robin li speaking to tom mackenzie. much more of that exclusive interview coming up, including bold plan for the driverless car division. this is bloomberg. ♪ caroline: baidu's focus on artificial intelligence fits into its dominant -- the company also plans autonomous cars and joins the race to develop autonomous driving and bring it to mass production. tom mackenzie spoke with baidu c.e.o. robin li in an exclusive interview. >> there are lots of applications that can impact people's daily life. the most obvious one is research. a.i. transformed search before any other industry. today, you can use search. you can take a picture to find what kind of plant is that. you could not do that five years ago. that is because of a.i. you use voice recognition. this can be extended to many other areas. for example, if you go to the baidu campus, you go through a security gate. baidu employees do not need to use their badge. they can just walk through. our camera will automatically recognize their face and let them in. think abo

we will recap those with tom begins -- tom mackenzie in beijing. live on your bloomberg. will flesh out all the data for you. i am watching this very closely. the indian market's frenzy yesterday. this is the inverted dollar biggest jump in 18 months. do we see a day two to this? nowunderlying thinking is these are consolidated, they can put that in pursuit unpopular perform measures and hopefully unlock constraints to growth. that is the rupee over the last 12 months. there is your search right there. axis.s a conventional y this is your twelve-month rupee. last i checked, we are pointing to gains at about 45 minutes from now. in the meantime, let's get it to paul allen with the first word news. >> president trump's choice as trade negotiations, china high on the list of things the u.s. should worry about. speaking at the confirmation hearing on capitol hill he said it is not clear if china was manipulating its currency. he is waiting for a treasury department review next month. lighthizer said president trump will shake things up. time ieen now on the leave, you will sa

was the rio tinto ceo speaking to tom mackenzie in beijing. one feature on bloomberg we would like to draw your attention to is the tv function. you can find it at tv , and you can watch us live and catch up with previous interviews and dive into any of the securities or bloomberg functions we talk about. you can become part of the conversation, send us instant messages during our shows. this is a service to bloomberg subscribers only. tv . a multimillion dollar australian pension fund looking to boost its bottom line as it goes away from local equities. banking andt building unions. they want to hire investors double to her strength. we have the corporate finance reporter tracking this story. there have been a lot of attention based in australia. why are they looking to beef up? reporter: melbourne-based industry fund is looking to diversify away from equities. as a result, they are looking to boost their infrastructure team, property team. it is a great way to save money in this environment. so there is a record low yield everywhere,

tom mackenzie, bloomberg. will keep a close eye on developments out of china, but now they want to turn to another asia economy -- japan. it includes japan's core inflation returning to positive after a year of growth. 2.2% andplunged unemployment fell to 3%. jasper, looks like it may be -- looks i think maybe turning up for the chinese -- the caps on -- turning of the japanese economy. we are seeing the consumer price index moving in the right direction, but much more important is the fact that wages are beginning to increase the first time in one generation. and we all know that good inflation is demand pull and when wages are increases and job security is improving. vonnie: ok. jesper: it is interesting. dataan see the wobbly still there. we tell data can be affected by the weather, but i come back to this point -- we do see a definite improvement in the labor market and i think we are beginning to see the development of a new middle class with japanese children, kids in the 20's and 30's, for the first tim

tom mackenzie is watching the national people's congress in beijing, and tom, the key takeaway from premier league -- i's speech? ceremonyiddletown and -- all the pomp and ceremony, we had that gdp number, 6.1%. and then the money flows, credit. they are lowering that slightly from 13% to 12%. the context of this is the focus is now on stabilization. it seems like reformers have won the argument. we have seen reformers put in securityding of the regulator, banking regulator. last year there was debate against policymakers here is how there was to focus on credit versus stabilization. it seems like reformers have won out, but as we know there is a gap between the rhetoric and reality. in the reality, we note credit in china hit record levels. cried it just debt to gdp ratio china's debt to gdp ratio as it 100% over the past eight years. this is a big political year for china as well, with the party congress coming up toward the end of the year. betty: with the target that they need to hit because of that. how likely is it that china will be able to hit this gdp target? data,e have seen all t

tom mackenzie force there in beijing. still ahead, li keqiang china, and the chinese premier li keqiang makes his first trip to australia since taking office. what will be on top of the agenda? we will look at that later on in the show. rishaad: plus, iron ore prices exceeded expectations. we will discuss that and more, next. ♪ rishaad: this is "bloomberg markets: asia." i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. kata tumbling in tokyo, leading automakers decide on its restructuring. involvedrers have been and investing billions of dollars. the company said it wants to avoid a bankruptcy that would disrupt the supply of parts. shares are down 50% in tokyo this year, currently down 9% come off session lows. toshiba offering stock and real estate as collateral as it seeks financial support. failing to pay back its debt appear low. it helps to ensure banks continue to provide financing, but it is the lenders rather than investors who will get their money back first. the retreat asn production probl

tom mackenzie is following that. how significant is this for elon musk and indeed for tesla, i guess? tom: it is seen as a win for tesla because tesla is burning through cash to get to the point where it rolls out its mass-market model three, this electric sedan that they want to roll out this year. it is a costly exercise. then there are the potential synergies that come along with the tencent investment. the investment was about $1.8 billion. for tencent, they have invested in a number of different technologies that are changing the auto industry, artificial intelligence, the didi investment, and the mapping, so that is something they have invested in, so it fits in nicely for tencent and its portfolio. investors are cheering this. ,esla's share price popped 3% near that intraday record high. tencent shares have been up on the news as well, so people looking at potential synergies, and this cash injection as it looks to roll up his mass-market model three. you mentioned synergies, what could this investment mean fo

tom mackenzie as watching the npc in beijing. what with the key takeaways from the speech from the premier? no big surprises at the npc yesterday, but two key themes are coalescing around the idea that the primary focus for china's lawmakers should now be on the stabilization of the economy. also, coalescing around the idea that president xi jinping is the core of the party and that all power rests with him. that gdponomic front, target of about 6.5 percent does give policymakers hear some flexibility. commerzbank saying it shows the tacklingnow on financial risks. commerzbank expecting monetary policy will gradually tighten. other key areas of note from this work report, li keqiang says he would look at sectors that are currently closed off to foreign investors and may open sectors, think financials, insurers, health care. any move on that would be a positive for investors. they also said they want to see more foreign invested companies boosting operations in china and offering bonds, so moves to open up the capital market in ch

tom mackenzie, bloomberg, beijing. caroline: samsung is seeking to challenge apple in mobile unofficial intelligence. it will feature a digital assistant that studies user activity to offer helpful information. it will be unveiled later this digitald can activate a assistant. counting on its marquee product to reclaim its global leader in smartphones. that is it for this edition of "bloomberg technology." on tuesday, we will be at the ibm conference in las vegas. we have a great lineup of guests including the ibm c.e.o. our producer has been busy and i have got to get on a plane. all episodes of "bloomberg technology" are now live streaming on twitter. check us out weekdays at 5:00 in new york and 2:00 in san francisco. that is all for now. this is bloomberg. ♪ ♪ >> from our studios in new york city, this i"charlie rose." >> good evening evening, i'm john hockenberry filling in for charlie rose. we begin with a look at president trump's meeting with angela merkel. it was the first face-to-face meeting since trump t

tom mackenzie, our china correspondent. winning over the world, why chinese stocks have had a strong start, and why h-shares of the place to be. this is bloomberg. ♪ haidi: a quick check of the latest business flash headlines. the chinese smartphone maker once compared with apple is growing and says global revenue should top $15 billion this year. spent 500 million on india since 2015 and the cofounder is pledging a similar investment in the years to come. xiaomi once ruled the roost in china, but has been eclipsed by domestic rivals and is now looking towards india as global demand slows. apple is turning its attention to india, said it is ready to this summer.one se production will begin in june in bangalore. it also says apple could make other iphones if the right tax incentives are given and more relaxed regulations about sourcing are put into place. reports say the government is considering apple's request. againsts had a win banks over mobile payments. the banks sought to negotiate collectively over apple paid in ex

tom mackenzie, bloomberg, beijing. caroline: still ahead, google's at crisis spreads with some of the biggest marketers halting spending. we will bring you all the background next. this is bloomberg. ♪ the biggest week in tv is back. wow, watchathon has netflix? hey, drop a beat... [ beatboxing throughout ] show me orange is the new black. wait, no bloodline. how about bojack? luke cage. oh, dj tanner. maybe show me lilyhammer. mmm, show me last chance u. on second thought, maybe pompidou. narcos, fearless, cooked, the crown. marco polo, lost & found. grace and frankie, hemlock grove. season one of... show me house of cards. xfinity watchathon week starts april 3. get unlimited access to all of netflix and more, free with xfinity on demand. the dinosaurs' extinction... got you outnumbered. don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. something for everyone is awesome. find your awesome with the xfinity stream app. more to stream to every

tom mackenzie, bloomberg, beijing. caroline: still ahead, google's crisis spreads with some of the biggest marketers halting spending. we will bring you that next. this is bloomberg. ♪ ♪ caroline: welcome back to the "best of bloomberg technology". i am caroline hyde. google's advertising crisis has gone global after the biggest marketers halted spending on youtube and the company's display network. the controversy eroded last week after the london times reported some as were running with youtube videos that promoted terrorism or anti-semitism. institutions including the u.k. government and the guardian newspaper took down ads. from the video side. th largests six pulledsing company advertising. this week, the crisis went global after marketers including at&t, johnson & johnson halted spending on youtube as well. google tried to head off the backlash by implementing new tools and policies and many advertisers were waiting to see details or results before placing ads again. we dove into it all on bloomberg technolog

tom mackenzie got the details. tom: baidu's head of cybersecurity knows he has a fight on his hands. he says hackers test defenses every minute of every day. in the most serious case, he says a day was put together to -- day was -- gang was put together to try to steal baidu's prized automated driving technology. >> it is difficultto know who but we know somebody tried to hire someone in the underground market to steal the things from us. tom: cyberattacks could come from automated hacking bots, or from sophisticated international gangs. baidu has responded by boosting its cybersecurity team. it is also backing what might be called ethical hackers like the university blue lotus team. >> you have the router, which means now you have taken control of my phone. tom: they showed me how they could open up my phone. >> i'm going to test out one website, cq.com, and then we see hacked by blue lotus. tom: supporting these guys is one way to keep the best minds onside, and their professor says there is a growing demand for

betty: tom mackenzie reporting on the npc session. still ahead, find out why producers in australia are locked in legal battles involving billions of dollars in liabilities. plus, our next guest remains cautiously optimistic on asian markets this year despite risks. more on allianz global investor. this is bloomberg. ♪ asia,"this is "daybreak i'm betty liu in new york. yvonne: our next guest says he's cautiously optimistic this by one key risk out there. the unpredictability of president trump. joining us now is raymond chen. raymond, always good to see you. we are struggling to find out why things are so quiet in the market because it seems like the fed rate hike is all but priced in. easy be is not expected to do much. the fomc, so is the news flow out of china the only thing supporting markets right now? guest: if you look at this year, the asian markets have done well, surprisingly, and i think the key essentially is not so much about all the political noises. the key is the fundamentals are improving. so if you look at the econ

tom mackenzie, joining us from a factory. mixed fortunes. the headline is one thing to look out for, but how is the economic reality playing out where you are? yvonne, the big retailers in the u.s., a very good chance to come trump this factory behind us and it looks very busy. the furnaces are burning and people are working way, but many others in this province are really feeling the pinch for a number of reasons. up steeply.picked wage hikes, goes have tripled for this factory in the last decade. demand is relatively flat and we have seen the same story repeated in the last day. we visited a plastic factory yesterday and they said the same thing. key problem for them. they may be asked to shut up shop later this year. it is a mixed picture. there are factories that volker's producing things like robotics and electric vehicles that are doing better, so it is not all grim, but certainly for the factories producing lower end products, it is a tough situation. you might ask about the renminbi. it has weakened. it has only had a marginal impact

tom mackenzie there in beijing for us. looking ahead, the french president on a singapore stopover, boosting international relations on his farewell foreign tour. advice from arket quarry securities at the start of the big week. this is bloomberg. ♪ the businesseck of flash headlines. china's southern has confirmed it is in talks to sell a stake to american airlines. shares will resume trading in hong kong later. sinceave been suspended thursday after bloomberg reported american was preparing to make an investment of $200 million. sources say it will be through china southern's h shares and give american a nonvoting seat on the board. buying hnh group is estate in an asset unit, adding to a shopping spree that has top $30 billion. it is paying 436 million in two parts for the state in om asset management. it will be completed within 30 days. a is broadening its portfolio beyond tourism in aviation. the u.k. government says facebook should open up encryption of whatsapp to security services. british newspaper said the man

tom mackenzie is in beijing. what did tillerson achieve here? really, tillerson came here in -- asmp is dilution reassurer in chief. the second notion was north korea. north korea and the tensions on the korean peninsula, he had conversations and meetings with a foreign minister, and he dialback language from the earlier regional visit. he talked about not ruling out a preemptive strike of north korea. you did not hear that language here. he would make every effort to avoid conflict. but he managed to do it seemed is a minor concession from the chinese. he said the chinese would be considering approaching the north koreans to steer them off the path of the nuclear program. the chinese see this as more of a initiative for washington and pyongyang. they want them to have a dialogue. the u.s. say that will not happen until north korea moves away from their nuclear program. that looks unlikely because the program is central to change on -- kim jong-un's self-styled mission statement. you have a coalescing around the idea that china could approach th

tom mackenzie is with us now for more on this. have a lot at stake, particularly australia, but what are they hoping to get out of this trip? thecois fillon this is free trade and globalization front and center in terms of what the old strains and chinese want to get out of it. the all strains still stunned by the u.s. decision to pull out of tpp. the chinese want to push ahead with rcep, and australia would form part of that. australia has to appease washington, it's strategic and security ally and balance that with its economic heart and are china. economic partner china. there will be a lot to discuss during the visit come not least this white paper the austrians are drawing up come of the first one on international relations and diplomatic ties. it may be possible that li keqiang may want to influence the white paper and how much of a role china plays and its relationship with australia. so are a lot of issues to hammer out, big topics as the u.s. looks like it is taking a step back come up today in light of that g-20 communic

tom mackenzie is watching the national people's conference. give us the key takeaway from the premier's speech. : of course it is a soccer gdp target of about 6.5%. and the optimism is possibly higher with what they added in freezing around the gdp target. we had other targets like cpi, 3%.net gdp around renewed money supply, brought down from an increase of 30. greateryuan, liberalization and the changing of appraising, signaling the currency. the context is it seem to isgest the foremost debate reformers have the upper hand. we have seen them put in regulating for the bank and security, and the focus on reading in these risks even if it means slightly slower growth. we know there is this gap between rhetoric and what is actually happening on the ground. we notice of the jet -- the debt .f gdp is around 260% we know banking assets are three times the value of gdp. gap, butthis reality the rhetoric is now firmly on raining in the financial risks and stability, and a neutral and prudent policy. yvonne: it seems like the rhetoric has been a far

tom mackenzie, bloomberg. scarlet: it's time for the bloomberg business flash. federal reserve bank of minneapolis president says he does not see an inflation threat looming around the corner. the lone dissenter against the fed rate increase spoke to bloomberg. >> i am not opposed to raising rates when the data tells us we are moving towards our dual mandate target. the data is moving sideways, so i am asking, what is the rush to raise rates? scarlet: he is a voting member of the central bank's policymaking committee, and was favor -- in favor of keeping rates on hold. wells fargo says credit card applications dropped 55% last month. open 43 percent fewer checking accounts in february, marking the sixth straight month of declines. that is your business flash update. coming up, what do you need for tomorrow's trading day. this is bloomberg. ♪ the president of the federal reserve bank of boston, cleveland, kansas city and new york, speaking at public events tomorrow. nike and fedex announced third-quarter results after the bell. thanks for watching it have a gre

tom mackenzie, bloomberg. matt: still with us, ashok shah. there is a tendency to try and .ie donald trump to everything it could have market potential. market action potential. theirchina's concern more own auto market domestically, their own property market domestically? don't they have bigger problems than donald trump? ashok: absolutely. i think there have been -- they have been quite successful in managing the upper trajectory of the market. they have a lot of tools to control how fast inflation in the tier one and tier two cities. of course, the speculation has moved into tier three and tier for cities. -- four cities. china is managing to get the which just a year ago was slowing down, but more importantly, what we have seen is the profitability a lot andhe chinese corporations private enterprises is beginning to improve because the margins are better all of a sudden, what we can see from the index, which was deflating around 5% for a few years in a row, that has now passed and we are -- ppi is running out plus 6%, so that means the co

anna: the cfo of air china speaking exclusively to bloomberg, to tom mackenzie. if you are a bloomberg customer, you can watch the show using tv . as well as getting the video stream and you can follow the charts and functions we are using. you can contact the show's producers. use the button at the bottom of the screen and it goes right to them. coming up, you does combat. the eu resident response to trump's taunts with a threat of his own. this is bloomberg. ♪ ♪ welcome back, everybody. the morning this friday come along: 45 in the morning in new york. equities suggested to be weaker at the start of the europe -- u.s. equity day. snp futures looking down 3/10 of a percent. let's get a business flash. >> thank you very much. china's official factory gauge has climbed to the highest in almost five years. manufacturing pmi increased to 51 .8 in march, beating estimates. the latest as -- evidence of momentum in the world's second-largest economy. japan has registered its first back-to-back inflation rise since 2015. pdi excluding fresh fruit rose 0.2% from

tom mackenzie is in beijing and has been following this story. take us through what we have learned. key takeaway is the softer gdp target of 6.5%. they are focusing on reigning in the financial risks in the chinese economy. premier league is saying the focuses are on nonperforming loans, which continue to pick up in the shadow banking sector and on online financing, areas where he has grave concern. other areas where he has concern, the external environment. and he talked about the growing anti-globalization sentiment you have been talking about, which has been reflected in france, brexit, and with donald trump. he is very cautious and concerned about protectionism. there are other factors that could prove a risk to that 6.5% gdp target. one of them is the property sector, which is a delicate balance with legislators and policymakers here because there is too much venturing into the smaller cities. there are a number of risk factors around this and i have not touched on the fed. hikes go ahead, that will put further pressure on the yuan. they ha

tom mackenzie joins us live from beijing, so less risk of a hard landing then? it seems like a more far off and distant prospect. economic officials have a spring in their step over this npc when it comes to the economy. theeard from the head of national bureau of statistics over the weekend. to two areas, industrial output he said had risen by 6% in january and february, and the services sector they want to grow in china, up 8%, or than 8% in january and february. if you tied those data points and with higher retail sales and fixed asset investment, you see robust growth momentum, according to bloomberg intelligence and their economists here. we note the gdp target has been year, and sothis far at these come early days, so far, it looks like they are on track to hit that. there is a long way to go. we also heard from the head of research at the state council effectively the cap been in china. he said there was practically zero big risks to the downside for china's economy, so striking a very up the tone. just talkingre about that over the last hour, about how t

tom mackenzie joining us from beijing this morning. we continue to see the smaller banks in china struggling amidst this tighter liquidity condition we are seeing. is right, yvonne. we are talking about the missed interbank payments and rural commercial lenders, including one which best an overnight repayment of just $7 million. we have a bloomberg chart, btv #69 85, which shows what is going on because we are talking about the rising cost of money here in china. this is a year-to-date chart. from august of last year, that is when the central bank year started to push up those benchmark money rates. in fact, we are now a level where we are near two-year highs on that seven day repo rate since about april of 2015, and in fact, up until march, the 16th of this year, 16 can think it of days where the pboc was withdrawing funds from the interbank market. say, it is starting to have an impact on lenders here. yvonne: is this going to have any impact on -- betty: what is the impacts going to be on reducing leverage on china? that is the key

tom mackenzie in beijing, let's talk about this. tom: the mist interbank payments happen monday. the pboc stepped in on tuesday and they have again today. that rate has edged down, 2.45%. more support from the pboc. we have a terminal chart that shows what is going on. see from august, 2016, the central banking has been nudging these rates slightly higher. two steps forward, one step back. we saw a again, the first two weeks of march, two straight days when the central bank drained funds from the market. the overall picture is these slightly increased rights -- treats are going to increase. overall, it is about messaging. we have seen the impact in the bond market. we are seeing pressure on chinese lenders. those money rates continuing to rise since august of last year. not all to do with bringing back financial stability. how successful has it been so far? tom: that is the key question, that bloomberg put to the chief economist. these are more sophisticated. they are more targeted. we have to get to see whether they are proving affected read what we are seeing, the in the financ

tom: tom mackenzie, thank you so much from beijing. is with ing.urner we looked at the foreign ramifications of what we see in china in the coming years. we have shown this many times. you know this well. and-term china appreciation then we have given it back. is china a manipulator? depends in terms of the u.s. treasury's definition and whether they change that over the next few months or so. to preventrying their currency from depreciating to quickly. they were using fx reserves. state they are basically acting in interest of the global economy by looking after their currency. , thank you soner much. we have so much to do in the next number of hours of surveillance. in our next hour on trade with peter navarro writing in the wall street journal and a scathing op-ed. us, thelden will join consul on foreign relations on american trade. kevin cirilli in washington coming up. ♪ ♪ morning, silence from the justice department. the fbi demands a foron, a justification president trump's statements that president wiretapped his phones. in

correspondent tom mackenzie isn't tiananmen square. tom, can you give us the key points in the report? yes.tracy, justs 9 a.m. beijing time, behind me, this morning, and top of the list in the report was the gdp target. that is now being set at about 6.5% with the possibility of going higher. that compares to arrange set with last year between 6.5% and 7%. the member at the end of 2016, gdp hit the comfortable 6.7% mark. bloomberg intelligence things the number will probably, in slightly lower. they have estimates at 6.3%. other key numbers and targets the premier outlined, the consumer buying inflation target -- 6.3%. that is picking up the last few months. the deficit in line with last year's number and then the money the loans, the credit growth, so important to the underpinning in the economy here. that has edged down 12% growth in money suppliers, down from 13% last year. talking about structural reforms, there's a lot on the agenda this morning. yousef: tom, did premier address china fell surging debt pile? tom: he did. that asse

our correspondent tom mackenzie joins us. the big focus right now on that summit between donald trump the president she jinping -- xi jinping, look and we expect." reporter: we have yet to have confirmation that it is going to happen and it will happen in ofil and in florida and part the reason for rex tillerson coming over here was to lay the groundwork and prepare for the presidential meeting. modify his hosts to some degree and he did that by using some language taken directly from the chinese government talking about the need for mutual respect and cooperation and that played well to the chinese media. tillerson has talked about the need for the u.s. and chinese governments to step their priorities fresh, a point in their relationship in the need to realign and look ahead. clearly, this presidential meeting is going to be a big part of that. tryvisit was an attempt to to find some areas of cooperation. there are major gaps between the governments on everything from to geopolitics, the south china sea, and north korea. thi

let's bring in our china correspondent, tom mackenzie, with the preview of the numbers do in the next hour. we saw those trading numbers yesterday. they were described as bizarre. can we see any disappointment here today? tom: let's not be fooled. these numbers may come as a surprise. but what we are expecting is a 7.7% increase for the producer price number. we have a terminal that shows what is going on. we have deflationary prices and those were placed by gradual price hikes at the factory gates. toward the end of last year we had five straight increases in the factory date prices. if we do get that 7.7% number, that will be the biggest spike since 2008. and the consumer price number coming up versus an increase of 2.5% in january. there were seasonal effects. in terms of what this means for the overall inflation picture, bloomberg intelligence says of the pboc will be relatively relaxed until that feeds into the consumer number. intelligence do not expect a rate hike from the pboc. they will be saying when on these number -- sanguine on these numbers. supportand backing up for fre

that was the baidu ceo speaking to tom mackenzie in beijing. we have some breaking news from the delivery of this judgment from the korean constitutional court. the acting chief justice saying that president park did leak classified documents to choi influence.d hid her some of the line saying that the president violated the constitution, but also saying that the response to the ferry disaster for a she was heavily criticized, that can't be a reason for the impeachment, saying that she hit her influence when it came to state affairs. we are waiting essentially for the court to get to the actual ruling. rishaad: absolutely. we are eventually getting there, but markets, the kospi moving just before this verdict and it has turned tail, headed lower. that is what we have at the moment as we head towards park geun-hye, the suspended president finding out her fate, whether she can be president or whether she will be facing, well perhaps, in peach mint, perhaps even further trials as well. you're watching bloomberg. ♪ haidi: let's get you up to date

tom mackenzie has the story from beijing. head ofdu's cybersecurity no c has a fight on his hands. he says hackers test baidu's defenses every minute of every day. the most serious case was again put together to steal i do's prized automated driving technology. whot is difficult to know hired them to do that, but we know someone tried to hire someone on the ground to steal it. baidu has responded by boosting its security team and backing what might be called ethical hackers. , like the blue lotus team. they showed me how they can open up my phone. i will test out one website. see hacked by blue lotus. supporting these guys is one way linesp china's best it on side. weaknessesbe for that can be dangerous and then report them to companies like apple and google. baidu has teamed up with tencent and alibaba to go on the offensive. industry is getting bigger and stronger, so we must help each other. we are not the enemy. they are the enemy. tom: the threats are only expected to increase, and china's tech giants are gearing up for the long haul. still ahead, google's ad crisis spreads wi

tom mackenzie, bloomberg, beijing. caroline: still ahead, google's add prices spreads with -- ad prices spreads. this is bloomberg. ♪ . welcome back to "the best of bloomberg technology." i'm caroline hyde. a controversy erected last week after the london-based "times" newspaper reported some ads were running with videos that promoted terrorism. the world's six largest advertising and marketing company pulled itsads. the crisis went global after marketers including at&t, verizon, and johnson & johnson polled spending as well. google promoted its policies and many advertisers were waiting to see further details or results ads again.cing >> i think there's a couple of things. in the political limit we are i end there's a lot of sensitivity around eight beach, our rounds terrorism. and there has been growing noise in the industry about google ad facebook -- google and facebook. and now they kind of see an opening and they are really seizing it. caroline: and jpmorgan is also taking ads off you too. -- itfirst to you aff

tom mackenzie, bloomberg, beijing. ♪ debthan: we can bring up go on the bloomberg, and you can see how it would roll off in the coming years -- 2017, 100 $64 billion. changere big chunks of that are going to roll off the balance sheet if this is an approach you want to take. rishaad: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you ic go --d useful -- qu it leads you to quick takes what you get insight into timely topics. this explains why the u.s. supreme court has become so controversial. u.s. supreme court justices are supposed to be protected from the pressures of election cycles and political divisions, but in recent years some decisions by the highest court in the land have become more polarized, and its approval rating is sliding. a year-long vacancy on the court highlighted this divide. here's a situation -- in the last year of his presidency, barack obama nominated federal appears scored judge -- appeals court judge merrick garland to rep

yousef: tom mackenzie from beijing. still to come, we speak to the uae property developer about growth plans and the outlook for dubai real estate. this is bloomberg. ♪ i am rishaad salamat. first word headlines. north korea saying drills are driving the peninsula and its neighbors towards nuclear disaster. pyongyang's u.n. ambassador rice using u.s. forces of using nuclear powered ships. the nine states in japan want an urgent security council meeting wednesday. missilee, america's defense system should be operational by april. -un'sispute over kim jon brother has brought criticism. the ambassador was six well. be on gang thesis formulation tourists, and malaysia has doing so as well. g-20 finance chiefs will drop a , comparingrotect with the wording after a july meeting. and central bankers found to resist all forms of protectionism. the new language comes up to president trump into the white house, saying he will prioritize u.s. interests. vietnam could be poised for a boost in foreign investment, and that's thanks

tom mackenzie joins us from aging. how much pressure is china into rain in pyongyang here? mounting pressure, i think, but a dilemma for beijing's leaders. the administration in washington, trump has raised the ante on this and the pressure for china to act. china will not be happy about what is going on in north korea. it does not want things to overshadow its congress in beijing at the moment. it is taking steps. coals banned the import of from north korea, back united nations sanctions on north korea after previous missile tests. it does provide 70% of north korea's trade and a lot of food and energy aid as well, so there is more they could do in beijing, but there are some risks they need to work out here thehey don't want to see regime and north korea collapse, and they certainly don't want to see a u.s. backed out like takeover in north korea should the regime collapse, so it is a difficult allen singh for leaders here in beijing. david: i'm just wondering, you are covering the npc, we typically see chinese leaders want to project a perception of strength. we have a l

shery: tom mackenzie reports. baidu's head of cybersecurity knows he has a fight on his hands. test baidu's defenses every minute of every day. in the most serious case, a gang was put together to try to steal baidu's price automated driving technology. difficult to know who would employ them to do that, but we know someone tried to hire them in the underground market to steal it from us. cyber attacks can come from automated hacking or from sophisticated international gangs. baidu responded by boosting it cyber security team and backing what might be called ethical hackers. router, hacked the which means you take control of my phone. they showed me how they could open up my phone. i'm going to test one website now, and now we see hacked by blue lotus. supporting these guys is one way to keep china's best i.t. min ds onside. there is growing demand for ethical hackers. >> they probed for weaknesses that could be dangerous and then report them to companies, including apple. with do has teamed up tencent and alibaba to go on the offensive. >> the industries are getting bigger and

tracy: tom mackenzie in beijing. chinese banks are going to have to wait at least until next year before they can actually get a piece of that aramco deal. in the meantime, there are several other options, several other ipos that are coming to market in the gulf region. after a bad year for ipos in 2016, this year should provide a bumper cross. we have bloomberg's philippe a push echo -- fully baked. which read -- philippe. which regions the see that coming from? ilippe: everyone has been talking about aramco, but there are some interesting spots here in the middle east that will be active in terms of ipos before it here before they come to market. some of them are in egypt. it country is going -- the country is going through recovery. since november of last year when the currency was allowed to fluctuate, stock markets have been extremely active there. we have seen a lot of interest from international investments. it is natural to see a lot of ipos coming out of egypt this year. of theed to the chairman egyptian sto

tom mackenzie joining us for more on this. the fed providing some new problems for the pboc. right, it was relatively positivity, we have stabilization and the economy picking up. factory gate rises are picking up. fx reserves picked up in the month of february. the pboc has that but the fed has thrown a spanner in the works. this narrowing rate differential will affect outflows. you can expect to have stronger exports from china and that will feed into the economy. but that cannot be assumed, given what we're hearing from the trump administration. so that is one big uncertainty. the pboc could raise the benchmark rates. it puts extreme pressure on the higher leveraged governments and corporate here as well. that seems to be unlikely. then there is this one off devaluation they could do. that shocked -- that likely shock to the system is unpalatable in a crucial political year for china with the party congress coming up toward the end of the year. bloomberg intelligence has said this before. they think the pboc will continue with this approach. they will see their open market

tom mackenzie is outside the north korean embassy. what can we expect to hear? >> we are hoping to hear more from the foreign minister about their start on the latest missile tests. from now up until this point we have heard more from china about their opposition to south korea to applying this missile defense than we have about the missile tests. hopefully, more detail on that when he starts to speak in a couple hours time. clearly, china has a lot of leverage over north korea. they account for the vast majority of trade, about 70%, with its major -- neighbor. they also provide food aid to the country. they have banned imports to north korean coal in february. they were linked to the apparent assassination of kim jong-nam. there are steps that they can take, they are under pressure from washington from president trump to take a proper line on north korea. but they will also be angry because the raising of political tensions in the region is starting to overshadow their national people's congress taking place here in beijing. right, you now have, saying after th

and we're back with tom newton dunn and polly mackenzie. tom, is there anything wrong with a man who was chancellor less than a year ago, who is still an mp, working for the biggest fund manager in the world and getting a lot of money for four days of work? that is a loaded question! look, it stinks totally. george osborne will make the argument that immersing himself in what he would call the real world, actual business, decision—making and hedge funds is, informs his ability as an mp to contribute to the public debate. personally, i think by simply accepting a £650,000 per yearjob forfour days a month, £30,000 per day, what he is saying is, i now know i will never be prime minister, because nobody if it brings some expertise e§ fill? eléhfl i fiffi'fl? ree want to stop it. it is not exactly a new issue. ever since big business, mps, prime ministers, chancellors have all gone into the private sector. yes, but i think it's different once you have left government and parliament and you are just a private citizen. what is strange a

tom mackenzie is watching this for us. tom, this comes at a pretty crucial juncture. what is expected to be at the top of the agenda? tom: absolutely right. some of the key economic matrix that you pointed to, in 2016, it was 6.5% and they announced it would be about 6.5% for 2017. it would give policymakers a bit of flexibility. the other thing is the deficit target. this is 3% last year. about 3.5st they wait to give themselves a bit more fiscal space. and there's the crucial question of leverage. and implementation. the five-year plan that was ruled out -- rolled out last year was put on the back is a try to shore up growth. there, aing director senior partner at boston consulting group. the c implementation of the five-year plan. be only onel keyword. implementation. agenda already for a while. the challenges about how to make things happen. and major items are going to be financial reform, how to upgrade to the industries. the environmental and employment challenges. tax reform to free up more consumption power for the population. --tom:we are also we are also lo

tom mackenzie is in beijing with more. it was quite an opening statement related to the united states. what else did he say about relations he expects to develop between the nations? tom: it is a stark difference, the tone you are hearing from policymakers in beijing versus what you are hearing from some and washing them. yesterday we heard from robert light right that china was one of the key problems for the u.s.. he is the nominee for u.s. trade representative. in beijing they are striking a moderate tone. that is how they would like to frame it. they say the relationship can move forward from here. there have been differences but they can work through that, particularly sense president trump would give his backing to the one china policy, which premier leagu li said is e most important part of the relationship. china bilateral policy created one million jobs in the u.s. he said relations were improving across different departments and he is moving to avoid a trade war. he said u.s. companies would be on the firing line

anna: tom, thank you very much. tom mackenzie in beijing. chinese home prices rose last month in more cities, despite increased restrictions on property transactions by local authorities. new home prices, excluding subsidized prices, gained and 56 out of the 70 cities tracked by the government, compared to 45 in january. beijing raised down payment requirements for second homes in an attempt to cool prices. alan higgins is with us on set. i turned to my colleague, tom horlick, who said suddenly it is all going right with china. aboutalking in particular this data around home prices moving higher in more cities than previous. i don't know if that is good , though. when you look at industrial output, factory prices, slower capital outflow, certain things do seem to be moving in the right direction for the chinese. >> they do. and it was interesting to hear about the down payment on the second home, but that's a characteristic of the chinese property market. it's not like here in the u k or even in the united states. you need very big deposits.

this in november and tom mackenzie is all over this story. is it generally reassuring to say it is generally under will? >> in a word, no. there is reassurance that this is a shift with this priority and they are focused on the local and regional government debt with a finance minister saying he wants stricter caps in place to ensure the contingency plans at the local government level and he said that he wanted to pull back on some of the risky actions and he wanted to see the government bond issued. this year, the target has been set and it was 3%. the actual number came around 20%. he was asked if there was and he spelled out the fact that this was an in on the year on year around 30 billion u.s. dollars and he said that his money is not being spent on welfare, but sets. t gdp, around 40% debt to which is just the government number. is concerning investors and analysts. some exempt did household items. they said they would do the spike cutting corporate taxes and replacing them with value added taxes. he talked about jobs and employees who