The latest trend in fashion. , whichs a trend growing are u. S. Companies bringing their cash back from abroad. We know apple is the big one. They are going to be bringing billions of dollars back, which means theyre going to pay 38 billion in taxes. And that is really, for lawmakers to pass the tax reform, that is the eyes on the prize. They have built up this much money overseas, when are they going to bring it back, and how much is it going to bet go back how much of it is going to go back to the economy. In creating jobs, which is most important to the white house. Those numbers that were highlighted in the press release if you look underneath the hood, theres questions of how much is going to be repatriated back and where it is going to go . A lot of the money is in the denominated dollars. And will other Companies Follow as well . In the meantime, another note on that, apple is spreading the joy, with employees getting bonuses. We also have overall stocks up, and a wild ride that we saw in bitcoin. We have more, with a lot of optimism over the tax plan. Juicing ms to be if you go to the market snapshot. While not sitting at alltime highs, it clearly set highs for the close that we havent seen before. The dollar also rebounding a bit after being down. Bigs go to some of the movers, because as you mentioned, apple in the spotlight it over the stock not up that much, it grabbed headlines in not only announcing it is going to be giving stock grants to most employees worldwide in the coming months but it is going to repatriate enough cash to spend 30 billion in the u. S. Over the next five years. And 20,000 new hires so that is certainly a big piece of news. Ating is up because it looks a comparable combination with a Brazilian Airline company. Even though there is some obstacles. Texas instruments also up in terms of volume, and where the biggest jumps as seen in a year, and an upgrade from one of the analysts. What youof upgrades are looking at is what we call an earnings melt up. Higher estimates the highest we have seen in almost six years. The average analyst with pink growth of 11 of earnings per shareholder. We havent seen that kind of adjustment upward after the start of the year in a long time. Typically, once the year begins and reality hits, you are facing and ratcheting up their estimates lower. Note to the big selloff in bitcoin and other cryptocurrencies. 10,000bitcoin fall below and then jumping back up again. Where analyst saying about bitcoin . Longterm investors are saying that we have seen this before. Those saying from the beginning, check it out, it has been aim or reckless rise from december. It dropped below 10,000 earlier today, it set up a lot of signals to sell, which indeed happens. But lets go into the chart here. We saw a rebound by the end of the day. That is causing many who support bitcoin we have a nice chart for you what we are seeing is the slight slide. A lot of those who support bitcoin say that before we get to december, you guys were saying this was great. It is still a huge rise, and there are enthusiasts out there. It is cautioned by dramatic swings that we are seeing. Ripple cofounder is reportedly one of the biggest losers in terms of value per token. 11couldve walked away with billion on this. Twins were bitcoin holders also temporarily lost there. Lets go to some of the stocks that have pivoted to bitcoin and cryptocurrency platforms. They took big hits earlier in the session. The kodak and seagate came out strong. Still a question whether that risk was something that they were expecting. Lets talk about the selloff the company blaming its mess on supply. A look at the drop after hours that was almost at 5 . They believe china is going to continue its containment of tons of 1. 7 million are putting some of the blame there. The also take a look at the chart. They missed on the just the profits and revenue. Thestments are begging stock after hours, and it may continue on thursdays trade. How that trickles through to asia. We have seen records on wall street or than a 1 gain on these indexes is rare lately. Asia is looking at bounceback, new zealand up, the kiwi up gaining a bit more ground this morning. Take a look at the australia sessions just getting underway right now. We have seen shares of a quarter of 1 . Here. Er aussie we are off that now, and were expecting on the next hour that it could be another catalyst later on this afternoon. Not flattening like the u. S. That we have seen on the yields about five basis points right now. And japan, we are a bounceback as well. The dollaryen slightly higher weaker yen overnight. We caught up with first wrote news with Courtney Collins in new york. Chinas holdings of treasuries they may be curving its appetite for u. S. Government that. At ones of u. S. Bonds point 1 a month earlier to 1. 8 trillion. Attractingasury extra attention after Bloomberg News reported last week that beijing was considering tapering its purchases. Growth in almost all districts surveyed, but pockets of labor markets tightening. Generally supportive of the Central Banks 2018 of 20 have percent of Economic Growth and three Interest Rate increases. However, it warns that it remains constrained by tight housing inventory. Backing atrump is House Republican plan to avoid a shutdown down by temporarily funding the government, but shutting out democrats and their demands for immigration deals. Haveer ryan and his team been rallying for conservatives on stopgap spending bills to keep the government operating until february 16. The house vote is likely later on thursday. And north and south korea will march under one unified flag during opening ceremonies and next months winter olympics. A strong sign after tensions. The two koreas have not march together at the international sinceevent its 2007 2007. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. Bloomberg. Becky so much, courtney. Apple, as we mentioned, is going to pay hundreds of billions of dollars overseas that is going to bring back to the United States. Is going to bring expenditure over five years. Bloombergned by technologys alex webb. How big of a deal is this for the company . I think the money they talked about is not one we care about. They have a lot to play with once they pay the tax bill theres no going to have wonders they billion dollars to play with. The expectation that it will go to buy back. What is apple not talk about in these headlines that we are not seeing . Theyre not talk about what theyre going to use the rest of the money for. The 75 billion over six years it is these two elements, the drop in the ocean compared to what theyre going to have to play with given they have you 1 billion in cash flow each year. A lot of people are interested to see what they talk about when they report the earnings the start of february. Well was surprising asked was surprising as well that this was a bit earlier than expected. Is this a surprise . It made me chuckle. Its sort of make a mockery of that idea. It came out with no warning at this was going to happen. There might be political agendas behind it. We have yet to see any comments from President Trump. Agenda for is a big job creation. Well see if he has anything to say about this Going Forward it. Emily alex, ask for joining us. Journey is here in hong kong, back so much for joining us. Journey is here in hong kong, back so much for joining us. So, you have to read between the lines for these headlines from apple. We see a line of these companies now talking about tax reform, and the banks seem in the longterm it could be good. Should the president be patting himself on the back that this 3 growth he promised . Is it coming . At 3 level quite that one would like. It is not particularly an ambitious target. Back in the 1990s, it was growing at stronger than 3 each year. And as far as the tax reform is concerned, in terms of International Times the problem the u. S. s had his European Countries have been shing tax rates Corporation Tax rates over the last 20 or 30 years as regards to Corporation Taxes. There try to make up for lost ground. It might be helpful for repatriating dollars elsewhere, but the question is will company that invest in a big way. Globally, investments are weak in a decent, strong upswing. Wasefore the tax bill approved, there wasnt a lack of it that caused them to not spend on capex. What is going to trigger them to do so now . The technology is coming in a way that is changing the bargaining position of capital versus labor in the u. S. And elsewhere. Terms of downward pressure and wages, you can hire people by the task as opposed i the annual salary for example. The bargaining position for companies has gone up. Ofsee is expansion going up hiring people run them through investments. Corporate office ability is not good news in terms of investment and productivity. It is not good news in terms of longterm growth. Of jobs, butnty there are plenty of lowpaying jobs. Growth,rms of wage there are bonuses does that add any Inflationary Pressures to the picture . Wagesis interesting that and a plummet rates in the u. S. Are very low. The wage pressure is minimal compared to what we normally expect to see at these kinds of an employment rates. The oldfashioned phillips curve of wages and inflation, is not working very well anymore. Wageschnology is driving down, and low wages create more jobs. Do you it has reawakened . This avc unappointed at 4 , inflation is going to pick up in a big way this year. It is always a moving number. At some point it is a number that will kick in. The decline in unemployment to date has not given wage increases that people expected. Speaking of wage increases speaking at this moment to reporters, she says that she season upside risk from u. S. Fiscal policy and that labor shortages are more widespread than reported. Would youagree agree with the fiscal policy in the u. S. . Other things being equal, dow would be higher demands, and higher demands means lower employment, and that could mean higher wages. But as important to put into context. It is not really exciting growth. It is passive. The chances were going to see is not much in wage increases. Risks. E worried about otherg surprise from Central Banks around the world is that even if in a plummet as low, wage increases not kicking in, and inflation is incredibly wellbehaved are yo. Americaslk about retreat from globalization. Will discuss more on that with stephen king. Also, catch our exclusive interview with vanguard chairman bill mcnabb later on in the show. This is bloomberg. This is daybreak asia. I am betty lou in new york. Protectionism. President trump is set to speak andin davos. Specifically, were talking about the leveraging. Hsbc bank to the senior economic adviser. Stephen, before we get to the issues that are going to be we had in davos, headlines two hours ago that trump may terminate nafta. That is on the back of headlines that we have seen in the last few weeks. How devastating will it be if we actually see the u. S. Go along and follow through with its exit of nafta . It is part of a broader trend that the u. S. Is losing its views of International Arrangements and international deals. There go back to 1944 was a sense that the countries were all in together and had to Work Together for the common good. Increases significant in Living Standards in a white draghi of countries that in previous eras were at war with each other. Now is theseeing growth ision wage weaker than it used to be. And President Trump, in one sense what he is saying that america had a bad deal with the rest of the world. I dont agree with that at all, but nevertheless, we have a villain narrative starting to emerge. Country day brings country before its difficulties, and wants to disengage. And then you have the rule of the game of international disengagement. Globalization goes into reverse, and you might end up with competing Regional Power locks emerging in the years ahead. That dynamic think and topic is going to be the that topic in davos . Manage it again this year, but what happens is the president is recognizing that sponsoring globalization it is something china can walk into. It is a narrative that is beginning to emerge globally at the moment. Think that trump says, and i suspect he is not going to be as positive about globalization as president xi was a year ago. Certainly theres going to be a lot of years peeled to what President Trump has to say. What do you think he is likely to use this big platform at davos, which she long criticized as well . What is he going to push . He has criticized all of these International Arrangements, and whether that it istroversial correct remarkable that he is pushing to gain of changing the rules of the game to make the rules more fair for the u. S. Compared to other countries. He will use the opportunity to say that the americans need a better deal from the better World Without recognizing that america is one of the richest countries in the world. Does the u. S. Have the leverage . Chinas treasuries fell over the last four months, is his political posturing or is china concerned that theres not enough growth in the u. S. To service its debt, therefore yields are no longer attractive . That is a nightmare scenario. But i think it is extremely unlikely and difficult. The chinese and the u. S. Will lose in that story. As the u. S. Pulls out of International Arrangements, china has to weve its holdings around the world. Bear in mind that china has is continuous large account and has to invest that money somewhere. There are real assets in certain parts. Like where . Can buy real estate around europe. One thing china is reese china is interested in is buying tech companies. It can increase the value chain. That is what we are seeing in some investments in europe over the last four or five years. Are they ready to be put in that global space . Xi has enshrined himself to be elevated to the status does that give him the leverage and firepower to go through these reforms in a meaningful way . How these countries respond to china . To not fall entirely under chinas umbrella. At the same time, china is placing its own International Institutions. Think about the partnership or the shanghai corporation, and Asian Infrastructure back china is placing International Institutions which used to be preserved for the u. S. It is changing the balance of power and influence, and also influencing the center of smonomic nine is him dynas in china. Weblog about the bank this week is going to be increasing their reserves france is saying there are reports of that as well. Is the vote of confidence there is a lot of Unfinished Business with the Central Banks fighting concerns in china. You sure do you share those concerns . Want to be as liquid as possible so they can move with ease. Theu. S. Dollars offers facilities where the rmb doesnt offer them currently but ertheless, china is so big it is now the second or third biggest economy in terms of gdp. You cant ignore it. Countries around the world to sing the world is shifting, it is changing, we can fight it, we have to join it whether we like it or not. Looking at your crystal ball on china, and looking towards the end of 2018, what do you think china will accomplish . What are their huge goals . What do you think they will accomplish by the end of 2018 . The environmental things are a big challenge because china is by far the biggest culprit in it is heavily dependent on fossil fuels. That is in the that has to shift over a. Of time. The china wants to move in that direction. Terms of Solar Energy Electric Cars and so on, all of those things are potentially position elsewhere around the world. The environment is going to be a slow process. Of one step forward, two steps back. I think well see more of a floating currency than we have seen in the past. We appreciate your time. Hsbc senior economic adviser. We go to japan real quick. Backe expecting a bounce on futures. It is up 30 points right now. It is a third of 1 . We got news overnight as well there iss likely that a good chance that the governor will be reappointed for a second term. The yen seeing a bit of weakness over the last 24 hours or so. Next, Goldman Sachs at its lowest since the financial crisis. More on that. This is bloomberg. It is 7 30 on thursday. We are now three minutes away from the first major market open. It is 6 30 on wednesday and markets closed considerably higher with record gains. The yen added 300 points in the s p rose. I am ready in new york. You are watching daybreak. Lets get the first alert news. Apple says they will pay back 30 billion dollars in cash. Promise 30s million in Capital Expenditure over five years. Is refocusing investment and job preparedness. They plunged below 10,000 for staging a rally to trade unchanged. This took me cryptocurrency across a trading range of 2600. Up 1000 fromll bojyear ago for the lead governor has a good chance of being reappointed for a second term. He noticed that markets have been sensitive. Has agreed to meet later this muellers month and we are told that he executiveto use privilege. He did refuse to answer some questions during a marathon hearing on tuesday. I am Courtney Collins and this is bloomberg. We are counting down to the market open. , after ayou call this day of a pause, we are back on. Appears toon markets live on and we have the chinese data that will be a highlight expect to stand pat. Taiwan a rigged one from you have the stronger yen since the start of november and a record amount of over half the holdings the last two will report earnings. Attention tor sydney, we had a