Hunt may be over as conquest says it is no longer in the running. We are on bitcoinwatch j two. Day two. This shows the volume and price action that we saw. 3818. Prices were quite volatile. Volume was highest right at the open. If in doubt as we headed toward u. S. Trading hours. That was further evidenced among bitcoin critics. Demand thate retail is fueling what we have seen. Guest, stephent roach joining us from Yale University. He is calling it a speculative bubble. It is just the first day. Things could get more normalized. Girl lets also betty lets show you the u. S. Market. Nasdaq, the dow, and the all in the green. This is a solid recovery. Investors were much more bullish on some of these sane stocks in tech shares. An unwind of this reversal that we saw a couple weeks ago. We are seeing a mixed session here so far. Were looking at new zealand and australia. The kiwi Still Holding onto solid gains. The Deputy Governor was named the next central bank chief. Seen as a less radical appointment under the incoming government. We are seeing shares up about seven points right now. The aussie Holding Steady at 75. 29. We are seeing the aussie 10year lowering overnight. Japan taking a look at futures in chicago. We are seeing pointing to a fourth day of gains. Dollaryen is pretty steady. We are expecting producers rice is coming up this hour. Betty lets get to the first word news with jessica summers. China is acting as a fastgrowing hedge fund industry. Securities regulators looking at market appropriation, misappropriation of funds and insider trading. Some staff thought to ask what the hedging mechanism for. Ersonal gain chinas gains brought new credit the next month. More than 240 billion in november. That compares with estimates from a Bloomberg Survey of 190 billion and 160 billion in october. The Prime Minister theresa may has told parliament the 45ement to pay up to billion to settle the obligations to europe is dependent on the success of the next bonds talks. Will be on the table withdrawn if a workable relationship cannot be agreed on. The accord is not legally binding but is a deal between gentlemen. I am in favor of a fair brexit. It is in the interest of everybody, the u. K. , but all european people and states to find a balance agreement between the u. K. And europe. White bomberd injured himself and three other people in a blast in a times square subway station monday. Police say the man was seriously burned in what they called an attempted terror attack. He came to the u. S. Six weeks ago. Investigators say he was acting on his own. Dayal news, 24 hours a 2700ed by more than journalists and analysts in more than 120 countries. Bitcoin futures here on this second day of trading. A little bit slow going once again. It is pretty early still in the asian sessions so far. Lets get to the Global Market editor adam haigh. He has been tracking all of these. What do you think is contributed to this premium gap . Is it likely to narrow . Punchy firstretty day in terms of trading and it was just the first day. Volumes are fairly low. That might be a reason why youre seeing this cap between the prices you can get on the futures relative to the underlying spot price. We do talk about arbitrary traits that exist in the financial markets. Pretty lofty. Is listening to the interview we tilly, hehe ceo, ed expects the arbitrator to go away. That gap could narrow. We are less than 48 hours into trading futures for bitcoin. Time, asis that over volumes get more, you will eventually see the gap narrow between features and the underlying price. It certainly is in the infancy, but how does the trading compared to other levels of futures trading . How do we compare and contrast . We are less than two days into this, so what we were looking at overnight, sunday into monday, the first nine or 10 hours of trading was only around 50 million worth of Bitcoin Futures. If we compare that the copper futures or nasdaq futures around that time, they traded in the order of 4. 5 billion. We have a long way to go, this is the first Futures Exchange to begin trading. We have cme coming on board next week. As professional investors get more comfortable with the way that the securities are trading it is likely that volume will pick up over time. People want to use these as a hedging material, they allow you to make an outright bet on the price of bitcoin, but there typically used as a way to hedge fundamental to the Way Investors have to behave in financial markets. They need these futures if they want to be involved in the trading of cryptocurrency. It is likely we will see volume pick up and the small levels that we saw. Cant go the other way. It has to pick up. Dont miss our interview with the gemini cofounder, cameron and tyler winkle us. They were one of the first proponents of bitcoin. They were also probably one of the largest holders of the cryptocurrency. They predict it will see some blazing gains, that these gains are just the beginning. Yvonne a dizzying game of fox and mouse could soon be over. What a deal with the murdochs could look like later on this hour. Could the republican tax cuts pay for themselves . We will look at what the Treasury Department says from about that plan. This is bloomberg. We are counting down to asias first major market this morning. Futures are looking slightly week in japan, futures down about 0. 1 as we are a little bit over 45 minutes away from the open. The Treasury Department report claims a tax cut on debt proposed by republicans will pay for themselves over 10 years in commendation with president policiesther economic but the report does not include specific calculations, overall effect and critics say it that lacksrigorous that it rigorous economic backing. The treasury analysis did not move anyones balls and any direction because it was mostly met with skepticism. A onepage analysis of a complex problem. There is a lot of negotiation going behind closed doors. There are a lot of elements of the tax plan the need to be tweaked. Everyone is insisting that 20 is the goal, but no one is that the tax plan will die if it goes to 22 . In her to keep the spending and balance, that they need to get through the Senate Budget rules. There is a lot of pieces still moving, there will be a meeting on wednesday of the Conference Committee which is the house and senate group that are supposed to be hashing up differences. Those differences are all being worked on by the leaders behind closed doors. Tty is this a hint of what we will hear from President Trump on wednesday . What we will hear from President Trump on wednesday is his main tax message. Emphasizing that this is about middleclass, reparations bringing money back to the u. S. To invest in u. S. Jobs and factories. There will not be a lot of detail. He is trying to push this over the line publicly. The polls are showing that their message has not been getting through. The number of polls and attitudes toward the tax plan show that a majority of people still think it is geared toward andwealthy and corporation not so much the middle class. That is a message that they need to break through. Not only to get the plan passed but to take credit for it. We are also looking ahead to the special election in alabama on tuesday. We are seeing the president redoubling his efforts on behalf of roy moore. What is the likely impact . It will impact the Senate Whether way or another it is doug jones the democrat or roy moore the republican. That will give republicans in areress a lot of them set to yet this done before other man is seated. If doug jones wins they would lose another republican vote in the senate with Susan Collins wavering on the tax plan, and as far as roy moore goes, nobody is quite sure where he will stand on the policy issues. Its not clear that he will go along with Senate Leadership and go the direction that they want. Much. Nk you so i want to dig deeper into tax reform now. Gary is a noted economist and a Bloomberg View columnist. I heard that you have grown openly when you heard the lines at the Treasury Department noting, this will more than pay for itself. You said something like, sell me a bridge. 1964 tax bill introduced by kennedy and promised by Johnson Johnson promised it would not exceed 100 billion. It was 118 billion. You go to the reagan tax cats and the idea was it would pay for itself again. But it didnt, the deficit went up. That is always the song to sell these things but it doesnt work. Much the flipside, how worse will this make things . Cut. Is is a Corporate Tax three quarters of it go to corporations. We are out of line with globalization. With 35 tax rates and ireland has 14 . We tax worldwide and everybody him in thees taxes country. That is why apple and microsoft have 2. 6 trillion overseas. Betty this is going to help that. But about 90 of that money is invested in u. S. Sw securities, treasuries,wwww Corporate Bonds andw stocks 90 of that money is invested in u. S. Secretaries, treasuries, Corporate Bonds, and stocks. The money is already here, its not going to make much difference in terms of the dollars. I had a Bloomberg View columnist on this today, really wanting out that Capital Spending is really controlled by capacity utilization. If you look at apple, if they want to build another plane in this country they dont have to bring money back, they can bring up the banks and are only too happy to randomly float some bonds. It is a rationalization. It makes things more responsive. The other thing is individuals only get a quarter of this. The reason for that is for democrats it is anathema to cut taxes of the top but the top 1 pay 39 point 7 of all taxes and the bottom 50 pay only 2. 8 . If you want to cut taxes for individuals you have to do it at the top. The Vice President is calling this a christmas miracle but the argument is will they actually feel it. Given how quick this overhaul has been for the republicans, is there a risk of any loopholes or glitches . Unattended unintended consequences . Benefits,tons of tax whatever you want to call it. The 1986 tax act did address a lot. This is a republican game. There are a lot of things they couldnt really touch. It has been on and off again. The deductibility of interest. The house has a 500,000 limit on mortgages. There is a lot of things, they havent touched charitable donations or medical expenses, there are a lot of things that were not possible given the slim majority. Think it is a rationalization. Taxol gets more and more complicated because just about Anything Congress does for the constituents involves the tax code. More and more complicated and medics and you have a catharsis and simple of occasion and to start all over. Is there a Ripple Effect thentially to this part of world and asia from tax reform . The wall street journal is reporting that china and the authorities there are comparing for a contingency plan or a potential fed rate hikes next year. Wave of flows of money actually shift back to the u. S. . Mentioned earlier i dont think there will be a great change in cash flows. Both of that money apple and microsoft shared in ther annual reports that vast majority is invested in u. S. Securities. Another it will make a great deal of difference. The facts are that the world is awash with liquidity. Money to dowants almost anything can get it very easily. It is awash in money it is for awash in looking returns. That is what bothers the fed, isnt that the returns are low its that people dont accept that. Summit he says i deserve 6 to 8 they move up on the wrist , toe to private equity bitcoin. That is a wonderful speculation. I compare that with the dutch poodle ball mania in the 1600s, but when worst came to worst in world war ii and holland was eatingd the dutch were tulip bulbs. Are you in the camp that bitcoin is a bubble . Oh yes. It has the smell of a ponzi scheme. The whole thing is secret, you dont know who created it. To minehe algorithms it, but any speculation starts with a kernel of truth. In this claim case it was a place for hot money to go in the swiss are out of that business. You have that. Now it is getting into why do you buy it . Because it is blowing up. Should it be some think that the fed pays attention to . I think they should because it becomes money transferred. Look at all of the money transferring things. You go through reams and reams of trading sessions and reports and antimoneylaundering. This is a classic vehicle for Money Laundering. Later you have to do something about it, it is a source of liquidity that they have no control on. Am surprised we havent seen more on it. It is good to see you. Gary shilling, you can get a roundup of that story, many more that you need to get going, get your fill on bitcoin. It is also available on mobile. You can also customize your settings so you only get news on the industry and assets that you care about. This is bloomberg. Betty this is daybreak asia, i am betty lou in new york. Yvonne i am in yvonne man. Announced 18 billion in share buybacks to replace a 14 billion program put in place a year ago. The dividend jumped to 1. 71 per share. Dennis muilenburg says that a strong and growing cash flow allows them to provide competitive returns to shareholders while continuing to invest in innovation and growth. Insurance will provide Life Insurance for 2. 2 billion. It will make them the largest retail life insurer in australia. They had net earned premiums of just over 1 billion through september and a net positive of about 140 billion. Hsbc says the deferred prosecution agreement with the department of justice has expired signaling that the u. S. Is satisfied with improvements. The doj will seek to dismiss the charges saying they have lived up to their commitments including Money Laundering and sanctions compliance. Comcast withdraws from the hunt for 21st century foxs assets. The latest with disney in just a moment. 7 30 a. M. Tuesday on the cloudy morning here in hong kong, minutes away from asias first major market open study. 6 30 p. M. Here in new york. There arent many concerns whether it is bitcoin or tax reform. I am betty liu. Yvonne i am in yvonne man in hong kong. Lets get to the first word news with jessica summers. Jessica almost 3000 Bitcoin Futures contracts changed hands in the first 15 hours of trading with a value of just over 50 million. Prices gained as muchw as percent, the same period saw trade in 5 billion of copper futures. The Hong Kong Securities regulators warning it maybe a sell theoffense to futures ordered without a license. Copper jumped the most in a must three weeks. Slowdowneased about a in the worlds biggest metal consumer. Protections for slower chinese expansion helped put the metal to its biggest loss in two years. Copper has risen 20 this year. The wall street journal says that china is preparing a strategy to offset u. S. Tax changes in the feds expected rate hike. They placed modified sources that say the pboc will use higher Interest Rates, tighter capital controls and will frequent currency prevention. The measures may not be needed if the u. S. Policy has only a limited impact in outflows. China has defended the wtos role in global trade after the u. S. Argued that they are failing to meet expectations. That. S. Negotiator said the ut out his too focused on legal complaints and distract from its core mission of expanded commerce. The trade commissioner also said the wto was not meeting its potential. And that cimb chairman says he is considering plans for a private equity fund a time when crossborder deals give what he saw as exciting opportunities. Asdescribes himself semiretired and says he has been looking for opportunities to fill his spare time. One of the reasons we is thebe looking at, opportunity to cross borders. Daylobal news 24 hours a powered by more than 2700 journalists and analysts. I am jessica summers, this is bloomberg. Asian markets may be set to follow those gains. The new. S. Equities at record high thanks to tech and telecom shares. Kerley lines joining us now for some of the market moves. What stuck out to you today . It was just the shrugging off of all of these concerns. We had a bit of a rough start. You saw s p futures dip a bit lower before the bell but they came back and closed a record high today which was a surge led by media and telecom. He saw apple and tesla up pretty big today. Happent know what will yet so a lot of investors are holding off from making a big bet. We saw a big moves in the energy market. Big moves in oil, the uti was hitting 58 per barrel. It really stems from the this pipeline system. Its a vital oil conduit and a major price maker and it is now helping operations entirely. Wti along with it. Really big gains today. That gap is widening as well. We were talking about bitcoin all day long the last 44 hours or so. There were quite a few hiccups along the way. Overall the general sentiment was what is this going to do to the price of bitcoin itself. There was speculation that when you have the futures a price of bitcoin would go down. You saw touching new records today. It took a lot of exposed stocks with it and those have been down this, soe weeks up to all in all the have been some hiccups. There have been some bitcoin related equities dealing with these futures. Looking ahead to that open in tokyo and seoul. Beyond the bitcoin world, what are you looking at now . Lets look quickly at australia. On the city had a big move by oil obviously, they had a big move by oil. Im not going to go through a lot of the details here. We are up about 1 as a group. Lets look at the other things we are following, the bloomberg commodities index. Were also looking at the clients. Bloomberg, put might we mig