a global problem. big tex testifies about russia's manipulation of social media. killed by aple are truck in new york. president trump condemned the attack and it has been called terrorism. digital currency is taking a big step forward. chicago bows to progress and

will launch bitcoin futures by the end of the year. ithello from sydney, where is just past 9:00 a.m. this is daybreak australia. openingn hour away from markets in asia. betty: we are going to look at how all of the action from wall street will play into the trading day as we close out the month. for markets in the u.s., but also bang on for numbers coming out of new zealand. coming out, the jobs report, the rate falling to an eight year low. unemployment dropping to an eight year low. at 4.6 percent. the estimate was for four point 7%. this all as wages gained about 0.7% quarter on quarter.

nongovernment ordinary wages rising. that's helping along the kiwi. haidi: absolutely. we saw a second month of gains for the u.s. dollar, and a bit of a resurgence in the numbers betty just went over. there is concern for the growth outlook when it comes to new zealand. we are going to get more on the beingof foreign investors banned from buying homes later in the show. reforms.ential maybe a change in the mandate. what that is going to mean for interest rates and the pace of growth. we are seeing a little bit of downside when it comes to the kiwi session and equities. at kiwi dollar holding 68.92. doing pretty well

against all of the g10 -- japanesewhich futures pointing to a pretty positive start to the trading month. the aussie dollar at 7659. that's how the aussie-kiwi pairs. a torrent of potential evidence investigators are looking at. said leadership, a lot of data, earnings, let's not forget about those. a lot of headline making events. betty: that's right. we are about 60% of the way through the earnings season. we will dig into how that is shaping up. as you mentioned, we closed out the month, and it is a month where the dow added 1000 points and the s&p hit records. more of the same today. the s&p and the nasdaq all in the green, closing out the

up.ion about .4% the s&p also up. a lot of focus will be in the next 48 hours with president finally announcing his pick for fed chair. betty: so much anticipate -- haidi: so much anticipation, we are about to get that, just before he heads off to asia. a big 10-11 days ahead. lots to talk about when it comes to big tech names. big tech is on capitol hill talking about the extent of russian manipulation into the election last year. lawyers for facebook, google, and twitter testified about how russia manipulated social media to allegedly influence last years elections. they admitted they were caught werefooted, but said they

working on a response. >> foreign actors created accounts that reached millions of americans over two years, and ads were used to create pages which led to posting more content. >> it was related to the election and violated the policies that existed at the time or have since been implemented. >> we are committed to improving security measures to help prevent that kind of abuse. haidi: with us now to break it all down is emily chang. let's start with the extent of interference. it sounds like it was pretty widespread. emily: it is widespread, and what they all of knowledge today is that they -- acknowledged today is that they still don't know how widespread it is. companies are acknowledging that they is a problem and that

have a responsibility to fix it, but they don't have the technology yet to do so. there were a number of heated exchanges, a number of questions without good answers, particularly between senator kennedy and the general counsel for facebook. they did not just talk about russia. they brought up china, iran, north korea. take a listen. >> how about north korea? >> i am not aware of other foreign actors -- >> how can you be aware? this is what i'm -- you've got 5 you areadvertisers, and going to tell me that you are able to trace the origin of all of those advertisements? that exchange evidence of the extent of information these companies do not know yet.

they do not know the extent even of russian meddling on their platforms. saw wasresting thing we google start to differentiate itself from facebook and twitter. googles lawyer said we are not a social media platform. we have protections in place that prevent articles from going viral. in fact, we saw these articles go viral as a result of social media in particular. google was hammered for youtube and russian actors buying ads on youtube, but an interesting attempt by google to distance itself from facebook and twitter today. this was the first of several testimonies in front of three different committees of congress over the next two days. what are we likely to find out tomorrow that is different from today? emily: we are going to see more questions tomorrow.

they will be appearing before the house intelligence committee. we can expect that representatives will be coming at this from all different angles. we certainly saw unexpected angles today. we will probably hear more about what these companies intend to do. facebook says they are testing various ad transparency programs. they have literally doubled their security staff, responsible for flagging offensive and extreme content. twitter has banned russia today from advertising on their platform. we are seeing efforts large and small from these companies to take greater responsibility, but there are more questions than answers, and they don't have the technology yet to monitor everything they need to monitor. going to are certainly continue to watch for headlines from these testimonies. emily chang san francisco for

us. let's get first word news with jessica sumner. jessica: at least eight people have been killed in what new york governor andrew cuomo said was an act of terror on innocent civilians. a man in a rented pickup drove onto a bicycle pack. -- path. he was shot by police when he got out of the truck and pulled what turned out to be a fake gun. his condition is unknown. the leader of catalunya has flown to brussels. movingsed madrid of against the separatist movement actions would only slow the nonstop creation of the catalan republic. if there are guarantees of fair treatment and if you can understand the reaction of the guarantee to can

all of us a fair prosecution, which you see in most european countries, we would go back immediately. jessica: the attempt to merge sprint with t-mobile is on life support. to include how many sprint shares it will except for each t-mobile share. the world's largest exchange owner has finally bowed to the future. cme is reversing course and plans to introduce it going futures by the end of the year. record on rose to a the news. it said earlier this year would launch a futures contract by early 2018 and is awaiting regulatory approval. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

i am jessica summers. this is bloomberg. haidi: thanks for that. still ahead, the world's largest appliance maker looks to grow its robotics arm. we will hear from the chairman and ceo later this hour. halfwayp next, we are through the u.s. earnings season. a look at the scorecard just ahead. ♪

betty: you are watching "daybreak australia." closedee how the markets out october. not so scary. not scary at all. we did close in a sea of green. numbers,ng at these they were not anything large to speak of. with that said, we will take it

for the end of the month. the s&p 500 up two points. we can see that the biggest percentage gain was with the russell 2000 index. up about .8 percent. he remember that yesterday, on talk from the u.s. house of representatives that they were thinking of doing a phase-in of the tax cuts we saw this fall, however, we saw a rebound off this. let's go to the boards and see how we ended for the month. s&p 500 gaining 2%. look at the dow jones industrial average, gaining the most on a percentage basis, up by more than 4%. the russell 2000, only because of today, and it in the green. in the green. let's look at some of the movers on the month. hoursed about this 24 ago, but we saw the after hours trading jump after better than

expected earnings off revenues of chocolate. facebook up. that is a record high. apple also at a record high. facebook, we are looking at earnings tomorrow. apple, two days from now. apple and qualcomm very much inner changed hop into the bloomberg terminal. and -- the share prices apple and qualcomm very much interchanged. hop into the bloomberg terminal. apple is up 50% while qualcomm is down about 25%. let's take a quick look at what happening in commodities. oil specifically here. the function for the wti crude price, five .2%,

up in october. that's the best it has been in the past five or six years, especially because of what is happening out of opec. a lot of optimism for supplies that could move farther ahead for the end of 2018. betty: thank you. looking at earnings from tech let's take a deeper dive into earnings season with our equities strategist. we will get to apple and facebook in a moment, but we are about 60% of the way through the earnings season. so far? >> so far, pretty good. i would say this earnings season is unique and different in that it feels like an earnings season of distinction. we are seeing groups and companies really outperform. seeing pocketse throughout to the index.

for example, last week, we saw some health care companies disappoint on guidance. as a result, we saw share prices plummet. we had areas of strength last week. jd power, double-digit gains in the upside. betty: it's been interesting. some companies with what you would imagine would be struggling earnings like mattel, for instance, but under armor, once the big highflyer just a year ago, now struggling. facing similar struggles. what do you read into all of that? whack's a lot of it is built up expectations. -- >> a lot of it is built up expectations. expectations elsewhere have been strong, but companies have not been able to match them to meet market expectations, and as a result, these former high flyers

under armour really suffer for it. the -- hat was haidi: what was the quote on line for energy? they are continuing to lag. >> an interesting earnings season. obviously struggling with a range right now. with energy is that this season we have seen down about 10% quarter over quarter. expectations are for that to continue into 2018. the problem is, companies need to continue to fight for market share. it reaches a point where cuts need to be balanced with supply. aboutis some skepticism how profitable they can be going forward because of it. haidi: what about the outlook in terms of forward earnings? has that changed much? we are in a market at the moment certain is not entirely

what is driving some of the games when it comes to equities. >> that goes back to a point i made earlier. it feels like a market of distinction. the overall outlook remains pretty good. the s&p is expected to grow just over 10%. driven byhat is upsides in technology and downsides in specific pockets of the index, weaker consumer, weaker energy, industrials led by ge because of the size of it. really showing upside whereas some of the weaker areas are continuing to drag. what about external factors? china, for instance, how much does that factor into earnings for these companies? china was mentioned more this quarter than it was previously.

you have caterpillar, for example, where china comprised half of the upside in asia market. ge said china is growing at a record-setting pace for them. comcast mentioned china at one point. is?y: why'd he think that brexit seems the recovery in china is starting to take hold -- why do you think that is? >> it seems the recovery in char china is starting to take hold. any of the chinese markets, but we saw upside strength in, for example, yum! brands, yen china, where a lot of consumer growth is driving china, where aum lot of consumer growth is driving the upside for that

company. haidi: we have a lot of great guests coming up on bloomberg. koichi hamada is coming up. this is bloomberg. ♪

betty: good morning, i am betty liu in new york. haidi: and im haidi lun in sydney. "daybreaktching australia." new zealand is considering foreign homeownership. >> is going to be interesting to see if this makes an impact or not. one thing is for sure, new

zealand house prices have been running away, much as they have in australia. auckland is now the world's fourth least affordable place to buy a house. i can assure you the houses are not of tremendous quality in auckland, either. the prime minister saying foreign speculators will no longer be able to buy houses in new zealand. that are foreign speculators the problem? there is not a lot of data on this. the previous government said that foreign buyers of existing homes only account for about 2% of purchases. bought atis, they are auction. there is anecdotal evidence to suggest this is more of a problem than it is. joyce, until recently the finance minister, said this is a policy that solves a

political problem. going to affect new zealand's intention of the revived transpacific partnership? >> that was a question, whether it would set a precedent and if other countries would want to start renegotiating as well. this is reclassifying residential housing as sensitive to the overseas investment act. it is a domestic law change that will probably not impact the tpp. heads toprime minister aipac next week, this will sort what might have been some tricky diplomacy. she hopes to have legislation before parliament by christmas and hopefully brought into law by 2018, all going well. is this part of the

bigger problem of these concerns that all of this is going to feed into a slowdown when it comes to the new zealand economy? in get into this situation australia where you want to prevent a bubble, but you also don't want it to burst. >> one of the narratives around the government is new zealand is still open for business. zealand first party has a protectionist stance. the name gives it away. this isphen joyce said a political problem. there is definitely a perception of new zealand that foreigners are having an outsized impact on the property market. but what message does it send to the outside world? is new zealand open for

business? that is something she will have to reassure partners when she gets to asia next week. you so much for that. let's get a quick check of the latest news. -- latest business flash headlines. it agreed last week to sell its oil unit, devasting its north american gas and power unit. will pocket about $518 million after repaying to loans. sony's turnaround is firmly on course. it is revising its estimate for profits. the last time we saw numbers like that was in 1998. demand for high-end televisions and cameras helped offset slower

growth. coming up, bitcoin surging and the world's largest exchange operator plans for the future. that's next. this is bloomberg. ♪ who knew that phones would start doing everything?

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marketsere in sydney, open in about 30 minutes time. we have aussie futures and hong kong looking like a positive start to the month. i am haidi lun in sydney. liu in new betty york. you are watching "daybreak australia." breaking news on the robert mueller investigation. george papadopoulos was an adviser to the trump campaign. he entered a plea agreement with the robert mueller investigation, now saying the trump campaign approved a

meeting with a russian aid. -- claiming the trump campaign approved the russian meeting. that is what is coming out in a series of headlines. of course, we have seen the white house distanced itself from puppet op less, minimizing his role in the campaign, but from george papadopoulos, minimizing his role in the campaign, but again, saying the campaign approved the meeting. let's get first word news with jessica summers. jessica: at least eight people in what newlled york governor andrew cuomo says was an act of terror against innocent civilians. it happened near the world trade center memorial. a man drove into a bike path. he was shot by police when he

pulled out what appeared to be a fake gun -- turned out to be a fake gun. big tech has told capitol hill the extent of russian manipulation of social media during the election is still unclear. lawyers for facebook, google, and twitter, told lawmakers that interference is a global problem. the latest fed meeting has gone largely under the radar and amid speculation about a new chairman. however, they will have a statement later, although no one expects a change of course. rate hikes are still seen as regular but gradual. ofwill have special coverage the fed decision at 2:00 p.m. .ith analysis and reaction

u.k. is signaling it is prepared to compromise on the brexit standoff with new talks scheduled for next week. the eu continues to demand details on how much europe will pay. brexit secretary told lawmakers the ultimate deal probably favors the eu. then the infamous words of european union, nothing is agreed, but everything is agreed. the withdrawal agreement on balance will probably favor the union in terms of things like money and so on. future relationship will favor both sides. jessica: china favors approval to sell bonds overseas.

it is beijing's first dollar bond offering since 2004. investor demand reached 11 times the issue size. the notes traded tighter the day after the sale. the malaysian securities commission tells bloomberg it is developing what it calls an appropriate regulatory posture on cryptocurrencies. the commission says it is keeping an open mind on trading digital assets and remains in contact with key players. >> our position on this really has always been, as far as more digital markets, we have been inclined to ensure that we create the right safe harbor for this to grow and to make sure that investors are protected, and that there is investor protection in place without stifling innovation. jessica: global news 24 hours a

day, powered by more than 2700 journalists and analysts in over 120 countries. i am jessica summers. this is bloomberg. ♪ betty: thank you. staying with bitcoin, surging on the announcement that cme, the world's biggest exchange operator, plans to introduce bitcoin futures. the state of cryptocurrencies. >> it is hard to predict what the volume is going to be. i get a lot of calls from clients on both sides of the trade. they are looking for this particular product to be launched. but you have to remember, this is a 100 billion dollar market, not a multi-trillion dollar market like the foreign exchange and others. we will have to see how people want to participate. betty: joining us is camilla russo. tell us, why was this so important for bitcoin?

this really matters for bitcoin because it means that fordoors will be open additional investors to gain access to this sector, to this growing asset class. institutions and wall street have largely stayed on the sidelines this year. it givese contracts, them an option, a way to action us -- a way to access the markets through the contracts themselves, but also, it allows them to head closer to the cryptocurrency itself. so whatever concerns or nervousness they had about getting into bitcoin, maybe this gives them a reason to get into the market. it puts in, as you say, institutional money, not just speculative money. what about also leading to

perhaps an etf? is this making a case for that? of the it is a big part simulation after the announcement on the derivatives. one of the reasons the fcc gave -- sec gave for objecting was a lack of the derivative market tot would allow investors hedge. remember, bitcoin may be digital gold but it is 10 times more volatile than actual gold. it is important for investors to have protection. that there is a potential derivatives market out there, the sec might look more favorably into of allowing a bitcoin etf. heard the argument that as you get institutional participation in it raises credibility, but there are still risks, right?

of the risks were raised right after the cme came out with this statement. .he pricing behind the contract the contract will be cash instead of based on an index that the cme compiled. that index is based on different bitcoin exchanges where prices really defer. people raised this concern about how difficult it might be to gain price discovery for the contracts. regarding the exchanges you can think about thatisks back in 2014 and one had to shut down. that kind of points to why some

are concerned about this. thank you so much for that. a huge step for futures contracts. let's take a look at the rest of to markets that are starting trade in asia to start the new month. better than expected jobs numbers boosted the kiwi dollar. futures in australia look like a positive open. we are also seeing positivity when it comes to the rest of the asian market. sydney futures up way 4%. two straight months of gains for the u.s. dollar. we saw the greenback inching up slightly in terms of the u.s. dollar index. we shouldmore on what be watching.

and thes is on the fed fed decision, more important like, the leadership announcement from president trump. the data is looking pretty strong. >> it is. we were notthough expecting an infamous decision today, you made comments alluding to what will happen in december and whether we are definitely in for a hike. tomorrow, more than likely an announcement on the fed chair. quite a lot going on. the economic data has been interesting. i think the consumer confidence number overnight was particularly interesting, especially for the bulls reinforcing the idea that americans are well and able to continue spending. just dive into the bloomberg here. have a look at this chart. this comes on the back of

reports in the manufacturing sectors from a number of big countries in october that showed broad-based widening of optimism within the manufacturing sector. get the caution pmi today which focuses more on smaller businesses in china. that's the next data point for the global growth outlook and whether that plays into the expectation that we will have a synchronized global growth environment. it's 10 years since the main gauge of asian stocks peaked on november 1, 2007. but these stocks are still relatively cheap, right? >> 10 years. it feels like a lot has happened in those 10 years.

tech has continued to drive equity markets. it's not just facebook, apple, amazon, but also in this part of the world, tencent, samsung, some of the biggest tech companies in this part of the world continue to drive the markets. the tech component of the main equities index in this region has surpassed financials, which had historically been bigger. is, what we are looking at an earnings environment that is still very supportive for tech companies, which is interesting, given the huge gains we had, especially in 2017. tech has really driven the rallies. still, earnings looking pretty good for the next year or two. betty? betty: thank you so much. more room to run. plan to congress's

overhaul corporate taxes remains a mystery. we will look at key questions to a berkeley professor. this is bloomberg. ♪

haidi: some breaking lines that have crossed the bloomberg. more out of though robert mueller investigation into interference in the presidential election. george papadopoulos making a significant claim in any mail, saying that top trump campaign officials did agree to a meeting with representatives of the kremlin, also saying it was approved by our side and that russia claim was unsubstantiated, there was no indication the meeting took place. this was in an fbi affidavit supporting criminal charges against papadopoulos, who was an

adviser to the trump camp and a plea deal.y in let's take a look at this in a ntext of the implications for tax reform and the policy of the president as he tries to push that through. an economics professor joins us now. great to have you. this is a continued distraction, continued noise at a time when the president is looking to garner some credibility and some solidarity and support from his own party. >> i agree. he really doesn't want this happening right now, but he has no control over it. i'm sure that must be very frustrating for him. haidi: what is the risk that this continues to imperil, in a significant way, the prospects of getting tax reform? theirw they have this dail

ambitious plan to get it done by the end of the year or early next year. is that possible? how do you do tax cuts without what appears to be any sort of plan to pay for it? ofthose are a couple different questions. i don't think his troubles with the mueller investigation will necessarily have a very big impact. this is a process that has been driven largely by congress up until now. the trump administration is certainly involved, but there is a strong push in both houses to do something on the tax system, so even if the president and his team are distracted, i still think the process will move forward because of the impetus from congress. other key question is how is all of this going to be paid for. they have set a target of an increased 10 year deficit at in both the house

and senate budget resolutions. that's of the target. things they have indicated they want to do would likely lead to much larger deficits, and they are going to have to come up with a a lot of tricky raise of making -- tricky ways of making the revenue costs appear smaller. haidi: like what? >> there was an idea floated that we may see again, which is putting a much lower ceiling on contributions to traditional for -- traditional 401(k) plans, which would push people 401(k)s as an alternative. the key difference is rough accounts yield taxes earlier, so with the 10 year budget calculation, it would make the

less a lot like a deficit increase, even if there isn't much on the surface going on. other provisions would be temporary, such as expensing for perhapsy and equipment, having a phased reduction in the corporate tax rate, rather than immediate. all of these things do not necessarily have good policy force behind them. they would be ways of reducing the estimated budget cost. the point ofbout contention within the republican party, the state and local tax deductions? >> the latest word on that is a compromise try where they allow for property

taxes to be deductible but not income taxes. of course, that will very -- vary across states. states with high income taxed like california won't be so happy. you mentioned the phasing of the corporate tax cuts which we heard about yesterday and over a five-year span, eventually ending a 20%. is this another one of those things that sounds like a good idea but is likely not to happen ? >> if you are going to cut the corporate rate, you want to do it right away to make it credible that the rate really will come down. when you are promising the future, you never really know what going to happen. but cutting the corporate rate gradually is probably better temporary expensing

of equipment, which can really lead to distortions. whenever you have a phase in, unless you think you need one to allow businesses to adjust, it's probably not helping. haidi: this week, we have the fomc decision, potentially a name when it comes to fed leadership. in terms of economic projections that u.s. tax reform relies on, do you think they are realistic, pragmatic, and is that something you think will actually follow through? >> the official forecast that the tax reform relies on will be coming from the congressional budget office. now, there he is members of the administration have been critical of the cbo in terms of its forecast. there will also be some dynamic scoring trying to estimate additional revenue coming from the joint committee of taxation.

i think those agencies will be doing the best they can in trying to provide unbiased forecast is. that doesn't mean there won't be other forecasts coming from congress and the white house painting a brighter picture. they will say these are what we want you to focus on. i think the economy is a pretty good shape. we have had 3% growth for the last couple of quarters. monetary policy seems to be in a good position from the suggestions of who will succeed janet yellen. probably will pretty much stay the same course. that doesn't mean we can have unrealistic high growth rates to help bail us out from the deficits that tax reform will generate. betty: we believe it there. thank you so much. we have much more ahead,

including more on this new revelation that george papadopoulos, foreign-policy adviser during the trump campaign, in an email revealing that the trump campaign knew about his meeting with russian officials. more ahead. this is bloomberg. ♪

this hour,loping former trump adviser george papadopoulos making a significant claim in an email, saying that top campaign officials agreed to a meeting with representatives of vladimir putin. joining us from washington is bloomberg news reporter justin think and. this is all coming out in an fbi affidavit related to the mueller case. damaging is this? some reports are saying this

could just be boasting by papadopoulos. >> that's the central question. the email was in one fbi affidavit supporting the original criminal charges against papadopoulos, but it was not included in the broader thements explaining away thety plea he entered with fbi. there is a question of whether the fbi believed papadopoulos when he claimed he was trying to set up this meeting with authorization from the trump campaign. however, if females do back up these claims, it contributes to up theseils do back claims, it contributes to the claims and the narrative that trump has long denied about medications with russia during the election. but there is no

indication these meetings took place? >> again, it's a question of whether it was a scheduling issue or whether pop a topless was generally unbelievable to the russians or unable to -- papadopoulos was generally unbelievable to the russians, or unable to make this happen, or if it's something that did happen that we don't know about yet. as special counsel miller -- case,r slowly builds this we are learning more about comedic haitians back and forth. this guilty plea is -- communications back-and-forth and forth. this guilty plea is sort of a prerequisite. many: this email is one of unsealed as part of the investigation. what comes next? turns toof attention sam clovis, the campaign's national cochairman. he is somebody papadopoulos says

authorized communications with the russians and who is under a lot of scrutiny right now. haidi: we have to leave it there. we will continue following this developing story. bloomberg asia is next with if on and betty. and betty. this is bloomberg. ♪

♪ 7:00 a.m. in hong kong come alive from bloomberg's asian headquarters. i am yvonne man, welcome to "daybreak asia." the russia house, a former company buys or claims the presidents campaign team approved a meeting with moscow. at least eight are killed when a truck hit cyclists with -- in new york. dozens call it terrorism. betty: from bloomberg global head quarters, i am betty liu where it is 7:00 p.m. and tuesday. chicago bowing to the 21st century, will launch bitcoin futures by the end of the year. a global