tv Bloomberg Markets Asia Bloomberg March 14, 2019 10:00pm-11:00pm EDT
as we head into the open, we thought we would have a mixed open that we are on the way out. you're a long way from trade talks leading to a deal. it seems we always seem to be on the cusp of making one. we've got the boj, brexit all here. david: 30 minutes and we get the press conference from p merely bojremier li and the mentioned -- did they ever abandon being dovish? yvonne: perhaps joining in on what we have been hearing from the doves. rishaad: i would love to know what a hot at the boj sounds like. k at the boj sounds like. delayed, trade deal delay, so a stall when it comes to the reality that rally. -- rally. not enough volumes to wrap up
the trading week but looking pretty green. we could be wrapping up the week on a positive note. the nikkei 225 up 1% today ahead of the boj decision. csi 300, china stocks looking resilient, up more than 1% for large caps today and the same story with jakarta opening up with modest gains. china, flesh to this out a little more because the focus yesterday was the carnage with the small caps. two-day loss, coming up more than 17% -- 7.5%. ofe say it was reminiscent 2015, but we got more evidence from the government to try to put cold water into this rally. the securities regulator talking about brokerages that need to maintain risks from marginal lending, avoid inflammatory language. rallyut a damper in the in that benchmark, but we are seeing up 1.2% in shenzhen
today. the baghdad i didn't help yesterday but it seems we have shrugged that off as it could be good news for markets here. of theto show you more terminal chart of how wild the swings have been on the small caps, in particular. volatility, the wildest since 2016 in this month alone. it is going to be a volatile game and you look at the small caps but today, looking more resilient. let's get the first word news from new york. >> the boeing 737 max 8 remain grounded through april, barred from flying until planes are giving a flight control software update. faa are racing to produce a fix but the process is expected to take at least six weeks. the flight recorders from the doomed ethiopian airlines plane have arrived in paris for analysis by french experts.
the u.s. is sending investigators to help. producers to cool production levels to prevent the return of a surplus this year. the cartel says supply is outstripping current demand growth and sees a risk of inventories becoming too high in the fourth quarter. he opec members and allies will meet his weekend to review output curves to prevent glut. the founder collapsed bitcoin exchange has been given a prison sentence in tokyo, accused of embezzlement. of collapse with thousands virtual tokens missing and the loss of millions of dollars. he claims the exchange was a victim of a hack. he was jailed for two and half years, suspended for four years. will continue to implement economic reforms irrespective of what happens in the upcoming general election. the finance ministry says as its
recent range of measures takes effect, the economy's potential growth rate could rise to 8% at the ministry noted the global slowdown and trade war as risks. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. let's have a look at china where the nationals people's conference has approved the foreign investment law, seen as an attempt to easy u.s. concerns as these talks roll-on. rishaad: a potential presidential summit has been delayed until next month, at the earliest. tom mackenzie is in beijing. what have you got? absolutely. the trade discussions between the u.s. and china have been part of what is going on, part of what is discussed over the last 10 days in beijing.
we have gotten to the last leg of the people's congress, the delegates, 3000 of them have filed out of the great hall of the people after signing off a hopegn investment they will go some way to easing pressures and tensions in terms of the trade discussions with the u.s.. this is pretty sweeping and significant. from expected to kick in january 1, 2020. on the surface, it is meant to level the playing field for foreign investors and foreign businesses in china. it is meant to avoid and get rid of discriminatory practices, it is meant to ban forced tech transfer but could have significant complications for some businesses operating, and particularly those with joint ventures. almost 300,000 businesses, the auto sector, chemicals, energy. they will have to work with chinese counterparts over the next five years to get their contract up to standard to meet this new law and that could
raise all sorts of complications. the american from chamber of commerce, the european chambers of congress and other ministry groups representing foreign business that they are concerned of how the law will be up limited and whether or not it will go far enough to address their concerns about some of the operating practices in china. tom, we were talking about a lot of these concerns, this new piece of legislation, is it more because of the content inside it or because of a lack of detail that it contains? tom: i missed part of the question but what happens next is this law, we implement it from the 1 january 2020. it is pretty broad, pretty sweeping. then it goes to the ministry to interpret that law and it will end up being implemented.
how it is implemented data local government level, ministerial level. that is where the proof will be in the pudding for foreign businesses. to what extent this is implemented and there were concerns about an attached law around this national security broughtwhich is another part of this foreign investment law that gives chinese officials in the national security arm oversight into some of the investments and they can step in or block and change those if they think it contravenes china's national security interests. that is another concern. they are concerned they have seen these kind of pledges before and what happens if they don't get implemented on the ground, because you have invested interests. that,d: takes a lot for tom mackenzie. its go to singapore. the co-author of "red capitalism: privatizing china."
what do you make of the npc? what do you make of this legislation? is this a situation that is counter to what you were saying, if you have your expectations low, they will deliver. did a little over -- did they deliver more than your expectations? stage-manageda pantomime theater piece. that sounds great, but let's not forget, china officials were denying there was any forced technology transfer in the first place and now all of a sudden something that didn't exist is illegal. a have taken two canadians hostage in retaliation to the zthuawei lawsuit. comes back to implementation and how it will work on the ground and that is what the chambers of congress in their comments. david: the lack of detail, the
ability to be flexible a concern. we have breaking news that concerns the suspension of mgm china. we know there has been an extension of the concessions to both groups. mjm china. rishaad: these gaming concessions, effectively creating a level playing field. raser, so we know what the concerns are. the question is, when you ask any foreign business, they are probably not going to tell you in public but in private, things move slowly china. when you compare this version of the foreign investment law to whatever the previous version was, is it a step forward? it is probably not enough to appease everyone's with list -- wish list, but is it progress? fraser: you could say line by
line that this looks better than what was on paper before. you've got to put that in political context. under xi jinping, he has taken the country, we are in a different era. besn't mean there can't growth or change, but xi jinping has taken china down a different path from the direction it was going before. he's made no secrets of the communist party, and the importance of the state controlling key sectors of the economy. you can have a better law on paper but how that plays out is hard to see. foreigners and locals being equals? local chinese companies aren't equals of chinese state-owned companies. phere,n the domestic s it is an uneven playing field. it is hard to see how it will happen. yvonne: i want to quote an "the southce from
china morning post" talking more about how he thinks this investment law is credible. xi jinping during davos a few years ago mentioned being a diff -- defending globalization. there is a credibility he says beijing needs to uphold about being a champion of globalization. in that respect, will that allow xi jinping to see this opening up through and could it be an olive branch in trade negotiations? think it isn't surprising that roberts says that, but after the davos speech, it was a few weeks before or after when there was missile-defense systems proposed in korea, china turns around and bands terror groups to china, against the --, xi jinping talks a good book but when you have such a pro leadership group, xi jinping wants to steal ground but the
actions speak louder than words. if what is written on paper and what is delivered and how they respond are two different things. you have seen time and again, whether with the koreans or canada with the hostagetaking, china retaliates in a way that is legal in many -- illegal in many cases. rishaad: it is a question of what is written on paper perhaps of irrelevance. is this an irrelevance for market participants? are they concerned about bigger fish? it is not an irrelevance. china has always been a difficult environment to do things in. but china is still -- it is obviously the world's second-largest economy. it is an important market to be involved in. this comes back to how big d make your investments? how many eggs in your chinese basket? it will have an impact.
foreigners are not going to desert china, but the mood is certainly going to change. it is going to take some years to see genuine change of attitudes on the ground in china before people have confidence in what is written on paper. er, this plays into the title of one of your books. "privatizing china," this move from centrally state-owned economy to one that is more protecting and conducive to private enterprising. it is easy to criticize, but what do you think china should do? do we need a change of the political structure there? that is artainly, hard question because there are so many big issues. xi jinping talk about five years ago -- you remember the reforms and the talk of market as a decisive factor and we haven't seen that. we have still seen the primacy of the state. you have to have the state rollback, you have to open up more sectors, telecom, finance, media.
there has to be a more dynamic sphere within the domestic economy, local and foreign state companies and politics is overriding the business. canese private enterprise intimate -- innovate and be successful, but it is the interference of politics that has caused so many problems. rishaad: thanks a lot for that. fraser howei, co-author of "red capitalism." still ahead, the trade war increasing scrutiny of chinese companies, expected to weigh on mergers and acquisition activities. david: also, jamie dimon. we all know who he is. he says no deal brexit will 24/7h a 20 47 more -- situation at his firm. this is bloomberg. ♪
rishaad: we are back and looking at the brexit drama. a rare may, winning victory in the house of commons endorsing her plans to delay brexit. the result means her twice rejected deal remains in place. she offers mp's a chance to back her plan and deliver brexit with a delay, or risk the split never happening. brussels is open to postpone but the eu wants to know what the prime minister thinks will change. david: jamie dimon says the on two this extenti8o9 brexit, the better. he says he is preparing for all eventualities. i think a no deal brexit would be a bad idea. it is eu. prepare for aally
hard brexit, in no deal brexit. a lot of things would change immediately. it would have a negative effect on the economy there. we are prepared. we have to be prepared. we don't think it is going to happen. we think there will be an extension, the longer the better, but some kind of extension so both parties can think about what they want to accomplish and the downsides. >> is it 10% risk, 20% risk? does it frees the market it happens? jamie: i say 10 but i don't know. they could freeze the markets. it could have consequences we don't expect a. -- today. if it happens, we would go to a 20 47 war room status. 4-7 war room status. >> can london survive as a financial sector? or hardoft brexit brexit, london's financial
sector status will diminish over time. i think it changes the forecast of what we expect for the financial sector in london. hopefully there will be a financial sector. it will be not quite what it is today. >> how worried are you on china? what should we look at and what kind of business you want to do in china? jamie: the trade issues are real. they need resolved. >> will they be resolved? jamie: we think both parties wanted but there complex, they talk about hundreds of pages of memorandum. if it doesn't get resolved, it is a reasonable thing to be worried about. china will be a fully developed nation in 30 years, but it still has a tough road. they are smart, but they don't have enough food, water, energy. they have corruption, they don't have transparency. in terms of research,
capabilities, drew lock come you don't have that yet. it is not a criticism. they have a way to go. they will grow now but there will be times in the future five years out where there will be bounce in the road. francine: what does that mean? as an investor in china, you slow down for five years until you see the lay of the land or you go all in to get market share? jamie: we are all in. people are slowing down because of trade, not what i said. my point is when they do have problems, they may be building huge bounce is in the financial system, that will come one day. right now, they can handle it. they can macro manage. they can tell the fiscal people, moderate people, companies what they need to do but that won't always be true. one day, these imbalances may cause a recession. francine: financial crisis? jamie: maybe. we had a financial crisis and markets panic. they can handle that today but
in five or seven years, there will be imbalances. the bigger the markets get, the less they can control all that they want to control from happening. i'm not saying it will happen, but 6%, 7%, the second they don't, the world reacts more scared than they should be. jpmorgan chairman and ceo jamie dimon speaking to bloomberg's francine lacqua in paris. let's get you caught up with the news out of macau. and mgme extended sjm china's concessions to june 2022. we were expecting this announcement because they were the two remaining casinos to face the 2020 deadline so this puts everything in line with the rest for that 2022 expiration date. still halted in trade in light of these movements but the announcement is they will pay between 125 million for those -- that
extension. the rest of the sector flying in light of the news. macau up 3% and galaxy in similar measure. jeffries came out with a note this week talking about the near-term visibility for growth gaining revenue in macau is looking like the worst in years due to several positive and negatives. the positive is the supply of a negative -- negative factors like a smoking ban, money transfers will lead to uncertainty coming up. we will talk more casinos and the rest as we wrap things up. this is bloomberg. ♪
preview of what to expect. how can the boj take a dovish till 20 remains so far from its inflation target? kathleen: absolutely, and what people are talking about isn't so much a tilton policy. he will keep the same range, you will keep buying bonds, etf's. we are talking about the potential for cuts in their forecast, for exports, reduction, global growth. their weaker view of global growth has come from the slowdown in china, which has hit their exports. let's look at the chart from our bloomberg library. machine orders for japan took quite a dive recently, down 3% -- we start with exports. exports, down 8.4%, the biggest drop since 2016. the yellow bars are dividing it into foreign and domestic orders. foreign orders last month fell
about 22%. they may have to cut their inflation forecasts. that is something else people are looking for. one of the most interesting things is what we have heard from big banks. the head of mizuho saying why does the central bank have to target 2%? 1% to 2% would be better. kuroda will get a lot of questions on the. -- that. rishaad: kathleen hays joining us, having a look at the bank of japan decision. that and thevering longer it takes, the better the chance of them doing something. a little breaking news from new zealand concerning a mosque shooting. friday prayers taking place. this: we have to emphasize is a report from "the associated press" quoting a witness. . we have not confirmed this but the witness says many have been killed in the mass shooting there. police have not been able to
>> 10:29 in hong kong. i have your first word headlines. president trump says there will be news on a trade deal with china in three different g weeks. -- three to four weeks. a summit had been delayed until next month at the earliest. china wants a formal state visit to china -- washington, d.c. rather than a low-key appearance in florida. a summit could take place this month as a follow want to president xi's tour of europe. >> we will know in the next three to four weeks and that gets done, it will be something people will be talking about for a long time. >> the trade issues are real. they need resolved.
they need resolved across all these issues. >> will they be resolved? jamie: we think both parties wanted but they are complex. they are talking about hundreds of pages of memorandum so far. theresa may has won a rare victory with the house of commons endorsing her plans to delay brexit. the result means her rejected deal remains in play. she is offering mp's a choice of and deliveringn brexit with a delay or risk the split never happening at all. brussels is open to a postponement the pe wants to know exactly what the prime minister thinks will change. has appeared in court in new york to deny a defrauded banks by concealing business dealings with iran. the not guilty plea marks the formal start of huawei's defense against charges of conspiracy and wire in bank fraud. the cfo is also charged in the case but remains in vancouver fighting extradition to the u.s..
she maintains the case against her is politically motivated. >> we will not our investment in canada because if the united states is closing at store, that will be a benefit for canada. casease is an individual and i don't think it should influence in any way the relationship canada has with huawei. >> the boeing 737 max 8 remain grounded through april, barred from flying until planes are getting a flight control software update. boeing and the faa are racing to but the process is expected to take up to six weeks. flight recorders from the doomed ethiopian airlines plane have arrived in paris for analysis by french experts. the u.s. is sending its own investigators to help. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. so the national people's
congress has approved its new foreign investment which is seen as an attempt from china to ease u.s. concerns as trade talks role on. --haad: tom mackenzie in bit is in beijing. tell us about what this does. legislation repackaged or is it brand-new? well, the new foreign investment law basically subsumes or takes the previous three laws. you have a new foreign investment law that is pretty sweeping and on the surface, as we have discussed the last few hours, it is meant to level the playing field for foreign businesses and address many of their long-standing concerns about the difficulties of operating here. for example, foreign businesses will no longer be discriminated against. things like forced tech transfer will be banned. opportunity for
foreign businesses to appeal any decisions and they can bid for government contracts more easily. there is also the foreign blacklist for investment in certain sectors. clarifying which areas, sectors foreign businesses can not invest in and partaking. -- partake in. there is concern of how this is implemented and particularly for companies that have joint ventures here. there are about 300,000 foreign businesses that have partnerships with chinese companies to operate, particularly the auto sector and the energy sector. the may well have to spend next few years -- because there is a five-your period -- trying to change the contracts with partners so that could throw up issues. from a news agency that the foreign investment law that the delegates voted on and rubberstamped will kick in from the first of january 2020. time int a period of
which foreign businesses will be able to work through these contract issues. we have heard from business lobby groups representing the u.s. and european businesses saying they are concerned about how this is implemented. tom, we are also getting at some point in the next few minutes the press conference, to wrap things up. days at the npc. is there anything specific i should be paying attention to? yes, the premier is expected to take questions, if he hasn't done already. it may go up to an hour and half carried in terms of specifics, we are looking for clarity on the laws that have been signed off on, the discussions over the last 10 days. one area that stood out at the beginning of this national people's congress was the pledge and fees up to $300 billion. top level which
would be beneficial for manufacturers. that was the view of economists we spoke to. we are looking to the premier for is when that cut kicks in. to theuld be significant investors listening in. -- therestions will be may be nuggets he gives us. for people to hang their hats on or move on with. david: thank you, tom mackenzie. that press conference has started. the premier commenting, two lines. won't let growth slide out of the reasonable range, six, 6.5% and the economy is facing downward pressure. let's make sense of this new foreign investment law. the key focus is on cross-border china related legal matters. nice to see you. >> thanks for having me. christchurch this is a draft -- david: this is a draft of the
law. it is five pages for an economy that big. is a lack of details the problem? >> yes and no. i want to emphasize this will not govern everything related to foreign investment. there are company laws, as well. this is a certain angle of the foreign investment. yes, it will be a problem this is more intention on what china wants to do rather than a plan of how to implement them. rishaad: would this have happened if we did not have these trade negotiations taking place? would this have been published now? will: to be honest, i don't know but these are things that have been framed for a while. these were passed four years ago laws areership company always a discussion we should
have for different entities, separate laws. you are probably right. ontain things like the ban transfer of technology. rishaad: just go through keep points you found interesting and new very quickly. will: a couple of things. on forced ban transfer of technology. the second is interesting. equal treatment in government procurement. americanld say, buy but the chinese are saying, we should give you fair treatment for government here meant. -- procurement. the other one -- this one is interesting. i don't know why people are not talking about it. potentially open up the capital market for foreign investment entities. it will be huge. we don't know how it will be implemented or when they will implement it, but it would be
huge. yvonne: the implementation is key. is this going to force a lot of companies to renegotiate their contracts they do have with partners now? how disruptive could that be? will: it is a good question. it is a little unclear now for a couple of reasons. the formationng will be retained for five years. he didn't say contractual terms cannot be lasting over five years. you could imagine that the company law may be amended to accommodate certain special arrangements that have been made. this is five years down the road. it is not entirely clear. david: you deal with a lot of these companies every day. even the largest of foreign companies don't deal with a central government. they deal with local government and it is the level they deal
their business. how has preference change for foreign businesses in china? that seems to be the number one concern still with or without this new law. provision, new law is touched upon. when you think is positive, the largest -- the local government -- passct, can past policy for foreign investments. there are also other positions. we talk about government procurement and other issues. sure a lawo make will be implemented -- rishaad: we have the bank of japan and a headline. downgraded the overall view of their economy but it looks like everything else is as anticipated. david: unchanged on the policy rate, and the yield target but
yes, it will be critical what he says later on in the press conference. how much they have downgraded, why they downgraded and rubberstamping, why bond yields have been trading. rishaad: let's get to kathleen in new york. looking at this, seeing these headlines come through. is line coming through that interesting is they are saying the outlook which they downgraded is down to the external environment, a slowdown in overseas economies. something weis knew about, but it is reinforcing the point where we are with worldwide growth. kathleen: who are they echoing? reserve in december moving into january, talking about in the u.s. saying domestically, we are fine but look at what is happening overseas. u.s. central bank -- a slowdown in china, the risk that poses to the global economy. people expected the boj to acknowledge that.
they do note exports have shown in theakness recently latest report carried exports were down 8% on the month. industrial output on a moderately increasing trend but they are looking at things we thought they would have. --y are overall down the downgrading their outlook for the economy, though they do say it is expanding moderately. this does not strike me as a huge shift by the boj. it is reflecting the things we can see lately in the data. as you said, we want to hear more from the press conference because even with a more dovish view of the economy, governor kuroda will probably continue to say that even if they get to their target, they are moving in that direction and will keep the pedal to the metal on monetary policy. ofhink this is a question how the continued monetary stimulus and flat yield curve is affecting banks as the head of
the third biggest bank in japan complains about it. david: look at dollar-yen, a little stronger, as well. -- assessment on the economy you compare it to how they framed the export picture the last few times when they said exports were on an increasing trend. because right now, they are saying exports are remaining week. that being said -- weak. that being said, is there anything new here? kathleen: they haven't changed their policy. they had knowledge reality and we can only hope at the press conference, we hear more. there are four reports a year with a monetary policy report. this is not one of them and it may be the bank of japan is looking to see weakness. yes it is hurting the economy but maybe china will get a trade war together. we know china is flooding the
economy with stimulus. if those things come together, put china on its track -- we saw credit numbers were huge in china -- that helps japan because china is key to their export outlook. their machine orders, so many things like that. we will have to see what governor kuroda sounds like at the press conference. yvonne: kathleen, thank you on the latest out of boj. lines breaking, the premier wrapping up this conference and talk more about what we learned in the last two weeks or so. china is going to continue cutting taxes and fees and broaden market access for players. he also says when it comes to the policy response, flooding the chinese economy with liquidity is not proper. -- premier is saying china keeps a stable economic growth and good momentum. we did learn they shifted that 6% to target lower to 6.5%.
let's bring in will cai at cooley. still a lot of industrywide regulations that could hurt foreign firms out there. thatthis new law override and these broad protections we see? will: if there is conflict between this law and the laws passed by the committee of other government bodies, yes. if government regulation says you need to transfer technology to a china partner before you form, this is no longer valid because the law passed by national congress says you cannot do this. much ferocity does this have? are seven different ways you can go around it? will: that is a good question. by the national
congress, usually you will have implementation laws. this one is 41 articles. we should expect to see 100 articles, 200 articles to implement this law. david: we got to leave it there. there is lots to unpack when we get more clarity. we appreciate you coming back. will cai, corporate partner head of asia capital markets at cooley. two ongoing stories, the boj and follow that on tliv . ego on your bloomberg terminal. rishaad: equities hitting high. this is bloomberg. ♪
headlines coming out of what he has been saying, talking about more tax cuts, things they can use the tax cuts rather than be just dependent on liquidity. rolling out larger scale tax cuts. they can also use tools like the rrr to cope with uncertainty as they try to broaden market access, and before that, saying flooding the chinese economy with liquidity is not proper. we have china to cut value-added tax and they will be doing that on the first of april. not by how much, we don't know. that is the latest. david: a lot on the way. let's pivot and have a look at the private equity and try to stitch this together. really, this focus on stimulating the private economy out of the npc. we are joined on set for a look
-- and outlook on the private equity space. partner cohead of asia-pacific private equity practice. nice to see you. this is an annual practice would have. this is your new report before we get to this. talk about the previous report. what did you get right and wrong? , we were talking about 2017 and we thought there was a very high level of activities already and 2018 set another record. one hundred $65 billion for asia-pacific, which is higher than in 2017. the party continues for another year and internet and technology, which 40% of the value added continued to rise which increased to 50% of value. that continued to be high factors. we thought people would put a brake on that, but that continued on. david: does it continue in 2019?
you have three concerns and the third one, polarized between large funds, bigger players and smaller players. kiki: yes. in the industry, you want to see reshuffling of the players and i think what we have seen is a dichotomy between the bigger funds that could raise funds faster and exit faster versus the smaller funds. in a space that is already crowded, we think it is good news for the industry that the smaller funds, and some of them are not performing on par with the bigger ones, will be left behind. rishaad: is it becoming easier for private equity and foreign private equity in china? kiki: i think it is yes and no. rishaad: it is always yes and no. what bits? you look at what is driving a lot of the domestic in china, so much is related to the domestic growth of the market.
whether you are foreign or domestic funds, that is irrelevant. any kind of investors could take advantage of activities. that are certain sectors foreign funds could not participate in. we're hoping the regulation can be opening up. rishaad: he saw today, opening up certain parts, making transfer of technology, no longer mandatory, but when we see the gamut of what is happening, we have trade negotiations at the moment. the thing is, is where you come -- that depends on what you can do in china, i suppose. kiki: absolutely. definitely wary of the undercurrent of the macro headwinds, the trade negotiations and what we have
seen -- david: both metrics this year and a lot of these private companies that shouldn't be private anymore become public. kiki: last year, what is the trade iss taking a bigger portion of the exit. think it is almost a sign of maturing for the market where people are not just relying purely on ipo as good -- exits anymore. rishaad: thank you for that. kiki yang, cohead of bain.pacific equities at
tom mackenzie is outside the building with an update. premierid, the reiterating that he in the chinese government have no intention of letting the economy with liquidity, saying that was improper. qe was andiscriminate option but not viable. they will take targeted measures, even if he talks about continuing downward pressures, particularly this year. toseems he was giving a nod the u.s.-china trade tensions without calling them out. he says the measure they are putting in place will ensure gdp and growth, the gdp doesn't fall out of a reasonable range. he also says they wanted to take measures and they would take measures to energize market players to counter that slowdown. we have heard about these additional cuts to fees and taxes. vat,lked about the cut to
about 3% for the manufacturing sector particularly. that will kick in april 3. cuts to social security fees, that will kick in on may 1. he also said in terms of cutsary policy that rrr could be a tool they put in place. they have had five since the start of 2018. the pboc says they are running out of room for additional rrr. that could be another tool put in play. rishaad: tom mackenzie outside the hall of the people. a market roundup plus more on this breaking news. this is bloomberg. ♪
emily: i'm emily chang in san francisco and this is "bloomberg technology." big exit at facebook. chris cox is leaving along with chris daniels, the head of whatsapp. what does it mean for the beleaguered social media giant? spotify's ceo says the company has suffered a big business impact from restrictions imposed by apple and it got more hostile after apple launched its own music service. now it is weighing in.