paul: welcome to "daybreak australia p are cohen australia." here are the top stories we are covering for the next hour. law is clear that i have a four-year term and i fully intend to start it. rebuffse fed chief white house criticism and says he will finish the job.

jay powell is also losing patience and is ready to cut. the dollar fell against most major peers. the s&p 500 is near a record. xi jinping heads for historic talks in north korea. beijing says its influence on the divided korean peninsula remains significant. kathleen: we are starting on the bond market because that is where we saw the action, really saw the reaction to the federal reserve's decidedly dovish turn. side of your screen, you can see the big move down. we had the 12 basis point drop in yields. 1.74%. , jim bullard,ove president of the st. louis that, saying the fed should cut right now, today, really putting some fire into treasuries. as for stocks, your all-time high for the s&p 500, these are

not big gains, but these are gains, nonetheless and we have seen s&p futures pointing to a .it of a decline if you look at fed funds futures, that that is they could definitely do it as early as the july meeting. how about this playing out in asian markets. the stock rally brother looks at the rally continuing in to follow the fed's dovish stance. banks of japan, taiwan, and indonesia are seen holding steady. we also get r.b.i. minutes and the speech from the governor phil low. kiwi shares extending gains at record highs. in the commodity space, we are watching oil markets after wti fell below $54 and gold training at 18 of-year high as the fed moves closer to a rate cut -- gold trading at a two-year high.

on to ourlet's go tictoc stories of the day. the federal reserve held rates steady, as expect it, talking uncertainties in the economic outlook. chairman jerome powell says they are not ready yet and as always, it depends on the data. >> we take the cross currents as a given. we have our tools. we react to anything in principle that could undermine our achievement of our dual mandate goals as worthy of our forntion and can call policy response. kathleen: let's look at the fed. the does not seem like a done deal yet. that was such a visual sign of how the fed shifted. if we look at the screen, we can go back to the march meeting,

the last time they updated their summary of economic projections. the vast majority was saying we don't know what happens, hike or cut, they are staying neutral, staying steady, we still see a bunch in the middle saying we don't know what happens yet, but you have one fomc member saying a 25 basis point cut by the end of the year and seven looking for 50 basis points. one big move or a couple small ones. how compelling is the message for you. >> i think the message is clearly we are getting more dovish, but at the same time, the fed avoided signaling july rate cuts. at this point, i don't think it is a done deal, actually. if we get some firming in the data and we see some progress of trade negotiations, the fed might actually avoid delivering insurance cuts altogether. i think it is not a done deal yet, and they stressed that while they are dropping out

patience, data dependency is alive and well, so they will just follow with the data says. paul: more broadly, what could rate cuts realistically do to help the economy? >> that is a good point. i would say not much, at least not much to help the real economy. if you look at consumer spending, it is doing just fine. consumers are doing just fine. housing, it is doing as well as it could and lower interest rates might not boost home sales much further. auto sales have picked for the cycle -- pizza for the cycle -- peaked for the cycle, and i think lowering rates at this point will not help auto sales.

the economy has done as much as it can at this point in lowering interest rates will not do much. kathleen: when jim bullard was what a 25w weeks ago basis point cut would do, he said it would show the public we are serious about boosting inflation. jim bullard is the voting fed member who dissented and said the fed should cut now. what about inflation? >> will it really helped ? flation -- help inflation it will probably help stephen the yield curve a little bit, but at the same time, will it really helped the 10-year? i don't know. i don't think so. it is not what we are seeing right now. muchcan try signaling as as they can, but i don't think it can boost inflation that much. that is not what we see in inflation expectations. probablynflation will

be very slow to move higher. kathleen: it sounds like the fed may be slow to move, too. we will see how that goes. let's get over to chicago. we will bring in beyond call -- bianco research's president. i've been talking to people who have said this is the most thesh they have ever seen fed make and others saying how dovish could it be if the consensus is not looking for a rate cut. what do you think? >> this is the way rate cuts happen. there's an old saying in the market that the fed decides when to hike rates and the market decides when to cut rates and the market has decided to cut rates. usually, the economist and the fed are dragged screaming and kicking into a rate cut in the market is dragged screaming and kicking into a rate hike. this is how it happened in 2007. this is how it happened in 2001. i will push back a little bit on

what elena said. she said it is not a done deal for july. the market has priced it at 100% for july. the only thing it is debating out is if it is a 25 basis point cut or a 50 basis point cut for july. if the fed disappoints on those type of arts, it will not be -- if at the end of july the fed disappoints on those types of odds. kathleen: what about the trade , what if a deal looks like it is coming together? the market takes out the cut, the fed does not have to go, but 2019 has been the story of the market has decided to play its cards. it will decide when the cut is coming and it has been browbeating the fed for months now and dragging down the consensus of economists. if we get to the g-20 and there is a handshaking deal done,

maybe we get some of that rate cut out of the market and we can adjust accordingly. we have been here before. we were days away from a deal that was probably 97% done, these were the phrases we heard and then it fell apart after that. we will have to see if there is a deal and then we will have to see if the market actually believes it. remember, we have mexican tariffs called off, and it did nothing to change the outlook for a fed cut in the subsequent week or so. .e will have to see paul: to your point about the market shoving the fed into a corner, we do have a chart on the bloomberg that illustrates this, showing that the market has already baked in basically 50 basis points of cuts for the year. is there going to be any benefit from this apart from a short-term sugar hit? >> that's always the question, where does it matter.

the stock market is within 1% of its high. it is definitely getting a boost from that. that should translate into consumer confidence. consumer confidence and business confidence, for that fact, have always been highly correlated to the stock market. neuheisel always made people feel a little bit more confident as well, and there could be a wealth affected -- new highs have always made people feel a little more confident. if their actions push financial markets up and that gives confidence and wealth, that should help the economy. paul: i just want to get your on the fed's dual mandate -- maximum employment, stable prices. does that still make sense with the fed lowering its inflation target? >> i have always thought that the dual mandate has been a bit outdated and congress should step in and update it a little more. right now, i don't think there is a strong relationship between unemployment and inflation. what i mean by that is there are economic reasons for

unemployment to go up and down and there's economic reasons for inflation to go up and down, but they are not the same reasons. >> what does mr. bullard see? what should he be focused on? compared to the other dots that are seeing the move, maybe even a hike this year? >> i will push back a little bit powell that even jay said those who saw no rate cuts are definitely leaning towards it. i think it is a lot closer than just one guy against eight. i think they were very close to going today, but they see no inflation, they seek no inflation, they see no

inflation, and they see global growth weakening. say it,ay, if i did not there's no inflation, and i do think that is a driving factor. it was with mario draghi yesterday with the ecb on stage and it is with the fed today. kathleen: i do think they had to cut that inflation forecast. stay right there. we will continue this conversation in a little bit. we will have more analysis on the fed's policy direction in the next hour. we will be joined by a former philadelphia fed president. paul: plenty more to come on the fed, but for now, let's go to first word news. su: we start with the united that saudiing arabia's crown prince's potential role in the murder of jamal khashoggi should be investigated. it says there is credible

evidence of high-level saudi liability including the crown prince. saudiggi was killed in a consulate. the u.s. navy has presented what it says is evidence of iran's involvement in the apparent attack on oil takers in the strait of hormuz bearded says it has recovered a magnet that was to attack a mind, but the navy stopped short of directly blaming iran and offered no evidence about a second alleged tiger attack that took place the same day. into the downing of a malaysian airline's plane over ukraine five years ago has identified four people it says responsible for shooting down the aircraft. blame russians and ukrainian citizens. international rest once will be issued next week and court proceedings will begin in the netherlands next mark --

international arrest warrants will be issued next week, and court proceedings will begin in the netherlands next march. two candidates left standing in pay of the vote for the party's grassroots members. global news 24 hours a day on air and at tictoc on twitter powered by more than 120 -- one and 2700 journalists and analysts in more than 120 countries. i'm su keenan. blackstone's chief tells us what president trump wants out of trade talks and u.s.-china relations. kathleen: and jim bianco gives us his worldwide outlook next.

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asia,from the fed to central bank divisions from japan to the middle east and indonesia, plus the bank of england also set to release policy decisions later in the day. let's bring back jim bianco. i want to return to a point made a little bit earlier. when it comes to cutting rates, they're kind of is a law of thereshing returns -- kind of is a law of diminishing returns. >> let's ask the ecb. they are at -40 points and mario draghi opened the door to going deeper. it's a question. how low can you go? i would have thought -40, -10

was already beyond the limit, but a cap -- apparently we can go deeper than that. doubt it will be very effective and it could be very detrimental to the banking sector, but it looks like negative rates are going to be the order of the date and even japan andive than europe. paul: negative bond yields as well. take a look at this chart on the bloomberg terminal. a number of countries, you pay them. what is this telling us? is this even rational? >> it's hard to understand negative yields, i will agree with you. it is indicative of the environment we are in with central banks easing, with inflation nonexistent, with deflation present in some places in the world and that we are in

maybe a new permanently low interest rate environment, when i mean new, i mean it is 10 years old now that we have an in these kinds of environments where high interest rates have a handle on them in normal might have a one or zero handle on them, that has essentially been the last 10 years. kathleen: the bank of japan governor told me he does not expect to have to do anything, but he could even be like draghi , do whatever is necessary. cutting negative rates more -- is that really going to help any central banks with their growth? >> i don't think it will help at all and i think it could be detrimental. it could squeeze your banking squeezeard and could all kind of dislocations in your capital market when you start having negative interest rates. i think the harm that they do outweighs the benefit of it. if they think lower interest rates are stimulative, when they get to zero, keep going negative, it is forever stimulative, but when you cross a zero, the game starts to change quite a bit.

i would refrain from going more negative, but you could expand balance sheets. you could buy assets, which they could do more yield curve control. kathleen: how important is this , particularlyfed emerging markets that could use a little space? are right about that. with draghi's speech yesterday, the ecb, the fed, the boj are all expected -- at least the markets are pricing in a rate cut for the end of the year. you can throw in australia and new zealand. they are also expecting rate cuts and canada is hitting close to expecting a rate cut, too, so monetarynchronized policy is back, and it's back on the dovish side that everybody is looking to cut rates. while we don't have measures of it, the people's bank of china is talking about stimulation and usually when they talk about

stimulating, they have already done it at that point. they are also on the dovish side as well, too. bianco research thank youjim bianco, for joining us. there's a round of stories to get your day going on bloomberg daybreak. it's also available on mobile and the bloomberg anywhere app. you can customize your settings so you only get news on the that youd industries care about. this is bloomberg. ♪

kathleen: now for a quick check of the latest headlines, airbus back with new orders for its latest single aisle plane. it now has eight customers including a 50-plane order from american airlines and another 50 budget carrier, indigo, taking overall demand to

above 200. can connect to destinations that have not been seen as cost effective. hall: harley davidson plans to rev up sales in china by writing with a local company to raise its appeal. it is working to develop two new models which may also be offered in thailand and indonesia. kathleen: elon musk is putting a on lines that a customer can have any color as long as it is black. tesla is applying the same business model but choosing white instead. it will cost buyers $1000 extra to have a black, blue, or silver tesla. and a $1500 if you want pearl white and $2000 if you want a multi-coat finish in red.

: former white house candidate mitt romney is trying --prevent president trump the senator has submitted an amendment to the national defense authorization act. let's get details now from our washington reporter, greg sullivan. how far can romney actually go on the blacklist over the president's objections? >> senator romney submitting an amendment looking to lay out preconditions before while they can be removed from a blacklist. president trump has previously described quality -- described huawei as a national security threat but also raised the possibility he could include lifting them from a blacklist in any kind of trade deal. senator romney is just one of several senators who are critical of the president's

handling of huawei, but there is some question as to how far they can go. one, other senators will have to get behind the proposal, as will several house members. congress until now has been reluctant to try to clawback trade towers from the president, so it would kind of be a surprise to see that happen -- congress has been reluctant to try to claw back trade powers from the president. romney and the president have shared some competitiveness in the past, so hardly a surprise to see this push now. kathleen: several u.s. ceo's will meet in beijing. of all that is going on, what should we take from this particular engagement? >> several u.s. ceo's including those from now and honeywell -- dow and honeywell are going to china to meet with the vice premier. this comes right before president trump will be meeting with the g-20. trade talks broke down last may,

as you remember, and several administration officials tamping down expectations for progress. it is hard not to believe that these companies worry about becoming collateral damage, so the meetings are somewhat understandable. again, definitely highlights what could potentially come up out of the trunk-xi -- the trump -xi meeting next month. tech companies are coming under increasing congressional scrutiny. this hearing will be about their ability to self moderate content, specifically terrorist content, but also mince information, but it is part of a broader pattern of congress scrutinizing techs companies over topics from content to their sheer size. tech giants have been trying to push back more on congress, so the hearing could be ground for some fireworks with watching.

kathleen: always loved watching fireworks. thanks. facebook'se more on foray into cryptocurrency. sheryl sandberg discusses the timeline for libra in an exclusive interview right here on bloomberg. ♪ i don't know why i didn't get screened a long time ago.

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so why didn't we do this earlier? life line screening. the power of prevention. call now to learn more. paul: 8:30 a.m. here in sydney. the open 90 minutes away. future pointing a little higher at the moment. kathleen: in new york, it is 6:30 p.m. and you are watching "daybreak australia." let's get right to first word news with su keenan. thanks, kathleen. we start with the federal reserve which left rates on hold but is indicating an increasing readiness to cut for the first time in decades. chairman jay powell talked about the uncertainties in the outlook . the fed also dropped a reference

of impatience on borrowing costs and is forecasting a larger miss on their 2% inflation target. firmly committed to our symmetric 2% inflation objective and we are well aware that inflation weakness that persists even in a healthy economy could attest -- could precipitate a downward risk and long-run inflation expectations. u.s. trade representative robert lighthizer said he will speak to his chinese counterpart ahead of meetings with president trump and xi ahead of the g-20. the talks are being touted as a catalyst to prevent -- potentially revive trade talks. >> when actual negotiations begin again, i cannot say at this point, but we are talking. we are going to meet, and, you same objectivehe that you and the other members have, and that is that if we can

resolve these issues in a way that improves this relationship, preserves it, the competitive advantage of the united states, we have an obligation to do that. su: apple may be planning to move some of its production chain out of china. it is asking its largest suppliers to assess the cost of shifting output from the mainland of southeast asia. the nikkei sites double sources including assemblers of the iphone, macbook, and ipod. china manufactures most iphones and ipads and is apple's largest international market. google shareholders use the annual meeting of parent out for that to protest a range of issues including rights for contractors and the company's business in china. management is being asked to scrap noncompetition agreements and to install an employee representative. google news 24 hours a day on

air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. paul: thanks very much. let's get back now to how the fed decision will play out. 's patiencehe fed mean for outlooks around the globe? >> it has gone another step along the path that mario draghi opened earlier in the week and that is rate cuts galore. a rate cuts as far as the eye can see. we have a chart we want to show you that you can see that markets are now betting on average central bank rates in to drop backing towards just about the lowest it has ever been, which was in 2016. you can see the way that there has been an accelerating decline

in the expectation for where that rate will be. there is a good chance that corona today will make some similar noises at the boj. no one things he will cut rates, but with the japanese bond yield , it is hard to see how he can really push back and if he doesn't push back, he is getting pushed through that rate cut door as well. we also have the rba governor speaking today as well. that the fed's stance helped drive the dollar up, the rba is going to have to continue to be dovish and if they do not cut rates next month, they will have to make it clear they are planning on doing so in august. otherwise, you will see the andralian dollar above 7% they do not really want that. kathleen: they are being pushed by this concern about week growth and week pmi and i think is they arection

cutting because growth is weak, what kind of rally do you get out of that? do you know what i mean? >> yes, very much so. it is this growing disconnect between what is going on in the bond market and what is going on in the stock market. a lot of people have been citing 1990's emergency cut the fed has which rebooted the expansion. if you just get an emergency cut that turns things around, great. otherwise, as you can see, and if you look at this chart for a range of markets, you see something similar. the asian pmi has been coming down. asian stocks came down with it and right around the beginning of this year, which was when you have the dovish tilt from global central banks, stocks went up. they have come off a bit now and are going back up. is to do with rates. the other part is to do recently with some revived optimism for trade and in a lot of ways, i

think that will matter more. no resolution on a trade deal but we get central bank rate cuts, then look out, stocks will go down. if we get rate cuts plus a trade get, then we would likely some serious gains in equities. kathleen: that is a good equation, i like it. love the charts, as always. thank you so much. and do not forget to check out --g live group era for some one else who likes to watch charts, let's go to sophie kamaruddin. sophie: we certainly like our charts here. we are keeping an eye on iron ore miners, very much in focus. rio tinto cut its output target. these events are a double whammy for the us trillion minor and morgan stanley said the guidance .ut is a small negative for rio

we are also watching coal in the wake of a few re-ratings. the stock was downgraded to sell at morningstar while morgan financial maintained its call. long-term benefits are seen for remain amidadwinds higher energy and labor costs. n,omura ahead to japan omuraoking head to japan, n is in the news. much.thanks very blackstone's ceo says next week's g-20 talks will be very important in working towards the resolution of a trade war. he told bloomberg that president

trump's tariffs mainly are a negotiating tool. >> what i think the president is looking for -- and i'm not his spokesman on this, but what he is looking for is basically equivalents in terms of open trade. and tariffs and there is not a real desire to entrench the united states in some way. it should be fair competition. all of these issues that are being used as tactics, if you will, are done to bring people to the table so that you can get to equal. so the best products win, the best price wins. if the u.s. loses, so they lose. if the u.s. wins, that's good, but i don't think there's another agenda, so it's really just an evolution as developed market countries like china get to parity.

don't mean to interrupt, but this is really, really important. people don't know that you have also given not only to m.i.t., not only to others in america and now at oxford, but you have donated substantial money toward the education of china with the schwarzman college. you are a great listener of the leadership of china. what are you hearing from the leadership of china as they go to g-20, as they deal with this president? what is the nuance you can give us right now? >> this is sort of a time when things are somewhat impenetrable . the negotiations that have been going on basically were stopped ofthe chinese side, and each the two countries, as you've seen -- and we've all seen -- seems to be bifurcated, going to and scaring the

business community and creating .n adversarial situation that will continue unless it is .hanged by the two presidents the meeting in japan is quite important because they have the ,bility to reset expectations which were quite close but for some reason just sort of disappeared. if that can be put together in terms of framework, then the trade negotiators can go back to work and perhaps get something done. kathleen: that was blackstone's ceo speaking on bloomberg earlier today. next, a look at what may be on pkk andda of the

chinese when they meet for the first time in 14 years. next. ♪

jinping isdent xi hailing a new chapter in relations with north korea at the first visit to pyongyang by a chinese leader in 14 years. implications the with shawn king. xi on his way to north korea. why now? is there anything significant about the timing? >> who really knows. we will not really know what happens behind closed doors. i expect there will be talk about sanctions easing. publicly, i think xi will approachim's go slow on diplomatic relations with the xi,, but also, i think for this is a convenient way to

change the subject from what has been happening in hong kong. people in the mainland are not seeing it, but maybe some of his rivals within the party are. does that get hong kong office tv screens of the world? and each time kim has met trump, he has first checked in with xi in person. i fear that maybe on a win -- on willnn -- on a whim, trump boot on up to meet kim. we will see what happens. paul: in terms of sanctions busting, we have a chart on the bloomberg that shows chinese exports from north korea have started to rise again. it does illustrate the importance of china to north korea. is norths of things korea importing from china and how significant is that? >> coal, petroleum, and china

and russia yesterday at the united nations blocked u.s. attempts to slap north korea with new sanctions for going over petroleum limits, but it's not just what it exports to and from mainland china but what it exports through mainland china. north korea is a multinational criminal enterprise through which it acts as the chinese market-- the chinese acts as customers the world over and most of the good stuff we probably do not even know about. without china, north korea is out of his this, so the fact china is opening up the taps again is very worrying. kathleen: i want to jump in with breaking news, for once, a positive surprise on growth out of new zealand. gdp unchanged for the quarter. annualized, up 2.5%, larger than the fourth quarter gain of 2.3% and larger than the survey at 2.3% as well. people were concerned saying household spending has been lower and hiring momentum seems to have slowed.

hand, investment maybe was a little more flak than people thought it would be and at the same time, commodity price growth has been recovering , so in the end, a nice upside surprise. interestings very president xi said he would go to north korea and get the focus off of hong kong, but is he trying to show one more card he can play with donald trump? saying, "look, i can influence his either way." >> i don't think so. from the first bush administration, beijing is trying to downplay its influence in north korea because they think we expect to much of them. beijing is always trying to say they cannot control north korea, this is a u.s. problem, you deal with them directly. kim.nts trump to talk to they want normalized relations because they want to keep north

korea around and keep a u.s. ally office border. hiss not trying to up play influence. if anything, he is trying to downplay it. i don't think trade is that important in the geopolitical sphere. xi can walk and chew gum at the same time. trade, security is security, if anything, security trumps trade. kathleen: what does this mean ? r kim jong-un you just said north korea was a criminal enterprise masquerading as a country. >> that means his chief enabler is willing to back him or keep him around. north korea and china do not like each other. or centuries, koreans resent being a tributary state to china. the korean war cost china taiwan. it is an annoyance, but they need each other because china wants to keep a u.s. ally office border and north korea wants to stay around. comes to pyongyang, it

means he is going to get another ally, at least for a year or so. -- china wants to keep a u.s. and northts border korea wants to stay around. why would kim ever get rid of nuclear weapons? >> i don't think he will. most north koreans know south koreans are richer than they are but one thing they have south korea does not is its own nukes. it is a matter of intense internal pride beyond whatever strategic advantage there may be versus the u.s. i have never expected kim jong-un to give up his nukes. i think they are just stringing us along, trying to extract concessions and trying to weaken the u.s. commitment to the korean peninsula, which all too often trump hinted he might be open to win he talked about downplaying u.s. south korean military ties. in mind, whatt

could president trump realistically hope to get out of all these meetings with kim jong-un? >> nothing. kathleen: that's not very much. when do you think president trump drops this? do you think he finally does? does he do it before the election? >> i think after the election because if he loses, it does not matter. if he wins, he does not have to worry about reelection, but he will keep pushing this to say, "i've done something no other and badmouth done" his predecessors and try to be a peace broker. i think he will at least keep 2020going through the election. kathleen: is north korea ever going to make any kind of a deal with anybody? >> no. kathleen: why? >> they cannot. they need to stay on war footing to justify their existence because there is a wealthier, larger state next door. if they are not at war with us, what reason do they have to exist? i wish i had better news.

kathleen: always good to have you on to talk about north korea. many thanks. looking ahead, watch as live and see our past interviews on our interactive tv function -- watch pastve and see our interviews and become part of the conversation. you can send us instant messages during our shows. it is for bloomberg subscribers only. check it out on tv . this is bloomberg. ♪

paul: quick check now of the latest business flash headlines. oracle jumped in late trade after sales topped expectations and returned to growth. revenue rose more than 1% to $11 billion in the quarter through may, slightly ahead of forecast. forecasts came in ahead of estimates. oracle is trying to maintain its customer base as it competes .ith rivals in the cloud space

it recently announced a tie up with longtime rival microsoft. kathleen: xiaomi is digging deep to compete with huawei, landing expansion of its retail network over the next three years. we are also told it will spend money on growing distribution channels and on reward programs for partners and sales employees. the growth comes amid expectations while way will redouble its efforts in china after being blacklisted in the u.s. -- expectations while way -- expectations while way -- will weions huawei double its efforts in china after being blacklisted in the u.s. paul: slack is forgoing the traditional ipo route choosing to trade directly on shares and head. arm ofor capital bloomberg lp is an investor in slack. kathleen: let's get to a story we discussed briefly yesterday,

facebook's foray into digital payments with its own cryptocurrency. it could be facebook's biggest growth project in years, but regulators in washington and europe are already voicing concerns. facebook's chief operating officer outlined the next step in the social media giant's growth. >> it is interesting when you think about m&a because instagram is so big now, but had we bought instagram, it 13 employees. i remember when the announcement happen and some of the banks called like we are here to do your integration work. i'm like, well, we have already given them a batch edit computer. we're good to go. but instagram was small. we will see what happens with him in a. we're certainly not in the market with big acquisitions, but a lot of the acquisitions we made were not big at the time. caroline: and they have become enormous platforms we know well. topical right now, i'm sure most of you know crypto

in the audience. i'm not banking on everyone having used it, but the libra exactlyment -- what will he do for those in the audience. how are advertisers going to use it as well as the consumer base? -- what exactly will libra do for those in the audience? >> we have not announced it, and even once we do, we are pretty far away from advertisers using it. we are a technology company, obviously, but one that wants to bring everyone along. peoplevision was to give voice all around the world. the idea you could give people boys who have never had it before -- there are four feet -- 4 billion people in the world who do not have access to the internet. that is something we have worked on. one billion people in the world who are not connected to the financial system, but let's talk about what that means. that means if you have a dollar, you have nowhere to keep it that is secure and, not a surprise, that for everyone but particularly bad for women.

there are 100 million women in the world who are sending what is called remittances, remittance payments home. that means most of them are leaving home, working so they can send money back to their families, and they are paying huge fees and 20% more than men. we want technology to help everyone and what we announced yesterday as the formation of a global association, the libra association, it will be based in geneva. we have 27 partners like paypal, mastercard, vodafone, spotify, uber, lyft, real companies as 's ands in geo -- ngo nonprofits. what we would like to do is help there be a new currency that is more inclusive. we are a long way from launch, but this was an announcement of what we would like to do with a roadmap for people to jump in and help us do it.

caroline: so your immediate response to the regulatory scrutiny, we have already had maxine waters and plenty of congress people speaking out about how it should be halted. mark warner saying the doors are open and our minds are open. this earlier.d all we have done is published a white paper and announce the formation of an association. that's because we know we have a lot of people to work with. we know this is a heavily regulated space. we need to talk with people and meet with people and that is what we're doing. we are then going to launch. was facebook's sheryl sandberg speaking exclusively to caroline hyde. fascinating conversation. there is plenty more still ahead. we will speak with a former philadelphia federal reserve resident who was cautious on any rate cuts back in march. find out where he stands now after the fed's dovish tilt today.

: we will also be live at bloomberg's by side for. subscribers can follow that right now. ♪ hey! i'm bill slowsky jr.,

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good morning. we are under one hour away from the market open. >> i'm kathleen hays. >> i'm in hong kong. welcome to daybreak asia. paul: the top stories this thursday -- >> the law is clear i have a four-year term and i intend to serve it. paul: the fed chief