paul: i am paul allen in sydney. let's get to the first word news. >> first up, washington has to dodge aed government shutdown though only for a couple weeks. house and follow the voting in favor of a bill to fund federal agencies through december 22. had to quellryan conservatives who wanted a longer stopgap to avoid giving concessions to democrats. the bill goes to the white house for the president's signature. seb leader martin schulz urged -- spd leader martin schulz urged party member's to party lines. spd official city do not expect a form a coalition until march. bill gross has been warming about the damage that low interest rates caused to banks. writing an investment note he says there is little room for error and should a crisis arise the ability to offer protection would be impaired. the fed is expected to raise rates next week with more hikes in 2018. margarita and pizza maker on the world heritage list. the agency says the art of pizza throwing is part of the intangible cultural heritage of humanity. it

i'm paul allen. this is bloomberg. rishaad: in china, the value taking effect. the world's second-biggest economy. manager it affect asset looking at this earlier? it is awfully complicated and did opaque. >> we have spoken to some tax experts on this. and also spoken to the hedge fund manager. grips.getting to it may have exemptions.

i am paul allen. this is bloomberg. >> let's get a check of the markets. after eight straight days of declines. a little bit of green, not a lot. china is moving into the lunch break, 1% lower. performaers.rst

i am paul allen. this is bloomberg. ♪ short-sellers are now worst bonde see the row in china in several years. theral have pointed out decline across bonds. to $2.7 billion of notes issued this year. we are joined by our guest in beijing. what thisderstand latest chapter is right now. seems to be another byproduct of the deleveraging campaign that has been going on whole ofhina, for the 2017, picking up at the end of the year. the bond market has been under pressure all year. banks seem to be capitalizing on that. we have seen a real uptick in bond borrowing in china. aroundt record levels, the equivalent of $270 billion' worth. banks are shorting the bond market. they are doing this by borrowing government bonds, and then selling them into the stock market. which events at -- which adds into the downward pressure in the market. once it gets to a suitably low level, they are buying it back. and they are benefiting from that trade. another example of how banks are looking at this deleveraging situati

this is bloomberg. ♪ ♪ paul: i'm paul allen in sydney. ramy: i am remy in new york, you are watching "daybreak australia." it has been a weekend of fiery developments in washington. rum michael flynn's guilty plea to the senate passing its version of the gop tax plan. to help sift through this is cal in washington, managing director at research group. jerod sieber, kathleen hays with us in new york. thank you for joining us jerod. looking at the tax plan, your initial reaction is partyline vote at the 1-49, $1.5 trillion added to the deficit. >> i think what you are seeing is a lyrical fear at work. republicans are eyeing the fact that democrats might actually win in alabama, which is almost unheard of. they are looking at polling numbers across the country. they are just afraid. they believe they need to do a tax bill. measures that normally could never unite the fiscal conservatives with the tax suddenly all of those differences have disappeared and they are plowing forward with a bill. they are not worried about the details. >> even if

paul: and i am paul allen in sydney. the only big story for us is on the other side of the world, with the fed meeting. the 25 basis point hike, of course. but the conundrum of strong growth, but persistently weak inflation. it is the last time we will hear the soothing tones of janet yellen in a press conference. she has one more meeting, but that was the last press conference. a good legacy she leaves behind. no other fed chair has seen markets climb that far, that fast. betty: it seems a smooth transition to jay powell in february. what was interesting in the statement, what was missing, words on the labor market strengthening here in the u.s. recognition we are not seeing much power in wages here in the jobs market. that is that conundrum you mentioned for the fed. let's get the first word news with courtney collins. as it you were discussing, the fed has raised rates and lifted its growth forecast for next year. key rate bysed its 25 basis points and maintains the projection of three hikes in 2018. yellen said it un

i'm paul allen. this is bloomberg. >> just back from lunch, having there.at what's going on stocks are advancing. a little mixed. really, it's quite something, isn't it? last trading day of the year. we were this time last year to where we are now. >> yes. as you pointed out, there's something to consider, when you consider the gains for 2017 across the region. highs for various benchmarks. we have stocks in jakarta record-settingr gains. and we could see the hang seng also maintaining its weekly gains, the best in some months. so we have, of course, this. many traders perhaps are out for the holidays here. a weaker dollar of asianthe tide currencies. hong kong dollar, softer this friday. we are seeing the overnight rates rising again, climbing by the most since october. and check out what's going on with the rupee. we do have trading starting for currency. just above that 64. the rupee headed for the first in seven years. helpednt oil, that has lift the rupee's fortunes. in indian a surge bond yield

i'm paul allen. this is bloomberg. rishaad: in china, the value taking effect. the world's second-biggest economy. manager it affect asset looking at this earlier? it is awfully complicated and did opaque. >> we have spoken to some tax experts on this. and also spoken to the hedge fund manager. grips.getting to it may have exemptions. everyone is still assessing exactly what it means. a lot of fuzziness in the rules out there. it is hard to notice where things are at. what has been the response from the hedge fund community? tohe was telling them how split the extra cost. speculating that china has thousands of hedge funds. a securities are you later came out with pretty strong language and in the end, it was the regulators people are doing it. we have regulatory scrutiny and now we have this extra tax burden as well. >> let's get to bitcoin now. of a wildn the back 2017, a particularly while december as well. dramatic declines and a barrage of warnings from doubters. a barrage of people saying it could go even higher. me, how does bitcoin interpret it? we simpl

i'm paul allen. this is bloomberg. rishaad: the longest winning streak in more than a year, prices down now and seeing the highs and almost full-year -- four years overnight. surging after china stepped up its war on pollution. tell us more about that and how it all plays out. >> it is all about fighting pollution. signaled thet has willingness to fight pollution at the expense of slower economic growth. the chinese government has taken a lot of effort to cut core consumption and boost natural gas supply, reducing production. yesterday, a newspaper report factories int 270 the neighboring province that has been ordered to cut production. the chinese government looks like it is getting really serious about fighting pollution. >> the moment, taking the news in. >> over the past few months, supply concerns has become a factor behind a copper price rally. copper prices have gone up 31% over the last year. china's largest copper producer, it will have to stop production for a week or two. >> i suppose we have to get the vie

over to sydney with paul allen. the latest jobs reports from where you are. paul: australia is on track for the biggest full-time employment gain since records began in 1978. record low interest rates spur hiring and the market created 61,000 new positions last month, smashing forecast of 19,000. full-time jobs rose by 41,900, taking the 11-month total to 340,000. dissipation rate ran to 65%. new zealand says budget surpluses in the coming years will be smaller than previously seen and economic growth will be slower as the new government tries to reduce inequality and raise productivity. treasury updates its surpluses in 2018 through 2020 will be less than forecast in august, while the economy will expand 3.3%, below the 3.5% previously forecast. theresa may suffered a serious blow to her brexit plans as pro-eu conservatives defied the with in parliament. to change the government's bill in -- enshrined eu law, so parliament is guaranteed a vote on the final brexit deal. this gives mps the potential ability to veto if they don't like the terms of the deal in 2

kong.is 11:29 in hong i am paul allen. forpboc has disputed a call banks to increase capital to a downturn.nst testorst taste stress suggest a capital shortfall of 2.5% of china's gdp. aesent putin aiming for fourth term. he confirmed he will run again in march with a recent poll given him 67%. he has been in power since 1999, during which tensions with the west has soared. victory would make him the longest-serving leader in russia since stalin. jailed fore has been his part in the vw emissions scandal. he admitted conspiracy to fraud and violating the clean air act. prosecutors want to the maximum seven-year sent to read -- sentence. news, -- prosecutors wanted the maximum seven-year sentence. i am paul allen. this is bloomberg. >> let's get a check of the markets. after eight straight days of declines. a little bit of green, not a lot. china is moving into the lunch break, 1% lower. performaers.rst the aussie dollar, a very tiny trade surplus in australia. we have headlines out of sharp. trading stock, let's look how th

and here is paul allen. paul: thanks, david. the russia inquiry has moved another step closer to the white house with official prosecutor robert mueller demanding details of president trump links to deutsche bank. it has rebuffed calls to provide more transparency over the $300 million. they want to know if there is any link to moscow. president trump has told middle east leaders he intends to move the u.s. industry from tel aviv to jerusalem, a de facto recognition. he called palestinian presidents wouldng abdullah that it upend the peace process. sources tell us the president is planning a six-month waiver on the move. the plan of the two-day meeting hours ofuptly within starting. the abandonment of the talks in kuwait raises questions about the group prosecutor and follows news the uae is following a new -- forming a new partnership separate from the gcc. the group was set up to counterbalance the sheer influence from huron. macau has emphatically denied being a tax haven and says it is working with international authorities

i am paul allen, this is bloomberg. david: let's get a sense of where we are as the approach of the lunch break in china. it has not been a great two weeks for markets in hong kong. sophie: the worst back to back weekly drop for hong kong given the slide in carmakers and property stocks this week. chinese financials listed. we are seeing some chair for the hang seng rising a second day, climbing with the rest of the region. the stoxx having a fairly happy friday. on the weekly basis, less sure that when you take a look at that picture. elsewhere in the bonds, the space is mixed. the dollar headed for the best weeks since september. snapping a six-day decline. the two day yield sinking over 20 basis points this friday. let's take a closer look at what is happening when it comes to the session in shanghai. we are seeing tech stocks lead gains along with consumer shares. gold miners are sliding as bullion prices have been beaten down. gold is headed for the worst week in several months. the shanghai benchmark, you have ene

let's get the first word news with paul allen. china's most powerful figures meet in the new year to discuss the first amendment to the constitution since 2004. details -- no details on changes but saying the decision was made on wednesday. the constitution was first adopted in 1982 and has been revised four times since the commonest party central committee reviewed -- will review amendments later in january. hedge funds may be the big losers on some investment returns in china. it takes effect on january 1 and is part of a broader shift in the companies pay tax. the world's second -- in the world's second-biggest economy. chinese hedge funds are already under official scrutiny. neutral funds are partly exempt from the new charge. the world most valuable spirits maker has a bullish view of this year and next. the price ofse corn liquor by 18% next year, the biggest hike in five years. they want to grow revenue by 10% in 2018 and expect total profit to have risen by almost 60%. a new gallup poll finds president trump beaten by his

paul: i am paul allen in sydney. sunac china raising $1 billion in a top-up placement. we had been expecting an announcement along these lines. company, 226ed million shares to raise extra cash. this continues the theme we have been seeing of the deleveraging occurring in china, particularly for these types of companies. betty: we will keep watching those headlines. in the meantime, watching for headlines on the bank of japan's their fourth quarter survey. likely to have stronger profits, and a weaker yen. the data may also highlight a labor shortage. i want to bring in our guest. i know you are traditionally bullish on japan. what do you think we will see in these numbers -- will it only add to the improving sentiment of the economy in japan? >> i think the answer is yes. see the data shows, the key points will be the nonmanufacturing sector. that is the domestic economy. they have been in the doldrums the past few years. it proves japan is going to be on track. if we see perhaps upside surprises, that can be quite supportive for the yen? jesper: it is interesting. the

sydney andver to joined paul allen. paul: the u.s. supreme court has ruled the trump travel ban can take full effect while legal challenges take place. the key victory for the president and suggests the divided court may up old the restrictions -- uphold the restrictions. the much-anticipated brexit failed to materialize in brussels. theresa may had been given a monday deadline uninterrupted lunch to call the leader of the irish party. they announced no deal. germany is closer to a new coalition with social democrats approving talks. those talks will be constructive and open and are expected in the coming days. the move still needs the endorsement of the party rank-and-file. they have been wary of renewing the coalition after the disastrous elections. plans to launch free trade talks between canada and china have failed. prime minister justin trudeau indicated one sticking point is canada's preference. the two sides are in a golden age in their relationship. bitcoin may be about to face the big short. hedge funds have largely stayed a

let's go to paul allen in sydney. cvs health buying at the, creating a health care and retail giant. cvs will pay $207 a share, two thirds in cash, the rest in stock, a 29% premium to the share price on october 25. china's once acquisitive hna group is stoking concern about its debt burden. sold 270 day bonds to yield 2.8%, the highest coupon rate ever. subsidiary another issued similar notes at the highest coupon rate in five years. honda and ford does proved black friday and cyber monday don't drive traffic. they both reported sales ahead of expectations as discounts and cut-rate financing brought drivers into the showroom. total deliveries fell, but both said retail demand was strong. industry is facing its first year of shrinking so since the financial crisis. north korea says monday's drills are aean and u.s. forces grave provocation that pushes the peninsula closer to nuclear war. the north would consider hardline countermeasures in response and washington would have to accept responsibility for any outbreak of

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here they are they're not able to throttle back the pirate bay's or the cody's or these types of things that are they're basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them out let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking you know this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here that you know they're not able to throttle back the pirate bays or the cody's or these types of things that are they're basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them now let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on the i

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here they are they're not able to throttle back the pirate days or the cody's or these types of things that are they're basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them out let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on the intern

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here that you know they're not able to throttle back the pirate days or the cody's or these types of things that are that are basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them out let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on the

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here they are they're not able to throttle back the pirate bays or the cody's or these types of things that are they're basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them out let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking you know this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on t

allen have done quite well gobbling up some cable companies recently so you have a very serious amount of investment that there's not only coming from the u.s. government but also coming from private investors and this net neutrality thing is absolutely more about the legality of things let's be clear here that you know they're not able to throttle back the pirate bays or the cody's or these types of things that are they're basically bashing into their their income so they're going after the of law in a way to actually throttle these things back and block them out let's be clear as well i cannot find our t.v. on a on a cable network across the united states our t. is not syndicated on the cable networks in the united states let's be clear here as well i can easily get our t.v. i know the guys i ski with these people out in denver helping out the u.s. disabled ski team so these are individuals that are absolutely blocking this type of access for r.t. and this will be another thing this is a freedom of speech issue for me because in the future if they don't want us to get our t. on the i

allen had a very simple vision, and that was to put a p.c. on every desk and in every home. three decades later, we see a smartphone in every hand and in every pocket. four decades later, even more profound changes, and our company has changed. we're no longer the software start up from albuquerque that moved to seattle. we're now a big, multinational, cloud computing company. we have thousands of employees, not just in seattle or silicon valley, but we have a campus in fargo, an engineering center outside salt lake city, employees in arizona, nevada, colorado, throughout the west, but we're also part of what a lot of people are referring to as the fourth industrial revolution. it's a revolution that's driven principally by cloud computing. cloud computing, meaning the provision of services over the internet using massive data centers that can collect, store, and process huge volumes of information extremely quickly. this trend is changing everything, every industry, every segment of society. it's bringing us autonomous vehicles, changing edu

at 19, he dropped out of harvard to design computer software with his friend paul allen. they came up with a system that operates 90% of the personal computers today. >> microsoft was making a lot of money then. they were charging $200, $300, $400 for, say, a word processing package that really was costing them about 50 cents to print on floppies. >> hard working, modest, easy going, it would seem to a fault. of course, he does have at least one secret. but we'll fix that. is it true that you can leap over a chair from a standing position? >> it depends on the size of the chair but this chair, probably so. >> yes! >> i took a step before i did it. >> that's okay. >> bill gates wasn't just one thing. he was a brilliant guy. had great parents. family values. but he was a killer. he basically was a ruthless guy, and so was microsoft. >> no, no, no, no, no. somebody's confused. somebody's just not thinking. > there's no way. >> we'll figure it out. >> you guys never understood. you never understood the first thing about this. >> a lot of people make the analogy that competing

. ♪ i am paul allen with the first word headlines. the u.s. senate has suspended votes on the republican tax bill until 11:00 am friday washington are when rule makers expected to trigger a proposal designed to win support of three gop holdouts. , john mccain indicated his support. he helped to scuttle the obamacare repeal earlier this year. chancellor angela merkel has held her first meeting with the social democrats to forge a new government partnership. the talks after the election left angela merkel short of a majority. wary ofe initially reviving the grand coalition after both parties emerged from the vote in a weakened state. the uk's efforts to compromise on the irish border are under threat from the party that supports theresa may's government. the democratic unionist party is opposed to any compromise with dublin and will abandon theresa may if necessary. an irish government spokesman says the u.k. has not produced enough to aggress on the the issue. goldman sachs says the wild cried enjoyed by bitcoin this year in's it is too soon to

here's ron allen. >> reporter: paul is a conservative republican on a mission. he's showing us around his neighborhood in mckinney texas, a dallas suburb. lots of new homes, safe schools, safe streets. >> it's how communities used to be. >> reporter: he runs conservative move, a real estate company with a political twist. helping f right, not left. >> we're california refugees. leaving areas that were devastated. >> reporter: by hyperliberalism. a sentiment that shows up frequently to the online voices on his website. i'm a veteran and live in liberal hell. please help. >> it was the furthest thing from my mind five years ago. >> reporter: ken and his family who moved here from the golden state in may. >> most of my daughter's life, there's not been a republican who's been elected to statewide office. it's about living in a state that's healthy and moving forward. >> stop of what you're saying is us, then, liberal, conservative. it's so divisive. >> it is, we didn't ask for this fight. we wanted to be left alone in our great state of california. >> reporter: the

allen l gates and paul had a very simple vision. and that was to put a p.c. on and in every home. a ee decades later, we see small phone in every hand and in every pocket. later, even more profound changes. changed.ompany has we're no longer the software albuquerque that moved to seattle. we're now a big, multinational, cloud-computing company. we have thousands of employees, not just in seattle or silicon valley, but we have a campus in center n engineering outside salt lake city. arizona, nevada, colorado, throughout the west, but we're also part of what a lot of people are referring to as the first industrial revolution. driven evolution that's principally by cloud computing. cloud computing, meaning the services over the nternet using massive data centers that can collect, store and process huge volumes of extremely quickly. trend is changing everything, every industry, society.gment of it's bringing us autonomous vehicles, changing education, reating new opportunities to connect students and workers to courses.ning it's transforming medicine. decade to took us a sequence the

very close to allen rock. the latest shape map says this was felt as much far north as martinez, millvalely and san francisco. magnitude 3.9 earthquake on the calav era s fault just east of san jose. 49degrees in san francisco. it's 47 in san jose. a lot of folks up. normally that's where they are at this time. you will drop below freezing and watch out for fog. any where near san francisco bay. oakland with a low of 44. napa tonight 34 degrees. no widespread rainfall. likely not going to see any more rain for the calendar year. ridges of high pressure. i'm using plural because there are two right now. one way out the pacific. one exerting their un influence. futurecast picking up on that fog and low cloud cover. lots of blue skies in the afternoon. should be another pleasant day to be outside thursday. another option for morning fog with afternoon sunshine once again. high temperatures going to 10 degrees above average. new years eve, new years day and into january 3rd or january 4th. now look, monday new yea

david allen anderson and ross pardo broke out of their cell in florida by chipping through the wall and squeezing under a gate. it is believed they stole a truck during a getaway, officials find it abandoned in a north carolina town. pardo is facing murder and drug charges. breaking overnight united states citizens killed in a tragic bus crash in mexico taking tourists on an excursion to the mayan ruins flipping over, 5 of the 12 people that were killed are americans. among the dead the driver and a child also kills, 18 others also hurt. jillian: columbia south carolina the first us city to ban bump stocks, the city council voted to approve the measure that bans the attachments of the devices but does allow position of them. massachusetts became the first state to pass a law banning bump stocks, the devices have become under much scrutiny after authorities found the las vegas shooter used bump stocks while firing at the hotel room killing 58 people. >> express amtrak train service at a deadly cost in washington state. two of the three victims killed, they were passionate railroad advoca