Brussels today for a Council Meeting with fellow european financial leaders. He hopes to use the opportunity to build on the momentum of brexit talks and for the u. K. To make its message clear at the World Economic forum in dollhouse davos. Open for business and we are keen to discuss with about future relationships and britains role in the Global Economy in particular, londons role in the financial economy. He admitted that brexit was caused because of future trading with european partners. Mark global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Shery i am shery ahn. Vonnie and i am vonnie quinn, welcome to Bloomberg Markets. From bloomberg world headquarters, here are the top stories around the world that we are following. Live from davos at this hour, what he expects from nafta talks in montreal. And are we heading towards another financial crisis . We get insight from to bank giants. Plus, part of another great , howrsation from davos ubers ceo plans to put the giant on the road to profitability. Now a check of the markets. Abigail doolittle is with us. We have another day of record highs, although we have the dow down slightly, flipping between some small gains and losses. The s p 500 is up solidly, and the nasdaq is more than half a percent being boosted by tech and Consumer Discretionary but the reckitt seems to be continuing for the major averages, despite other issues. The earnings are at the tail end, and along with tax reform, we have many experts questioning whether or not these markets are overbought because of a pullback. This is a 90 year chart of the 14 week rsi, a relative strength index of the s p 500. As a momentum indicator, and anytime it goes above 70, it is overbought conditions. What we have now is another record. The s p 500 at an alltime high. Too many technicians, this is not going to bother them, but if it does come down, there is a series of lows and momentum coming off, so that is something you want to watch. A record high indicates that may be ahead, so this is something you want to take a look at. Lets look at some of the earnings winners. Check that out, up 18 , the company put up a huge quarter and beat earnings by 31 by one dollar per share per earnings. Withwere upgraded sustained Revenue Growth the possible take over the next five years or so. Almost 10 , they beat subscriber numbers in a big ay the company now has market cap of more than 100 billion. And travelers is up more than 4 , the Insurance Company despite hurricanes and wildfire. Lets look at some car insurance, property insurance. Mercury, progressive, all down. Some of these companies could be pressured by recent comments from california state commissioner having to do with tax reform. Text from seems to be boosting the profit outlook overall, but here, we have a pocket of weakness. Well see how that turns out. The mood of the World Economic forum in devils reminds him of 2006 when everybody thought they still solved the riddle of the financial crisis. Theres complacency and a combination of stock markets and volatility at alltime lows have a listen. Saw the economic calamity where we missed the last financial crisis and the damage that was done globally. I do think one thing that is different this time is that we i think the connectivity and the collaboration between regulators and academics and private equity and investment firms and banks is at a whole other level than it was precrisis. Or 2006, back to 2005 or they met every once every quarter. Today, the bank of england, they are in the bank every day. Do the british do this better . I think both sides of the atlantic agree that work between regulators and the banking committee, not only can fix what happened last time, but i think most of the corrections that Bank Regulations occurred we need to work collaboratively with our regulators. Pre2008 and 2009, the regulators were there to bear witness. If something went wrong, they would use their ability to bring a big tank in an order to course correct the economy in realtime. Have, the political body told the regulators that i want you to regulate so you avoid the next financial crisis. Avoided we have never crisis, so what i think is incumbent upon banks and firms and academics is to work collaboratively with regulators to try to avoid the next financial crisis, because likely stuff thatitical happened 10 years ago is right high so i think it need to sit down in a forum like this, even though it is all rosy and whatnot, and say, what could we be missing . What could happen in a non financial market, whether it is levels of debt, how much Short Interest is there and volatility , how we can build structures around the world that can enhance yield. That . You worried about absolutely. At the volatility that is out there toyou have to Pay Attention it again. You think of where we are again today, we went through a Government Shutdown over the weekend, and the market is up. Go through these events, and you have to ask the question, and the challenge is the Asset Management from the editors from the investment side. You sold brexit, you bought it high. If you sold the president s election, you bought it higher. There,s a numbness out and ambivalence out there that is concerning. When the next term comes, and it will come, it is likely to be more violent than it would otherwise be. A new mentioned with bank, with the media, and we worry about trading, will we see a new trading process and banks as we go to the next financial crisis . Currenciescome commodities going to be Something Different for banks, or different than it was in 2006 . Banks haveral largely taken on the role of being the significant liquidity provider, but Bank Balance Sheets today, around the globe, are much smaller in terms of their dedicated capital and risktaking tolerance to precrisis. When the great science fair project ends and we talk see thelly and we bank of england start to pull liquidity to tighten sometime early next year. Bank of japan,e we dont know, because it hasnt been tested. Course, how is it going to end, this wonderful Banking Experience . There are some challenges as governor inflation could come on us i think inflation could exceed 2 this year and we may start seeing it elsewhere. Typing faster thantart markets expect, how are Capital Markets going to take it . Ceo. barclays coming up, easy money. The ecb is next in line to announce a decision after the boj says they have no plans to announce similar measures yet. This is bloomberg. Vonnie this is Bloomberg Markets. Money is sticking around a little bit longer. The 10 year yield falling the most after nearly a month to be r. G. Announced that they are not considering ending stimulus measures. The ecb policy decision is next in line, coming on thursday. Heres kevin, the head of fixed income markets. Thank you. Why are we in a bond bear market, still . Were not quite seeing what we need to see out of inflation. If you notice with the bank of japan, it wasnt a surprise. Theywill likely be are on a slow tightening move. Even though growth is good, inflation is yet to be seen by it will see more evidence that it is not here next week when we get the court numbers, which is what the fed watches. We are not quite there yet. Weve heard that inflation is going to hit 2 this year, and we heard Marvin Goodfriend say that he thinks to e3 should not have happened, and he is worried the fed will raise prospects,t are the what kind of august you put on that happening . Thes the fourth forecast of 50 inflation . Where differently going to see more inflation this year. You cant raise minimum wages or raise wages and give bonuses and not see inflation. The second half of the year versus between now and the first half of the year. Pressure on rates is not likely to come until after june or july when this full effect is in the marketplace. Right now we have seen some pickup in wages, but we havent seen a pickup in the measure that the feds look at in inflation. Until that happens, it could go think1. 5 or 2 so i it is later in the year of event versus now. Shery what is bigger for you, the risk or estimates . The greatest risk is that you show up too late, and it does come on you that if you talk a lot faster than you think it will. A graduald is increase in inflation and to maintain the growth, if we get spikes in inflation or and growth, then we are in danger to go from a to 60 28 290 very quickly. Vonnie where do you see it going . The fed is going to control shortterm rates, so we may see 2. 5, and it is a flattening that we are prepared for, but it doesnt tell us that we are about to see a recession by it to 80 maybe, but depends on how the inflation comes about. January 21 is shery yellens last meeting. When can we expect a hike . It will take you to march 21, which is a meeting after the january 31 meeting. My guess is, and my prediction is that we wouldnt see that until the following meeting, partly until late may. Vonnie will it be more volatile . Most definitely. ,e have come off of the bottom so volatility is up and has been up since the end of the year, and likely will be all year long. To 45, then went again. , and back down most of the rates were done in by 17, and where in that second right now that this time it is going to be different and theres going to be gradual pushups. Will we expect the tax reports to be trickling down to the economy, when you look at bond markets, where are you looking at other than Inflation Expectations and inflation risks . Where are we going to see the most impact . The greatest risk is in one of the best performing markets tax reform took away certain aspects like advanced refundings. He kept private activity the irony is that the president is talking about if researcher bonding which will bring hearts of that back, so there could be , but whening affect you take rates, whether it is individual or corporate down, it is going to put pressure on those levels to be attractive, and it is going to affect that market a lot. A thank you for having thank you for joining us. The president is headed for davos, but washington is very opening the government. Kevin is at the white house and he has Mick Mulvaney with them. Director, what is going to happen . I we headed towards another stopgap measure . They shut it down. You could go back to the votes and see how Many Democrats voted for almost the exact same bill they voted against, and i think they learned their lesson. I dont think they are leaning towards another shutdown, but there are other things went to deal with on february, and it is a short time. One of those states as for the state of the union, so it is going to be compressed time, but i think there is motivation on everybody site to get something done. What is going on with daca . Theyre asking for 33 billion for the wall in the addition to an increase in funding. What can you tells about the negotiations . Theyre going on, but we had to stop during the shutdown because we refuse to negotiate while they held us hostage. We have started discussions again, and the president has in officebers yesterday, and he will Start Talking about it again and those discussions will continue. Actpresident wants to solve to an immigration at large and you have to do it as part of one process, one package. So wet self back to will solve all of it together. Lowing up on that she would take Mitch Mcconnell at his word . He made the same promise to jeff flake, which when center schumer i think i was the exact same thing mcconnell had already given flake as part of the tax bill discussions. We welcome discussions and what the talks to be ongoing. Trying to gauge the Political Uncertainty around the beltway on the february deadline, should they be concerned that the issue of immigration could trip up negotiations for another Government Shutdown in february . Immigration is hard to deal with. President obama had the house, the white house, and the senate, so you the filibuster majority in the senate and was still bothable or unwilling are to resolve the longterm immigration challenges, so they are real. This is a hard question to deal with. But, i dont think a shutdown is the inevitable end result of that difficulty. Gears, you asked for zero dollars to Fund Director is the correct title from the federal reserve. Is it to get them to use the access . I think it is wondered 33 million to ask is that you have as opposed to getting more money. I am going to enforce the law that requires me to do we are going to do that. I am not going to start the agency. The point of the matter is that we have 177 billion in the reserve. We dont need that. 25 of our annual operating costs that is just absurd, so we sat down with the management people and said we are not going to ask for more money because we dont need it. We are going to spend that reserve down, and that is being sound managers of taxpayers money. The state of the union address, is the administration going to ask for more money for the cfpb . Geteep in mind, they dont their money from congress. This is one of the problems i have with cfpb area i had it on it is funded through the federal reserve. I happen to think it is wrong. Let me ask you quickly for payday lending rules. That is ongoing. Anything else you can guarantee on february . Potential for being another shutdown . This is where i would say. Go talk to those democrats. I think john voted against opening government yesterday, which surprised me. Ande are folks who go home say, vote for me, i could reach across the aisle and work with republicans, and they come to washington and do something entirely different. Those are the swing votes in the senate. We know where schumer has to be. That is the nature of being in leadership. Bernie sanders, kamala harris, they are dominating schumer is at the couch out on that side of the party because that is the part of the party that shows out. Social democrats are trying to carve out a niche and trying to get across over voters in montana and the other red states that President Trump one. Those are the folks you have to ask are they willing to step out of the shadow of the party and be there on people are smart will be the real test. Mick mulvaney, nice to hear from washington. Very snowy and davos, so i think we lucked out here. I appreciate the time is always. Shery kevin, thank you. Not so much year, it is rainy. Number six round of negotiations on nafta has started in montreal. The toxic off as mantra as President Trump threatens to pull out of the deal. A lot of the talks are have president re of what trump imposed last night, on some of the solar panels, we spoke to one of the largest component makers on solar panels. Andchinese delegation here that, and also beijing, not pleased with a heard from President Trump. Andalk along the corridors everybody wants to know what President Trump will come here to say. A couple of minutes ago we heard from the Prime Minister of canada, the second big world proer with a pro trade, mobilization message. We are with the finance minister of canada, and we welcome you to bloomberg tv. Do you worry about protectionism . To answer the broad question, of course. We realize that in order for canadians and citizens around the world to want to see the benefits of trade, they have to see it come to themselves of trade, they have to see it come to themselves personally. We worry about that, and it actually is a big part of our agenda. Thinking about how we can help middleclass canadians be successful so they could see the benefits of trade. Is canada suffering from the nafta . In canada isy doing very well, so what i can say is it is the fastestgrowing country in the g7 last year. The lowest Unemployment Rate in the last four years, so things are going well, but of course theyre going to be businesses were cautious because of nafta negotiations. Be view is that we should working diligently to get to a better nafta, to find ways to improve it. From our perspective, what is a deal that works to the benefit of canadians, to the benefit of americans, to the benefit of mexicans. That is our approach. Panels affectar canada . Ourvery tariff in estimation is potentially in the negative, so we will look for ways to come to an agreement that reduces terriers on tariffs. A big part of that is that to make sure that canadians see the benefits. We cant do those two things in isolation, have to think about making sure that families could see opportunities for their children, and that is the same confidence that will make them say that we can be part of the global system. That is our approach. What is the percentage that nafta gets ripped apart or it gets renegotiated to the point that President Trump says that we are still in . Our plan a is to improve nafta, and that is the outcome that should be the expected outcome. Nafta provides 9 million jobs in the united states. And has been positive in mexico and canada. Our supply chains are interconnected. Will we all recognize that it was done 24 years ago, so there are places we can improve, by looking at the digital economy, looking at how labor in certain sectors works between countries. Theres opportunities there and that is the approach will take. Constantly optimistic, but we realize there is hard work and negotiations are tough. There are things we need to work through. Do you propose to overall the tax plan after what the u. S. Did in september . The american tax plan is a big change, but is not one that is that different in terms of what the eventual rates are versus the canadian situation. Average corporate rates for example in canada are 27 . The way we look at it is that it will bring the average rates in the u. S. At 26 , but will have different impacts in different sectors. We carefully look at it and obviously, it is going to have an impact on some sectors of the economy, and will carefully analyze that. We intend on staying competitive, which is the approach we have taken to Corporate Tax rates over the last generation. Areoes that mean you willing to look at changing certain Corporation Taxes in Certain Industries . We do think we are competitive. This change obviously has impacts we need to analyze closely. Francine you were talking about the growth of canada and it is amongst the highest g7. Looking forward, it could slow to a little bit below average of the g7 groups. Do you have any incentives or policies to put stronger growth together for the future . Mr. Morneau what we have done since we have come into office is we have been focused on investing and canadians. We took a very clear approach to lower taxes for middleclass canadians. We raised them on the top 1 . Childs benefits so nine out of 10 families got significantly more. What that did is provided some real impetus, not only for our economy, but helped those families to be more confident. That is our continued approach. We will be looking on a continual basis how we can make sure that women are successful in our economy is so we can have and for ourmes economy. We have more to do. The growth rate we have seen over the last year has been the number one in the g7. We are starting from that very strong base to look at what we can do in 2018. Were optimistic. Francine have you seen an impact on higher Interest Rates . Mr. Morneau we have. The bank of canada last year had to bring increases. Increases. We have had 125 basis rate increases here. That is a reflection on the effect that our economy is doing well. The low unemployment is a positive. We would like to see wage growth coming from that appeared we are starting to see those positive indicators which is reflected in the bank of canadas decision. Francine how are they consumers . You are looking at transferring the default risk onto banks. As us a proposal youre looking at . Mr. Morneau we do see that the level of debt versus disposable income is something we need to watch carefully. We made a number of macro credential trade changes in , forord mortgage chain changing the stress testing on getting mortgages. We think it will have an impact on ensuring people dont take on mortgages that are outside of their reach. We are doing that in a way that we think is measured, that will allow that risk to diminish. In canada, like in many thatries, the fact employment is strong is a very positive thing for the housing sector. With of the lowest Unemployment Rates we have seen in over 40 years, canadians are feeling better about facing up to that mortgage debt. Me about talk to bitcoin. Weve talked about the coin to every single participant. , you will not forgive regulate to what you are very done. There is confusion about what this seems. Whether it is tax on capital income or some of the transaction. Are you going to have a bitcoin or crypto regulation overhaul . Anymorneau we dont have specific bitcoin or cryptocurrency overhaul. Investment,y other and canada, you get a Capital Gains tax on investment gains. Any way. Ot unique in the main way we are looking at coin is making sure that bitcoin is making sure we understand what is going on underneath that market. To make sure we are not introducing risks, like Money Laundering or terrorist financing. Were focused on it from that angle. And keep a close watch. Francine are you telling me may be more regulation in 2018 . Mr. Morneau what i can do is tell you something i dont know. We will continue to watch carefully. Francine thank you so much for joining us today. That was the canadian finance minister. I will send it back to you. We have more great interviews coming up. Onnie cant wait francines interview with canadas finance minister. She asked him about the new tax regime. Its a huge topic of conversation at davos. One of the latest, verizon. It said it expects a massive windfall from u. S. Tax cuts to boost 2018 cash flow by 3. 5 billion to 4 billion. The gives the phone giant a left during a challenging time for the industry as a market becomes more saturated and competitive. Someone who knows more about research analyst, amir rozwadowski. That will be one of the major themes just as last year the cutting and price was one of the major themes. What other things do you see . Amir tax reform is certainly a big thing. As you mentioned, the focus on is a clearash flow focus. The real issue is what will they do with that incremental spending . We are at a point in time where there is increased competition. Doubling in the space, particularly folks like comcast. We saw announcements with sprint and the partnership they will be doing. Really the focus will be about how do they put some of that capital to work . The other thing to think about is 5g. A lot of us have smartphones, and we are using data at a pretty consistent and elevated pace. There is a lot of discussions about what is coming next when it comes to Network Technology . Those are the things we are thinking about. Shery we saw at t announce new bonuses for their employees. Could we see that from other companies . Amir potentially we could see that. If you think about what verizon said this morning, some of the discussions they are having is talking about helping their employees and focusing on the ability to improve the company and improve the beneficiaries to the company. Those are some of the things that are in play at the moment. Vonnie where do you see the carrier landscape going . We obviously have tmobile still out there, sprint, verizon. It has to find other ways to improve its top line. What is the landscape look like in 12 months . Amir the way we think about it is the big talk last year was if spring sprint and tmobile were going to get together. The deal was shattered because of Ownership Structure and put a potential deal could of been a range. We are also seeing this increased move to vertical. Moves to when it comes to directv and looking to acquire time warner. It certainly is evolving. We do expect a lot of the operators to embrace different pools of revenue as they look to deal with the lecture wireless amateurent the wireless environment. It doesnt feel like there is one consensus strategy coming forward. Into like at t looking diversifying the base in order to use various assets. The folks of the sprint and tmobile still trying to grab more of the share. Shery petrelli was repealed. How positive will the Regulatory Environment look for 2018 . Amir thats a great question. We have seen Net Neutrality pullback. In the near term, probably dont changes. Mental but as a tail wind from the longer term and their ability to extract more pricing from the marketplace, but overall when you think about the moves taking place at the fcc, and the ability to empower some of the business for new models and new opportunities down the line, we see that as a positive tailwind for the year. Vonnie where are we in the cycle for carriers . When you think about the history of Telecom Services and operators, its always been a increase waves of adoption of services. We saw that with wireless offers. We saw that with basic text messaging. Now the clear winner in all of that has been smart phone adoption and data consumption. Video is a big driver of a lot of that usage. Where we are right now is we are seeing a maturation of that opportunity. If you think about the number of thes that have smartphones, older demographic that has smartphones, there is a lot out there. A lot of the operators are looking at the new Revenue Operations demoing. Shery thank you so much for joining us. Barclaysadowski, analyst. We bring you part of our conversation with ubers ceo. How he plans to use the ridehailing giant to the road of profitability. That is next. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. Vonnie i am vonnie quinn. Time for the stock of the hour. Shares with travelers are climbing to a record after their Fourth Quarter rough revenue beat estimates. The Insurance Company navigating one of the worst years for natural disasters. Joining us is taylor riggs. Pretty incredible when you think about what a year 2017 was. To beretty much had everywhere. The top line, the bottom line, we have a chart showing earnings coming in at 228 versus estimates of 150. Topline revenue came it at 75 billion dollars. 7. 5 billion. Looking at this, losses are 100 35 billion last year. I mostly times the average. The u. S. Made up half of that, normally they make up 32 . Just incredible when you think what a year this was and how they were able to navigate through that. Shery is this just them . How are other Insurance Companies doing . Taylor pretty incredible. When you come into this terminal, you see since the beginning of last year, they are outperforming. Today,e ted a travelers are rising. Allstate slower. Not listed here with aig, but yesterday they announced a want to get bigger. They said they will purchase a reinsurer there. It really has been incredible. Shery, we were talking about 4. 4 , the biggest knit move since december 2012. If this is anything about what the other companies will do, this is it. Shery thank you for that. Uber will be profitable in three years, thats according to chief executive officer, dara khosrowshahi. Forould be a dramatic shift the ridehailing service which has been losing billions of dollars per year. Bloomberg editorinchief john, caught up with him at they World Economic forum in davos. The is profit one of one one of the things you want to get . Some point, we have to become profitable. That is part of the plan. Do you have a goal for that . Do you feel it you should be profitable by 2022 . Dara i think we will be profitable before 2022. The business itself do you want to come by closer, 2020 . Dara i dont want to name a specific year. But this is a business that the ridesharing business can be profitable within three years. We will continue to make very aggressive investments in building out autonomy. We think that is a terrific opportunity for building a new technology such as uber elevate where nearterm profitability is but longterm growth is. We will look to balance nearterm profitability. As a company, we will be a company that takes risks. To what extent do you think that drive to become profitability profitable fights that change . You talk about making money, but not at all costs. Do those two things dara i dont think the profitability and culture is the issue. Wascompany in the past willing to make tradeoffs as it related to how it did ms. Us how it did business. Of thinking that they knew better than others. I think that what we know now clearly is that breakneck growth can hide cultural issues. That there are no excuses for not doing the right thing. And that you do have to make tradeoffs. We arenagement team, specifically talking about those tradeoffs you have to make. We have to be more patient sometimes because working with etc. ,ments, regulators, sometimes takes longer. In the end, you build a more lasting business. What we went through was necessary. But we are here. We can control our actions from this moment onwards and i think everyone at uber from this moment onwards wants to build a great company, not only in terms of growth, but in terms of a kind of Company Anyone would want to work at. Can i ask you one thing, hangover from last year, which all the regularity regulation problems. I think there were six criminal probes. Dara lawyers are lining up. Exactly. Which ones do you fear most . Dara listen, i think all of them are serious issues. My response is that we will be transparent and we are going to take responsibility for our actions of the past. There are that certain circumstances where there was smoke but no fire. I think is a company, we have to defend ourselves and work within the appropriate frame works. My goal is to get beyond this. Some of these things like pricing policies surely go to the heart of what uber is, or am i wrong . Dara i think they do. I think there is a way of being smart but transparent at the same time. Thats where we have to take the company. Vonnie that was uber ceo, dara khosrowshahi. Shery time for the Bloomberg Business flash. A look at some of the biggest business stories in the news. Its an all or nothing deal for the billionaire founder and ceo tesla motors. Ofla has branded elon musk 2. 6 billion stock award. Stock options could make him ost 55 billion in return 35 billion. In return, he has agreed not to get a salary or bonus. Nson and johnson patent is it has been ruled invalid by a u. S. Appeals court. Theruling is a victory for patent challenge along with south korea partners sultry on. The ruling is the second loss on a blockbuster drug this month. Employees at jpmorgan will see some of the money the bank will save from the tax cut. The bank plans to spend 20 billion over five years, increasing wages, expanding its branch network, and boosting gifts to charity. Jpmorgan plans to hire another 4000 workers. That is your business flash update. Vonnie coming up, bitcoin forks are on the rise. What is behind the spinoff trend . We will be asking the questions next. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. Vonnie bitcoin fell a little bit. It briefly went below the 10,000 mark earlier before recovering slightly. The drop comes as bitcoins forks are on the rise. Those forks are a type of spinoff in which developers clone Bitcoin Software to capitalize on the publics familiarity similarity. 19 bitcoin forks came out last year. As many as 50 could spread up this year. Joining us now to explain what a bitcoin fork is is robert them in start there. What is a bitcoin fork . Its totally different from a bitcoins been or knife. Its a product of anarchy. Bitcoin is a system. Since no central bank, no government. Pretty much anybody who has the tactical knowhow can create a gives us a new type of currency. The reason why they call it a fork is because if you think of the blockchain that keeps track of the records, it would be a side path off the blockchain. Are increasingly popular. I didnt realize until my colleague, olga, reported today that there were 19 last year, i knew of. Two that bitcoin cash and bitcoin gold. Are popular, becoming more popular. There are 7 billion raised in icos last year. Icos is a whole new coin. Its not a fork. Shery could these forks sideline icos . Rob they do have certain advantages over icos. One is that they go to the people who already have bitcoin. A builtin audience. Whether they gain value or become important depends on a lot of factors. Sometimes there are improvements, technical improvements. Icos are a little different product. I think maybe a tougher sell. Going tohese are not retail investors, at least not in the first instance . Do we know how much they are trading for . Rob they go to all investors. If you have one bitcoin, they have a fork, then you get the new thing in addition to the bit going. Although the new thing really comes out with a really low value. Like i say, sometimes they catch on for various reasons. And then they also started trading like many of the other other is there any motivation behind forking other than capitalizing on how popular bitcoin has become . To haves possible technical improvements. Bitcoin was the very first cryptocurrency. It has some flaws. It has some drawbacks, having to do with the transaction size and the speed and the cost of doing transactions. Otherhave already been improvements. Ethereum is an improvement on bitcoin. Bitcoin cash, bitcoin gold, i think also have those and others. Vonnie by the people that create these staying anonymous . Or do we know who the creators are . Rob i think we do in some cases. Thats a good question. Hoping, as youy said, to replace bitcoin . If they are, have any come close . Rob not to replace, i dont know if the aim is to replace it. Perhaps to get a little bit of its momentum. Shery how much appeal are they gaining when it comes to minors . Some minors have sidelined those industrial server farms. Are they going to these new forks . Rob in some cases, they can create an opportunity for miners. Get behind it, that helps it get more popular because there is more of it being produced. Anyie we will not mention mining tools. That would just not be funny at all. Thank you very much. Check out his story on the bloomberg. Shery still ahead, balance of power, larry sabato will join us. That is at 1 30 p. M. Eastern. All of our can catch interviews on the bloomberg, just type in the function tv heo and you can rewind t interviews. Davos coverage continues for the next three days. Upance of power coming right at the top of the hour. 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. Shery its 1 00 in washington and 2 00 a. M. In hong kong. Im shery ahn. David im david westin. Welcome to Bloomberg Markets balance of power. With a focus on the intersection of politics and the economy. Shery here are the stories were watching. President takes action for the first time on terrorist slapping duties on important solar panels and washing machines with a signing in 30 minutes. To the ceo to see how it will impact his business. Can congress and the president reach a deal on daca before the next shutdown deadline . We will hear from white house legislative director mark short says the significant who says to give him progress has been made. While americans feel positive about the economy, they are not thrilled with the Job Performance of President Trump. We look at whether this unusual dynamic could spell doom for the gops in the midterm. David President Trump is headed to davos later this week. Concerns about propriety