i'm kathleen hays in new york. i'm yvonne man and hong kong. loans, a major problem especially in asia. the asset ratio is the highest among major economies. the country's biggest bank say things could get worse. >> classifications of those eq accountsnts -- eqr will happen. there could be a few more accounts that start showing risk mainly because the growth in demand we were talking about does not come back, so to that extent, there might be more accounts that my insurer little stress, but what will make the difference is our starting resolution process, which we had hoped would be, you know, quite advanced by the time. we had worked on resolution in many ways, but we have not been able to bring closure to many of these issues, mainly because some of the provisions currently available to us, they are not sufficient for us to do the kind need toutions that we do, so we have been talking to the government about it, we have been talking to the regulator about it, and had it not been for the demonetization, i think you know by now, those provision

kathleen hays from bloomberg. i want to try to take the opposite side of this -- on this question about expectations -- market expectations, and how the market got things wrong, and you said the fed clarified what it already said, but for example, if you look at the atlanta fed's , it is downracker to 2.9%. the consumer does not appear to be growing in the first quarter, underscoring a wait and see attitude you mentioned. if you look at measures of labor compensation, the you noted in the statement they are not moving up. some of these you look at, and you yourself have said in the past that the fact that is happening is perhaps an indication there is still slack in the labor market. what happened between december and march? low.s tracking will -- the consumer is not picking up very much. fiscal policy -- we don't know what will happen with donald trump, yet we have to raise rates now. what is the motivation here? the economy is so far from your forecast in terms of gdp, why does the fed has to move now to? -- now

economics and policy editor kathleen hays has a bit more analysis. why were investors feeling so relieved, but more so what yellen said? >> i think it is a combination. as you know, the rate hikes, , wellrate hike advertised. one fed official after the other, including fed chair janet yellen, saying things like a rate hike in march would be appropriate, the case it gotten more compelling. because the fed had raised its key rate in december, the first time in a year, and three months later -- we seem to be suddenly making sure that everybody realize, hey, we are hiking rates in march. we are looking for three rate hikes, right, and the market is looking for two, so it gave them room to raise more over the year and because the fed rate the key rate and the fed is close to objectives, but janet yellen did not go beyond that. that is why the market was somewhat relieved. let's look in terms of what janet yellen was talking about, the fed being close to their objectives. it is a bloomberg chart that shows employment and the inflation rate, but the bottom

kathleen hays has more. let's go back to kathleen who was speaking with eric rosengren.een: in a nutshell, what is making you so worries? excesses, a potential bubble. is something they could hit the banks and the economy. what is it? eric: valuations are quite rich in terms of the capitalization rate for commercial real estate. it is low by historical standards. much lower than it has been over the last 20 years. if you look around boston, there are an awful lot of buildings. you can see if you lookhind yourself you can see a bunch of frames right there. it is an indication that we are starting to see a pretty opulent commercial real estate market. there are leveraged institutions that provide lending. now it is not just banks doing it, not just large banks. it is small banks as well as large banks. people from new england remember the late 1980's and early 1990's when that recession was primarily driven by commercial real estate. it started in new england and hit the mid-atlantic states and went to the west coast. that was a situation where falling real estate prices h

our thanks to kathleen hays, tom keene, and joe weisenthal.t wraps up our special coverage of the federal reserve announcement, "the fed decides. would you miss and the market closes next. the dow up 122 points. this is bloomberg. ♪ scarlet: we are moments away from the closing bell. "what'd you miss?" .reasuries rally i'm scarlet fu. joe: if you are tuning in live on twitter, we want to welcome every our coverage weekday from 4:00 to 5:00 p.m. eastern. rates bythe fed raise 25 basis points this afternoon, as had been widely expected but it was a little more dovish than a lot of people anticipated in terms of its production for future rate increases and projections for economic growth and inflation. the take away for everyone was, the fed is sticking to its gradual path of rate increases. all systems go for equities and bonds. morethey could have made hawkish language. all they did was the height. everything else was pretty stable so investors took that as being pretty dovish. in terms of industry movers, it's a pretty broad advance. a 108 poi

kathleen, thanks so much, kathleen hays. yvonne.ht, the payments market in china is worth five point $5 trillion. the biggest such market in the world. the potential to be highly lucrative for companies, but despite that, and despite having the backend of china's biggest abdel pay is facing an uphill struggle. lulu chen joining us on set. why is apple not doing so well? u: apple is is not comparable to where ollie pay and we chat pay is. you look at apple's own iphone sales, not doing so well either. toy 9.6% of smartphone sales account for and also in terms of shipment, it drops last year, so combining that with also the local competition, all the pay and we cap pay have 60% of market share, so it really is an uphill battle for them. yvonne: it is all-encompassing, some of these chinese payment systems, but let us talk about the different systems. how are they different apple when you compare alley pay and we cap a? codes and scanning you can use them on any mobile phone, but the devices nfc's are actually more expensive for the lo

editorbal economic kathleen hays is here. we got here so quickly, but why is everyone so certain? : a jobs report, but not thebig monthly job report, adp service jobs report, which comes two days before a blowout. in fact, it is the biggest number they have posted in three years. jump into the bloomberg with me. you will see a white light. that is the adp jobs. the blue line is the government jobs report. you can see how they have been tracking each other pretty closely. not exactly on the number, but in the direction. when we get the jobs report on friday, the idea is it could be as well.than forecast in fact, goldman sachs now has a forecast of 215,000 compared to the bloomberg forecast for 200,000, which was 190,000 before this adp report. morgan stanley raised their forecast to 250,000. what is interesting is -- let's take a look -- interest rate projections. look at march, now up to 100%. if you go to the middle column, go down three, it is 47.9, almost 50% probability that in june we get the next rate hike. that is why we saw the bond market in the u.s. push prices down. as 2

kathleen hays is here, and kathleen, it has been a remarkable few days.as yet all -- yellen essentially establish the hike or does she have wiggle room? kathleen: we know she has paved the way for a hike, but let's in thiso what she said speech. we can all decide finishing left wiggle room or not. meetingllen: at our later this month, the committee inflationate whether and unemployment are continuing to a ball line with our expectations. thedditional adjustment of federal funds weight would be appropriate. kathleen: if they do, an increase of the funds would be appropriate. in thate heading direction unless we hit a disastrously bad jobs report. that kind ofg raising when we talked about her speech on friday. as you can see, the market is all but there. on friday inlose terms of calculating the odds. if you look at the midpoint of the feds range. 94% cotton the -- 94%, not 100%. jumping.ayrolls are i will so you a great chart. payrolls gains over the past year or so. the yellow line is a six-month average. on hundred 83,000 -- 183,000. isn if it pulls bac

that is me speaking with kathleen hays.n also be part of the conversation, send us instant messages while we are live on tv. this is for bloomberg subscribers only. .heck it out at tv coming up, brexit moves closer, article 50 expected by the end of this month. it might have enormous implications for the union. we will talk more. this is bloomberg. ♪ much: the u.k. economy is closer to the european mainland than america. so if the euro strengthens, that could be a catalyst for the to move more and the direction of its fundamental value. itthe duration over which will take to implement brexit probably means we will not see any dramatic shifts in sentiment as a result. has beenity data reasonably strong, and we have a basis for a more positive view on the area despite some of the political challenges, dutch elections, french elections, or brexit, so i don't think anything changes. brexit in some form at some point. nothe u.k. markets have done badly during this uncertainty, far better than anybody i know would have predi

let's bring in our global economics and policy editor, kathleen hays. she has more now.sy week for you. let's look at england, mired in exit uncertainty. a more hawkish tilt has emerged with that one defender yesterday. >> a little hawkish chirp, not that strong but it caught attention around the world. there were two bank of the -- bank of england policymakers dissenting. with stronger data or different conditions, maybe it could lean in that direction, as well. overall, there was no change in the policy tools. a neutral stance on the economy. dissent fromf this a christian forbes, one of the members of their monetary policy committee, and hints in the minutes, this could be possible white people got this sense. boed other members of the follow christian forbes in this direction? i want to look at one thing to focus this discussion. she is looking at the expectation that inflation in the u.k. could move above target. 4. have a chart for you, 609 it shows you that cpi is close to the 2% target. we are showing that u.k. wage growth is rising. this is interesting. you have

let us discuss all of this with our global economics and policy editor kathleen hays, who has traveled down to the sea to cover this fed decision, but first, let us talk about theresa may and brexit, kathleen. kathleen: this is big news as the week gets underweight. to -- underway. opposition from the house of lords. they had to bring amendments that would have put, allowed them to put their stance on the brexit bill that theresa may presented according to the u.k. supreme court. it was the house of commons today that rejected the house of lords amendment. they said that -- they sent the bill back to the house of lords and it looks like the house of lords backed down very quickly, dropping the amendments and getting theresa may the green light. she can go ahead and start triggering brexit. the next step of course, actually, the queen will sign the bill. she gives her oral ascent, i should say. theresa may then -- her royal assent, i should say. theresa may then look at the lisbon treaty. the talk is that the last week of march will be the one. theresa may is able to start concentrating

kathleen hays, the stakes just got higher. kathleen: they certainly have. has to be choosing her words so carefully. you have another fed official speaking this evening in new kong,this morning in hong and that his master from the cleveland fed. she speaking to college students about leadership, so we are waiting to see if this panel is someon -- if there eager finance student listening, we want to know about the march rate hike. you're going to be our plant. we will have reporters from all over the world pestering her with questions. we will bring you whatever she says. j powell spoke earlier in new york. prettyfed governor who's dovish. after saying a couple weeks ago, i think a rate hike is beginning to be more appropriate, and he said, the case is coming together. it is fed speak. it stronger than it was. close to our mandates we had been in a long time. the case for a rate increase is on the table. we don't need to guess about what the market reaction is. if we jump into the bloomberg terminal, we see that showing you a pretty picture. if you want to s

policy editor kathleen hays here with more. now but thisight will be at most a two-year process? thleen: at most. some say it could take three or five years or longer. divorces, those who will do well are the lawyers. saidsa may's brexit letter she wants a special relationship with the european union. the president of the european commission said, we already miss you, britain. you mayude juncker said regret the choice one day. we just spoke with a professor of economics who is also from the u.k. he said the u.k. will regret it because and a lot of ways it does not make sense. >> essentially what the people want is to have your cake and eat it. to thet all the access markets that you currently have, you do not want to pay the money, and you do not want to have the immigrants. it is like on my golf course. if you pay money you get the play. if you do not pay the money, you do not play. there you go, golf thing and exiting the e.u. are very much the same. another analogy to divorce, the e.u. is saying to the u.k., we want our divorce settlement before you leave the european union, be

kathleen hays joins us with more.y not quite as strong as the adp employment report suggested. there was a net gain of workers in the private industry, which of course is the vast majority, everything but government jobs. u.s. payrolls, by contrast, are seen rising by 200,000 in february. as you can see from this chart, that's a very respectable number , not as strong as january, but the six month moving average is 183,000. it is well above that. other signs of strength -- for example, average hourly earnings, that is a measure of paychecks. that is supposed to rise 2.7 percent year-over-year from 2.5% in january. the unemployment rate falling to 4.7%, down from 4.8%. saying afteready the adp report there's 100% probability of fed rate hikes in march. look --is going to also issue its summary of economic projections. it lasted did it in december. that's when they got the dot--- when we got the dot-plot forecast for three rate hikes this year. the market will be turned into whatever we get and whatever janet yellen say

kathleen hays has been keeping track of his talk. he's finish now? kathleen: yes.t is very clear he is one official and they are not just watching the u.s.. they are being led by u.s. develop, inflation, and economy. so all of this volatility that we could be seeing could impact the united states. he's also watching and seeing the forms that are that could boost growth. we are nearing full employment 2% we are nearing the inflation target. let's listen to what he is saying. >> we should be gradually and patiently removing accommodations as long we continue to make progress. when we said publicly your point about the balance sheet as we make further progress, get further along in removing these accommodations, there's a point at which we should start taking steps to allow the balance sheet to gradually run off. kathleen: brexit. we talked about brexit. as long as it is confined to u.k. it is not a threat to the united states and the rest of europe. ,e is watching the u.s., china high debt levels and the low gdp rate. all of these are things that could cause market v

guests.us now, our kathleen hays continues with our coverage here.rprised by this lack of a hawkish tilt? a little surprising. but when you look into the data they are more confident about their three to four rate hikes forecasted this year than they were in december. that is despite the fact the forecast in this -- is the same. the economy is performing at what the fed. it would. so it can act now on the idea that it will raise rates. -- this is something it failed to do in recent years. we see it come to fruition, in reality. kathleenwitters to covering the fed conference for us, you raised some issues with janet yellen about, is the economy doing that well? let's dig into the numbers. i know you dug into that with her. you alyssa did this response from yellen. there is noise always in the data from quarter to quarter. but we have to change our view of the outlook. we are on the same path. we have not boosted the outlook, faster growth. we think we are moving along the same course we have been on. to losenk you got her her cool a little bit, which

kathleen hays is in washington, and she will bring us that announcement.h us, richard arida as well. now joining us from the trenches of rbc capital markets, tom porcelli. readas you know, i love to your work on wages and the linkage to the fed. give us an update on wage growth, and particularly wage growth giving -- given rising inflation. stealing toe -- something we have been talking about, and not something we expect will abate anytime soon. we could have the philosophical conversation -- is it the right level, should it be higher, and that, alone, is fine, but the reality is wage pressures are here. we expect they will continue to build. again, not to the point where it will change the consumption dynamic and united states. we are still looking at 2.5% of consumption for the next year or two, but it is enough to continue to, sort of, support the narrative. tom: greg peters says you are right, but he says with it we will see an inflation left. that ahave confidence nominal level of wages will stay out front of rising inflation, or do we have a real ris

kathleen hays, let's start off with the rbnz holding its key rate, not a huge surprise, but why?naled it widely. the head of the rbn, graham wheeler, said last month that he sees the key rate staying where it is for another couple of years. here is what he said in a policy statement where the rbnz cap there record low one .3%. monetary policy will remain accommodative. numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly." he has also said that it is just likely that the rbnz could raise its key rate as cut it. the fact that he said that bank would also like to seek a weaker new zealand dollar because that would help their gdp get stronger, you might think he would be ready to cut, but economists don't link so. far away from that 3.5% he would like to see in the second half of the year. no cuts, even though that could help boost new zealand's exports. chance of a move from the philippine central bank today? well, there are two economists who follow this in our recent bloomberg news survey who are looking fo

joe: that was bloomberg's kathleen hays with james bullard. and up next, u.s.y wilbur ross criticizes china as one of the most protectionist countries. this after -- before trump meets with xi jinping. we bring you that. this is bloomberg. ♪ scarlet: david gura spoke with wilbur ross earlier today. he began by asking whether the white house plans to work within the confines of the world trade organization. >> the world trade organization been in being for a long time, and there is modernization needed on some of there processes. also, their mindset. if you read their annual report, it describes almost universally anything by way of countervailing duties or any sort of trade remedy as protectionist. it does not talk of some of the ideas that the reason there are more trade cases is that there are more countries practicing violative behavior. so i think their attitude, their mindset could use a little refinement. david: we are expecting a review of china's market economy status in a few days. what can we expect from that review? wilbur: i don't think it is quite

yellen said that when taxed by kathleen hays on this point. they got going on gdp.ain 2.8 or 3% gdp? what did chair yellen see that others don't? >> kathleen's question, a very good one, was preference to -- prefaced with the observation that less than 1% is pretty low. now, this number is uncertain. look at the new york fed's now cast. it is above 3%. this is a huge gap. the new york fed disagrees with the atlanta fed. why is this? the atlanta fed is looking at hard data. the new york fed is looking at the survey data. look at the isn for manufacturing and nonmanufacturing and it is almost off the charts. it has been lined with more than 3% growth now. there is some disagreement. tom: dr. hooper, to get this started, the idea of ben bernanke, anna schwartz, milton freeman, did you ever see this debate in fed history or is this original territory that chair yellen is on? a we are coming out of historical. for the fed. zero interest at the zero bound. a vastly expanded balance sheet. this is an unusual situation, no question. growth is at a historic low from a supply

we have the policy editor kathleen hays with more. no change from mario draghi so why did we see that bounce in the euro? >> mario was so still delivering a message that was somewhat hawkish and very ish and-- was so hawk somewhat dovish at the same time. sides for thedown economy especially because of global practices. the ecb will continue quantitative easing until at least the end of 2017. no move in rates until the quantitative easing is starting to end. mario draghi in the press conference said we changed our latest statement and report because it there was such a sense of urgency about the economy. very important that mario draghi said he is not convinced that this headline rise in asian -- in inflation in the euro area. you will see two lines, the blue line is headline laois and it is just over 2% so it is just above the ecb target. , out fore line drips food and energy, it is core inflation and it is at 0.9%. mario draghi look at that answer is what he said. mainly aeflected strong increase in annual energy, in unprocessed food

kathleen hays is here to go through all of this. till a little bit of wiggle room if we get a bad number on friday? kathleen: i think it would take a very bad jobs report and maybe even inflation that disappoints the day the fed meats and has to make this important decision. let's let everybody judge for themselves. let's listen to what fed chair janet yellen said in chicago on friday. >> at our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations. in which case, a further adjustment of the federal funds rate would likely be appropriate. nohleen: well, there is doubt that on friday this left many traders convinced that it is all but certain the federal reserve will make that move on march 15. let's jump into the bloomberg and look at world interest rate projections, wirp. 94% if you calculate what the fed funds futures market is calculating, considering they may move that up to 0.75% on the key rate. is it likely? let's take a look at what payrol

kathleen hays there for us in new york.ary of state raising the stakes when it comes to north korea, rex tillerson saying the policy of strategic patience is over. we look at the implications. next, where to find returns when volatility is up. we have investment advice from cmc markets. ♪ i am rishaad salamat in hong kong. you are back with "bloomberg markets: asia". singapore listed as rough holdings has filed for bankruptcy. ofhad been facing weeks hostile action from creditors as it struggled to recover. says its assets are worth $1.3 billion. ownedors say they are half that. shares are down 70%. the stock has been suspended since march 15. rishaad: deutsche bank expected to raise $8.5 billion as it asues 690 million shares at 35% discount to the close on friday. deutsche bank announcing the project on march 5 two boost growth and shore up finances. john cryan said he did not want tapap shareholders -- shareholders. yvonne: proprietary work is expected to begin on the carmichael mine after given final governmental approv

kathleen hays is here with more. as we mentioned last time, let's start with the rbnz. i think it is important to keep watching because there is so much volatility in currency markets and inflation rates you can see the dynamics each bank is focusing on their own economy and policies. rbnz keeping the key rate at a record low, 1.75%. they are watching what is going on internationally, even if they watch what is going on domestically with prices. here is a statement from the "bloomberg daybreak: asia governor graham wheeler, monetary policy will remain accommodative for a considerable period. particularly in respect to the international outlook. he said that a number of times. policy may need to adjust accordingly. another thing he singled out, the currency, he said a weaker key we means a stronger gdp. -- lessget left expensive. let's jump into the bloomberg chart 1731. the yellow line is policy ray, it came down three lot -- three times in 2016. the blue line is the new zealand dollar. it is down from peaks around 2014. climbing in 2016. itomberg intelligence says is no

kathleen hays is in washington for us. great to have you. i think you just exhausted the list. i don't have to add to it. on wednesday, later today. i am here in washington. it is coming tomorrow. away, thee, hours probability, according to fed run traders is that it is possible. you will see a line depicting how the odds, the probabilities of the rate hike were flat, and then suddenly boom. themselves started changing their language. they said march will be a live meeting. the president said that the case is more compelling. janet yellen said it would be asropriate to hike the rate long as jobs and inflation keep moving in the direction we expect. here is another bloomberg chart. ithis is moving down. it is comfortably between 4.5% and 5%. you have corp. ece. it has plenty out -- plateaued. honesty, we will really have to look for the drama in the dots. the fed projections on the economy and raised on those projections, where interest rates are going this year. how many hikes we might see. >> it is surprising we will get the hike tomorrow. f

to let out fully told kathleen hays, curbs will need to be sustained to remain above the five-year average. he thinks markets are not that confident. take a listen. >> it is our objective, and doing what we do, the fundamental. saudi arabia is driven by supply demand balance. flows,ging investment making sure that global inventories are back to where they should be. in terms of long-term averages. that's where i have my eyes focused on. of course those factors are not ones that can be easily managed. we have to monitor, there are too many variables at play. we are on course, the fundamentals have significantly improved over the last few months. fluctuate up and down. there are other factors like speculators and financial investors. take a long and short. the currency also. think looking at the fundamentals, i am satisfied that we are moving in the right direction. also my colleagues from other producing nations have been cooperating with us quite nicely. i think we are on track. or weekly, fluctuations in price do not get my eye off the board as far as looking at fundamentals. have true th

was the saudi arabia energy minister speaking to our very own half lee hayes -- kathleen hays.nd if you would like to read watch any of the interviews of the day, also watch some of the charts we have used, you can watch us live on tv and look at the bloomberg functions we used in ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. yvonne: a: 30 in singapore, halfway -- half an hour away the market.aking of we are seeing breaking news with an increase of the oil production -- oil exports rising over 20%. take a look at china's imports in dollar terms, that jumped 30 percent in february. south korea as well, exports february.n all signs are very positive. this gets the first world news with paul allen in sydney. global trade coul

we going kathleen hays. the time where it is the 60th anniversary of the treaty of rome this weekend, but not much of a celebration. there certainly was not on saturday, but theresa may will send the letter and trigger brexit. this wednesday, -- trigger brexit this wednesday. [please stand by] euros of that the u.k. have to pay first, that could be a big point of debate, the u.k. saying we want to keep them out of the report. back and forth that has always started on that, but younger is saying we need -- jean-claude juncker is saying we need to do this, so other countries that want to leave, they know there will be a cost. this minister of sweden for trade and affairs, she said this could backfire, the ultimatums the u.k. is already putting down on brexit. better noheir mantra deal than bad deal is not such a good idea, and here is what she said over the weekend. she said the hard line will backfire, damaging the u.k.'s chance to get a good deal from the u.k. -- see you, and they and they cannot get the ben

kathleen hays is right here with more on this.irst to the g-20, to what extent is this communiquÉ water down and is it a win? win foru think it is a the g-20 to remove anti-protectionism statements from its communiquÉ, then it is a win for the trump administration. bloomberg reported that this was in the works. what they would be pushing for it the g-20 summit here it if you want details on what that means, then you are in the wrong g-20 meeting, because that is not what you got from steve mnuchin and his team. said.s what they many people said this was water down and the result of back-and-forth. >> we are working to strengthen the contribution of trade to our economies. >> i guess that didn't and know i anybody, so i guess that's why it work. here is what steve mnuchin said. we believe in free trade. we are one of the largest markets in the world. we are one of the largest trading partners in the world. trade has been good for us and good for other people. having said that, we want to re-examine certain agreements. from thes a g

. >> kathleen hays from bloomberg. i would take the opposite side of this because, this question about market expectations and at the market has got things wrong and then how you say the fed clarified what already said. for example, if you look at the atlanta fed latest gdp track with first-quarter it's down to 0.9%. we had a retail sales report that was mixed. we had upper divisions -- revisions make it look better but the consumer does not appear to be roaring in the first quarter. can he underscored the wait-and-see attitude you just mentioned. if you look at labor compensation you noted are not moving up. and, in fact, there is so may think you look at and use of headset in the past that the fact that that is happening is perhaps an indication there still slack in the labor market. i guess my question is this. in another sense what happened between december and march? gdp is tracking very well. measures of labor conversation are not threatening to boost inflation in type faster consumer is not picking up very much.

david: that was saudi's energy minister talking to our kathleen hays.seeing something in the markets we do not usually seen. where you have both of the equity space in japan and the yuan down. is at the beginning of a decoupling between the currency and stocks in japan? what explains this divergence? there was a breakdown along money relationships. they areok today, down. theyu look at the topix, have gains but moved in opposite directions. this year we have seen a different pattern coming. the yen is playing less of a role in influencing if their stock market moves. the global economies are picking up. the signs are good for japanese companies. domestic demand and consumption is improving. that is a helpful boost that is upsetting the moves. the yen strengthens. the yen, bad for equities. >> yes. yesterday, the boj governor said there are still downside risks. a downside for japan. there is an issue there. generally speaking, people who i have spoken to are expecting gains in the topix and nikkei this year. >> one of the consistent topics we have heard

peso -- thankican you so much, kathleen hays joining us from new york. continue our central-bank discussion later this morning with a the philippines central bank. that is after the philippines chose to keep rates on hold at a record low of 3% while cutting its inflation forecast. .hat interview coming up malaysia's central bank will crackdown on currency fixing. they will implement new measures by january to further curb speculation. chief international correspondent for southeast asia is on this story. do we know what they are planning? >> banks, beware. they will name and shame any wrongdoer and disclose the penalty amount. they say it will be very strict. banks have been told about the new measure. it goes into effect next january. they are trying to ensure ringgit security. it is of the worst performance in asia giving the dwindling reserve. it is harder to intervene. dropped.es have at the end of january, it amounted to $95 billion down from $140 billion four years ago. some are expecting overseas investors to be spooked. we saw what happened in de

kathleen hays, thank you. we are looking at the business of banking in asia. this is bloomberg.reak asia." >> abn amro is one of the oldest banks in asia during it sold its regional business. a change in asian strategy for abn? haslinda: a tweak in the strategy. it is pretty strategic. i spoke to marine. it is good to have you with us. abn decided to get rid of its management business. what is the focus of the bank in asia? >> the focus is the bank. we have several businesses. it is very industry focused. we have commodity and we have a clearing business. that business has been steadily growing in the past few years. haslinda: industry growth, where is it and where will it the? >> the asian numbers are included in the global growth numbers. since we started from a smaller base, we have been expanding geographically. last year, we opened a branch in shanghai. we have a long history in asia. shanghai was very strategic for us to help our clients, especially with natural resources. it made sense to have an offshore in china and on the ground as well. in tokyo, in australia. in aust

. >> let's go to kathleen hays at the federal reserve in washington. >> federal reserve raises .enchmark% the president in minneapolis said he didn't want to hike the key rate. hikes this year, but it is a stronger consensus. >> we continue to respect that the ongoing strength of the economy will warn gradual increases in the federal funds rate to achieve and maintain our objectives. >> what did you learn in the press conference? >> not much. we learned that janet yellen is the perpetual dove, even when rather hawkish in terms of full employment and employment growth and stock market at an all-time heat. -- peak. i don't think that is inappropriate, i think because of the higher leverage in the u.s. economy and global economy, the global banks have to proceed in a gradual way. she is a dove and that is why the markets reacted as they did. kepte bank of dubai unchanged today. they are maintaining the pace of asset purchases. how much creative can governor kuroda get? he decides to cap at 10 year yields. what does 2017 bring? >> he probably feels that the ball should be in the court of the

kathleen hays is here.irst to the g-20 here, and what extent is this final communique really a win for the secretary of treasury? what a weekend. you had much more to do than watch mark redness. -- march madness. ramy: there was a lot of pushback. the person went over to germany to meet with his counterpart talking about trade and always issues for a long, long time. he is new to the secretary position, and all of the positions have not filled in. bloomberg news had already reported that the u.s. was going to get the g-20 to drop its anti-protection warning from its statement. the new statement includes this much water down sentence. we are working to strengthen the contribution of trade to our economies. that is the most it could come together on. here is what the treasury secretary said about the u.s. position on trade. >> we believe in free trade. we are one of the largest gets in the world, one of the largest trading partners in the world. trade has been good for us and good for other people. having sai

tracey: that was saudi's energy minister speaking to bloomberg kathleen hays.ng in hours correspondent. -- our correspondent. --may be true that saudi a and russia are saying it is premature to extend the cuts. as and was pointing out, it looks difficult. how confident are you that they are going to be where they need to be? >> it looks very challenging. to demandnister said has not been that great in the first quarter. you need to see some improvement in demand as well as some consolidation on the supply side. will they roll over? know is the short answer but what we have to go on as well the five comments from the saudi's his is that the have been it clear that they are not going to be the only ones are's possible for keeping production low in terms of opec output. if the other countries are not going to take responsibility for meeting their own target, then it is hard for us to see saudi arabia extending the program for another six months and then it is us a doing the cutting. it is still early days. we have a few months to see how things look. will play asa

. >> let's go to kathleen hays at the federal reserve in washington. >> the federal reserve raised itschmark rate by a quarter point to 0.75% to 1.0%. the president of minneapolis said that's the median estimate for this you remains three rate hikes. however, it is a stronger consensus. >> we continue to expect the ongoing strength of the economy will warrant gradual increases in the federal funds rate to achieve and maintain our objectives. >> what did you learn in the press conference, mr. gross? >> not much. we learned janet yellen is a perpetual dove . even when conditions are rather hawkish in terms of stock market at all-time peaks, employment growth, she still proceeds at a gradual rate. i don't think that's inappropriate. i think it's a high leverage in the u.s. economy and global economy for central banks to proceed in a gradual way. she is a dove, and that's why the markets reacted as it did. >> the bank of japan kept its monetary easing program unchanged today. the rates are kept at current levels while maintaining the rate of asset purchases. how much more creative kenny ac

kathleen hays. thank you for joining us out of new york. there's plenty more ahead in the program.ve been live in china's version of a tropical paradise. what's more coming up on the program. this is bloomberg. ♪ david: welcome back. this is "bloomberg markets asia." start things off with twitter. says more than half of all content removal requests came from turkey last year. turkish courts believe government agencies made for 3000 requests in the second quarter. turkey said it withheld some content. now, at&t and verizon have halted their advertising spending, with google joining a growing list of companies concerned about offensive ads. a spokesperson for agency said the company is deeply concerned ads may have appeared alongside content that promotes quote, terrorism and hate. look at sony mobile here. it has lost a patent infringement case in china. the beijing intellectual property court ruled in favor of independent companies. orderedt says -- also -- 35 models are affected. leaders ining world finance. of the key themes will really be how to mitigate the impact of the china

let's get the details and flesh this out with the global economic and policy's editor kathleen hays joining us from washington. not quite a surprise, but anything that caught your eye here? the fact absolutely that they did what they were expected. maybe that is what the chapter. not because it was different, but because the bank of japan is in a situation where it has done what it can do to stimulate the economy, it can sit back now and be pleased that it is a small way, the economy is moving in the right direction. the pressure will come from , the unitedcountry states, which is firmly in a pre-hiking path. let's take a look at a chart. inflation, growth, that is what the bank of japan is trying to foster with stimulative policy and the policy of keeping the 10-year yield at zero. you can see the blue line, japan's main inflation measure, cpi, fresh food has recently rarely gotten into positive territory. most of 2015rom and hardly 2016, the fact it was negative, this is a big accomplishment. that is why governor kuroda is upbeat about that. the question is this. the fed is hiking its key

kathleen hays is here with more.ou know, we think it will be a fast process, but this will take several years. they have two years to negotiate. but time flies, and there will be a lot of pressure. 27is ironic over the weekend e.u. members joined together. one was not there. that was theresa may. they celebrated the 60th anniversary of the signing of the treaty in rome. and judd -- jean-claude juncker that it is a tragedy. as they leave, they must pay their bill, which is already a contentious issue. he keeps saying, you have to deter others. it cannot be costless. you have got to pay something for this, one of the reasons they will put that ahead of the negotiations. interesting that sweden, they are e.u. affairs and trade commissioner, minister, warned about is the uk's throwing down these big ultimatums, and you mentioned u.k. saying no deal will be better than a bad deal, it will backfire. it is damaging the u.k. chance to get a good deal. the e.u. showing surprising unity, and they cannot get the benefit without

let's get over to our global economics and policy editor kathleen hays in new york. was any residual doubt ver whether the fed could go this week, those numbers got rid of them. >> the numbers were more than strong enough for the fed to justify the move on wednesday that it has been advertising pretty for surface of a the past couple of weeks. the pastciferously couple of weeks. 230 5000 jobs, unemployment , we, and a lot of this think of services driving the u.s. economy, but goods producing jobs. take a look at this chart, #6684, construction, mining, and manufacturing had their biggest one-month jump in 17 years. warm weather boosted construction jobs by 60,000, so that was a big part. the rate hike probability is 100%. the newlyon is revised summary of economic that projections, gdp, employment, inflation, and how many times the fed should hike rates this year. the narrow consensus was for three rate hikes. if the fed is on a rate hiking path and a sense of a stronger economy, will that moved to four? this is maybe why some of the #5687,y not so fast rid an estim

heard some ofst that from kathleen hays. he is going for for rate hikes this year and find out why.two more of those presidents. attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home... and here's the best part... you still own yohome. call now! take control of your retirement today! oliver: it is 3 p.m. in new york and 8 p.m. in london. scarlet: i'm oliver. scarlet:i'm scarlet fu. welcome to bloomberg markets. oliver: we are alive and world headquarters in new york over the next hour. we'll be covering s

that is kathleen hays in washington, d.c.g up, president trump releases his first budget and it is met with criticism from both sides of the aisle. if there is any chance of it passing. this is bloomberg. ♪ vonnie: you are watching bloomberg. i am vonnie quinn. mark: i am mark barton. q is here global business report. -- here is your global business report. fed'swill follow in the footsteps, raising short-term rates. we will have the latest policy move. vonnie: times are changing. k-swiss watchmaker saying they have "been encouraging." mark: march madness, the annual u.s. college basketball tournament, we will look at the major money behind college assets. isnie: china's central bank [indiscernible] hours after they raised interest rates, the increased. they boosted the cost of hiring in open market and lending facility. the open market rate increases don't necessarily equate to interest rate hikes. mark: president trump said the u.s. will pull out of the paris accord, the agreement on, change. paris is not concerned it could

kathleen hays sat down with the saudi energy minister.gton among the topics on the table, the iran ipo, oil prices, and saudi arabia relations. >> we have been i was over eight decades. that relationship is important for our countries and our people. these are two leading nations, not only economically but also in terms of geopolitics, security, defense, visitrterrorism, and the gives us a chance to refresh, renew, and revise that relationship and take it to a higher level, which has been achieved by a ne alignmentw on geopolitical security as well as economic. that has been strengthened even further by the great rapport and funding is created between president trump and his royal highness, and between the ministers and delegations on both sides as we establish channels of communication, cooperation, and driving issues that are important for our two countries. >> let's look at what the price of oil has been doing recently. sophia review -- saudi arabia led on price cuts. crude certainly rose. for wti, it was in the mid-50's. both contract

kathleen hays and u.b.s.'s stephen caprio. coming up on this program and later on bloomberg tv, u.s. commerce secretary wilbur ross just spoke. he said trade enforcement will be the primary focus of the administration. the rest of that interview is coming up in just a few moments. and from new york city, that does it for "bloomberg real yield." i'll see you next friday at 12:00 new york time. that's 5:00 p.m. in london. it's 30 minutes dedicated to fixed income. this is "bloomberg real yield." vonnie: live from new york, i'm vonnie quinn. welcome to "bloomberg markets." let's go to abigail doolittle. she's got some movers. away from the world of stocks and bonds on this final day of the quarter, abigail. abigail: we do indeed. it's the final day of the quarter and we have the tally for quarterly performance for all sorts of asset classes. . will look at the metals this is 7348. it's a quarterly chart. in white is the bloomberg dollar index. it's down about 3.5% on the quarter. it's worst quarterly performance in the year. not

let's bring in kathleen hays. she joins us live from new york. let's start off with the u.s.uld say the cherry on the cake there? >> at least that cake is sweet enough for the fed to say yes, it is time to move that interest rate higher for the first time since december. it will be the first hike if the fed takes that path. the jobs report on friday you could characterize it as strong enough to justify a move. it isd has advertised ready to take a move through cap a speakers from the federal reserve lang that path out for us. pay rolls up 235,000 in february, unemployment at 4.7%. in goodsteresting jump producing jobs because of warm weather. , butweek in the northeast definitely across the country in , construction manufacturing and mining jobs, jobs you do with your hands and strong back, 95,000 the total, 68,000 because the weather was warm and people got out and build houses. it did add to the jobs one way or another. a fed rate hike probability of 100% for several days now. economists are saying will be , when its dot plot moved from a consensus of three to four bank? he

policy editor kathleen hays here with more. agenda, top of the first. what are we expecting?back and say there is a consensus we are seeing in fed speakers since the march 15 rate hike. they think they will do three rate hikes this year. gave a speech today. he is backing up what janet yellen is saying. rateuld see two more hikes. he says the risk to the economy, looking at inflation are more balanced. this go policy, he says it makes sense to wait and watch for now. that is exactly what janet yellen said in march 15. was thinking about community development, banking, education, how banks need to do more lending to help poor people move ahead in life. in terms of other fed speakers, with we want to jump on this. no big statements on rate hikes. said it consumes the engine of growth. let's look at what came out today for the month of march. 7123 is the turquoise line we are looking at. 6, quite a move up that we see their. -- there. what has not moved up is consumer spending, the white line. that is near 0.2%. here is the question, you have the soft data, the turquoise line, a

our global economics and policy editor kathleen hays is here with more. bad for them to hold off, right? kathleen: it certainly seems that way. , ahas been a quick two weeks series of speeches from fed officials got everybody focused on a very strong possibility the fed is going to debate the rate hike march 14 and 15 and raise the rate. week before that -- last, the chances were lower, now they're about nine in 10. let's listen to the key sentence from her speech in chicago. >> at our meeting this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case, a further adjustment of the federal funds rate would likely be appropriate. as for the markets, bonds and the dollar held the study but janet yellen giving the speech was already priced in. as for the chances of the rate increase, march 15, upper left-hand corner, on friday, the number based on the center of the feds 0.5% to 0.75% target. it was 94%. when trading opens again on monday in the u.s., it is possible we will see