giant turbines in asia which use artificial intelligence to reduce omissions, to products in the u.s. harnessing big data to find problems before they occur. are you worried about the pace of change? if you look at the last 10 years, innovation has gone so fast that you cannot possibly do that over 170 years. joe: that is just what people thought 170 years ago. people are just naturally concerned about the future because the future is uncertain. the question really is what concerns us, not so much innovation or what technology can do because all those three industrial revolutions that we've had so far made a difference in the planet and made this society a better society. it created wealth from poverty and peace. that is a positive. what is radically going to change is the speed of the change going forward. human society may not be able to deal with that sort of speed, so what i am really concerned about is that if we do not make this industrial revolution inclusive to society, it may create a lot of challenges, unrest, divided populations, which leads to obviously populism and leads

could, but they aren't out yet. there is no uses for it yet. >> it curbs things were apple. they are very servers have about what they have in the pipeline in terms of hardware. inn they unveiled the phone september and had a released in november, not a huge timeframe for developers to start coming up with new tools that you can download in the app store. it might be that we see far more compelling innovations that use these 3-d sensors. also, we will never know the mix between iphone 8 at iphone x's very if they sell a lot more iphone x's, but the top line and the bottom-line because it is so expensive are going to do so well. there is always this chatter that china won't buy the expensive phone. what we have seen is quite the opposite, china loves the big expensive phone. they're willing to pay for that luxury item. >> the iphone 8 is still the same form factor as the iphone 6. there is that he's amount of change between those three generations of phones, 6, 7, 8. that means that the price for is still pretty high. it is not the end of the world and apple is selling iphone 8's rath

that other countries will use this as an example and really look for other things we can do. julia: talking about real things we can do and people taking action, talk about mitch daniels. he is not in ordinary president by any means. megan: i love this story because mitch daniels is just perfect for this issue. he is the former two-term republican governor of indiana, but he is doing something that other people aren't. in a time where we see rising tuition costs, and universities operate much more as a business with big athletic departments and high-priced faculty, he has done two interesting things. he's trying to keep tuition cost down or lower in some cases, and he's encouraging students to graduate in three years, not four. i wish i had done that. [laughter] the other thing is, he controversially bought an online educational business kaplan, he , believes it is fundamental to really changing this thing. changing the thinking and how the universities are operated. it is a fascinating look at someone who is going against the grain and against the trend. carol: as someone who is g

phones did not have, but there are not really any uses for them yet. alex: it is the kind of curb to being apple. they are very secretive what they have in the pipeline in terms of hardware. when they unveiled the phone in september ahead of its release in november, that is not a huge timeframe for analysts to -- for developers to start coming up with new tools. it could be that in the coming year, 18 months, we see far more compelling innovations which use , these 3-d sensors. cory: we will never know the mix between iphone 8 and iphone x, but if they sell more iphone x's, both the top and bottom line, because the phone is so expensive, are going to do so well. there is always this chatter saying china is not going to buy , the expensive phone, india is not going to buy this expensive phone. we have seen quite the opposite. china is willing to pay for the luxury item. alex: the other thing you have to think about is the iphone 8 is largely the same form factor as the iphone 6. there is not a huge amount of change between these three generations of phones, 6, 7, and 8. that means the

focused so much on shame of individuals but how can we use this moment to implement policies, which have proven successful? but really looking at using criminal penalties for sex abuse, education, really meaningful real-world change. in america, sometimes we're not as good as taking these moments of outrage and connecting them to do anything with it for change. that is what we have seen in sweden. julia: what is fascinating to me about this, there seems to be far more protections for women, in sweden than anywhere else. they have a strange culture of silence. movement has seen all sorts of sectors in sweden, too. >> that is what is so fascinating about it. this is a country that is modeled on, in part, because of the regressive paternity leave policy and making sure that men carry an equivalent burden of child-rearing. we see all the studies that having men shoulder an equivalent part of household rearing, taking care of that, is the key to keeping women in the workforce and closing the gender gap. this is a society that has been transparent, and as we said, it has a much smaller partici

, youtube got shut down. kai-fu: we made a decision we would comply by government laws. that allowed us to grow our business from about 9% market share to 24%, and search revenue from nothing to almost a billion, so i thought we were given space to do our business, but ultimately i think the legal restrictions and google's values really didn't allow google to continue to operate. emily: youtube getting shut down was the beginning of a series of shutdowns. facebook was blocked. twitter was blocked. kai-fu: none of these companies would have had any chance to succeed in china because american companies were just too far removed from the chinese users' needs. google eventually agreed to create a chinese interface, but way ofuld get in such a the silicon valley-centric way of the world where one platform would serve the world, and that egocentricity would have caused every american company to fail in china. also, if you look at the new companies that rose up in china in a very tough competitive environment, i think wechat is clearly a better product than facebook messenger, taobao is better

it tell us about your strategy? jim: i think they all have in common the fact that they're driving disruptions in their industries. in some ways, if you look at the history of tpg, while we are often called a private equity firm, from the very beginning when we started with continental airlines, people began thinking we were airline investors, but really, that was a moment in time. we have not done much airline investing in 10 years, but since that founding 25 years ago, we have constantly specialized in finding where the economy is changing and how we can expose capital to it. emily: you and david bonderman cofounded tpg in 1992. you were both working for the texas billionaire. what was it in those early days that set the stage for what tpg became? jim: we came to the industry from a different place. first of all, it's a bit aggressive to call it an industry in 1990. in fact, it was a backwater piece of the investment world. have constantly specialized in finding where the economy is changing and how we can expose but in those early days, there were a couple of small funds. kkr li

. it's because we had lost our focus. we said, what is the most important thing? who facilitates us to do what we love? that's make games. that's the player. we started every conversation for the longest time and continuing today is, is this good for the player? the worst company in america vote feels like an age ago now, but it's still at the forefront of our memory, is there was a bunch of stuff that we were doing they did not like. there was a bunch of stuff they expected us to be doing and we weren't. and when you run a public company, that's challenging and you have to make really hard decisions about how to make sure the games are great, scalable. emily: tell me some of the hard decisions you made? andrew: just after i got the role, we launched "battlefield 4." biggest first-person shooter game of the year. it struggled with scalability. the games are great, scalable. just the infrastructure. we had to make a judgment. we're not going to deliver more paid content until we fix this for our gamers. a year later, we were launching another battlefield game and it wasn't quite read

flotation of thedistribution unit, ceo of ab abu dhabi's state major outlined his plans to us. and saudi's big time budget, the nation's finance manager down to me as he set out a huge spending plan 2018. first, saudi arabia was the source of many of the region's biggest news 2017.s of as the kingdom shook things up and intensified efforts to reform and to modernize. allowhe decisions to women to drive from the exteriors of so-called theuption crackdown, nation was far off the headlines and in october it to outline world its plans for the future and show how it was opening itself up. we secured the first-ever interview with the head of saudi arabia's public investment fund. >> vision 2030, we tapped on things, one of diversity.e and if you look at our assets under management currently, one it's mainly in the saudi economy and two it's mainly in the .onventional sectors so in order for us to have thoughtersity, we we should tap on different ofls of investments, one which is the international pools and the second thing the nextxt -- generation investments, iot, theke the science, the life th

identification. the phone has a lot of interesting features, but there are not really any uses for them yet. secretive about what they have in the pipeline, in terms of hardware. when they unveiled the phone in september and it was released and november, that is not a huge timeframe for developers to start coming up with new tools. it could be that in the coming year we seek far more interesting applications that use these sensors. >> will never know the mix between iphone eight and iphone x, but if they sell more iphone x, both the top and bottom line are going to do well. there is always this chatter saying that china or india are not going to bite this expensive phone -- by this expensive phone. what we have seen is the opposite. >> the iphone eight is largely the same form factor, shape, and design as the iphone 6. there is not a whole a lot of change between the three generations of bones. -- phones. the price point is still pretty high. the components are very cheap for them. betters margins might be on the iphone 8? >> not that they might be better. >> you are still predicting th

and .abor force, a 4.5% wage gap but really focused on policies. how can we use this moment? criminal penalties for sex abuse, education, really meaningful real-world change. in america, sometimes we're not ofa dad taking these moments outrage and connecting them to do anything with it for change. meia: what is fascinating to about this, there seems to be far more protections for women, they have a strange culture of silence. they see all sorts of sectors in sweden, too. >> this is a country that is modeled on, in part, because of the regressive paternity leave policy and making sure that men carry an equivalent burden of child-rearing. thate all the studies having men shoulder an equivalent part of household rearing, taking care of that, keeping women in the workforce. as we said, it has a much smaller participation rate issue and a wage issue. it talks about these issues openly, but still faces many of the challenges that we see in this article. a very male-dominated political spectrum. industries dominated by men. place.ve the policies in carol: but where is the enforceme

our brands, due do tutorials to explain how the products work, how they should be used, have a personalized relationship with the consumers. it is a completely new dimension. it is much more rich and exciting. francine: what sells that the moment, the luxury brands or consumer brands? jean paul: this year, luxury has been booming everywhere, mostly with chinese consumers. you know chinese consumers are fantastic. they love beauty. they love luxury. , and our our brands business with chinese consumers everywhere has been booming. global reachreal's stretches across 140 countries. about two thirds of its sales are generated outside europe. much attention has shifted to china, where strong demand for high end lipstick and perfume is driving growth. in 2015, china surpassed france to become the groups second-biggest market behind the united states. some of the success is being attributed to selfies, camera-conscious millennials buying more makeup than ever before to look good instantly. have you adapted to the chinese market? jean paul: not for all brands. the luxury brands are the

. joining us to set the stage, it and the adjutant in washington edgerton in washington. i want to look at the reform of the welfare system. it seems that paul ryan and mitch mcconnell are not necessarily on the same page there. reporter: that's putting it mildly. i think there is broad disagreement between what house republicans in senate republicans want to do or recognizes actually possible. it has been described by paul ryan as the second part of his plan to reduce the deficit. in itself willl add $1.5 trillion to the deficit over the next decade and he says part of that will be made up by faster economic growth, but the rest of that and the way to close the yearly deficits the united states runs is by reforming government spending, most of which will be mandatory spending, which is welfare, medicaid, medicare, some of those mandatory programs that are not regulated by the appropriations process. , obviously the immediate concern in d.c. will be the budget, keeping the government what about policy wise in terms of where this administration wants to go next. is it on the infrastructure

year, the s&p 500 have its best year since 2013, and michael o'rourke of jones trading tells us the potential risks that could be real. says it willachs take a 5 billion july 1-time hit, citigroup could face a charge as well, but will the benefits outweigh the charges? and a reduction of the property tax reduction could have homeowners fleeing high tax states to places like florida? not all fun and games in the sunshine state, we will explain. obviously, i need the year to end if i cannot say the word jones, but take a look at the major averages on the last day of trading, we saw the dow close at a record yesterday, coming down today along with the other major averages. so just off the record levels we have seen, the nasdaq 100 underperforming, even the nasdaq composite, but the nasdaq and nasdaq 100 of the big winners for the year, we saw a big rally and a lot of questions about whether the reliance, if you will come on the bank stocks for the year's gains are something that are a negative -- one way we are slicing and dicing it is looking at the percentage change, minus the percen

stage we welcome henrietta treyz. she is director of economic policy. she comes to us from new orleans. welcome back to bloomberg. good to have you again. there is a complicated, long list of issues facing congress. we will put up something indicating in the month of january what they have to get done. let's start with where he left off. after the tax overhaul we had to keep the government going, but they kept going until january 19. what happens on january 20? henrietta: the government shuts down unless they have another patch. there is still disagreement in the republican party about how to fund the defense department versus the other programs the government funds. they need to get 60 votes which is highly complicated given the democrats need to provide as many as eight or nine potentially. as many as 12 democratic votes to keep the government open. it is highly complex as we head into early january. another thing is congress delayed its return. now they are not getting back until january 8. to get a short week funding bill through the can be very compensated. david: they have these

effectively trading venues. they get to trade with the buy side directly using their own capital and to take a lot of business away from stock exchanges. shery: what about brokers? we will see small money managers , traders, boutiques, investment banks getting hit by this, should they look into other careers? >> yes, some of them probably should. some analysts i met this year have already taken preemptive action and found new jobs. nejra: the systematic internalizes, we have seen a rush towards the end of the year of various banks saying they will be aside, why this rush, they have had a year to prepare? >> we are puzzled by that, banks are silent on systematic internalizes until christmas. maybe -- that may be because they have certain advantages over the stock exchanges and other trading venues. if you are a fund manager, you do your business with a bank and a systemizing internalize or, a massive weight off your mind. we think maybe the banks have left it to the last moment so that this advantage they have does not attract any regulatory attention. nejra: interesting. thank yo

money from abroad. will they use that for m&a, dividends, share buybacks? it's not forget brexit. issue.political what impact will that have on u.k. m&a? that has been fairly flat, year to date. with a weak and pound, we could see deals in that direction. and i think tech disruption. nejra: i was going to ask you about brexit. what sectors are going to be really right in 2018? could you give us more of a flavor? aaron: i think banking and oil and gas. we have not seen big cross-border deals. our banks finally going to be ready to pull the trigger on those? oil and gas prices have finally ticked up. will this give the ceo's courage to's -- to do big deals? nejra: we cannot wait to find out. aaron, thank you so much. still ahead, the euro gaining 4% against sterling this year. amid the brexit twists and turns, we look at brexit's broader impact with danny blanchflower. ♪ shery: live from bloomberg world headquarters in new york, i am shery ahn. nejra: and from bloomberg's new european headquarters in london, i am nejra cehic. this is "bloomberg markets." let's check with the bloo

using it for another year. the tax structure is going to change. they are not worth as much. alix: you were right. they are writing it off this year. worth the election is more this year than next year. there are a lot of unintended consequences. apple, this time they are apologizing or what some had already suspected, that software changes compromise the performance of older iphone versions. they denied this was a chance get people to up grade. they said they would never do anything to shorten the life of any product or degrade the user experience. the goal has been to create products that our customers love and making iphones last one is possible is an important part of that. this is an unfortunate time for them. there are questions about how gettingonex's are shipped. joe: i am skeptical. remember the nintendo games? they did not pick up and receptions. remember the that iphone saying it in which people kept them in their pockets. that happened to me. these things happen from time to time. it doesn't seem like anything matters. how may times of heard stories about some supplier

had quite an enjoyable collection of people to enjoy and -- to join us. nandini ramakrishnan will join the team. we will speak to luigi zingales zingales.i michael purves and chief global strategist. this be up -- the s&p up this year. in the meantime, there is one deskthat close software 17 closes off 2017 with a promise, it is taylor riggs. warned donald trump has china over tales of oil to north korea. says theretellite are chinese vessels transferring oil to north korea ships. donald trump tweeted "caught red-handed." there will never be a friendly solution if this continues. while themp is said investigation into possible ties between his campaign in russia make u.s. "look very bad" he believes robert mueller is going to be fair. the comment was made in an interview with the new york times. even republicans argued that the investigation is tainted. the u.k. government is withholding the publication of secret files on the creation of the european union. the documents date from 1992 and were due to be released today under the 25-year-old but the 500 files, one is a 14 are being

have some very abrupt changes. people are getting used to that. over the past decade, corrections tend to be quite file it and short-lived but we do get done. gethe first quarter, we can a sharp correction in the market. commodities are on the front foot. for about as does the dollar but also the supply-side stores. this one of these things are underestimating? we saw the super cycle psychology. even a little bit of that, even returned to people getting up to even wait in their portfolio, could really change that story. definitely, because we has in the past there were times who commodities became attracted to people don't usually trade commodities. when the asset class you are not trading become so interesting you start looking starter capital into that, it becomes a big play. we've seen it in oil before. people suddenly all shift into oil. there is room for people to shift towards commodities. when you have one of the biggest companies in the world, china itself is starting to pull back for environmental reasons, that's a big factor for the rest of the world. china cannot be und

union. macron may use the meeting to discuss financing the border controls between the two countries after brexit. the issue of who pays for tighter border checks could prove a further headache for may as she seeks a transition period and trade deal with the block. george wale has been elected the country's next president after a decisive victory after the nation's first democratic transition in more than 70 years. sidra mozzarella has dissolved parliament, setting the country on the path to a national election march the fourth. they could lead to a on parliament and lead to turbulence in the eurozone. opinion polls put the antiestablishment five-star movement ahead of the democratic party and a potential center-right coalition. in the u.k., a batch of government documents have revealed a remarkable tale of politics and is you all do. the papers from 1981 should the british prime minister refused to share concorde with a giant with on the first visit ronald reagan. the iron lady says the memo brought bad luck to politicians. global news 24 hours a day, powered by more than 2700 journ

say about uber back in august. >> i think the way people use transportation and the lifestyle will be different from 30 years later, 50 years later. it will be very different. autonomous car is definitely coming. comes, thist stage business becomes even more important. >> joining us now to discuss the news, bloomberg's head of global technology, brad stone. shira joining u.s. as well. shira, this deal took quite a while for these guys to put together but also really suggests that uber is not what it used to be to the tunes of tens of billions of dollars. >> yeah. think you can't escape the fact that uber is essentially less valuable than years ago,uple of when it was valued at $69 billion, in the stock transaction, and now we're talking about a 30% haircut. and yeah, you can make all kinds excuses that this is a transaction not from the company from its existing shareholders. but obviously it's been a bad uber.lus for and it's clear that that's hurt the valuation of the company. really shocking, when you look at that chart by our producers here of the show. know, this also took a whil

until we get going again for the hong kong session. let us take a look at what has been happening. has been a winning last day of trading for 2017. the highlights. looking at 14 months, straight months of a global stock that is gaining. this is unprecedented. let us go back to the dark days of 2008 when we had steep falls. in one month, 10% of the stocks declined. since then, recovery taking place. 2009.d bag since the last 14 months has framed what has been going on. the hang seng up about 34% so far this year. notwithstanding the gains we may be seeing in a little while. and that is when the session kicks off in about 29 minutes. singapore and taiwan coming online as well. let us go over to sophie and have another look at the markets. grant sporre: -- sophie: let us take a look. the ringgit is heading for its best year since 2010. in 2017 following the rebound in oil prices. is expected to test at a number three level. singaporean stocks. the opening was flat but they are eyeing the best since 2012. 0.5%t -- gaining ground at and looking at the best year --ce 2009 but the towel while

reducing battery life. sayinglso apologizing there is a misunderstanding about the use of older batteries in new iphones. that sorryonce said is the hardest word. has apple apologized? said, sorryty much not sorry. users notice that their phones were not working very well after an apple update and the simultaneous release of a new phone suggesting that apple made the old phones worse to motivate you to get the new phone. apple apologizes for your feelings being hurt. anchor: how are they trying to make everyone feel better about it? i noticed it myself. a lot of things just lagged on my phone. are they putting any tangible fix is in place? >> if your battery suffered as a result and want to keep your old phone, they will still charge you but charge you significantly less. again, they do not cop to having tried to make old phones worse. making newcused on phones as good as possible. if that degrades the old phones, it is still tough luck. makes me want to not upgrade my iphone anymore. the failedt of forecast at all? analysts that lowered wereates this week minimal. apple never g

this, brian reynolds. think you so much for joining us. -- thank you so much for joining us. explain to us what is happening on the local level and the ripple effect we're going to see? brian reynolds: it is a daisy chain of social engineering. they did not raise texans -- taxes to account for pensions they promised workers. state and local taxes went up by $100 billion this year just for pension allocation. that means they need to get 7.5% annual returns of that money. they put it into aggressive credit funds. those funds by corporate bonds, put cash on corporate balance sheets, and ceos use that to push stocks up-- through buybacks. joe: i love how the cycle you describe and how higher taxes arguably leads to higher equity prices. i've never heard it quite like that. is there any change to this story coming, or is this driver going to continue? brian: that has been the main engine of this credit-led bull market over the last 8, 9 years now, and it is going to change in the sense that it is going to intensify. new jersey became the latest pension to increase taxes. they could from 7

softbank. thank you for joining us, brad. what is the key headline we should know about this sale? >> maybe it is the long dramaawn or -- uber coming to its natural end. this was a deal that we were talking about, rumored at the end of the summer. softbank coming in and buying a significant percentage of uber at a discount from those shareholders that have not have liquidity for a long time and by not get it until 2019 and later. it creates some stability and opens for -- a pathway for peace in some on probable countries like india and southeast asia. julie: is this the first time in a while that we have gotten a repricing of uber's valuation? when was the last time we knew in a concrete way what it was worth? brad: you are testing my history here, but i think that valuation was 2015. a lot of optimism around uber in that era, and we are familiar with the conflict and controversy in the past year, but i want to add a fundamental ambiguity about the success of this business and the size of the market. i think a lot of early shareholders have their confidence hit by all of the drama

amount of work awaiting legislators on the return. , coming togie gage us today from washington. there is a lot to cover here. holidays, it is right where we left off last year. congress will come back to try to decide how to fund the government. prettyhat, there's a good debate between democrats and republicans on spending cap for defense versus nondefense spending. we are optimistic that they do come to agreement on that deal and avoid a government shutdown as well as the fiscal incentive that would be surely after the budget negotiations wrapup. david: you have the compromise. it you increase defense and we domesticthe festive -- policies. things like the dreamers act and the pay-as-you-go act? >> the dreamers act, a couple of the other health care provisions like immunity health care centers and the market stabilization act as well as disaster funding could be used for the defense cap, offering democrats some of the speakers on their side they would like to see. david: and when we left the tax overhaul, senator collins had promised her vote in exchange for a couple of other bills. >>

doolittle is with us and showing a little more active -- more activity than yesterday. abigail: not a lot of activity as investors may be on a holiday to some degree. the s&p 500 is on pace for its best year since 2013 so investors seem to be on the sidelines. where we have a bigger move is the bloomberg commodity index. the longest such winning streak since 2005. natural gas up nearly 7% on the day. of 2016,since october the frigid weather here in the northeast one of the drivers plus tight inventories for natural gas. copper also higher for a 16th day in a row. behind that, strong demand out of china, this helping some of the related stocks. some real strength here for the bloomberg commodity index. where we are seeing less strength, bitcoin. a very volatile ride, recently. the 7.5%, taking some of related stock in companies down with it. -- and companies down with it. time will tell but if we take a look at the technicals on bitcoin and hop into the bloomberg, this is a six-month chart and we have bitcoin, an extraordinary ride higher despite recent volatility. see in the recent

there. joining us now are julie and marty and we'll start by putting up a chart showing the ever narrowing difference between the long term and short term u.s. bond yield. you look in the two's and 10's and 5's and 30's and going in the same direction which is flatter and flatter. my real question is this, is this affecting the markets assessing the u.s. economy and where it's going because it doesn't look favorable to the tax overhaul or is this the end of the year, people cleaning things up and not a lot of liquidity and should we pay attention to this at all? marty: probably somewhere in between. i do think there are a lot of year end issues that come with people closing out their books that affect the curve and you have the effects of unprecedented easing being scaled back and varies places around the world so probably somewhere in between. alix: interesting because it was warned if the three year breaks above two all bets are off and things will go crazy. we broke above two and things didn't go crazy and it was status quo and leads to the fixed income calls for next year fro

. he is with us. julian is in the studio in london. let's take it to you first of all, john. in terms of what the polls are saying. i know we're going to spend the next three months saying to one another, can you trust the polls? are the polls right? can the polls be wrong? right now the polls are indicating -- >> absolutely. that's the only sernts. five star is leading in the polls but it would not get a majority and it is the party that up to now has refused to form a coalition. it ruled that out. if it does win the election, it will put out, lay out what is key, a manifesto proposals are and expects parties to back them but that could be an uphill path that we may get weeks, months of negotiations to try and form a government. manus: weeks and months to form a government. do you see a scenario, john, you and i chatted earlier. you said you could see a scenario where we are left with the hung part of it, in other words a new government and in charge of italy. how would that politically play out for it? john: well, that would be plan b for italy. basically it is the prerogative of th

to around 14,000. 20% down from its mid-december high. paul dobson is with us on set. is this the risk for 2018, the regulatory site that could end crimping the cryptocurrency story? paul: that is something that people will have to pay a lot of attention to end it will be good for the long-term. a frameworkmore behind it. if that is the sort of thing that deters people from getting in their it will cause the kind of volatility we have seen over the last few weeks but also likely to slow down the pace of appreciation. guy: it is the asians taking the lead. paul: that is where bitcoin has been most prominent. it is not such a big story as it has been especially in pacific rim japan. south korea in particular. a lot of young people have got into it and that is one of the things that authorities are worried about. there is another place where there is excitement and engagement. guy: let's talk about the u.s. curve. i have the chart up here, trading 52 point six. the curve is flattening at the year-end. is this just something else that we can think of as the continuation of a trend? pa

. pushond market, one last from the bond traders. let's get to the first word news , taking us over the line for 2017. >> strong growth in exports, factory output expanded in november from october and 3.7% on a yearly basis. just ahead of expectations. in the u.s., the irs has said you can do duct property taxes if you pay the bill before the end of the year. it comes as homeowners and sates for the highest property taxes have been peppering local officials with questions on how to prepay the levy to take advantage of a tax break that will be limited next year. held.u. negotiator has face-to-face talks in a breach of protocol is regarded as evidence of the u.k. brexit secretary being sidelined. according to the times, oliver running then effect negotiations. the paper says robinson stealing directly with michelle as well as his opposite number in the european commission. german chancellor angela merkel's public support for another full term has split. showed 47% of voters want her to step down before the end of the four-year mandate. sign that a political statement since election maybe

a good year for em currencies. talk about the south korean won, it is one to watch. tell us why. >> it's been the best performer in in asia this year. a lot of people might think that is somewhat surprising, given the brakes when ship we've had between north korea and the u.s. this year -- the brinkmanship it had this year. growth comingrong through in south korea in the third quarter. on top of that barry -- very big bond flows into korean bonds and the wine is also the most liquid em asian currency. -- won is most liquid. rishaad: what about the gamut of emerging-market currencies elsewhere? >> to happen strong across the board. the best performer is the currency in the czech republic. it's a bit of a similar story to had strongthat we've growth there, around 5% in the czech republic. the check central bank has hiked twice this year and will continue to go on hiking next year. elsewhere come in december, the south african rand has been an absolute star performer, going up about 12% against the dollar. a lot of that has been on the back of the men who won the election contest a

same way. francine: how difficult is it what will work and what will not? why am i using this mascara, this foundation, not the other? jean paul: when you know well your consumers, understand their desires, can guess their dreams or expectations, then you can create what they will love. francine: what will the next four years bring? is that a specific market that will grow more, men's cosmetics, or something else? the paul: digital will be most important element of transformation in the markets, so definitely e-commerce is growing. e-commerce in china is 30% of our sales for our mass-market brands, huge, so we will see digital growing. we will see new channels emerging like specialty stores, our own stores. , a growing big segment is travel retailing, the stores in the airports, because more and more people are traveling, so there will be new channels. in terms of the regions, emerging markets are growing. makeup has been booming for 2-3 years. i think it will keep booming. too, so i amrowing optimistic about the possibilities of this industry. francine: what do you think you spend mo

lackluster. the bond market is where the action is. us the flattening of the yield curve taking place. there is almost this final push for this to happen. yield on to an tenure treasuries just 50.6 basis points, closing to this decade low which is reached on december 6. a small part of this really coming from markets shifting to a new benchmark, one of the biggest single session shifts. the final flattening push, it appears to be money managers that essentially want windowdressing to tighten up their portfolios before the year finishes. that is the bond market. a look at what is going on with the start of the trading day at singapore, taipei, and kuala lumpur. it's get a look at what is going on and how things are shaping up. >> lets kickoff with the open in besti with clocking the they in two weeks, continuing the advance. the year's games have not been able to claim the 11,000 mark given some investor caution around iphone sales. we see stocks under pressure, and in kuala lumpur, we see a flat open. it's get a quick check of the assets in focus. rebounding just a touch after t

. kathleen hays has the lowdown for us. you, who are for they, and why them? >> those are two good questions. two georgey, these w. bush-era economist that the wall street journal appointed on today. was an assistant treasury secretary 2002-2000 three overseeing economic questions for the white house, then joined pimco as a money manager and advisor. he continues to do that job. since theniversity 1980's teaching economics. he is a well-respected scholar. --writes all kinds of fairy very detailed articles and is considered a true monetary economist. has also been at pimco as a money manager come a bond portfolio manager, things that rich would be a good choice. being an expert on the issues of monetary policy is important. think about ben bernanke, who is an advisor to pimco. he understood the great depression very well. it is important in terms of where monetary policy could fit in and what it could do. >> another economist is in the running as well. lawrence lindsey. he was one of george w. bush's top economic advisers 2001-2002, instrumental putting together that $1.3 trillion t

stocks we watch are doing well. california is set to legalize recreational marijuana use on january 1. these playersid are seeking to create multinational franchises in legal marijuana. many of these companies we use as proxies for various pot policies around the country and around the globe are pretty small, many canadian listed, so they tend to be quite volatile here. are, in most cases, small or even micro caps. joe: let's check in on bloomberg first word news. former president obama is getting his first interview since leaving the white house. asked radio, prince harry mr. obama how he felt at president trump's inauguration. he said there was a sense of satisfaction for a job well done. obama: -- concerns about how the country moves , you know, overall, there was a serenity, more than i would have expected. jessica: not achieving president trump by name, mr. obama warned about the use of social media by world leaders. the interview was broadcast today but recorded in september. large swaths of the united states are facing bitter cold and dangerous conditions in the days ahead. pen

deductions they have today but will lose next week. to take us through how it all will work, we welcome now laura davison. welcome back to the program. on the individual side, there are reports, and i must say, i'm in new york resident and i'm looking at it how you can pay some of your taxes next year because you lose the deduction next year. laura: what the new law does is that it limits the state local taxes that you can do. to $10,000. if you live in an expensive state like new york where you have a property tax bill and your state income tax bill could exceed $20,000 or $30,000, if you prepay those now in states that are allowing you to do that, you can get that full deduction and tax break. that's why you saw governor cuomo say you can prepay that. take a bigger deduction. this is really democrats that are leading some of these states and kind of sticking it to congressional republicans, saying we will help out our people even for one year. david: you said the crucial thing -- and those states that let you do it. do all states let you do it or special dispensation? laura: it depend

will give us elevated levels of growth and keep the taperppy, happy enough to one last time where qe program -- the qe program and have committed to nine months of purchases at 30 billion. once they are up in september, they were probably do one last tapering. and carry that on for six months. buoyant growth outlook in the euro area. qera: that is in terms of and we can talk more about rates and a second. -- in a second. let's talk about inflation. in this chart ,8187, the headline versus the core. core inflation still pretty far from the ecb's target, how far is that likely to become next year? >> the advanced inflation, likely very gradual. not many signs of buoyant wage growth. even though the unemployment rates have fallen considerably. any recovery will first have to be seen in wages and then eventually go into the other measures of inflation and importantly consumer prices. that is some way off, a gradual process. that is why the ecb is in the rest to cut off qe and to finish the stimulus program. nejra: ecb policymakers have to focus on the rally and euro cents april. they

insights as investors look ahead. joining us now, the global head of pine bridge investment. .e leads a team great to have you with us. it has been an eventful 2017. we can tax reform abroad. momenta talk of a minsky in china. what were the biggest surprises that could have repercussions in 2018? degree of dollar weakness was a surprise. flattened.urve many people felt that was signaling weakness. we doubt that will be the case. we do think the dollar will firm up again and the curve will steepen as the bond market catches up to reality. next year is more of a boomer. the t.r.y. 787. we continue to see it flattened. it would be near the lowest in a decade. it yet you expected to steepen. why, if we could get more fed rate hikes? >> i think people are going to be surprised with how strong the economy is next year. ,ven when you get into this 2006 was the high water mark for the yield curve. it forecasted rough times ahead. when you were in the mid to late 90's the yield curve hovered at these rates. the economy boomed during that. that is likely the environment we are going to be in. i

toalso remember with retail numbers, they often shift in the first quarter because a lot of us by things and return them. a lot of the companies did up the sales ahead of time but offered free shipping. we will have to see how it levels out. apple did not have as strong sales as people expected with the iphone x. we will have to see how that plays out. alix: did you get the tend? i bit theave a x. bullet. there were such promises about huge iphone x sales. alix: and virtual reality stuff. david: it is face recognition. the third story as we head into the new year, we will find out home president trump will nominate for vice chair, replacing stanley fischer. a former economic adviser to lindsey isush, larry under consideration and rich clarida is also in contention. we do have some openings on the fed, and this is an important position. how could this influence affect how the fed addresses the economy? matt: we are going back to conservative fed tykes. -- types. larry lindsey and rich clarida both served in previous republican administrations, that richard clarida is well-known for

trusted sources jonathan fendi and the senior fellow at heritage foundation joining us. in the meantime, let's get your first word news. reporter: we are starting with the oil story, which is trading at the highest level in more than two years. carries crudet exportsa and terminated yesterday. saudi arabia is expected to see 23, revenue jump 80% by 20 helping the record the first budget surplus in more than a decade. copper has surged to the highest level since 2013, after trying to have the parties are to halt outputs. demand, as well as apply, hits the market. days, after aine 30% jump this year, which makes the london metal exchange the top-based metal performer. china's industrial firm saw a slow month. industrial profits rose 13.9% in november from a year earlier. that compared to a previously reported 25.1% jumped in october. theunited nations say sanctions are unlikely to slow kim jon un's nuclear ambitions. the security council unanimously approved new sanchez on friday to slash imports on petroleum products. these are more likely to hurt ordinary people than the isolated nation

interesting in terms of what it will be showing us. let's talk about why china sold off this morning, that was interesting. the rest of asia had a positive session but china was down at the close by 1.5% on the 300. it was interesting to see the consumer end of the spectrum. also showing signs of weakness. the chinese currency on the move overnight to keep an eye out what is happening. let's move it on. the intriguing stuff is happening in the commodity's space overnight. there is a few things to be aware of. copper is trading lower but the lme contract is in positive territory. the reason was a couple of factors, one of which is the supply side story. china shut down one of the biggest copper plans on the emissions of story and that is on the supply side and there is a demand side from china and from the u.s. we are beginning to price in the infrastructure story coming through from the president of the united states. the chinese expended the tax breaks for electric cars. the be why be one of the standout stories. a solid session yesterday and the reason is the supply side story. hav

significant leverage to bottle up proceedings. join us, jodi schneider. great to see you. we have some big differences here between the republicans and the two chambers. there's a bit of a swagger from some of those republicans. what happening in 2018 from your perspective? the republicans in the house want to do much bolder things. they say they have a much bolder ambitious agenda that is because of rules that require it publicans in the senate to get democratic votes, which would be very difficult on some agenda items if not impossible, or to work within rules that require strict budgetary accounting. with just a 51 to 49 majority, once the alabama democrat is seated in the new year, that's going to make it tougher than. -- tough for them. they have to think about what they can get through the chamber. and it is an election year. the house is much more likely to remain republican majority than the senate. the senate probably will be, it's tough for the democrats, but they have to worry about that more than their counterparts in the house. manus: if that is the political backdrop

quarter. blaming the phone's higher price and lack of interesting innovations. joining us right now is alex. covering apple for us. we talked about this on bloomberg radio a while ago, and this is really interesting because it is a projection of what is about to happen in the quarter that starts next week and what just happened. alex: it has been one of the concerns heading into the christmas quarter. of course the iphone x was released six weeks after the iphone 8. there was a fear that maybe if they got too close to the release date of the samsung next high-end smartphone, which would probably come in march, the close to that and it will not be enough demand to sustain the numbers. cory: competition is another high-end smartphone, which would part of this? alex: exactly, yes. particularly in china, a lot of local manufacturers coming out with a far lower price point than what apple is able to offer, and of course with very similar features. none of them have the face id 3-d sensor that apple has come up with, but as some analysts were writing today, that has not been enough. cory:

. surging after china stepped up its war on pollution. tell us more about that and how it all plays out. >> it is all about fighting pollution. signaled thet has willingness to fight pollution at the expense of slower economic growth. the chinese government has taken a lot of effort to cut core consumption and boost natural gas supply, reducing production. yesterday, a newspaper report factories int 270 the neighboring province that has been ordered to cut production. the chinese government looks like it is getting really serious about fighting pollution. >> the moment, taking the news in. >> over the past few months, supply concerns has become a factor behind a copper price rally. copper prices have gone up 31% over the last year. china's largest copper producer, it will have to stop production for a week or two. >> i suppose we have to get the views of what analysts are , a very important industrial method. they are expecting the copper prices to go further next year. the u.s. economy is improving and growing faster. the other reason is china moves to cut production at the factories.

contracts that you can sell the rights to use your song in a movie without having people involved, very interesting stuff, so it will be fun to see how it evolves. betty: it will be. everything with bitcoin is fun to watch. we will have much more on and how the cryptocurrency is shaking off its holiday hangover. we have the outlook for the cryptocurrency. next, japanesep households are finally opening their wallets, but will that spur inflation elsewhere. we will be live in tokyo next. this is bloomberg. ♪ this is "daybreak asia." i am betty lou in new york. david: over to japan. shinzo abe and governor kuroda have delivered their indent your message, saying japan is improving, but still has a long way to go. abenomics has strengthened the economy and beaten back inflation, but prices are not ideal and wages remain weak and japan remains short of this revolution shinzo abe pledge to deliver in 2012. conditions have improved, not just for large firms, but also smaller companies. the labor market has picked up all over japan. an upper course, and we must continue this trend into t