aside at google's parent alphabet. period of17 year long his senior leadership. ♪ betty: it seems like everybody is trying to ram and all the news before the christmas holidays. catalonia, google, and of course the spending bill passing the house. all of that and stocks today rose, breaking the today losing streak. we will quickly pull up the boards and show you how the u.s. markets ended today. the s&p 500 slightly higher, and nasdaq also trading a little bit to the upside, but fairly unchanged. investors trying to absorb what the impact is going to be from the tax reform package. yvonne: yes, just a moderate bounceback. we see some positives as we get closer to the christmas holiday. let's look at asia, said to track the gains -- set to track the gains we saw on wall street. new zealand up. and we are holding steady. australia, getting underway in sydney. 6100, it could be a big -- we will see if it reaches that level. 7702 for the aussie. treasuries mixed overnight, the curve sharply flatter. unchanged for the 10 year yield. and coming down to the open in japan and korea. unchanged the policy yesterday, not much going on. perhaps a little very treat -- little bit of retreat. >> first word news with jessica summers. jessica? jessica: the executive chairman of google's off of it is stepping down from the role. eric schmidt will become a technical advisor, but will continue to serve on the board. offeredge saying he has engineering expertis and a clear vision of the future of tech. u.s. condemning criticism of -- on jerusalem. the nonbinding resolution passed 128-9, with 38 nations abstaining. key u.s. allies such as france, germany and japan all supported the motion. ambassador nikki haley said that america would remember the day that the u.s. wasn't singled out for an attack. and the un security council is considering new u.s. sanctions on north korea that would target 90% of oil product and crude imports. a vote could come later on friday, capping into 4 million barrels a year. it would also limit diesel and kerosene. the resolution would need support from china. that is north korea's biggest trading partner. nike has reported second-quarter results that beat estimates. earnings per share coming in at $.46 against the forecast of $.40. revenue topping a $.5 billion ahead of estimates. incomes rose in china and in the middle east, offsetting declines in asia-pacific and north america. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. yvonne: thank you. as we just heard, separatist parties have won the special election in catalonia, handing a resounding defeat of the national prime minister rajoy, the party of the exiled president exceeded its own expectations while rajoy struggled for support. we are to barcelona and our correspondent, maria, who has been following this dramatic day of voting. maria, what next? maria: it is a mess and it will really hurt tomorrow morning, because it is a mess for spain. if you remember, the spanish premise are called this election -- prime minister called this election with one goal in mind, to get rid of the catalan parliament. he thought they could achieve it. he thought it would be a failure for the pro-independence party and it has been the opposite. they managed to cling to their majority, they will be able to form a government. that will stick with the idea of independence and breaking away from spain. if you look at the details, the story has more to it. they have lost seats and not everybody is happy with them. they did not have a clear mandate before and they do not have a clear one now. if you look at the actual breakdown of the ballots and you see that the winner of the election as a single party, as a pro-spam party, one million votes. they have done well. it is a celebration for them, but again they may not be able to form a government. what you get is a huge mess. yvonne: certainly a big blow for rajoy. you said this will get messy moving for, because it used to be simple. it was either left or right where the parties stood, now it seems like you have the overlapping of ideologies even within the independence party, so can the parties even governed together? maria: it will be really difficult. you will get a catalan parliament at the end of the day that is probably going to be led by pro-independence parties and if they want to form a government they will be able to do so, but the greatest force in the parliament will be a pro spain party that fiercely opposes the independence and at the same time we need to keep in mind that the central government and madrid will keep the nation, the region i should say, suspended from its own regional powers. the next time we get another -- as a constitutional order, catalunya will be stripped of regional powers again and it could mean firing the regional government. the big question is what will happen to the absent leader. he has fled spain after declaring independence, he has been gone for two months in belgium and he does not seem to be look at rid of -- and rahoy does not seem to be of the get rid of this man. yvonne: thank you. maria joining us on the phone. switching gears to the u.s., for the third time this year has representatives have passed a short-term extension of federal funding to keep the government running for three more weeks. nd with us toa discuss is joe. is this enough momentum for the house to pass this before the holidays? joe: it looks like the senate will vote tonight on the continuing resolution that will fund the government through january 19. congress ofood in that they are ready to get out of town, there is a bit of fatigue after the tax debate and everything else, so it looks like it will probably clear the senate tonight and had to president trump's desk for him to sign it and avert a shutdown that would've started on midnight on friday. yvonne: we have to add in the words, "for now." so what happens when congress returns from the holiday? joe: they have a very messy plate of items they will have to deal with. one of course is getting a full year funding for the government, and that includes really tough negotiations on raising budget limits for defense and domestic spending. they have to get an agreement on that and that one of the easy. there are a lot of republicans resisting that, except for defense. democrats will not cover defense increases without domestic increases. then they have to approve, the senate has to go through and approve budget for all the federal agencies. and then there is a host of other things that are still left over for the lawmakers to take up, including dealing with stabilizing the obamacare markets, there are promises from mitch mcconnell and to the white house that they will work on getting a deal on immigration and for the so-called dreamers, those brought to the country illegally as children. paul ryan wants to move on to some big, what will be a very big and typical issue of trying to reform welfare and entitlement programs, along with president trump's desire to have a big infrastructure bill. so it is a big can they have kicked down the road of it betty: indeed. -- road. betty: indeed. joe, in washington. we are bringing in mitch, a development later. i know you have been speaking to a lot of companies and your clients about tax reform. it looks like we have averted a government shutdown, so is business more confident? >> they are absolutely more confident and they are thrilled this is done. you are trying to run a business and you are try to figure out how to invest and you need to know what the rules will be from a tax perspective, that was impossible. now we have clarity and it has business managers wanting to move forward. betty: has it gotten simpler or more complicated? >> that is a complicated question. [laughter] it has -- betty: more business for you guys. mitch: that is not entirely incorrect. [laughter] it has gotten very simple from a -- where the rules are going to be, but the transition is complicated. the rate is down, we have shifted from a worldwide system, so that is reform and of in terms of tax laws. how we implement that will be a challenge. think about the retail industry, and they have a global supply chain and where they manufactured goods, acquire pieces of the supply chain, that will change dramatically when you shift from a worldwide system to a territorial system. running the business is also complicated because you need to make those changes. betty: i want to pull up a chart for our viewers. we will reflect on what you have said about business being confident. one of the highest levels we have seen in a decade - but interesting enough, m&a activity has hit the pause button in 2017 because ceos, they are wondering, what do i do next? they want to see clarity. do you think there is pent-up demand or action said to speak, not just in m&a, but other areas of business? mitch: that is a lot of capital on the sidelines. the belief is the dry spatter will get wet, if we will go with that metaphor, in 2018. and corporate corporate m&a activity has hit pause because a lot of it is multinational and you do not know how the tax rules will impact that. now that there is clarity in people and what the rules are, i think that 2018 is going to move forward and we will see a lot of change there. yvonne: i imagine a majority of americans still think of the tax bill benefits the rich, but with the response from corporate america so far, it has been the opposite. comcast, at&t saying that these bonuses are coming, wells fargo raising the minimum wage. where are the firms on this debate so far? mitch: there is a lot of economic studies talking about when corporate tax rates are lowered, does the benefit go to labor or shareholders? they are all over the place. the fact of the matter, what we have seen in the last 48 hours is corporations telling their employees how they feel about that in the form of bonuses, changes in minimum wage. i think that is a bandwagon a lot of companies will get on, so we will see in the near term a lot more of that activity. think about where we are right now in the calendar year, it is the holiday season so a good opportunity. i do not think it is a pr stunt. earnings are, with the they have had all year, they are relative to expectations and they are trying to share it with employees before they can share it with shareholders. betty: what does it mean when it comes to some of the international aspects of the bill, obviously there are provisions that have to be cleared up with the two complaint -- wto that has been raised. you might need some democrats to get on board. mitch: given the complexity of a 1000 page piece of legislation, if i had my notes in front of me i could show you the one page from april 27 that showed how civil it would be, it has obviously gotten complicated. the treasury department has to sort out a lot of rules, and that is not happen for a while. companies have to figure out how to operate in the interim, take a position on how they ought -- will operate and then lobby the treasury department themselves to see how they can operate in this time of uncertainty. betty: really quickly, because this is in your wheelhouse, housing -- do you think the packers will help hurt housing? mitch: my view could be contrarian. i think it is neutral, not negative. there is so much pent-up demand for housing and it's a little supply, the mortgage deduction is still there, even though it is capped at 750, that is three times the median house price in the u.s. so that is probably ok, and the state and local tax deduction is almost three times themedian property tax in united states. if you think about it in the united states only, it is going to be neutral, it is just the high-end where you see a lot of this and a lot of the headlines. betty: mitch, great to see you. happy holidays. mitch rochelle. we have much more ahead on "daybreak asia." withok at the year ahead technology with the chief strategy officer. 2017 has seen a push to integrate tech further into our everyday lives. boy, ahas it! yvonne: china on track to become the biggest importer in the world in the next five years. we will discuss how 2018 will continue that path. this is bloomberg. ♪ ♪ is "bloomberg daybreak." in new york. yvonne: and i'm yvonne man in hong kong. busy day. when talk about the word occurrences. the dollar making against major peers. looking like this, pretty unchanged after the catalan election and the upset that we saw from the separatists. liveng us is sean callow, this morning. good to see you. the euro shrugging off this election result completely. what is going on, our politics no longer a factor for the euro bears? sean: i think their special -- their threshold is higher now after the french elections. there was a flicker of concern around the performance -- the poor performance by chancellor merkel in the elections, but now they are interested in the catalan issue. obviously, the independents vote and probably there is more response in the spanish bond market and occasionally in the equity markets, but overall i think as far as the euro itself is concerned, covering the whole region and not just spain, investors have become used to it and it is something nation no longer worry about. yvonne: of course, we still have italy next year in the spring as well. talk about what is going on with the dollar. we saw a bump of in yields, tax reform has passed as well, and will we see a reversal in the dollar in 2018 after disappointed in 2017? sean: we do confess we were upbeat going into this year and it looked ok for a little bit, but as you mentioned the yields, particularly the 10 year yield, that was striking, the decline from earlier in the year, i think march was above 2.60. really chipping away and it was not until september, particularly the second week of september once we had a deal on the budget around, after the hurricanes, we had the donald deal, pelosi and schumer on suspending the debt ceiling and that is when the two-year yield really took off and it made the fed more confident in the outlook. that has been ongoing support for the dollar, but it was only recently we have had support for the longer end. it seems to be on a better track for next year. overall, we think it will be supported for the u.s. dollar, but a good part of it is waiting the yen and euro will be undermined by very generous qe policy continuing. betty: but there are analysts who think that the tax reform package will be much more additive and a supportive of the dollar, perhaps into a 10% gain for next year. do you think much of what we have seen in washington has already priced into the support we see for the dollar, or could there be a latent buying or support for the dollar here? certainly the equity markets are fully priced for the tax reform to have passed and probably have been for quite some time. it is understandable their rush to lock it in, because it has the corporate -- the clearest implications for corporate lines. the dollar is more mixed because there is debate on what it means for interest rates. it is not mean much for gdp, maybe a fraction higher, but still most forecasts are in the lower 2% for growth next year in the states, so it may not be a game changer for the fed. overall, we do think that the dollar it has lagged a little bit against the euro, so if you are looking at the dollar index i think maybe somewhere in the 6% or 7% gain for the dollar in the year ahead. talking soave been much and you mentioned earlier about the treasury yields, and we have been surprised by the flattening of the yield curve, but we have seen it spike in the last few days. do you think in 2018 all these predictions or possibilities of the yield curve will invert, do you think those are just -- we are getting ahead of ourselves, perhaps there will not be that threat next year? sean: i do not think so. that, i think the trades are starting to be, the steepening trades are starting to be put on at the moment, really in inverted yield curve would be a surprise to us. we are pretty much agreeing with what is priced in as far as the short and. we have about 50 basis points priced in for the futures, we are looking for to hikes in june and december, so that is reasonable and i think the market has about everything right at the short end. on the longer and we would expect-- end we would yields higher and bonds selling off. yvonne: thank you so much for joining us, sean callow. betty: and for more on this and other breaking news, wherever you are, bloomberg and twitter have launched to talk by bloomberg -- tictoc by bloomberg, offering live video coverage and hourly updated top news reports verified by bloomberg. get on twitter and follow tictoc by bloomberg. this is bloomberg. ♪ ♪ yvonne: a quick check of the latest headlines. product launching its first e-commerce platform in china, and reaching to tap into online sales. it is integrated with physical stores and a digital payment services, including alipay. they say that china is the benchmark for online sales and a global rollout of the platform is expected by the end of january. goldman sachs is said to be the latest to embrace cryptocurrency. bloomberg has been told they are setting up a trading desk to make markets for a bitcoin and other cryptocurrencies. we also learned they are evaluating security issues as well as how they will hold the assets. this is the first major wall street name to make a market in cryptocurrencies. facebook at sign a multiyear licensing deal to carry songs and artists from universal music across its platforms. the accord into a long-running dispute with facebook agreed to compensate universal and artists when users post videos that include copyrighted material. the deal applies to facebook am instagram and oculus and sets it up as a direct competitor to youtube. and in a moment, nike posted sales which fell short of estimates in the u.s., but there are brighter news overseas. a closer look at the second quarter performance, next. this is bloomberg. ♪ ♪ 7:30 a.m. on friday in hong kong as the countdown to christmas continues. yvonne: 30 minutes away from the market betty: i would be wanting to celebrate my christmas in that type of weather. is0 p.m. on thursday, there an early start, red and green on the empire state building. markets closed in the green broadly, s&p 500 slightly higher despite disappointing numbers this morning. he lived in new york. -- i am betty liu in new york. yvonne: i'm yvonne man in hong kong. first word news now. jessica: separatist parties have won a special election in catalonia handing a defeat to the national prime minister. they took 70 of the 135 seats in the assembly. the exiled party -- exiled president's party exceeded expectations. the party popular took only 10% of the vote. and a corruption case that helped the prime minister in india has been thrown out. a judge acquitted all the accused over the sale of two air licenses in 2008. prosecutors say that the cheating cost the state almost $5 billion. he has consolidated power by capitalizing on corruption claims on the previous government. and two of korea's biggest companies face court rulings later. the de facto samsung boss will find out if he will spend more time angel for corruption. prosecutors want 10 years. and another court will wrap up the trial of lotte's founder and his two sons on and bells omit and attacks -- on embezzlement and tax evasion. ubs ordered to pay a former mortgage bonds strategist who says he was sacked for refusing to sugarcoat his reports. trevor murray was fired for blowing the whistle on attempts by traders to influence is independent research. in manhattan jury sided with him, but awarded only a third of the damages he saw. bump in thenother road with an investigation in singapore. the competition commissioner is asking for response on the alliance between uber and comfor t. they are looking at the purchase of the car leasing business. they estimate that they have deals at a 10% discount to the current book value. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. ♪ thank you. we are counting on to the market open in tokyo and seoul. it has been a light today, sophie, when it comes to echo data, but we are waking up to the catalan vote and congress passing a bill with the house waiting for the senate. waiting for a happy friday. sophie: that would be the case, christmas cheer as denoted by our worship today. let's put on the board, we are checking in on futures for singapore and sold. asian investors will have the latest gdp figures today and it came in at the fastest pace since early 2015, despite being revised lower. and let's check in on the mood in sydney. stocks resuming gains for a fourth day this week, led by resource shares in materials gaining about a 10th of a percent. and -- 8/10 of a percent. the year was going nowhere fast with a check on yen. euro-yen trading at the strong this level since october 2015 and a that is looking better for the bulls. this broke above the 6.8%. dropping from 2014 32016. the bloomberg indicator in the bottom panel said just saying that the bears have lost control. betty: as we round out the week of the year, the last week this year, blackrock affirming its preference for japanese shares, tell us why. sophie: they like and japanese stocks second two -- corporate earnings and evaluations, they are favoring value stocks in particular. let's take a look at the ea function. it has rallied some 17%, but valuations have not changed that much. the estimated pe for japan, compared with 20 for the u.s. in 16th test and 60 for europe. taking a look at this, you have blackrock saying that the global funds they need to review their old image of chappatta and a stagnation -- of japan and stagnation. betty: thank you so much. now a closer look at the break in the two-day losing streak in the u.s. for equities. treasuries halting the week long slide and we had gdp revised downward slightly earlier this morning, sue here with the latest. sue: economists say it is all about the tax cut, a day after reaction, but it is also a mixed bag of economic data. what we got was revised gdp, yes, somewhat lower, but showing a robust economy. going into the close you see a lot of green on the screen. market snapshot, dollar giving up local gains, oil rising to a two-week high and oil and copper gaining. we will go into the bloomberg, 5201, tax policy uncertainty is a phrase that you'll hear a lot as we go into the new year. su: this is by presidency. you can see what we have rising over here, no were near what we had under the past administration, but it remains to be seen if the efforts will warm up americans to the tax overhaul. a poll released by the wall street journal showed only 24% of americans think the plan is a good idea and two thirds think it is designed for the wealthy. we know corporate america has embraced it, but mainstream america we have a big question mark. yvonne: let's take a look at the big movers, after hours and in the riddler session. what are you watching -- her regular session. what are you watching? su: airlines are in the spotlight, ual actually had a new complaint, one of the passengers said that they were not happy with the way that a drunken passenger who was grabbing at women was handled. but the stock survived that minor crisis. chevron up on an upgrade. check out long island iced tea corps. this is a struggling long island, nonalcoholic beverage company that added blockchain to the end of their name and look what happened in one day. and anything to do with the bitcoin technology is cemented to drive stocks higher for the moment. we will go into the bloomberg and take a look at this chart, because airlines will be in the spotlight next week as we talk about earnings reports coming out. 2017, airline performance year to date, you will see southwest airlines was the best performance, better than 30% up. ual had a lot of problems. negative performance, down about 7.5%. and again, there is a lot of positive commentary on fares for the airlines, particularly global airlines, so they are expected to do better going into 2018. let's get into the after hours for google. big spotlight stock is eric schmidt is a stepping down from his role. the stock has had a knee-jerk reaction, not a major move. a lot of that will play through and play out through the friday full session. yvonne: ok, thank you. let's continue the story on google. off of that saying that eric schmidt is stepping down to become a technical advisor. his decision ends a 17 year leadership role with the company. we will assess the move and his career with cory johnson who joins us from san francisco. can you say this was a surprise? that the a signal adult supervision is no longer needed at google? cory: the kids are adults now. that is what happens. it makes me feel old, because i remember when eric schmidt went hem son to know val -- and was the chief officer at that company. thiss hard to see him with personal style, if you will. he kind of kept in that. he went to google and was popular, but not market dominant search engine and with many companies like altavista and excite and yahoo! dominant in the industry at that time, even magellan as a search engine, so the idea that google would become one of the biggest businesses in the history of the world, and a massively profitable and creative and free cash flow generating machine, and has been for so long, is a fairly amazing thing. eric should get a lot of the credit. betty: will this have a material impact on off of it -- on alphabet? cory: i am sure he hopes it won't, but he has been gently moving away from his active role in the company going from ceo to executive chairman, which is like ceo without dealing with the expense reports. or something like that. i think his role has been increasingly advisory and less management, but that certainly will be the case as he will be just sitting in on board meetings. he will have his run of the place as much as he wants, but not to the degree he did. betty: thank you so much. cory johnson on that breaking news in the last hour of eric schmidt stepping aside. nike stepping ahead around the world, but struggling at home. second-quarter sales falling short of estimates in the u.s., in china, theasts middle east and africa. we will take a look at the results with ken. you know, nike had good results overseas and the u.s. was still a disappointment and likely why the stock did not move on this, right? ken: they reported good numbers, but when you drill down, europe, china, high double-digit growth and minus seven on the footwear side in the u.s., less than expected. so struggling in the u.s. market, but considering the market right now with what is going on in terms of inventory, it is understandable. betty: what is going on in the u.s., holiday try to turn it around? chen: if you look at the last 24 months, they are facing pressure from competitors like adidas and when you talk about a nine-month cycle in terms of designing and manufacturing, they made too many units in terms of how much they will sell. now they are struggling with elevated levels of inventory clear andrying to they have to clear at lower margins. it will continue for a couple more quarters. yvonne: and profitability has been down for nike as well, given this battle we see between nike and adidas for most of the year, what are the expectations going forward? chen: looking at the third quarter, that will be nike's third fiscal quarter. we will see gross margin getting near. goinge are expecting is into fiscal 2019 and q4 where the new innovation platforms come in, we are at full price and we will see the margins getting better. that is the expectation, at least for now. yvonne: ok. chen, thank you. ok, plenty of news happening. aeing in talks with -- for deal that would deliver a portfolio of regional and private jets. completion would be boeing's largest since it purchased mcdonnell douglas. it needs the approval of the brazilian government. we will go to our industrial aerospace reporter thomas black who is joining us. why would boeing, a producer of large airliners, want to purchase embraer. is really a chain of events from when boeing accused by barnier, a canadian maker of regional jets, of selling is c series, the largest competes with boeing's smallest jet -- they accused them of selling basically below price. and so the u.s. government decided that it was going to slap tariffs on that plane. and that sent in the canadian company into the arms of airbus, a chief competitor for boeing. airbus to control of the c series and eventually built it in alabama, which took care of the tariff problem. now boeing has gone to embraer and they have confirmed they are in talks. we do not know what kind of form the deal would take, but there could be a deal. yvonne: would it make sense to you? we have seen going down -- boeing down after the news came out, so what is the view on wall street so far? thomas: it would extend their portfolio, but there are questions. they would also inherit a emberss jet division that -- embraer has. and a small defense unit. more than that, the brazilian government has a golden share in the company, so it could veto the deal, so we are not sure what form that would take. betty: what is the likelihood the deal will go through? thomas: that would depend on the form, if it were an outright acquisition they would have to convince the government that it would give up basically a company that is a source of pride for brazil and also a little bit of a strategic company as well, this is a company that was formed by the brazilian government and privatize in 1994. so that would be a major hurdle. for boeing, it would not be a big deal. it could certainly afford this. and we just have to see what kind of form it would take. betty: thomas black in dallas, thank you so much. our aerospace reporter. up next month on a 17 brought next, new iphones and -- 2017 brought three new iphones and two new ipads. what it means for apple. this is bloomberg. ♪ ♪ this is "bloomberg daybreak." betty: i am betty liu in new york. as we mentioned, big changes at alphabet. the exact of chairman eric schmidt will be stepping aside and taking a role as a technical advisor, ending a 17 year senior leadership role at the company private so much of what -- come prepared so much of what you think about eric schmidt is tied to google. we have our chief officer talking about it, tell me your reaction about eric schmidt stepping aside. will it be a material impact? >> it is a little bit of a surprise, just that it happened now. they have a strong bench in terms of everything. it is the end of an era. this was somebody who worked into the fabric of google. and now we have a next generation taking over and i think internally they have prepared for this, but i do think it is something that investors need to have comfort with, that there will not be a hiccup with him gone. betty: they seem to be -- he was slowly stepping back more and more and it was unclear what his role was anyway. dan: it was a little gray and he is sort of that advisor, he is in that role unofficially, so this is not a huge surprise but i do think over the coming quarters, just giving more cover that him away will not be a chink in the armor. yvonne: taking a look at the tech sector over all, obviously we have seen this rotation out of growth into value, tax reform has been passed, and we have seen the worst performers outperforming in the tech sector. will that continue for 2018, given where the valuations are? dan: especially on some of the names like amazon, that is our top pick. there are a few left in the engine and if you are looking at where the growth is on e-commerce, on the cloud, on the social side, i still think growth -- it is a tilt toward growth. i do think, especially on the repatriation side, billions will come back into the large cap tax and it could be another catalyst, but ultimately weaving growth, especially in the sectors, that is a way to play going to 2018. besides tax reform within the tech space as well, net neutrality is changing the rules, the end of that. the rhetoric seems to say that it will help the sector, but this could potentially weaken some of the competitiveness with some of the u.s. tech companies. what is your view on that? dan: the jury is still out on what type of impact it will have and we are not convinced it will be significantly positive. i think it is a step back for the tech industry on the net neutrality side. really, how they sort of handle this, especially over the next six months is going to be interesting. we do not really view that this will be a major impact. right now, repatriation is obviously the first, then net neutrality in terms of impact, but it is all the secular growth themes playing into technology in 2018. i think that is how investors are focused with apple and others among the battle for the cloud, obviously amazon and microsoft in the two horse race. betty: pausing for a moment on breaking news about the u.s. senate, they're beginning their vote on the spending measures. we saw the house pass it and not the senate is voting come all in time for the president to likely sign it by tomorrow. we have seen the tax package affect technology, they are expected to repatriate money after this bill is passed. how much are they expected to repatriate in 2018? dan: we estimate about $300 billion to $400 billion that will ultimately get repatriated. apple, $200 billion right there. unless they decide to buy a country, it will be dividends and m&a and consolidation. you look at cisco and alphabet, repatriation will be something like a catalyst in terms of how it is deployed and i think investors will be focused on this, especially with these large companies, how they deploy it. betty: m&a? dan: we think it will be a huge fuel. consolidation, you will see more pressure for these, especially the large tech cap companies, like cisco, looking to diversify. what type of growth areas will they buy. ,ou will see buybacks, m&a dividends, as well as we think about 75% are shareholder renddly, 25% is capex and initiatives -- rnd initiatives. forwas done in the u.s. share friendly allocation. betty: whether it is put into rnd. dan: especially tax, it is front and center in terms of beneficiary. itwe really view snap -- really cannot gone worse in terms of coming out of the gate. but also, i think the medicine they needed was an overhaul. you look at the advertising, what they are doing there. they are in the investor penalty box. if given the secular growth, what they have done, i think this is what to look out for and just given what they are doing on the ad growth side -- where you start to see a turnaround. this is good to be the tech turnaround story for 2018. betty: so good to see you. dan ives. do not forget, our interactive tv function, tv . you can catch up on past interviews, dive into securities or the bloomberg functions that we have talked about, and become part of the conversation by setting us instant messages during our shows. it is for bloomberg subscribers only. check it out on tv . this is bloomberg. ♪ yvonne: a quick check of the latest headlines. morgan stanley explaining how they will trade under the european union's overhaul of financial regulations. betty: the bank said it will become a systematic internalize are from january 3, which means it will avoid complying with the rules on reporting. those include some a report within 15 minutes of a deal and some securities. and -- when they receive bonus payments. showing how tax changes will affect compensation. the ceo has asked workers if they want to check this month or next. they usually pay bonuses in january credit some may prefer to have bigger compensation in 2017 before the new regulation is coming to force. a new stress tests shows that the bad problem in india with loans may become worse. the report says nonperforming loans may rise to almost 11% by march, from 10% back in september. system basic financial is stable, although banks are lagging. they say that the overall risk level remains high on concern about asset quality. much more ahead in the next hour. we will look at the outlook for with text banking sector - with yvonne: 8:00 a.m. here in hong kong. i am yvonne man. welcome to "daybreak asia." sidestepping a shutdown, the house passes a stopgap bill to keep washington running for now. winning the election and catalan, rajoy's party struggled for support. betty: i am betty lou in new york. two of south korea's most powerful companies are back in the headlines awaiting corruption rulings. is bitcoin a dangerous bubble or dramatic opportunity? we listen exclusively from bank of america. ♪ yvonne: no shortage of drama, not just with bitcoin. a wrap up before the christmas holidays. we have been talking about the u.s. and house passing the stopgap measure to kick the can comes toroad when it january 19. they still have to hammer out issues. we are still waiting for the senate, they were set to vote 10 minutes ago. they have voted on the stopgap funding. that is still the big story today. betty: we will be watching how this voting goes. perhaps in time for president trump to do what he wants, get this signed in past two over the government shutdown. they have the deadline of midnight on friday. it appears it will happen, the senate has votes to pass temporary funding. temporary being the operative word. let's get to bloomberg commerce editor joe sobczyk. give us a timeline. it appears the senate has the votes to pass this. sometime in the next few minutes of they should be getting to a final vote, which will send it on to president trump for his signature. this does a couple things besides just funding the government temporarily. it includes a provision that waives budget rules that allows the president to sign a tax bill insed earlier this week, 2017, rather than waiting for 2018. it has to do with arcane rules imposed for spending. this passage will give him the opportunity to sign it before the new year is out. betty: they are definitely going to be taking care of these two big things before the holidays. what about when they come back? what kind of work lies ahead? joe: they will have a big new year's headache -- or hangover, i should say. of january, they have got to come to some sort of agreement on the limits of spending for defense and domestic programs, which will not be an easy negotiation. raiseicans want to defense spending and democrats are amending additional spending for domestic programs. the debt ceiling will be coming up, as part of that. they have legislation on policy issues, including immigration and stabilizing the insurance markets through obamacare, that have been promised -- for instance, for susan collins. they have a big crash of items to deal with in january as soon as they come back. not the least of which, getting permanent funding for the government for the rest of the fiscal year. yvonne: a different conversation to tax reform. spendingoned daca, issues and the spending caps. it is likely they will need 60 votes to make it happen. will democrats be on board for any issues? joe: one of the pieces of leverage they have is getting the immigration legislation they want, to protect people brought here as children illegally, protect them from deportation. they are also in favor of doing something to stabilize the obamacare markets. and have got some asks leverage to make that happen. republicans likewise are interested in moving ahead. paul ryan has a big agenda he wants to get done. as does mitch mcconnell in the senate. how much of that they will be able to accomplish in 2018 before everyone campaigns for reelection in november. yvonne: sure. does back to the tax bill, not seem like a done deal just yet. has not been signed by the president and there are still technical corrections to clean up. joe: mostly that should be a formality. the signature is not a question. it will get there, be put into effect. a big, complex bill like that, corrections later on not uncommon. that is provided they do not find some unanticipated timebomb in their -- there. not that i know of any. it should not be a problem. yvonne: joe, thank you. we will continue to watch what happens in the senate. seems like they have the votes to pass that temporary funding. nothing officially passed just yet. in the meantime, let's get the first word news with jessica summers. schmidt google's eric stepping down from the role, ending a 17 senior leadership role. willbet said schmidt become a technical advisor but continue to serve on the board. page said he was offering business expertise and a clear vision of the future of tech. the u.s. has condemned united nations criticism of jerusalem, saying it puts future funding and supported risk. the nonbinding resolution passed 128-9, with some nations abstaining. key allies all supported the motion. shessador nikki haley said would remember the day when the united states was singled out for attack. the un security council is considering new u.s.-drafted sanctions on north korea to target 90% of oil tart -- products and crude imports. capping them to 4 billion barrels a year. the resolution would need support from china, which holds a veto on the security council, and is north korea's biggest trading partner. theratist parties have won election, catalonia with a resounding defeat to mariano rajoy. 7 they took0 seats. 's party exceeded expectations. nike has reported second-quarter results that beat estimates. earnings-per-share came in at $.46, against estimates of $.40. income rose in greater china, europe and the middle east, offsetting losses in asia-pacific. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. ♪ yvonne: jessica, thank you. let's look at the market open in tokyo and seoul. a pretty solid start so far. sophie: the nikkei 225 falling for a second day, lower than tech and materials. it is the first weekly rise in three for the kospi, on course for a weekly drop, given samsung's tumble thursday. samsung on the rise to have them kospi start the day higher. that chinar reaction will be starting a temporary ban on tourism from january 1 to south korea. keeping a spotlight on a chaebol corruption ruling. aussie shares led higher by resource stocks, a fourth day this week. , forussie dollar above .77 the first time since early november. the euro, reaction after the catalan vote. it is helping a four day vet, set for the first weekly rise. gaining 0.25%. a quick check on commodities. bullish sentiment lingering among the oil bulls, given at shrinking u.s. stockpiles. gold holding steady for a second weekly advance. the last word on the bond space. mixed picture earlier this week. jgb 10 year yield retreated. betty: thank you so much, sophie kamaruddin. seoul in the spotlight, rulings affecting two of korea's companies. it wrapped up today. another court will decide whether to increase the prison sentence handed down to samsung jay y. lee. charges of embezzlement and tax evasion. let's get straight to seoul. tell us more about what we are expecting out of these two chaebol trials. >> good morning, another big moment. [indiscernible] there are many family members and executives charged with breach of duty. ruleouth korean court will on these local assembly members for those charges. -- they allegent he colluded with family members to sell it defies -- a device less than its value. payments.ncluding another, thatfor less value than they are estimated. today would signal [indiscernible] 's groupsfect lotte business, as well. thene: as we look at possible ruling and jail time, in light of all this. ?hat does that say for lotte they had a tough year already. chairmane [indiscernible] while he expands overseas business, he set up other coup attempts from his brother. there was the retaliation of china. at thes a possibility top it could reignite a battle over management control and may bring a negative impact on deals out of south korea. if the chairman is convicted, there is a reconstruction plan. we are expecting a verdict around 2:00 p.m. local time where you are. what berdych should we be expecting, and what sentences might we see if they are convicted? little bit hard to predict. they said may be a 10 year sentence for the chairman and his father and founder. there are possible cases. sentences of more than three years can be suspended. is sentence more than three years, he could be taken into custody later today. the sentence could be suspended. i think he will be freed if he is found not guilty. korea: thank you, our chaebol reporter joining us live from seoul. china will take over the u.s. as a top importer in five years. we will look at why moody's is concerned about high levels of corporate debt. this is bloomberg. ♪ betty: it is done, the senate cleared the temporary funding bill. they will be sending it to president trump for his signature tomorrow. this will maintain current government spending levels through january 19. 66-32, withe senate some democrats voting. it won approval in the house. this keeps the current level of funding to january 19. just in time for the christmas holidays, for the president to sign this tomorrow, and everyone to head back home for the christmas holidays. yvonne: certainly can take a break and now. as we were talking to joe lotect -- joe sobczyk, a after the holidays. care,k at daca, health and spending caps. ted cruz speaking about this passing right now in d.c. we will continue to watch what goes on. it says asia-pacific banking systems offer a stable outlook for the coming year. however, it does warn high levels of corporate and household debt pose a severe risk. let's bring in moody's vp, eu gene. he joins us live from singapore this morning. a stableeeping outlook, but it seems quite cautious for 2018. what is driving this issue? we see the banking fundamentals are looking stronger than last year, an economic upturn is supporting the bank's business, hence the stable view overall. we are nevertheless concern that high levels of rapid debt and household debt in some markets in asia are introducing a risk to financials -- financial stability. we think it will not spill over to the bank's balance sheet. this risk remains on the horizon. but we don't think it will inflict damage and 2018. -- in 2018. yvonne: when is it supposed to materialize? when you expect to see the spillover to come into effect? eugene: we don't have an exact date. the last 10 years of corporate leverage, household leverage in asia. the growth has been quite dramatic in many markets. there are lowows, interest rates in the region. it is a global phenomenon as well. debt levels are growing in many places of the world. the good thing in asia is that the pace of increase of debt has slowed. that is still growing, but at a slower pace. this is comforting news. yvonne: it certainly is. let's take a look at the risk we could potentially be facing for asian banks and 2018. rising rates in the u.s. is one of them. given tighter conditions, we could see a reversal of the dollar, maybe reasserting its strength next year. which asian banks do you see could be facing the biggest impact? think the monetary policy typing in the u.s. -- tightening in the u.s. will be very gradual. it should not lead to damaging conditions for banks in the asia-pacific. hence we think dollar liquidity in this part of the world would remain at quite a good level. although there is obviously the potential some of that liquidity might be flowing back to the united states. hence, we don't have concerns about funding and liquidity conditions in the asia-pacific for 2018. if there were going to be liquidity deterioration, i might not say the word crisis by any means, do you think governments are there to stand by the financial system? eugene: absolutely. in the asia-pacific, governments are very supportive of the larger -- large institutions. in addition, a lot of the banks are owned by the government, china or malaysia or other markets. thee banks get in trouble, governments would step in and support them. reforms are on the way in terms of bank resolutions in the asia-pacific. those reforms are quite a distance from the reports we have seen in the united states or europe. there is quite a lot of government support. they: you also note disruption caused by financial -- fintech, financial technology companies. what risk they pose in 2018? eugene: the risk of financial technology disruptions for banks is starting -- more of this through the payments channel. those new entrants are eating into the bank's market shares in terms of payments. this couldautious lead to lower fees. prices are going down for processing and transaction fees. that is a risk. the second risk is more of a long-term nature. some things companies are trying to do, eating into the banks' more traditional businesses and balance sheet-heavy businesses. big concern among foreign investors is china's deleveraging, what it could do in this crackdown on shadow banking, which has become a major source of funding for many commercial banks in the mainland. what do you think will be the fallout in 2018, now that these off-balance-sheet loans are moving to the books? will there be tremendous pressure when it comes to funding costs? eugene: we do not see tremendous funding costs in china. we think it is a good thing the authorities have been up lamenting different measures to curb growth in shadow banking. that is a good thing. in terms of china's corporate section -- sector deleveraging, we see a slower rise in leverage. we think it will continue and ultimately it is a good thing, that it should diminish banks' risks, and make them more transparent going forward. yvonne: how will you measure this leveraging campaign a successful? what metrics will you look at for chinese banks? eugene: we have a stable outlook on chinese banks. we look at a number of things. in terms of bottom-up, things like new information, funding conditions, and the size of the old balance sheet asset, and the structure of balance sheet assets. we see improvement already. for example, the most risky guidance is starting to decrease. that is good. in terms of top-down approach, we look at consistency of economic growth, how tough are the regulators on further crackdowns on this sector? all of these factors give us comfort the reforms are on the right path. yvonne: we're going to leave it there, eugene tarzimanov, vice president and senior credit office from moody's. i want to recap breaking news. the senate clearing a temporary government funding measure. and follow-up from the house sending that build a president trump for his signature. checking the dollar, we did see a bump up. we're up 0.1%. treasuries have been mixed overnight. we did see curve flattening after the curb it in yields throughout the week. veryinly this is a stressed movement when it comes to tax reform, avoiding this government shutdown. plenty more to come on "daybreak asia." this is bloomberg. ♪ ♪ betty: a quick check of the business headlines. prada launching its first e-commerce platform in china, a rebounding luxury market boosted by online sales. physicalgrate it with stores, social media and payment services like alipay and wechat. says it is expected by the end of january. yvonne: goldman sachs the latest to embrace cryptocurrencies. they are setting up a trading desk to make markets for bitcoin and other digital currencies. it aims to be up and running by june. the bank is evaluating security issues. it makes goldman the first major wall street name. cannot live without it. so if you can't live without it... why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control. all with an xfi gateway. find your awesome, and change the way you wifi. yvonne: happy friday. looks happy in singapore. a: 30 in the lion city. i am yvonne man in hong kong. in newand i am betty liu york. it let's get the first word news. jessica: a corruption case that helped prime minister narendra modi has been thrown out. --udge in new delhi prosecutors said the cheating cost the state almost $5 billion. consolidated his powers since 2014 by capitalizing on corruption claims from the previous government. two of korea's biggest government -- companies face corruption rulings. jay y. lee will find out if he will spend more time in jail. prosecutors want 10 years, not five. seoul will wrap up the trial of group founder. they are seeking prison sentences for up to 10 years. ubs has been ordered to pay $900,000 to a former mortgage bond strategist who said he was sacked for refusing to sugarcoat his reports. he was fired for blowing whistles by those trying to influence independent research. he was awarded less than1/3 of the damages. uber faces yet another bump in the road with an investigation and singapore. the commissioner is asking for the public's response to an alliance between the ride hailer and another company. they are asking about their purchase of 51% of uber's car leasing business. it is a 10% discount to current book value. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. ♪ yvonne: time to see how the asian markets are shaping up. a bit of upside on the regional benchmark when it comes to equities. sophie: that is the case for equities. quite a bit of action and the currencies market. the dollar getting a boost, 7 levelbriefly to the 11 after the stopgap funding bill. we are seeing some upside for the dollar. the euro is under pressure. you can see it sliding against the dollar and the yen on this chart. after that catalan vote. on a weekly basis, the euro is still up against the dollar. elsewhere weeks -- we see the korean won hovering around the -- it is headed for a loss. the topics -- topix gaining ground. the nikkei 225 down about 0.1%. checking on the pharma stocks. this one plunging after not securing fda approval. this one's alzheimer's trial data disappointed. at these bigg movers, including those to the downside in japan. nike reported second-quarter earnings that beat expectations. it needed good performance overseas to make up for disappointment at home. earnings per share came in at $.46, beating the $.40 estimate. ramy inocencio looking in the after-hours stock reaction to nike. not much going on -- it is down quite a bit. ramy: in the past hour they have fallen to their after-hours low. a couple hours ago when we were talking about this, it was flat. investors were able to digest the numbers, and are thinking it is not as good as it would be. you mentioned earnings beat, sales beat. when you break and the numbers -- north korea -- north america, its biggest market, 44%, it missed by about $50 million. about $20d by million. let's head to this chart. i will tell you what has been happening. line,ook at the orange the revenue by region for china. you can see over the past quarter of bumps up from $1.1 billion to $1.2 billion. on the flipside, the white line is sales growth. if you imagine prior to its earnings call, we can see growth to mid digits. there was a surprise and we ended up with 16% growth in china. let's flip up the board and i can show you what this means in terms of the overall market share china puts toward revenue. you can see the growth continues to move. in 2010 this was 9.2%. in 2017 it grows to 12.4%. let's hop to my next bloomberg terminal chart. this is the financial analysis function, looking at what is happening in terms of products nike has. a lot of bars here. footwear is in orange, it accounts for 40% or so of revenues. apparel in yellow, and equipment in blue. what i want you to see is the plateauing effect. the big question is, where this will go. in the past hour you were talking about how there is a lot of inventory happening in the united states. if we can turn that over, it is a good thing. we see that fall off in terms of u.s. sales. this is g #btv 235. i want to put it in the context of nike's competitors. up 27 --line is nike, up 27% year to date. compared to competitors, it is a laggard. 40%.rple is puma, up and a chinese company, 42. and adidas up by 30% or so. it is relative to what has been happening across the closing -- clothing apparel line, sportswear. china the biggest growth factor. they still have room to grow. yvonne: absolutely. given the fact you see sneakers very much a fashion statement like boots and pumps in hong kong. remy inocencio, thank you. it has been a roller coaster ride when it comes to bitcoin. the first four days of this week it fell 20% from monday, entering what could be defined as a bear market. market,considered a when a big doubled 1500% for the year? ceo spokeerica's about the cryptocurrency's merit. >> we talk about digital movement of money. one half of the money for bank of america move digitally. it is nothing new. anonymous currency, that is a different question. it is a policy question. that is what you see people struggle with. i don't think we want to. the reason why the $100 bill was the largest in nomination was to make money more difficult to move, other than through a verifiable system. that is a lesson a lot of economies learned over time as they brought denominations down to improve the transparency of the economy, to track it, have it come through. it helps you find all kinds of interesting things. that is important for law enforcement and other types of things. the speculation on what other people reflect on, you see great debates. the idea of digitizing money is not new. we already have a digital wire system. what is exciting is when you can walk around bryant park and go to the little shops for christmas, and be able to tap your phone as opposed to carrying dollars. those are exciting things. electronic.ast mile ,he numbers we have next are five of them will be digital coin currencies. if i can take that down in a take thatfiable, down, it is good for us. we could payte, them to reprint the money rather than cycle indent out -- in and out. some contractors moving it around for us might not be happy with that. it is a tremendous challenge. but it is one met by the current means. we are going to real-time payments. we are building up more and more tools to drive it. yvonne: that was ever exclusive interview with the bank of america ceo. what we heard from that conversation, speculation, which is what we heard. central bank governors, .ncluding governor kuroda who was asked about bitcoin and cryptocurrencies. here is what he had to say. the moment, bitcoin is not posing any obstacle to the boj monetary policy or causing problems. however, it if it is a question of whether it is functioning as payment, it is a form of speculative investment. yvonne: something central banks are watching and in the future regulating. we continue to see divergent views. when you are on extremes, people saying jamie dimon is a fraud, you have companies riding on this crypto craze. kuroda may not be watching bitcoin, but everyone else is. it sums up the ridiculousness around bitcoin. the company, long island iced tea, which makes beverages, announced it was going to start investing in technologies related to blockchain. and look at this, the stock soaring almost 200%. just by mentioning blockchain. when i saw that story, i thought it was an early april fools' day joke. the executives of this company are laughing all the way to the bank. they saw what happened with some of these companies like crypto corp and said, let's cash in and get an early christmas gift for ourselves. yvonne: it is quite amazing. they did change their name, which is interesting considering they sell nonalcoholic beverages. long blockchain -- a lot of these companies riding on this bandwagon. we saw juice makers, sports bra making, riding on this mania. is it reminiscent of the dotcom era? betty: i think there next product should be bubble tea. hear why they think china may overtake the u.s. on imports in just five years. this is bloomberg. ♪ ♪ yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new york. china is the world's second largest economy and leading exporter. also the number two importer. although that could change soon. our next guest says china could overtake the u.s. on imports in just five years. joining us, the china international corp. chief economist. when you say in the next five years, what needs to happen for china to become the biggest importer in the world? >> i think the most important thing is, we are seeing restructuring, rebalancing of the economy. has beendepend writing. household income as a percent of gdp has been accelerating. that is since the financial crisis. those two are the fundamentals behind the very strong growth of china's imports. particularly this year. china's import growth has resumed double digits. -- that ismuch obviously going to change the balance of power, when we talk about trade relationships. -- iuch more leverage imagine a lot more average, does that give china going forward in trade negotiations? i think that probably is going to be a positive focus for opening up trade, to have a more positive tone in global trade negotiation. hopefully it will help deter some of the trade protectionism. china has increasingly become a market for everyone, rather than an export force. yvonne: what is the biggest risk to this forecast? of people have been paying attention to the slowdown in the chinese economy. i think that has been the dominant thought for everyone. if we look at the economy's performance in the last quarter to six quarters, that should be deciding. the other side of the risk, trade protectionism that seems to be getting momentum worldwide. it is not going to become a bigger problem for everyone. china's imports become a positive force to rebalancing tide.ide of the yvonne: how sustainable is this growth? hearing more economists expecting imports to flow dramatically after the bumper year we have seen. when you factor in the delayed policy tightening and slowing property market, can the strength of the chinese consumer offset that? i think that is what our report was mostly interested in. the growthing stabilize. if we look at china's imports, the share of consumer goods in imports has been steadily rising from 15% 10 years ago. now it is 25%. the margin is driving china's imports, consumer groups. that is less dependent on infrastructure or industrial demand. yvonne: who would benefit the most from this in the next five years? used to be the big winner, given china's construction boom. is there growth impulse for developed nations, now that china is shifting toward a consumer-driven economy? liang: yes. if we compare china's import structure to japan, korea, at this stage of development, we are seeing the most potential growth areas are commodities like food-related stuff. the other is better, higher quality consumer demand. we are thinking this will benefit emerging countries. but also, developed countries who can offer the consumer upgrade products and services. yvonne: looking at the consumer slash, they had a plan to import tariffs on a wide range of goods. how can this move the needle -- or perhaps, balancing trade surpluses in china, could be a welcome sign for the u.s., after much criticism this year? liang: i do think every needle needs to be moved. there are certain consumer products. imports are still pretty high, like cosmetics, jewelry, and automobiles. those areas, china can make further progress. what really moves the bigger needle is, the changes in income of wagesion and growth and salaries in china. that will be a much more sustainable forced to rebalance the economy going forward. if we look at income growth in china -- ahead.go wage salary growth in china in the past couple years has been averaging 10%. that seems to be sustainable going forward. that is the most powerful force supporting china's increasing consumer demand. particularly import demand for consumer groups. i was going to ask you very quickly -- we have been talking about the growth site for china. how much of this is a recession of the u.s.? liang: i think it is less. if you look at the past four to six quarters, the u.s. economy has been performing well. we are in the middle of a synchronized global growth. what is much more interesting is the rebalancing of china's own demand for its import structure and import demand. much, thenk you so chief economist from cicc, on china and its rising business position as an importer. find in-depth analysis on the day's big news breakers on bloomberg radio. you can download the app, bloomberg radio plus, or access it the bloombergradio.com. this is bloomberg. ♪ yvonne: this is "daybreak asia." i am yvonne man in hong kong. betty: i am betty liu in new york. a new stress test shows india's bad loan problem make it worse. their financial stability report says nonfinancial loans may rise. it says india's basic financial system is stable, although state run banks lag their private sector peers. there is concern about asset quality. yvonne: morgan stanley has joined its peers, how they will perform with the european union. the bank said it will become a systematic internalize are from january 3. which means it cannot avoid complying with the rules on reporting. in means submitting reports within 15 minutes of a deal insecurities. betty: boeing is in talks with embraer about private jets. agonnell douglas 20 years whichaer offers planes, would allow bowing to counter a new threat from airbus. facebook has signed a multiyear licensing deal to carry songs and artists from universal music across its platform. the accord and the long-running about copyrighted material. it applies to facebook, and oculus. that is almost it from us on "daybreak asia." time for a quick look at what is happening on bloomberg markets. what are we watching? take a look at this position for 2018, their views on central banks in light of the boj decision thursday. china discussions on growth versus debt. is it a trade up? commodities also in focus. a senior research analyst will be a long to give his views, which equities he is most of bullish on and bearish on for this year. and bitcoin, does it qualify as a commodity? yvonne: quasi-currency? where it goes reflects where china is going. we will see what his views are on china and what it means and how that plays out. all incredibly vital for the australian economy. oil surprises skeptics. prices reached a balance between what producers need to be reinvest, while not attracting too much new production into the freight. -- fray. and looking at what has been going on with the pound and the euro, contingent on where the dollar goes. the dollar could be to the downside. quite a bit of bearish sentiment for the dollar. our guest will discuss that and more. betty: thank you so much. that is it from "daybreak asia." market coverage continues. have a great holiday. this is bloomberg. ♪ "road"words 'can" and come to mind. after winning the election in catalonia, the national prime minister's own party has been struggling for support and blood , sweat, and tears. the road ahead looks anything but smooth. i'm rishaad home in hong kong. i'm haidi lou in sydney. in 17 years,sion laura paige says he's a visionary.