Asiapacific and next. Treasuries not trading right now with japan closed and the bloomberg dollar index pretty much recovering from the losses yesterday. That is the big picture. Heres the aussie dollar. We are down. 2 at the moment, retaildown after the news. Than 1. 4 , orre of 1. 4 made sterling hit a multiweek low. This is a bit more of a technical chart showing cable below the 100 Day Moving Average the trend lines converging. That is some thing to keep an eye on with sterling. Finally showing you bitcoin and its breakneck rally. 7244. Now above manus is now the time for tax cuts . Comments came as the republicans released details of their tax overhaul plan. The Federal Reserve has to again extract us from the extraordinary measures that were is what people are quite obsessed about. I think that is going to occur and i dont think that is dangerous. We have to prepare for a cycle where rates rights. It is a long time. Interest rates have been low. Inflation has been low. Money around the world wont continue to be a free good, and it will be properly allocated. Im sorry, properly priced so it can be properly allocated. While that is occurring, we have to remove the extra stimulus, reduce the balance sheet, raise test is going big to do that in a way that it doesnt shock us into a bad position. This is a little bit like moving and unstable, dangerous chemical , and you want to treat it carefully. Everybody knows it has to be done. Of therency is part implementation remedy to make sure Everybody Knows what happening so there is no sudden, click move sudden, click move. While, there may be some bubbles that pop up in place. Money has been cheap for a long time. Maybe it is going to some places it shouldnt have. Have the president and a republican portion of congress that is bent on increasing fiscal stimulus. We have seen details of the republican tax plan. What is a good tax reform package look like an a bad one . I havent seen what has come out because i have been at this conference. I cant say this is the moment when you want the most fiscal stimulus in the market when there is full employment, gdp has registered at 3 . I dont know this is the moment you provide the biggest stimulus, but a lot of people, the president , think the economy can grow fast. I take the other side of that. I think there are things out there competing the growth. Perhaps we could get higher than 3 . Anna global sacks splitting global sacks Goldman Sachs speaking to bloomberg. Carney said that you pay pending divorce from the European Union is the main risk to the outlook. Manus still with us is jane foley. The pound, the ftse, the relationship. Mark carney pulled the rug from under the pound yesterday, didnt he . Pop and drop. Do you reckon he pulled the rug . It was certainly a dovish hike. Littlesentation was a bit different, because he was talking to the whole of the country. This is the first interest hike in 10 years. Manus that he called good news on national television. For many borrowers, it isnt such good news. What we have to consider in terms of what was priced into the market, perhaps smaller hawkish rhetoric. They thought the bank would be more hawkish. Thinking the bank would price more aggressively resources we got was aggressively. What we got was more reassurances. Because there are different audiences involved . He was acknowledging the brexit negotiations could takes could take rates a new direction. Rates could go up or down because of brexit. Still, he didnt push back in markets assumptions that there are another couple rate hikes to come. Jane he didnt, but i think the market had thought there would be more. If you look back to me, there was hawkish rhetoric. That,rket chose to ignore because it was focused on the vote. The market refused to look at hawkish rhetoric. Carney had said then that because investment isnt as strong as it would be otherwise, we were likely to hit capacity restraints. That i think got economists excited saying, we are potentially going to see price rises. The bank of england is going to push against that. Demand is affected by the drop in real wages. Growth. Constrain we are not seeing the investment we perhaps would it be seeing otherwise. England hasank of never hike rates with gdp and growth being solo. The 19th consecutive quarter of expansion. If we talk about what we are left with, my risks, my reward to trade the pound. If you are looking at this, it says will we are back to basics. Therefore, i would like to be long puts, short calls, my skewed to be to the downside. Momentaps there is a big and we are off the risk until after christmas. Jane when will that moment come . Commentatorsical indicating we might not get that big breakthrough moment if it comes at all. Meanwhile, we look at the price of sterling. There is a significant risk of a hard brexit priced into sterling. If we get the softer brexit, sterling will rally. Anna jane foley stays with us. U. K. Deputy minister joins us. If you were a bloomberg customer, you can watch the show using tv. You can ask jane a question using the button at the bottom of the screen. President Nicolas Maduro says venezuela will renegotiate its debt. The new the move is an acknowledgment that the heavy debt load has become unsustainable. Market joins us now. If a look at some of the other markets, there doesnt seem to be this heavy level of contagion from what might happen from maduro. You have to take into account that venezuela has been a basket case for a long time. If you look at its credit derivatives, which a lot of people do as a gauge of how weaker country is, it has been trading about 1000 basis points for more than three years, which gives you an idea of how few people are involved in venezuelan markets. It is only really specialists. Your average investor is not looking at this country. From that point of view, the mark carney effects are going to be limited. We may see a little disturbance, but even the mexican peso, which is the largest traded currency isnt part of the world doing much. In that part of the world isnt doing much. Big story to a venezuela. I was looking at more the bonds were trading. It is reflect widespread belief among investors that with high risk, these bonds cannot be paid anyways. Mark indeed. The slight surprise is they managed to hang on for so long. They have been on the verge of defaulting for a long time. Their International Currency reserves are down to 10 billion, which is a small number for a country that has large outstanding debts. It is hard to get precise Economic Data on venezuela, but the imf estimates inflation could be 2000 . Difficulty is in of state it has been. It has been a question of only when they will default, not so much that they have. Manus it seems to be a contained story for now. The very latest on venezuela. From one basket case to another company that is not. Apples stock is on a tear. Holiday sales have exceeded most of estimates. Anna it is a sign the Company Expects robust demand for the new iphone x. The device will help put revenues to a new record high. Peter joins us from tokyo. We know demand is there for the iphone x. The big takeaway was what . Peter i think that big take away from this Earnings Report is that apple is bullish on iphone sales in this crucial fourthquarter. As you mentioned, the forecast revenue that was a record and beast and beat analyst forecasts. The ceo addressed some of these concerns about production volumes production problems, volumes. He said their ability to produce these phones is increasing every week. He is pleased with the progress. There have been if you pick up some questions about whether apple was going to be able to come out with a device people wanted and after they saw they could, whether they were going to be able to produce enough to meet supply. Anna this forecast seems to be good for companies that supply apple. Some of those doing nicely in asian trading today. What is apple doing to meet demand for the iphone x . Long lines could be back at the apple retail stores. Peter i went to the apple store in tokyo today. There were more than 500 people waiting around before the store opened. There were a couple brothers who had slept on the sidewalk for two days. Certainly strong demand. There are a couple Technological Breakthroughs in the iphone x. The screen and this 3d face scanner that helps you a mock the phone. That helps you unlock the phone. Was complicated technologically to put together. Like they were able to move past that. They are increasing the volumes they are shipping each week and feel like they will have a Strong Quarter going forward. Seemed to have turned a corner. The demand is up. China is important in this story. How do you think investors will react to the delivery . Peter it is interesting. Tim cook called out china. Apple has been losing ground over the years to local players in china. It is still number five in the market according to thirdquarter statistics. It is about 10 of the market share there. They are trying to play catch up to local players. They have a ways to go. They are gaining ground and feeling more positive. Investors are taking this as a positive rapport. Shares were up after hours, 3 or 4 . That is a pretty big performance. Morearket value is already than 850 billion dollars. We could see them get close to nine heartbeat 900 billion. Anna thank you very much. Apple is one of the reasons we see the nasdaq futures up in the u. S. Session. Coming up, we are going to talk more about the president of the United States. He is spending 10 days touring of aand the first visit u. S. President traveling five different countries. This is bloomberg. Is bloomberg daybreak europe. This is new york. Nasdaq futures up. That is the apple move up there overnight. Lets get a Bloomberg Business flash with juliette saly. Jumped afterle hours on holiday period sales exceeded most estimates, assigning the Company Expects robust demand for the iphone x. The comedy protects revenue will rise to record highs the Company Predicts revenue arise to record highs. Its important prosecutors and investigating. The Economic Crime unit and prosecutors have interviewed current and former Goldman Sachs executives. The french government has closed the sale of 1. 2 one billion euros in shares. France sold 14 million of the carmaker shares, reducing its stake back to its historic level of 15 . Renault president Donald Trumps twitter account went down for about 11 minutes. On an employee it was blamed on an employee that was headed out the door. It prompted many twitter users to send out screenshots. Within minutes, the account was once again available. That is your Bloomberg Business flash. Nobody is tried to switch off my twitter account just yet. Donald trump spend 10 days touring asia. One man he wont see on the trip is kim jongun. That could loom over history. Anna the north korean leaders accelerated Nuclear Program has made him one of the biggest threats. Will trump attempt to make progress resolving the north korea crisis . Will that be a key ambition to this visit . An absolute understatement. It is one of the key things hes going to be talking about in all five countries. He is going to be talking about it first of all in japan, then south korea, then china, and he is going to be talking about it at a meeting. Leaders want to find out what trump has got to offer. The problem is that trump is having enough trouble coming together with a unified strategy for dealing with north korea, even within his own cabinet, let alone trying to get other countries to come on board with whatever he seems to think his strategy is. He has kept on saying he doesnt want to talk to north korea. He might get some somebody with that from depend, but he wont get that with the other stakeholders, south korea. Heth korea is doing the best can to reach out to north korea at the moment, even inviting north korea and kim jongun to attend the winter olympics. The same in china. Donald trump seems to think that china is going to pull something out of its back. He tweeted the other day that done what it is going to do, complied by the sanctions, putting it into place, and that is about as much pressure that china is good to be putting on north korea at this stage. Come could easily leave china trump could easily leave china disappointed. Manus david joins us from hong kong. From rabobank. David was emphasizing what might happen in the relationship with china. As you look at the world, we talk about a synchronized level of growth, which brings to mind the fx. Canada,ook at australia, some of the big alpha trades, where do you want to play . Where do you see the flow of money in terms of the growth story . Jane the aussie has disappointed many investors. Certain other Central Banks are becoming less dovish, more hawkish, but that is not us. Dollar has been on the back foot. It brings us back to the same story we are seeing in many other countries, which is there a reasonable labor Market Conditions and without Wage Inflation you dont get the dont get the anna interesting to look at what powell has been saying about that. What of my colleagues looked back at his speeches about emerging markets. He has made statements about how the u. S. Has been looking at that. What the fed does has a Significant Impact and massive shockwaves throughout em. We have global growth. Perspective, em should be well supported. That generally supports highyielding currencies. Issue for theer pboc, but that what is happening. The other issue for the pboc, look at what is happening. Such a wretched in bond markets of me something different. Such a ratchet in bond markets tells me something different. If you go back to the previous congress, there is talk of the liberalization. Thatcontinue to watch closely in the policy will continue for some time. Anna the link between some of the oil related currencies . , is that not a strong jane the link between the oil related currencies, is that not a strong . Clearly there are domestic events you can translate into what is weighing on those domestic currencies. Beheaded offoley, fx at rabobank. Anna new details of the republican tax overhaul plan. We get analysis of what it means for markets. This is bloomberg. We have a live shot of london this morning, the final trading day of the week. Be up. E 100 should this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Succeeding yellen, president backs Jerome Powell as the next fed chair. Investors look ahead to the jobs reports today. Anna equity trading revenues missed estimates and the french bank tumbling 19 as derivatives demand plunges. Has been fractured on the equities side because on the fixed income, we are very much in line with the global environment. President maduro says venezuela will restructure prepayments, saying u. S. Sanctions have made it impossible to find new financing. Optimism. E the iphone makers holiday Sales Forecast top expectations, sending suppliers higher in asia. Manus welcome to daybreak europe. Im manus cranny. Anna im anna edwards. 7 00 in london. Lets stick with the oil fame. 576rexall, 560 million euros, that is a beat. They join the host of companies inm bp to Royal Dutch Shell terms of beating, shall generated cash, bp give us gave us a buyback. Repsol delivering on the numbers. They ratcheted up the debt piles on the purchase of talisman in 2015. You are seeing an overall beat on the net income side, adjusted net income. Atrd quarter avatar comes in 5. 9 billion. The debt will be the most interesting number. Lets see how the market react 6. 70 9debt numbers of billion. Billion. Anna the fullyear outlook will be on the lower end of the guidance range, says smith and nephews. We will wait for a few more details to trickle through but what makes that more fascinated is that fascinating is that smith and nephew has had an activist investor take a stake in their business. Alledge elliott management, it has been talked about as a takeover target for some time. If we see the share price go any lower on the back of the skied we have them smith and nephew, could that be a game changer for companies that happened top about as potential buyers for the business . The ceo is also leaving the company. He will step down at the end of 2018 after seven years. He took leadership in 2011. They increased their guidance several times this year, so backtracking away from that. Couple of redre a headlines coming across the bloomberg. The first in regard to backdoor they are not going to proceed with their ipo. E. M. Plus going ahead. Citing market volatility for bakkavor. There are companies who perceive market volatility to perhaps not be necessarily the right time. Anna interesting that are key va postponing their proposed london ipo, citing market uncertainty. No doubt people will ask for. Ore details in their statement today, they said they will postpone it. Shareholders have decided. Of theot in the Interest Company or shareholders. That is all they say. Manus we have gone from super thursday, not just the bank of england but the fed chair, the bank of england ripping the rug from underneath sterling, moving forward to the jobs report today. This is the state of play on the equity market. We are seeing rising equity markets. Apple adds into that. One thing we havent spoken on yet, we have barely mentioned the u. S. Jobs report number. Shocking. We are looking for 300,000 jobs to be added. That is the recovery from the hurricanes last month. For 2017 tax plan the 2017 policy graveyard of the year . It goes to my inner downside. Anna we did mention the jobs at the start of the 6 00 hour. 330 thousand jobs expected to be created in the United States. That would reflect a lot of catchup from the storms to the 30,000 we got the previous month. The broad story in asia is pretty flat. Japanese markets out. The apple story is what is sending nasdaq futures higher. Manus very strong production, going very well. Down, we had this fx conversation and the impotency of Central Banks to go ahead with the hikes they want to desperately do. Retail sales missing, aussie dollar down by. 04 . Story arounditical europe, spain and pulling the threads together. Us is where we are on bund futures. Lets get a first word news update with juliette saly. Societe generales traditional strength equities trade turned into poor performance last quarter. Revenue from the Equities Division tumbled 19 from a year earlier, missing estimates. That is as demand plunged for derivative products. Debt trading income also tumbled. Our business has been more impacted on the equity side because on the fixed income, we are in line with the global environment. In equity, we have been more impacted due to our business mix. It is oriented on structured products, which are more sensitive to the very global activity. 19 . Juliette venezuelas president says his country will seek to restructure its global debt after the oil Company Makes one more payment. Nicolas maduro blamed u. S. Sanctions for making it impossible to find new financing. Funds forll transfer a principal payment on petroleum to venezuela bonds that came to yesterday. Debtll now renegotiate its with banks and investors. The u. S. House Republican Leaders have rolled out the tax bill. The chairman at Goldman Sachs says now is not the best time for tax cuts. He made the comments in an exclusive interview with bloomberg. I cant see that this is the moment when you would want the most fiscal stimulus in the market, when we are kind of mostly at full employment, when gdp last registered at 3 . I dont know this is the moment you provide the biggest stimulus. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Japan closed for the session today, china is just closing out its session. You have seen some weakness coming in from large caps, about. 1 . We have seen the rally coming through in apple supplies in the region. Kospi at a high. A fifth consecutive week of gains for the regional index. This is the picture of the apple supplier semiconductor. To 19uncement to pay up million to handle him lax biotech. Net income lower than a year ago. The worstperforming stock in terms of consumer goods in india today. Manus thank you very much. Talked up the strength of the u. S. Economy as he pledged to guard against Financial Market risk. He commented after being nominated by the president to lead the Federal Reserve. Anna meanwhile, house Republican Leaders have begun rolling out the tax bill that contains sweeping changes to businesses and personal taxes, including cutting the Corporate Tax rate to 20 . Joining us is emad mostaque. Thanks for joining us this morning. What is the key takeaway for you around taxation . For me so far is that i havent figured out how it will impact me. Broadly, elections have consequences. A big cut in Corporate Taxes, taking down the estate tax, some of these changes meant to broaden the base and cut taxes for the highest part of the income ladder have been republican talking points for a long time and they finally have gotten around to taking a stab at it. Obviously, Debt Reduction and deficit cutting have been a big talking point and of those have been sent to the policy graveyard. Manus you are picking up on that line. Tax could end up as being in the policy graveyard. Treasuries jumped, the dollar slumped and if you go by the said ifofits, they investors really expect the tax plan to breathe through congress breeze through congress there is a level of suspicion this is going to fly. Few aspects ofa that. One, the administration has not demonstrated any competence on the policymaking level. He saw that with health care. That is one thing. Bills are extremely complicated, because everybody is lobbying. Also under the u. S. Constitution, tax bills have to originate in the house. The house has a bill and the senate next will have a bill and many key senators have indicated skepticism about the impact on the deficit of this bill. The republicans have a very thin majority there and at least three senators who have been outspoken against the president. There is a lot of there is a political minefield and there is at a lot of reason to have high level of confidence that it will get through. Anna some questions about the delivery deliverability of this. To what extent was this news about tax priced in two markets . That was also one of the lines in the daily profit, suggesting if thats had been taken by good news, that would have told a different story. If markets have already priced in a 20 corporation tax. Emad the markets nearly havent priced it in otherwise they would have reacted more sharply. This is a more sensible tax plan than the earlier ones, and when you are talking about 1. 5 trillion dollars of funding versus 3 trillion. There are controversial elements in there. Removing certain deductions and really pushing it towards the corporate side. There is going to be a long process of lobbying to get it overall doesit benefit corporations if it does get through. There will be a strong tailwind behind it as long as they can handle the funding side. Manus that is where the bond market is perhaps a little more skeptical about it. I was determined to get the same. Forget government sacks. Have carlyle with two on the fed. Say lessoing to academic, but powell comes from private equity, the world of raising money, pricing money, doing deals, making money. The fed is setof to change quite dramatically. Most of prize from this who sits in, but the vice chair could be the big issue. Jim absolutely. Probably the biggest impact, not on monetary policy, would be on the regulatory side. That was one of the big complaints that the republicans had against yellen was an emphasis on stress test and emphasis on coming out of the financial crisis a belt and suspenders level of regulatory oversight, and that is where you might see the biggest difference of actualflux practitioners as opposed to professors and academics. Anna and what they think about the Financial Services regulation, is this something you are looking to invest around . Do you anticipate slightly less regulation . Jim this is kind of quid pro quo. You are exiting an easy environment, rolling off purchases, but support in the markets for the markets will come through on the regulatory side were all of the tightening after the great financial crisis, you are seeing an easing there. This is what the banks have been on such a rally since donald trump has come in. But we havent seen the easing of regulation yet. Reality. Versus i think we are seeing the reality set in. Manus we are trying to eke out these assets. If the tax deal comes through. The market is reducing its bets on the short dollar. From a market perspective, does the equity market rally continue on tax . Does the dollar need tax reform to take it over the line for the rest of the year . Jim a large part of it is a relative call. s weaker because of the euro strength we have seen coming through. Now the ecb is looking at tapering and these elements are coming in. U. S. Earnings continue to be strong. The tax plan will be good if it gets done at the end of the year, but it might roll over into next year. You need to see continued corporate strength on the equity markets as opposed to the tax side. Anna thank you both. And enad stays with us a little longer. Joins they cohn Bloomberg Team at 1 30 p. M. U. K. Time and 45 minutes later, we are 44 minutes away from the start of european trading day. It is friday. Anna lets get the stocks to watch. Posted annerale earnings miss. We are also keep an eye keeping an eye on renault, unloading a 1. 2 billion euro stake in the carmaker. Manus altice has issued a cautious fullyear outlook. Ceohere why Goldman Sachs says cutting taxes now is a bad idea. We have the exclusive interview. This is bloomberg. Good morning from london, this is daybreak europe. Dollar, against the 116. 56. The u. S. Futures pointing definitely higher. My conviction around the nasdaq futures, a little flat expectation for the s p futures. Manus that is the state of play in the markets. Lets talk about the ceo of Goldman Sachs. He isnt too sure of what to make of bitcoin. He isnt willing to reject the Digital Currency just yet. He spoke exclusively to bloomberg television. I have a level of discomfort with it. I have a level of discomfort with anything new. I have learned over the years that there are a lot of things that work out pretty well that i dont love. I remember when they first came out with cell phones. Why would anything want this thing . The battery last 10 minutes, it weighs a ton, and there are phone machines 10 to 15 feet. Why would anyone want this . I missed that one. I know wh, i read a lot of history. Worth five dollars if it had five dollars worth of gold in it. Worth fivepaper was dollars if it was backed by five dollars in the treasuries. Then people were suspicious. Now we have paper that is only backed by fiat. The government says that is what it is worth. Maybe in the new world, something gets backed by consensus. Maybe a consensual arrangement by people who agreed is worth something, like what social media does. It is not my natural state of comfort, but if you told me we went into the future, bitcoins were successful, i could explain how it was a Natural Evolution from hard money. Why is gold worth anything more than the jewelry value in gold . That is the consensus people have. No government says i am going to pay you 1300 an ounce in gold. Why is it worth that . You cant eat it. Why is it worth that . Because it has been that way a long time. Maybe 200 years from now someone like me would be comfortable with it. Right now, i dont have it in me, but i am open to it. Anna open to it. I feel the same as him on cell phones. That is an old story. Of Capricorn Fund management is still with us, and you have been a supporter of bitcoin. You talked about it in the past to me and howdy feel about it . How do you feel about it . Emad more money will be coming in. That are issues with it, as asset allocation, it is gaining in traction. The latest rally has been on the x allowingger swaps on bitcoin. Anna how can you store its value . Emad value is in the eye of the holder the beholder. It is consensual. What the market sees at the moment is as of last month, institutions such as hedge funds, take asset managers, can swaps on bitcoin. Clients have been clamoring for it. Manus are you currently trading swaps and what is the liquidity liked in that . Emad last month, there were 1 million to 2 million of swaps. Our hedge fund will not be testing them because of our mandate. Funds more flexible hedge and liquidity is good . Bitcoine underlying market is 3 billion a day of liquidity. It is improving every day. Anna what difference does the cme announcement make to that . Emad they will be offering it on the exchange potentially. Anything that makes it easier to access, because you have to be your own bank, makes more people willing to put a small portion within it. My view is if you take european highyield bonds and have an allocation of u. S. Bonds plus a little bit of bitcoin, you will outperform mathematically. Manus global markets. Front page of bloomberg. Com, the age of easing money easy money is nearly over. The fed is doing it because the economy is growing and the ecb is beginning to taper. This symbiotic relationship between the g3 Central Banks, are we setting a course . Emad potentially. This is a massive amount of policy uncertainty. This is why you have seen carney come out dovish. There are issues in u. K. , as well. But the central bank language has been saying this is the time to hike and taper, but if anything happens, we are ready to adjust. This is probably the key issue for markets coming into q1 of next year. This year has been supported by the weak dollar in many cases, but also actual earnings growth. The synchronized global recovery. The time to do it is now and if there are hiccups, we can expect policy reversal. Anna we dont need to keep these Balance Sheets this level to keep stocks this high . Emad nobody knows because ultimately, how much this is being driven by zero rates and by purchases. On the bond side, it has been a massive support. Manus it is a different story for equities. , cocio atue Capricorn Fund management. Stocks set for a higher opening this morning. Neten will be in focus with income 932 million. Anna keep an eye on french autos, smith and nephew as well. The european open is next. This is bloomberg. Guy good morning, welcome to bloomberg markets, the european at european open. We will bring it the first trade of the day. We have got to friday, powell priced in, taxes failed to excite yesterday so will payrolls moved the market today . P. M. Numbers drop at 12 30 u. K. Time. Maduro makes a move. Laming u. S. Sanctions the only surprise here is it has come sooner than expected. We knew it was coming. Trading tumbles at socgen, putting the bank on the back foot. The equities business was hit the hardest. Friday morning, we are waiting for payrolls. It has been quite a week in so many ways. So much news, anticipation, and to be honest, the s p didnt do much yesterday. Goingorning, you arent to get a lot of traction out of european equities. We will be up by about. 3 . There is a story worth paying attention to. It is moving the pound already. There have been a couple of ipos canceled over concerns about volatility. That sent the pound lower. That is where the headline equities will go. But show you what is going on in the gmm. Turkish lira, epi data out this morning. Very strong to the upside. It is moving the turkish lira and it is trading down by. 7 . The aussie dollar trading up a little. The argentinian peso up a little stronger. Overnight, the ours aussie market went. 4 to the upside. Didnt really do anything yesterday and spent much of the session in negative territory. A lot has been priced in, a lot of anticipation realized. Now we get into the reality of the powell tenure and what taxes due for us. Lets get a first word news update with juliette saly. Juliette Societe Generales traditional strength Equities Trading turned in a low performance. 19 from a year earlier, missing estimates. That as demand plunged for derivative products. Debt trading income also tumbled. Been moreiness has impacted on the equities side, because on the fixed income, we are in line with the global environment. In the equity, we have been more impacted due to our business links. Been more oriented on structured products, which are more sensitive to the volatility. We have low revenue in our Equity Services 19 . Juliette venezuelas president has said his country will seek to restructure its global debt after the state oil Company Makes one more payment. U. S. As maduro blamed sanctions for making it impossible to find financing. A 1. 12. Mick 1. 1 billion Principal Fund will be transferred. They will negotiate with banks and investors. House republicans have rolled out the tax bill and the chairman of Goldman Sachs has said now is not the best time for tax cuts. He made the comments in an exclusive interview with bloomberg. The cant see this is moment when you would want the most fiscal stimulus in the markets, when you are mostly at full employment, when gdp registered at 3 . I dont know this is when you provide the biggest stimulus. Juliette global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy thanks. Has picked Jerome Powell to be the next chair of the Federal Reserve. He drew attention to his experience as a banker and that he understands what rides drives success. Jim for more. Lets talk about the tax story. So much has been anticipated and i can only see see the hill getting steeper, not making life easier for lawmakers. I am looking at yesterdays Market Reaction, which was, nothing happened. Put the Market Reaction and what is happening in washington together for me. Jim the trump rally you have seen since election has been pricing in things like this tax bill. The market has had 11 months, 12 andhs to digest this event maybe it has gotten a little ahead of itself because there has been no indication that this congress or administration have the level the chops to get it done. As we saw with obamacare. Unusual legislative ross s. Instead of having hearings, things out in the open, it has been a small collection of republican tax writers in a back room, probably with their lobbyists, writing the tax bill. The same thing happened with the Obamacare Repeal and once the bill sees the light of day, it begins to melt. That is a real risk that everyone is sharpening their knives. You have the home builders, the Small Business federation, already against it. Democrats, and then you have the deficit hawks in the senate who are against it. Guy do you think the market believes what do you think market thinks we will ultimately end up with . What is this going to look like at the end . Jim if it gets through, the market thinks something is going to pass. If something passes, it will look broadly like what we have here. A big cut in Corporate Taxes. The carriedping interest exception, getting rid of the estate tax. This is what the people who have been writing the big checks to the Republican Party have wanted for years. Then you have to mess around with some of the pay fors at the state and local level, other tax favors that are now in the bill or not in the bill yet. Guy whose plan is this . If i look back in history, is a gary cohn, is it who is going to be responsible for this . Jim trump will be responsible for it, but it has been very ish the paul ryan probably the intellectual godfather to the extent you can claim that any piece of legislative sausage there is talk Gary Cohn White disappear soon. Tom since he questioned the theident after charlottesville incident, you could guess where that might be going. In terms of this tax plan, it was written by the Republican Leaders and that is paul ryan and the ways and means chairman kevin brady. Guy the market sees powell as a continuity candidate. What are the risks around that assumption . Tom that he is not. Guy exactly. And we dont know. Phd, youlen has a could say the same thing about bernanke, you know where they are coming from. Jim they have a paper trail. There was a very interesting story published on the bloomberg, it was ticktock on how the choices made. It says the president actually liked yellen and was a fan, likes being able to take credit for the rising market and healthy economy and his treasury secretary was like, you know what . You need a yellen, but you need to put her stamp on it. That is where powell came from. He doesnt have a paper trail, but given his history in he isnt you can infer going to want to knock over the apple cart and is probably going to especially on the regulatory side, where things will pull back. Do at this can moment is extrapolate the current history and the line we are on and make an assumption on how he will treat it. My thinking is if we get off in a different direction it will be a test. There is an asset bubble that bursts in the next three or five years, he will be tested. Twoyear original point, we dont know what his election intellectual framework is. We know ben bernanke was a student of the great depression, so we knew what his approach would be. If disaster strikes, we will see. Guy good to see you. Bloombergs james hertling. Now, mark cranfield, mliv strategist. Yesterday atd zip a headline level on the s p 500. What can i take away from that . Mark there was quite an expectation fulfilled. No one was surprised by anything. There could have been surprised if they had spoken about the vice chairman. That role is still open, but they didnt even bother to go with that either. We are hoping for a bit more activity today. The jobs report has a good chance. Estimates, at the the range between the low and high estimate is very wide. Much wider than we have seen for several months. It doesnt look as though people are too sure where on earth this job numbers will jobs number will come in. Given that and the fact most people will know that, what is the potential for today being market moving . If you have a central number and everyone is clustered around it, it means anything outside is a surprise. Wide, ihe spread is so am wondering how that becomes a surprise. Mark one of the interesting things, if you look at the Exchange Rate in the euro against the u. S. Dollar this in less thantraded a one big figure range, which is narrow for a big currency. As you go into the number, you will have a lot of stop losses, either close to where the market is trading and all of these kickoff things you get from electronic systems, as well the number only has to deviate a little and the market will kick into action. You will have surge in either direction, high or low. The chances of volatility is pretty high today. Lets talk about venezuela for a moment. In there is a nice chart stories this morning on atezuela, which is looking the 2018 bond versus the 20 and the fact that the 2017 is pricing much lower. It tells you about timing. Thate said bishop rise to venezuela is looking to restructure its debt. The only surprises it is a little earlier than anticipated. Mark the timing seems to have caught a few people. Venezuela has been a basket case for a long time and it has done for a long time. Due tods that were mature in the first half of next year, it looks as though people work that in those to be paid or at least the interest to be paid and were not expect in the longer bonds to be paid. By bringing forward the decision to right now, it looks like people are being caught out and the shorter dated bonds even experienced people in the markets, it will be a bloody day in latin america when the market opens later. Guy we will wait and watch him take note on that later. Cranfield, joining us from our mliv team. Smart analysis throughout the day. Mliv , it is great. Put it in your launchpad and you can have it sitting up there the whole time. Up next, apples christmas cheer. Tech giant forecast strong sales. We will look at the Earnings Report next. This is bloomberg. About 13 minutes to the start of cash trading in europe. Bloomberg is this flash with juliette saly. Two initial Public Offerings that had been slated to take place in london have been pulled today. Has due to market uncertainty. Bakkavor will no longer proceed with its plans for an ipo, citing volatility in the market. The french government has sold rental shares, a power struggle with the carmaker. France sold 14 million or of the shares, reducing its statement to a historic 15 . Will acquire shares as part of the transaction. Launched an internal review after Donald Trumps twitter account was briefly deactivated last night u. K. Time. Over 41unt, which has million followers, was down for 11 minutes before being restored. Twitters investigation has found a customer employee on his last day with the company was responsible. That is your Bloomberg Business flash. Guy thank you, juliette. Apple is preparing for a better than expected christmas period. The company has projected record high revenues for the holiday to 87 billion. That is some chunky change. That is ahead of analyst estimates. European tech editor joins us to talk about what happens with earnings and the hype surrounding the new phone launch. Its deal with the earnings first of all. There arent many metrics in which this was a problem. Pretty much everything was great. Investors were happy. Mac sales were up 25 . You look at what apple classes , they were upcts over 30 for the period. It is basically very healthy. Why . Apple has done a lot over the past 12 months, they have released a whole line of macbooks, their desktop, a massive overhaul to that. There has been quite a lot of interest in the mac people who have bought one in this period. That has really contributed to a lot of that growth. Thisa lot of hype around new phone. I havent felt this the last two launches they tried to make it feel the same, but it hasnt really generated that enthusiasm. This one has. Nate it has, and the last time we felt this was the iphone 6. That was the very first one that came in two sizes, and there was the big one and everyone was excited about a big new iphone. I think a lot of the hype here is similar, that in many ways, greater still because things like the face id, where it is unlocking the phone and authenticating payments based on your face. It is not using the touch sensor anymore. Entirely new type of Screen Technology which might not sound that exciting, but rings apple up to speed in terms of what samsung is doing with some of their display technology. Variety of reasons, there is a lot of hype. And it seems justified. Guy why did they launch the eight . Nate it sold well, it is all right. A range of to have phones at this point to compete with the android world. Traditionally, apple had one phone. Under steve jobs, here is the iphone. Do you want it . Now apple has a range of phones and it needs something that feels luxury. In certain markets, the iphone 8 will do well, as well. Apple needs to be able to upsell People Better and at this point, the iphone x is about 200 pounds more expensive than the iphone 8. 8, whichet the iphone is a fine phone, or for 200 more, you can get this one that everyone is going to want to look at in the pub, everyone will want to look at in your circle of friends and at work. Do a lot for to apple. That will bring in an awful lot of money. Some people will not be about to afford it and go for the iphone 8. Guy nate lanxon, thank you for joining us. We will look at todays movers. Socgen missing thirdquarter estimates. A familiar tale from the french bank versus its peer group. Renault selling 40 million shares into the market. On theseeep an eye canceled ipos in london, having a big effect on the pound. The market open is eight minutes away. This is bloomberg. Five minutes until the equity markets open in europe. Socgen is called lower. Staying in france, keep an eye the government is continuing to sell down its stake in the carmaker. That could be something worth taking note of. Noting, it is all saints day so you will see a shortened market section in sweden. , theythe steelmakers could benefit from the tax story. There could be a tax credit for wind generators, which good feedback and to Companies Like festus. That could be something the market moves on. Note, a coupleo of pulled ipos out of london. The pound didnt like it earlier on. I wonder if that will affect the story this morning. Pay attention to that. In terms of the headline level, what we are getting here is a two to three percent move higher. U. S. Markets arent called much higher either. We are waiting for the payroll data to come through. Yesterdays news didnt move the markets at all. The spread is huge. The market open is next. This is bloomberg. Who knew that phones would start doing everything . 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We think the stock is going to open low. Keep an eye on this this morning, the venezuela angle. Im being told its been priced in. It looks like this story had anticipated venezuela. Ipose seen a couple of out of london. The correlation is about as negative as it is ever, ever been. Would have thought, theoretically, the pound would have gone down. Working at the moment. An eye on steel stocks, what is happening in the United States as well. Lets take a look at market open. 1 inl get two3 10 of their way, maybe the ftse gets a little bit more. 7561 the ftse up 1 10 of 1 . Markets are expected to follow suit. We will watch how the bank stories develop. We await payrolls. There was a lot of sound and. Yesterday. The snp did virtually nothing. What have you got . Its interesting that we moved from super thursday to what could be a cracker jack friday