was to look for defensive banks that could play offense of too -- offense too. self-helpe banks with levers. can they return capital and can they outgrow their peers? diversified business

model, they could generate outside growth. before bank stocks we are recommending is citizens financial group, m&t bank bank, andn, suntrust zion bank corp. caroline: you talk about one of the hindrances of loan growth and where that goes in 2019. talk to us about what is hindering loan growth in your perspective. how much do we blame on the new lenders on the streets, the shadow banks as they are called. brian: that's a good question. the ours come -- these are commercial banks. the seattle banks that are more syntactic companies, that don't really compete with a large regional banks, we seeing competition from those banks from private equity, commercial loan funds. you're seeing insurance companies. with a search for yield and

credit spreads so tight, there is a lot of competition. half, last year and a probably the bad thing here is that c and i spreads have been tight -- cni spreads have been tight. credit spreads are widening in the market, so some of that might come back to the banks. it will be tough or investors to get comfortable with credit spreads widening out. joe: just to be clear, let's go back to valuations. you said regional banks are historically priced cheap. does that mean you sort of getting compensated at this point for all of these risks you describe, or do they have to get cheaper for you to feel comfortable that maybe the fed can make a stake -- make a mistake. brian: i think we are market perform on the group waiting for the group even though the relative violations for the

group is in the low 60's on a relative basis. the s&p 500 long-term averages 75%. is, when we look at the pe, the uncertainty around the e is the concern. if fed takes rate hikes off of the table, our expectations are for the fed to raise rates to more times this year -- next year, the risk is that if the fed is not do it, they will be 2% downside for each fed hike not in our numbers. growtheconomic assumptions, our baseline is in line with the fed's expectations. if that comes forward, we could see more downside. we don't want bank stocks with too much dependency on rates. can they do something else to generate earnings growth? you findhere we think defensive names that can play often's, even though the sector is out of favor with most in the two shall -- most institutional

investors. caroline: thank you to brian klock joining us from kbw from boston. bloomberg has learned ge has filed confidentially for an ipo. the public filing is likely next spring. according to bloomberg intelligence, the new entity could have an enterprise value up to $70 billion. in london, uber has lost a bid to overturn a court ordering. the court of appeals dismissed the service's challenge today. it's the third time uber has and itslost the lawsuit last chances with the supreme court. that is your business flash update. it's time for smart charts where we dig in with the timely topics with the top technicians. taylor: joining me today is david keller over at sierra alpha research group. really interesting, we were taking a look at the s&p 500 because, from a fundamental speak technicals, when we

about jay powell, fundamentally, he did not say anything in the market yet. almost as if the equity markets from a technical perspective are looking for a reason to sell. walk me through the craziness going on here. day like today, when you have a catalyst that can move the markets in the short-term, it helps to step back and look at the bigger picture, and understand where the day fits. there has been a downtrend in the s&p, and we test support lining up with the previous support in february, around the 25-30-45 level. once we rallied this morning, it almost sounded like wishful thinking. the fed announcement did not give enough of a catalyst. belowu have the s&p 500 to doubt slipping moving averages and that tells us the longer-term trend is negative. if there's any positive, the rsi

has become oversold as of today. it had not quite gotten there yet. when that is oversold, it will not absolutely say the markets will rally, but you could expect a recovery rally. taylor: and being that the 28th's could be a little bit of a boost. they could be perhaps oversold, maybe not. some of the chipmakers like decline.e leading the i want to take a look over here at some of the chipmakers if we can pull it up on the screen. it will be terminal 8738. we will pull up the chipmakers. i don't know if we haven't yet. we will get there. in the meantime, let's me show you some of the rest of the charts we see here. the yellow line was the long-term trend. can you walk me through it for the year and what that long-term trend is that you are talking about? david: as this is happening, you

want to think about all of these sectors, groups, and how they are performing against of this. semiconductors tend to outperform in a bull market. taylor: and we have the chart here. david: as this is rolled over here, it is that a fibonacci level. it tends to be a place where we find a sport -- support. as we have hit support your, you can see the weekly trend , alowing device -- macd trend following device is hitting support there. if this breaks down, that could be a catalyst that says this is more negativity than expected. this is a group i would look at for the overall tell for the market environment. taylor: talk to me about how you the semiconductors are leading the gains. david: if you look back in history, technical analysis charts are all about how history repeats itself. semi-conductors

underperform in a dovish market. a rolloverat we see in relative strength, if we see soon, that could be a catalyst telling you lower lows for the market. taylor: thank you all things smart shirts. that was david keller over at sierra alpha research. caroline: taylor, thank you. coming up, the busy weeks for central banks continues. the bank of japan is announcing their rate tomorrow. that's next on asia ahead. this is bloomberg. ♪ ♪

caroline: the bank of japan is expected to leave rates unchanged on thursday as risks for trade protection, cheaper oil, and others cast a shadow over the economy. when i first logged on to

bloomberg, there was a handwringing going on in japan and the bonds were falling back to negative territory. what to expect from the boj in terms of statement and what the actual decision is? shery: yields falling is putting the boj in a tie position. we saw last week that reducing their bond purchases, sending a signal to markets that they are not happy with yields going below zero, they have this yield curve control policy which is sort of indicating an allowance above zero. and right now that is under pressure because of the situation domestically in japan. inflation is not budging. we not expecting any change at this time. just keep an eye on what the governor of could all the -- kudoda says about the economy. boj, we sort of know nothing

much is coming. we have expected them to keep with negative interest rates, holdings,ases, jgb but it is the fed that will make a huge difference. we saw the bank of thailand raise rates last night. the bank of indonesia is expected to raise rates this evening as well. the yield differentials are not helping those currencies. romaine: at what point does the bank of japan decided wants to catch up with some of the other banks? i'm not talking about the fed but i'm talking about asia and parts of the other -- other parts of the world. shery: i think that's a big question since the governor came into office. there are no indications that he is going to stop there easing policy, and a lot has to do with inflation not budging. caroline: an ongoing problem around the world. a great perspective shery ahn.

catcher with more analysis on "bloomberg daybreak: asia" at 6:00 p.m. eastern. that's all for "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s.. joe: have a great evening. this is bloomberg. ♪ ♪

mark: i'm mark crumpton with bloomberg's first word news. -- with "bloomberg technology." been are times confirmed they are sharing more data than they disclose. and the first big suit by u.s. -- against kim are generally tick up. plus, how door -- went