♪ haslinda: from the pagodas of -- and the high-rises of singapore, from what were the killing fields of cambodia and what is -- to the pulsating heart of jakarta. >> out of 640 million people, you have you have 300 million muslims, 120 million christians, 150 million buddhists, taoists, confucian nests. ists.nfucian haslinda: thailand, malaysia, the philippines, and vietnam. asean is one of the world's most complex regions. >> we have such huge diversity, and such an ability now to create connectivity. haslinda: asean has a combined economy the size of india. the opportunities are massive, but so are the challenges.

doug: the importance of outreach is -- -- >> the importance of outreaches --. haslinda: south asia is a region at a crossroads, and emerging economic powerhouse whose future depends on key decisions made now affect the next-generation. ♪ haslinda: hello, i'm haslinda amin. we begin in thailand, where a little over 50 years ago, asean was born. five countries that came together, fearful of the advance of communist china. a lot has changed since then. vietnam, myanmar, and cambodia joined from difficult times, as the region's economies have been bringing in more than 5% a year for the past 10 years. >> its biggest achievement is to

take the most diverse corner of planet earth, where out of 640 million people, you have 300 million muslims, 120 million christians, 150 million buddhists, taoists, confucianists. and in the most improbable region of planet earth, you produce peace, and prosperity. ♪ >> we have moved a long, long way. i continue to be optimistic. there is always the doomsday that asean has not moved, has not gone far enough. but look at air asia. look at the inter-asean travel, the commerce. it shows we have moved along way, and i remain optimistic. >> different countries have different stages of development. i think it is up to the context of each country.

standardization's might be needed to promote cross-border inflation. it's making sure that the domestic standard of each -- isy is upgradable operator able. haslinda: this is the golden triangle. i am in thailand. that is myanmar. the river flows all the way to vietnam. this area is where the opium trade is one small piece of the puzzle that is asean. that 10 member bloc is made up of different nations, to tiny -- from indonesia to tiny brunei, each with diverse politics, roles, and religion. asean's 640 million people accounts for 9% of the world's population, and its combined gdp of around $2.8 trillion puts

asean on the same level as the u.k., france, and india. >> we have countries that are exceptionally rich, like singapore and brunei. then you have countries that are quite poor, like laos and cambodia. they belong to the same organization. you have countries that are incredibly big like indonesia, with 270 million people, and singapore with 5 million people. that creates a certain degree of complementarity among the asean countries. >> the cost of moving goods i customs, the speed, the single window, has not come to complete fruition yet. asean has to get there quickly or the likes of china will dominate. e-commerce will dominate trade flows. haslinda: is there a sense that asean nations are competing against each other more than cooperating?

>> i think that is a real question, and the real answer is yes. but you see it in china a little bit as well. you get one province trying to compete with another. rivalry exists. in asean, it is national, so it is a little bit more. haslinda: one of the key milestones to the group has been the creation of the asean economic community, set up in 2015. its goal is to create a single market, which is fully integrated into the global economy. >> for trading goods, it is effectively a single market. what we need to work on is areas that need to be managed. i have been working for many years, where we were negotiating the details of this agreement. when i look back over this 20 years, i am quite pleased with

what it has achieved. it is always a question of whether you regard it as a cup half full or a cup half-empty, and i would say it is half full. >> i would like to see a common market. i would love to see freedom of movement of labor. that might be a step too far in 10 years, but if i can get a common market, if i can get common ownership. >> asean should benefit the citizens of asean in various dimensions. financial integration, economic integration. even to have policies toward economic sustainability. the importance of borders, politically and in regions, is fading away. ♪ haslinda: at this time of year,

a huge haze blankets large parts of northern thailand, myanmar, and laos. farmers are clearing their land after harvest, produce is packed this, connecting fme's to the industrial revolution is one of asean's greatest challenges. >> the cost is coming down dramatically. with new technology, we are not only able to provide services to many more people, but also to people in remote areas. what is important now is to have a smart mobile phone, and that is the -- is changing the shape of financial solutions. this has been the secret genius of asean. asean is the most imperfect organization in the world. in fact, when you watch asean in slow motion, it takes two steps

forward, one step backwards, one step sideways. it is like a crab. but when you slice asean decade by decade, it gets stronger and stronger. one of the reasons is asean is very flexible. the consensus principle is a very good principle to have because it is very flexible. haslinda: it is hard to believe that 440 million people in asean do not have bank accounts. that's next, as we continue to explore "asean: the next generation." ♪

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haslinda: welcome back. much of southeast asia has been built by small businesses like these. in some economies, sme's account for 90% of the job. but despite that, the number of unbanked remains huge. 440 million people, that's a combined population of the u.s. and germany together. people often talk about tapping . but that has been difficult. they have been targeting the underbanked. what are the challenges? >> the different dimensions when you talk about people who are underserved, we have to have a clear policy with respect to the type of product and segment we want to promote. for instance, in thailand we have had very high household debt, and it could be certain segments of the populations that are overly debted.

we need to promote responsible lending policies to make sure they get better service at a more reasonable cost, using the technology and not contributing to more problems that would lead to financial issues for them. the solution could also be to help support financial access to the sme. at the same time, the need to have digital solutions and greater access to the financial pool because the better information could be accessed.

>> different company trees have different types of financial inclusion. for thailand, the access to bank deposit accounts. we have more concerns about cross-border payment transaction. the cross-border payment transactions in and out of thailand is among the highest in the world. so, we want to address that, and the think tank can come in and provide new technology and allow new players to come to this market. haslinda: for the traders of myanmar to the rice farmers of cambodia, for businesses in hanoi, manila, jakarta, bangkok, fintech is forging a new future. but the keywords keep coming back -- sustainability, connectivity, and inclusion. how do you ensure that countries like cambodia, like vietnam, are not left behind? beco first, economically we have made tremendous progress.

-- >> first, economically we have made tremendous progress. we have launched this inclusive group program. there are special considerations for cambodia, laos, and myanmar through excess infrastructure funding with the federal rate. there are also special considerations for training and retraining of workers, of providing technical vocational training. those are important practical measures. and the cost structures of these economies are lower and also fueled by asean members. some investors do find them attractive. haslinda: as a company, airasia has embraced digital. with the onslaught of the fourth industrial revolution, how prepared is the region for what is to come? >> i think we are a bit behind, but boy, we are catching up.

when you look at the feet -- the usage of the fiber in the philippines, -- when you look at the fact that tech companies in indonesia, the use of fiber in philippines, the growing amount of e-commerce, and the growing amount of connectivity through mobile phones and applications is not far behind. the thing i keep telling people is, you need scale. you need scale. asean in the tech world needs to have scale. i don't think we are far behind. i think education needs to catch up a bit. we need to reskill people. but i have always been one that asean adapts very quickly when they see the opportunity. but i think we have an opportunity to leapfrog if we can adapt a few things. >> i think the integration among the asean members has been very significant, and leads to

significant change. [indiscernible] haslinda: in terms of financial integration, how difficult is that, given that the 10 member nations are all at different stages of development? >> because of different stages of development, they are complementary. in certain countries, like singapore, thailand, and malaysia, we are in excess. other countries are also in need of money. i think we can support each that we are complementary to each other. >> fintech can improve connectivity. there is big room for improvement, and technology can

play a big role. fintech can help initial -- enhance financial inclusion in the region, because the cost of servicing segments of the people, we are coming down substantially using fintech. haslinda: so, can nations, different cultures, languages, and religions all at different stages of development. but is there an asean identity? we will explore that next in "asean: the next generation." ♪

♪ >> asean in its first 50 years has been a government to government project. it is a government to government

cooperation. now, we have got to create a greater sense of ownership of asean among the people of asean. and here, i am glad that the asean countries have copied the european union practice so when you go to london and you go to the asean mission, they have the national flag and the asean flag. haslinda: is there an asean identity? a lot of people we've interviewed have been divided. >> i don't think there is. i have been promoting this for a long time. haslinda: why not? >> i think, what does asean it mean to the common man? that asean needs to work harder at. does asean affect the common man? probably, the common man would think asean was a threat than an opportunity. >> is there an asean identity? there is a lot of work going on. it runs in parallel with our efforts at financial integration, economy integration. but as trade and investments

increased and tourism increases, we will see a far better understanding and appreciation of asean. haslinda: is there an asean identity? >> in a sense, yes, we are 600 million people. we have diverse languages, cultures, and identities. we are relatively easy-going andle on the other hand, this is to the advantage of how we can work well together. haslinda: it is not just identity. mobility across borders is one of asean's biggest challenges. labor, goods, and the flow of money. here, people come across the border from myanmar every day to work and trade in thailand. but often in asean, borders represent barriers. -- barriers to business.

♪ >> we have another 3 million myanmar workers in thailand, but it is costly for them to transfer money back to myanmar. there are a lot of traders who do a lot of trades. it's very expensive for them to receive money and pay money to countries along the border. fintech can come in and improve financial inclusion. haslinda: one of the issues is labor crossing borders. how do we resolve that issue? how can we have standardization? >> it is a sensitive issue because the free flow of labor is not in the cards, because you have different levels of readiness for that. there is change at certain

levels, in certain professions, you can see it. there is a big pursuit. the labor market is at different stages of development across asean. it is important to focus on how we can integrate the economy through trade and goods, through investments. if we are able to generate good growth, the people in each country will have good jobs. >> the other thing, we work with central banks in the regions and have seen a very good progress is on promotion of local currencies for trade and investment. two years ago, we promoted -- [indiscernible] -- for trade and investment opportunities. last year, bank indonesia joined in. we had a tri-party arrangement. this will help narrow down the foreign exchange rate between the local currencies and also provide choices for business

people in the regions to minimize their foreign exchange rate. haslinda: depending on where you live in asean, the bloc's future looks very different. for the big companies and the big cities, it is not only access across asean borders, but also to the global market. for that tens of millions of small to medium enterprises, it's access to any market. workers want to get work where they can, and parents want to educate their children. that is the reason asean is known as one of the most diverse and complex regions in the world. what is your vision of asean for the future? >> i think we hope that asean remains a safe, prosperous place, and so we can each improve the well-being of people living in asean. all of this work we are doing on

economy integration, financial integration, fintech, and so on ultimately has one simple aim, to improve the well-being of the people in asean. with that, i think we are connecting peace and prosperity in asean to contribute to the global peace and prosperity. >> i think with respect to what we are seeing in the western we see more and asean , with greater wealth generated so there will be more demand and diversity, greater segmentation, and in certain areas, wealth management will increasingly be significant and important. >> i think asean should realize within itself what are the strengths and what are the weaknesses? some countries have very strong ability to do certain things, and other countries have difference. singapore will never be an

agricultural giant. it has very strong financial infrastructure. i think each country should not try to replicate everything, but see where they have the niche. >> we have a lot of economic activities. we have a lot more common problems that we need to deal with, and technology will blur the boundaries across countries. so we need to think in terms of creating within opportunities to promote growth and to promote sustainable prosperity for asean citizens. >> i think asean will be much more careful and pragmatic to control flows of labor. and already, if i am not mistaken, millions of indonesians work in malaysia. singapore has got 1.7 million foreigners working on this small island.

thailand gets a lot of workers from myanmar coming in. there is movement of labor, but there will never be a kind of freedom of movement that you have, for example, with the european union. my dream for asean is that it will continue to stay together and not break apart as a result of the u.s.-china rivalry, because if there is one thing that keeps me awake at night it is worrying how asean will survive this incredibly intense u.s.-china rivalry that is coming in the next 10 to 20 years. ♪ haslinda: the mekong river flows for more than 4000 kilometers. the main artery is connected to the rest of the world. but times are changing fast. massive infrastructure projects and digital revolutions are creating a whole new picture.

thanks for watching "asean: the next generation." ♪

>> uber stores. totalked the rocky ride going public. how the european legislation given an unfair advantage to american firms? a bombshell op-ed saying that the social network is too big for its own good. will the regulators really have an appetite for breakout? -- breakup? we delve into the regulatory challenges around the globe.

>> the us has fired the latest shots in the trade war president trump wants to restrict huawei access to telecom market and american suppliers. the president signed an order declaring a national emergency relating to threats against communication technology. the administration has branded huawei a security risk. -- the administration has determined imports of cars into the u.s. are a threat to national security. officials argue that it hurts the mastech automakers and their ability to invest in new technologies. the leaders of france and new zealand have joined with the largest platform to stop hates speech. this comes after the mosque

shooting in new zealand. the tears posted racist manifestoes online and live streamed his rampage. >> thanks. debuted on the new york stock exchange on friday after the ipo priced at 45 dollars per share. even at the lower range it was the biggest u.s. offering since alibaba in 2014 and promised to join the rank of tech titans. two days later the stock lost 18% of value and investors started pointing fingers at morgan stanley. why was the most hyped ipo of 2019 consigned to become a wall street flop? let's discuss with the founder of moonshot ventures and the former uber head of public policy for india, and the capital market partner at linklater. price -- was the ipo price set to aggressively?

>> i don't think it was set to aggressively? as often with ipo perspectives, of the riskot think factor part. there are a lot of factors that will influence in uber's future. the essential thing is that uber is the enterprise of a generation, a global business that gives economic opportunity to millions of drivers and passengers. it is shortsighted -- the shorting of the stock is shortsighted. i think that it was priced conservatively. i think that the problem is lyft before uber and uber is a uber is business where a global enterprise and 65 countries, moving people, food, and freight, and in the future moving other things around cities. i think it was priced conservatively and moderately.

i think the future will show that the price of the stock will go up. nejra: i've a lot more questions for you. i imagine you hope that the stock will go up because you are an uber shareholder, previously working for the company. a lot of investors already owned pre-ipo. uber according to bloomberg's reporting even some in uber's leadership began to view this round as more of a follow-on investment than a fresh public offering. is this something that regulators could/should take issue with? >> there is a regulatory side to creating it. passed byhe jobs act congress made ipo's easier, but easier for companies to stay private longer and have more private shareholders. this was viewed as a benefit because it enabled companies to

stay out of the public spotlight develop a track record in business plan before they went public. maybe people have gone too far, and there's always a balancing act.if you look back to 2000 in the first internet boom, companies were clearly going public too early. maybe now companies are going public too late. maybe we have to peel that back. i do not think there is a regulatory solution. i think the market will take care of that and bankers and companies 10 go to their xl spreadsheets to figure out the right timing for an ipo in the life of a company. interesting point to find that balance, the market has to find the balance. there is a great bloomberg opinion piece ahead of the ipo in titled "what is wrong with the ipo market?" on the traditionally require disclosure from uber, which

confirmed billions of dollars in annual losses, people pointed to the great unknown. itague picture of how intends to achieve earnings that could justify its valuation. how will uber's business model win investors, other than yourself, over? mark: quickly coming back to the previous comments, with the jobs i movedimpact on ipo, from the management of the new york stock exchange to uber. the too soon, too late, there is there.eligion the founder of uber wanted to push it as far as possible because he wanted the employees to focus on building the company and not be refreshing their internet feed every hour. a lot of people needed to be rewarded for the hard work they have done over the past 10 years. readnk, and we have all

you reallyspectuses, when you havetand mobile technology the ability to interconnect a city, millions of people in every urban space.once you have them interconnected and you can push a button and get a ride, there are so many other things you can do. you can order food, make sure that food is fresh. medication to elderly people. i think that the future of uber is connected to the future of development of technology. vehicles,utonomous though that is a big part of it, but the sky is the limit. uber is the leader globally. there are a few regional players. lyft has no international operations.

i'm not concerned about the post-ipo dip. if you go back to the history of ipo's you will have shocks and see that the company has flourished.i think that in uber did not have relationships with banks until late in the day. appointed a cfo late in the day. when it uberap decided to go for an ipo and the ipo happening was arguably way too short. nejra: levy come back to you. the other thing mentioned other in the opinions piece was cool class structures and why that may not be a great set up. to be fair to uber it did not l classa due structure, but others have. is the challenge some set provisions in which the extra voting rights which creates an will class of shareholder expire after a certain number of years?

jeffery: duel class have been around for a long time and founders like to maintain control of their companies. you need to let the market rather than the regulators because if you prohibit them from doing it it will definitely have an adverse affect on the volume of ipo's, because people need to make -- there are a lot of founders who are not willing to relinquish control to the extent that a single class of shares will do it. some tech provisions and various mechanisms are all useful tools people should be trying out in the market. if investors are focused on control, they need to speak with their wallets. i think the answer to the market generally has been companies can discipline themselves.

american investors, unlike investors in a lot of other jurisdictions, have the ultimate disciplinary tool, post dip litigation. at the end of the day, if they do not like what they see, there are ways of getting what they want. i do not think a regulatory solution to the duel class approach is the right solution. nejra: great conversation, gentlemen. we could carry it on forever, but we have run out of time. thank you. great to have you both on the show. ofwas present at the start facebook and now he wants the company that he cofounded to be broken up. why chris hughes is speaking out a possibility a breakup of facebook is. this is bloomberg. ♪

>> there is a growing recognition that the wild wild west days of social media companies is coming to an end. is makee need to do social media responsible to americans using their platform. >> when you look at the big picture in the digital

advertising space, with the fcc allow chase or goldman sachs to own nasdaq? the answer is absolutely not. >> i'm a big believer that when you start regulating a lot of bad things can happen. wera: that is some of what have heard from u.s. politicians regulation. facebook's cofounder chris hughes has called for the company's breakup saying that the social media giant has become too powerful. he wrote in the new york times that mark's influence is staggering. mark has surrounded himself with a team that reinforces his beliefs instead of challenging them. to break upy facebook resides with the federal trade commission, and facebook's settlement over the cambridge analytica scandal could be announced soon. our tech lobbying reporter in washington.

thank you for joining. the breakupwith issue. how feasible is that from a process or policy standpoint? question. is it really possible? it faces a lot of hurdles. the foremost line is that the ftc has to convince a judge that this is the right thing to do. if you are going to spin off instagram that facebook required, there will be more competition and consumers will off.tter those are difficult questions that are essentially speculative. there will be a lot of appeals. it would probably go all the way to the supreme court. you would basically be asking the question, was facebook trying to eliminate a competitor? that would be difficult to prove that they knew how far instagram was going. the white house has also

been urging the reporting of social media political bias. it has been tweeting on this issue. is content regulation close? to theen you talk company they don't see that content regulation is close despite the forum that the white house put out. they often see these sorts of moves by the white house to report political bias as political. at the end of the day the u.s. government cannot force a company to have a particular political view or say something or not say something. they are do not think facing content regulation in the united states beyond what they're already is. is.here already they do see regulation worldwide, especially around terrorist content. the horrible video of the and thingsh shooting like that. they are reconciling themselves

to that kind of regulation, i think. nejra: what are senators talking to about in terms of privacy legislation and any time frames around that? ben: that is what we think in terms of tech regulation is coming most soon in the united states. been reports that a privacy bill from this key group of bipartisan lawmakers on the senate commerce committee was a's or weeks away. senators yesterday said it is probably a little further out. not before june, maybe a little later. within weeks we will be looking at a bipartisan bill that would be putting in place a new privacy regime in the united states that would increase consumer control over their data, and give them insight on what is collected, who it is shared with, the ability to have that completed or corrected. they're working out how you will treat small businesses, a key issue in europe.

out. are being worked nejra: what can we expect in terms of the cambridge analytica scandal and any sign that facebook -- any fine facebook might have to pay? ben: facebook is looking at $3 billion to $5 billion and part of the settlement will elevate privacy to the board level, increasing responsibility at the top brings of the company. that could be coming any day now. nejra: our tech lobbying reporter in 10. it is great to have you -- in washington. great to have you with us. european fund managers are being hamstrung by mifid ii. playing in then hands of american fundraisers? this is bloomberg. ♪

is bloomberg markets: rules and returns. the european union's new legislative framework was supposed to benefit continental clients, but it may have put the ball in the court of competitors according to analysis. u.s.-based asset managers have outperformed rivals who i paid for research themselves by a significant margin.

we are joined now to discuss the spending onsearch fund performance. it is great to have you with us most are thank you for joining us on the show again. this note from ever core, they called it possibly the most self-serving research note ever. fundeuropean asset managers lost out to their competitors? >> we can point to the evidence. we look at 3500 funds running $16 in assets. in 2018 there was a break and relative performance in favor of the u.s. managers, which stood out against prior year's. it appears there's some evidence this is the case. nejra: talk to us about things that happened below the surface. >> mifid ii placed restrictions on the ability of managers in europe to pay for research. that resulted in budget cuts for

european managers. that didn't happen in the u.s. in 2018 is the first year we got the big differential in spending. nejra: is there a chance that u.s. could move towards rules like this as well? unlikely.eems the highest probability outcome is to have this potentially permanent regulatory diversion between the u.s. and europe which will call into question returns going forward. nejra: the point for mifid ii was to benefit clients. talk about the dynamic between asset managers and asset owners, and if regulators have this righ t. that the interest in asset owners and asset managers should be linked. the asset owner owns it and may have been positioned to some degrades after series. we don't think that is the best way to look at it. the other thing that needs to be examined is the cost of

research, two to five basis points, is overwhelmed. inthe study that we did 2018, the average between the first quartile fund and forth quartile fund was 1400 basis points, so clearly that's a vast multiple of the research spending that regulators were seeking to save. nejra: you suggested that managers who used client money spending three to six times as much on research man p&l managers depending on the category, does that mean they get better research and better performance? and moree research information. the three to six times might be three to six basis points against one upon return variances of 1600. they could have a massive impact on the information made available to the asset managers to make asset decisions. wasa: the point of mifid ii to increase transparency when he

came to the issue of research spending. has it done that? neil: it hasn't. the widespread move to. now by european managers means that they have no regulatory requirement to talk about changes in research spending. tha -- to those that use client money, they have to be transparent to their clients. --ra: there's the unattended unintended consequences, which you are hinting at, and the spending transparency which has been reduced. is that a negative for clients? he creates uncertainty, because they will not know if the strategy they are invested and has the same research access it did historically which probably generated the returns to cause them to buy the product in the first place. they need to ask questions to get assurances that the dot plots they thought that they bought into is still existing. nejra: also research has shown

that in terms of cost under mifid ii there is wide variance. numbers from $1600 to $1 million per client. if you are on the buy side asset manager looking on your p&l or finding ways to pay for research at other ways, but has been the most effective way to get the best research for your money? neil: very difficult. it depends on the strategy, and different strategies have intensities.earch we think the u.s. funds that have greater spending flexibility spend less time trying to figure this out. they just get what they need and can make decisions more easily. nejra: we are violated the issue, that we have seen underperformance of european asset managers versus u.s. competitors, the unintended consequences that research transparency has been reduced. what needs to happen to maximize

long-term investment return in a demographically aging society which you say was the objective of mifid ii? reset asset owners and managers should collaborate. it is not who should pay two to three basis points, it is how do we give that strategy to generate returns of hundreds of thousands of basis points? collaboration is key. nejra: thank you for collaborating with us. that is it for bloomberg markets, rules and returns. if you have questions or comments you can emailed the team. this is bloomberg. ♪

♪ david: so marriott itself started in 1927. root beer stand on 14th street. david: it was a big story that a non-marriott became ceo. arne: i've worked with marriott for the 23 years i have been at the company. david: the mini bar is the same thing, pringles and toblerone. arne: we figure sooner or later, the government will say that is a balanced meal. out, theyn i check want my credit card again. arne: they shouldn't need that unless there is something deeply suspicious about you. david: that could be the case. that could be. >> would you fix your tie,