♪ >> and then there was one. reports a president trump has made up his mind. powell will be the next head of the fed. a reaction was strangely mooted. peering gains briefly while stocks and bonds were largely unmoved. >> elsewhere, a case of highs and lows. facebook smashes estimates in the third quarter with revenue topping $10 billion. slumpingsla simply --

with the critical model three delays, proving hotter than expected. a.m., thisst past 9 is daybreak astray which is an hour away. in newust after 6 p.m. york. i'm betty liu and we will be looking at the action on wall street and how that will play into the asia-pacific trading. heidi, no doubt we are following these headlines coming across about jay powell being named the next fed chairman. these are all according to reports of the wall street journal coming out first with these reports. haidi, given the speculation over the last several days? haidi: absolutely. as you mentioned, the muted response from u.s. markets. it just surging a little bit higher. powell essene is the next best thing to continuity other than janet yellen staying at her job. betty: it is safe to say some

economists coming out that it is yellen 2.0. maybe there will be not a lot of change. why the markets didn't react too much. equity markets and the training trading session. mostly shrugging off this news that tesla will be delayed. big earnings coming out after the bell. onebook and other beat estimates. despite these troubles they are facing in washington. tesla facing serious troubles. we will dig deeper into that and you can see the dow closing up almost 60 points as well as the s&p higher. the nasdaq taking a little bit of a hit. look at theaking a set up here in asia, what is still a session it was. decade highs in the msa i asia-pacific. for a setting up

continuation when it comes to that rally in asia. kiwi stocks off by about .1%. the kiwi dollar is .689 per dollar. ofd of flying on the back the on employment rate falling to the lowest in eight years. sydney future seeing a little bit of upside in the aussie at .7677lding ahead ahead of the balance numbers. the turnaround when it comes to iron ore, we'll see how that plays into the trade balance. let's get back to the news, president trump reporting he made up his mind you will be the next secretary. kathleen hays with the hate -- latest on this. j powell seems to be the one. you two were just disgusting, a muted market reaction despite the fact that this is seen as continuing the policy path that yellen has set out over four years.

bloomberg news had lots of scoops in the last couple of weeks suggesting that donald trump was leading -- leaning towards jay powell. taylor then more hawkish on policy, quicker to raise rates, that could of been the market reaction. this was telegraphed so much so by the white house. it janet yellen's term ends on february 1, so the question i does powell have the right stuff? he started off as a lawyer, went into investment banking at dillon read at bankers trust. ,e did work in the government specializing in capital markets and issues related to finance. he was an undersecretary. he's been with the board of governors and 2012 and he does have a lot of experience. a very important thing, he's

expected to stay on yellen's policy path track. it's look at some of the things -- let's look at some of the things. the fed is very close to its mandate now because inflation is still pretty far away from that mandate. policy is currently very accommodative. graduallyopriate to raise interest rates below target inflation. it means you have to be patient. maybe not so quick as some others. he is seen as being fairly open to bank deregulation which is something republicans may favor. ahead of a fixed income.

>> x pimco, he's the one that basically saved pimco and would've done a better job during the lehman crisis. powell reminds me of miller. the last real economy. >> that longtime friend and someone that may come up the senate confirmation hearing. julia miller, he became fed chair. i think jay powell comes into this with a lot more respect. our colleague on the fed team , ethan saysyork that he thinks bill gross will be a very good choice.

it seems to me there's more people that think powell is a pretty safe choice then people he won't measure up. haidi: buried under headlines over who will be the next for the leadership. i think what is more interesting about this november meeting is that if you look for , he's a voter. he's part of what we are seeing. look at how the fed is thinking and how powell is expected to continue. it certainly reinforces the expectation.

it doesn't say they will. but a very important sense about the economy. economic activity has been rising as a solid rate despite hurricane related disruptions. wordyou look at the choices, this is so important. , they said it was solid. they haven't said it was solid since january of 2015. thing that kind of jay powell has been part of this. more from theet bnp paribas senior economist from the u.s. and canada joining betty and me.

eee fact that we didn't s the idea of policy continuity. bundesliga jerome powell, this will be the case. >> clearly how people are thinking is that we have the pre-, the pre-preannouncement, and the announcement of the announcement that is coming in a few hours. they've had time to hit comfortable with what the head. it will respected member of the fed. not being an economist. carry the suited to torch and continue the policy along the lines of what janet

yellen has done. betty: given that, it raises the point, why not just reappoint yellen? why go through all this? >> trump himself made the remark that he wants to stamp his name on the next fed chair. that is certainly true of this situation where janet yellen certainly would be an easy choice. mixed about her. recently spoken positively. he wanted to choose his own chair and i think that's what this is about. we only go through senate confirmation hearings for fed chair nominees every so often. here's what they usually do, right? can become politicized and donald has picked a republican. j powell seems like a moderate guy. our democrats likely to raise that fact?

conservative republicans say they need a momentary -- monetary policy rule. >> there will be a lot of dirt from both directions, but jay powell has already been confirmed twice. to have are going hard day turning their back on somebody that most of them have already voted on. in 2015, with quite a wide margin. for viability, being a republic lead -- republican appointed nominee. in reality, it's an easy got a get draft are having been confirmed twice already. an easy guy to get through

after having been confirmed twice already. betty: continuing the policy path, raising rates. if that what jay powell is going to do, is that such a good thing for the markets overall? >> the fed has taken the approach for quite some time, equity markets certainly love that. on markets seem to be ok with that for now. baked in the cake at this point. we may get some small deviations for powell to make his mark. generally, he's perceived that just a little bit left or more dovish than the rest of the committee in terms of dove hawk. generally, i wouldn't expect expectations to change too much. that support for markets to understand where interest rates are going to be, where the economy is going to grow. that confidence having the idea, given the current set of how the fed is going to react. this kind of existential

stronger over the inflation, it's not just the fed, right? other global banks are struggling with it. over the next month, can we --sibly change or tweak should we just be happy that we are seeing goldilocks growth. >> they would just love it if mandate.ed that why it is going down. it has been very difficult to predict. link isthe mechanical not what it used to be. it takes a while to really have that admission. i think that's what we're going

to get. betty: we will talk with you about the fed as well as tax return. kathleen hays there in tokyo. us get to first word news with courtney collins. courtney: the reappointed prime minister shinzo abe as praised the bank of japan's efforts to revive the economy and reach 2% inflation. but stop short of endorsing corrode a as governor. as governor. the election victory last month raised expectations that the current monetary stance will continue. the bank of england is expected to raise interest rates later on thursday for the first time in more than a decade. with slow growth and brexit hanging over the outlook, the bank is trying to slow inflation driven above its target by a

weaker pound. governor mark carney has previously laid the groundwork for height without delivering them. we will bring you the bank of england policy decision at 11 p.m. sydney time if you are watching in hong kong. big tech remains under fire on perceivedll for the slow response to russian meddling in the election. democrats on the senate intelligence committee on a second day of testimony. medias criticized social 's teams saying they wanted to speak to people at the top. facebook investors are bouncing robust third-quarter results against a warning that tackling fake news will hit profits. the stock rose after facebook be the highest estimates in the third quarter. revenue came in at $10.3 billion while monthly active users topped $2 billion. trading was hit by ceo mark

zuckerberg saying preventing use of the site will be costly. slumping extended trades after cash burn proof hotter than expected. modelng the critical three and cost for production setbacks reached an unwanted record. tesla now expects to make 5000 model threes per week by late next year. rather than by the end of this. the stock is up this year but slipped 6%. tesla exhaust production problems. global news 24 hours a day powered by more than 2700 journalists and in more than 120 countries. in more than 120 countries. betty: economists expect a slight improvement. we will check in with chain oliver later this hour. haidi: up next, continuing our

conversation with bnp paribas as we await the tax proposals and an announcement on the fed leadership. this is bloomberg. ♪

betty: treasury secretary steve mnuchin is said to be resisting the gradual phasing in of a 20% corporate tax rate because it may not boost growth is my -- as much as he thought. he's afraid it will make the u.s. less competitive if other countries cut taxes more quickly. is the key part of the bill expected to be announced this week. we are awaiting the d hit -- the details of that. let's bring back our senior economist for bnp paribas. will it as a questions or raise more questions? >> i think it will be the same questions we are trying to

answer. we've had a house blueprint. we get a little closer to reality, so i think that's a good thing. steve mnuchin talking about a 20% tax rate seems pretty unrealistic. it's pretty fantasy right now. betty: why is that? if we eliminate all the deductions on the corporate tax side, we would only be statutory ratehe to 28% and keep it revenue neutral. a person you have to make up with additional cuts somewhere else or a reduction in spending which probably isn't going to happen. that 28% mark, every percent will be that much more difficult. starting fromly 28, we are starting from 31 or

whatever. betty: trump is putting his reputation on the line, 20% is the red line for him. mr. dwyer: yeah, so was 15%. there's a new redline. cross out the old one and make a new one. will anything passed by the end of this year? i think that's optimistic. we have done analysis about best case scenario. it is possible but it assumes a rubberstamping of this bill. republicans in the house and senate are all on the same page. the moment we get any differences, you will add six weeks to this bill. -- verybe derek difficult to pass by the end of the year. haidi: and it assumes we work at a sustainable way of paying for it. projections if the

they are basing assumptions on our realistic? mr. dwyer: of course not. they just have to convince enough people that they are somewhat realistic. the official scoring of the bill means one thing but the treasury steve mnuchin will come out with his own scoring for the bill and trying to say that his numbers are right. they just have to be broadly right and justify their political stance. and make it seem that congress can go back to their own states that it doesn't really matter. they just have to convince people that it's right. is it symbolic? we have seen markets ebb and flow this week. the past couple of weeks on this story. for a while there, it seems like tax reform would be nice to have rather than a must-have. we saw foryou know, quite a while that republicans really need this. and i think it's a big piece of what is happening right now.

electionsead to the in november next year, republicans need a big win. this will be a huge win. looking to pass tax reform. whether you like the president are not, this is a legacy issue. you can stand by it for the rest of your career. i think it's a huge push behind what is happening. a lot of folks in this administration will benefit from break -- very strong growth. there is a huge push to do that. a question on if they can get their ducks in a row and the numbers to line up enough. haidi: a very realistic view there. ,rickman dwyer from bnp paribas chief economist for the u.s. and canada. bloomberg television joining us for an exclusive interview at midday thursday in new york. but before that, your hearing

from credit suisse about janet yellen. this is bloomberg. ♪

haidi: i'm haidi lun in sydney. a quick check of the latest business flash headlines. qualcomm under boost -- earned a boost despite a legal battle with apple. of 5.5 billion dollars to $6 billion with earnings per share of $.85 to $.95. the chipmaker posted third consecutive annual revenue decline. and his winning market share from rivals, benefiting from chinese demand for expensive phones. hong kong's wealthiest man has sold his stake for a record some. stake in thes center for 5.2 billion u.s. dollars. the official purpose setting up

specifically to do this deal. approximately $1.8 billion. the short seller carson block is suing google over people that have used fake ids to access confidential research. they're said to include someone posing as a wall street journal reporter. firm, says theis published reports two years ago. it has google identify who those people are. haidi: the recent studies, the city has extensive mass transit network ahead of the field and the highest office and residential prices across the united states. favorite tocond welcome amazon $5 billion project with metropolitan

.ashington betty: the naming of jay powell, just ahead. this is bloomberg. ♪ retail.

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betty: the tesla earning conference call is happening right now with elon musk. some headlines are coming across after the big myth in their last quarter. seeing nong he is significant capital expenditure in china until 2019. in fact, spending would be the same as it was in 2017 for next year. also noting that they are three years away from local production in china. which is a big market for tesla. all of this coming off a pretty dismal quarter for tesla, delaying the model three. some reporters monitoring the call says that musk sounds a

little more stressed than he normally is on these conference calls. haidi: when you look at the company, the narrative is burning through cash, having to push back due to production delays. a delay when it comes to the assembly line at the factory in nevada. difficult to predict how long it will take for all bottlenecks to be cleared or when new ones will appear. that is not positive, betty. betty: no. .o ceo wants any headaches a manufacturing headaches are some of the worst and out of your control. you can imagine many sleepless nights for musk and his team. and also they fired to send their workforce. 700 people at the company for not meeting their targets. let's get other news in first word news with courtney collins. courtney: first up, the wall street journal says president trump plans to nominate fed

governor jerome powell to succeed janet yellen at the bank. his pick onnounce thursday. it a republican that was appointed to the fed in 2012 by aesident obama and has reputation for being a nonideological and pragmatic policymaker. bloomberg had already reported powell was the likely pick. president trump politicized the terror attack in new york by blaming democrats for an immigration policy that allow the suspect into the country. the suspect entered the united states on what trump said was a diversity visa. he's accused of killing eight people and the president said he considered sending him to guantanamo bay. trump is said by democrats to cut new york's funding to fight attacks. the whitening sexual-harassment scandal has claimed its highest profile political target. michael fallon has quit citing

new allegations about misconduct with women. he already apologized for repeatedly putting his hand on the knee of a female journalist 15 years ago. accusing atd list least 40 conservative mp's of harassment. the set is extending its foray into digital currencies. including a prepaid card for singapore backed by the cryptocurrency monaco. cards have been reserved. monaco says it plans to expand across asia and into europe and north america. the currency surged almost 700% in mid-may when it revealed the visa card plan despite not having a deal at the time. it global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. sodi: courtney, thank you

much for that. let's get a quick update on the markets where we are getting early trading underway in new zealand. we are seeing the loss of about .2%. the kiwi dollar being the best .6884.er overnight at coming in tailwind from that unemployment number at an eight year low. users in australia setting up ahead of the sydney open. the aussie dollar at .7673. the trade balance expected to show better improvement in the month. let's take a look at what should we -- what we should be watching as trading gets underway in asia. amidst all the headlines, is it powell? will it be janet yellen, potentially? >> that is the context that powell will be inheriting this fed leadership. it in the fed, if he indeed gets

the job. thing is that things are ok and he inherits a u.s. economy that's in a very good place. inflation worries still remain. and hurricane related data that we still have to wade through. there are plenty of people in the market that have seen enough signs of inflation to not be too worried. world,oadly across the risk assets. haidi: we will talk more about that. ahead ofnvestors investment strategies there. i want to talk about this theme of continuity. it had a very muted reaction when it comes to u.s. assets overnight. say powell is yellen 2.0. it had a pretty subtle

telegraphing. december is on the way. but this chart i find interesting because it suggests -- it's a good thing they are going to tighten because you can only imagine how loose financial conditions would be if they still had rates at zero. this is bloomberg's index of american financial conditions. two days above a 2014 high. what is producing this kind of phenomenon? and we're just hearing that we have concerns, this news that jerome powell is going to be the fed pick for the wall street journal. there's a lot to respond to. >> i think the chart tells us the financial conditions in the u.s. are uneasy. differentople have ways of defining financial conditions. but you have the earlier decline in the u.s. dollar that came into monetary easing. it's gone up a bit lightly.

and you have the ongoing rally in the u.s. share market which reduces the cost of capital, the cost of equity capital in the u.s. and you have credit spreads at a very low level. they tell us the monetary conditions in the u.s. are very easy. and given the strong indication we are getting, the isn remaining at a very high level overnight, it looks like we will see a good bounce back in october jobs after the weakness we saw in september. and i think the fed looks at that and says, sooner or later, inflation will pick up. it will be just on track for a december rate hike. betty: if you were a betting man, you would bet on a december rate hike. i just want to reiterate to our viewers because we had all these reports, bloomberg has the headline now that jay powell is going to be the next fed chairman. we are still awaiting the official word from the trump white house. in the meantime though, shane.

in terms of jay powell and how ,e is going to be the fed chair it looks like these reports are going to be correct. how different do you think -- and i'm not even just talking , but monetary policy wise how will he be conducting himself versus yellen at the fed? shane: he was a republican. he is. he is known to favor a little bit less in terms of regulation. and they are the main differences. and he's also not a trained economist. that is the third difference. the chairman of the board -- if you go back to the time he had he have broadly

supported the direction the fed has taken. i agree it will be a continuation of what we've seen out of janet yellen. if you were looking for rate hikes out of the fed next year, still expect rate hikes if you're looking for ongoing run down. and you continue to expect that no rate change. the difference would be if we go into a crisis at some point down the track and i think he would publicly have to rely on it in advance. they are already well-versed in what happened in the financial crisis. he would have to be someone who would take advice more. at the end of the day, i think he's a good choice for president trump to take. a continuation of the fed. financial stability. it is the background america needs at the moment. a plan has a place to -- in place to unwind the stimulus program. assuming he is finally confirmed, he will be the next fed chair.

>> bringing it back to australia, given what you said about the implications for powell and the implication of the u.s. monetary policy. what is the difference in australia here? does it imply further weakness in the aussie if rates aren't going up here as fast as in the u.s.? chain: i think it ultimately does but there is still probability priced in there. out, it williced start to get priced out today. we might see that more hawkish possibility -- perhaps that is what we have seen. i don't think it is going to go that far. at the end of the and way -- the day, that will be the one to watch. it will be the big one that everyone is focused on. to see what he says. he will probably tighten. but that means that the interest differential, the interest rate differential that i think will remain on hold and the u.s.

would raise rates for more times. that difference will continue to narrow which will remain as downward pressure, down towards $.70. haidi: that is the word. thank you for coming on. and of course, we have adam with us as well. let's get more on this latest breaking news. wesources are telling us that jerome powell is president trump's top take when it comes to the fed chairman. we're still waiting for the official announcement. we are expecting that the for the president departs on his trip to asia. bloomberg international policy editor. what do we know so far? >> general powell has been on

the list for quite some time. president told hold that he intends to nominate him. it shouldn't be too much of a problem for him because he was confirmed by healthy margins in the senate. he also doesn't need to be confirmed as a fed governor because he serving only as the chair. it should be fairly smooth. as your previous guest was saying, we don't expect much in terms of any change in monetary thecy as powell has, for last five years, voted with the chair. and in the speeches he's given on the economy, basically adopted janet yellen's positions on where we are. the u.s. is growing at about 2%. we will continue to do so. unemployment is low. and we have time because inflation is low to raise rates. it will be several months in the transition. janet yellen will be in the fed chair until february. what happens? did she turn into a kind of a lame-duck fed chairman?

mean it nots that just for short-term monetary policy, but for the markets? >> it is interesting, if they had more difference in their policy prescriptions, it might be worse for the markets. it shouldn't be too much of a problem for investors. in might be a little awkward at the fed. but once he is confirmed, if he's confirmed well in advance, i suspect he will be very quiet. he will not want to overshadow janet yellen and create any impression in the markets that there are two different monetary policies out there. the interesting thing is, she is chair until february 3. it is the first meeting of the year. officials collect their chairman of the open market.

maybe just vote for one month and she gets to be chair. that transition will be really fascinating. we will talk to the policy editor in tokyo for this week. think theen, i continuity -- he will make waves if powell's trumps pick. does he kind of go along with a course that's already set? does he make his own mark? kathleen: much more keeping with jay powell's the meaner and personality, everything he has done so far, this is a guy that has worked in washington. this is a guy that is been successful in banking. a person that looks like someone who can build consensus. for thereat respect institution and has worked with these people for several years. these are his colleagues.

he's going to step in, meet the meetings, and continue what janet yellen has done. one thing that is significant here as a non-economist, people have pointed out that this means he will rely all the more on the board of governors staff of 200 phd economists. if you like the way fed policy is going, you will be very happy because he will rely more on the board to help them said that course. establishes leadership in his own internal team. i'm wondering about inflation and why we are still raising rates. betty: let's talk a bit about fed independence. is the economist have been talking about is how much each of these candidates, how good they would be protecting the fed

, making sure that they stay independent. where does jay powell rest in that? he will be able to protect and keep the fed independent? >> he has been a strong defender in the past with the speeches he has given and has also suggested the fed should not operate a rules-based policy along the lines of john taylor. he will probably take the same position that ben bernanke and janet yellen has taken, that the fed should be left alone to do its business. it isn't clear where he would come down on some of the specifics of legislation that has been introduced in terms of reporting to congress, but i don't think he would be any threat to fed independence. in that sense, sort of steady as she goes. lot aboutwe talked a

how jay powell and janet yellen are very similar in their views on monetary policy. we were asking one of our guests how they might conduct the fed. you've been at those press conferences. how she communicates the message of the fed. what do you think his behavior is going to be when he manages the fed? a think he's going to be confident. even though he's not an economist, he's learned a lot on the job. he has participated in the debates. in the samewed footsteps as janet yellen. he went up and talked after the speech and was looking at some of the labor market issues. you can tell he's a guy that's really doing his homework. chris put out a note this

on which depending times and you're in and he's concerned a non-economist will have a tougher time. if you're getting into more technical aspects of monetary policy, that is where powell maybe a little bit off of his footing. what if you need someone that can step up and show the kind of leadership for financial thatts? that is something she had that experience. had he chosen someone else, i i think he-- testifies as he gets out there, how does he conduct himself. he will really be tested by fire . i don't think anything can fully prepare you for that.

>> it is really interesting, if you take a look at the first fed .hair, how is the one chosen the first fed chair since paul volcker to come into this job without a phd. working with hundreds of economic phd's. he is surrounded by this academic -- betty was kind of alluding to this idea of what biasy us -- political given that he's a republican. they would be more open to more deregulated wall street than potentially someone who comes from academia. >> he has already talked about lightening the load somewhat in terms of regulation. took over the fed's

regulatory responsibility when dan tarullo left the board earlier this year. about. banks know more he wants to ease rules on corporate boards, particularly financial boards. he suggested changes to the volcker rule, making it weaker for those that are not have big trading books and talking about the sydney threshold. at the threshold at which banks get superior regulation and higher capital ratios. have somewhat of a deregulatory agenda. he would terror apart the dodd-frank rules and does make it easier for the financial system to bear. >> that is true. janet yellen is open to revisiting dodd-frank.

i see a lot of commentary about not so much that jay powell politicize the fed, but this very public collection process the way donald trump has done it, stepping on this question of fed independence, making his look like a more political process. it will be a legacy that jay powell has to carry as he steps up. some sense, he will have to go out of his way to lead the fed in a very independent way. maybe even more so than donald trump might've it acted. if it weren't for this juxtaposition and the process -- donald trump himself seems to have politicized a bit. >> it is a very good point because in an article in the new york times or wall street journal several months ago, when powell's first tipped to be the

favorite of treasury secretary steve mnuchin, mnuchin was quoted as saying that he could control powell. you wonder what that means. does leave powell with a bit that he will be doing the administration's bidding. that will be important if they get tax cuts through and questions raised about how hard leaded could or should again. of theremind us relationship that powell has with people like mnuchin, for instance. are they supportive of this? >> mnuchin has been powell's chief sponsor in the administration. he's also well thought of by most of the people there. he's a moderate republican but has experience in washington. he worked as the under secretary

for domestic finance and the treasury department during the first george bush administration, george h.w. bush. he's done a lot of work in washington and he knows a lot of people there. with the administration and with members of congress. i am wondering, in the midst of all this, what does the rest of the makeup of the fed look like? wouldn't, you presume, be sticking around to be vice chair. who is likely to be the vice chair position? kathleen: people have been wondering if it would be offered to john peters. donald trump was sincere when he said he's been impressed with john taylor. that solid,shares fundamental view of the economy and how it works. a republican view. reliance on free market. john has been talking about this

for many years. he certainly has the monetary economist credentials, the worldt and esteem in the of monetary policy that jay powell does. i think jay powell has earned respect. playing the wall -- the role he has has, as much as vice chair under yellen, bringing taylor to bolster the team at the fomc at the board of governors, it was seem like a pretty logical choice. is john interested in taking the vice chair position? he thought he had a shot at the chair. it would be an interesting combination and i think it's one that people can say taylor's going to push for higher rates. more of thetime, inside baseball part of it. i think people would be reassured to have john taylor there. >> sometimes we forget about the

smaller deal -- details. walk test through how this process is going to work up until the time that he takes over at the fed. tomorrow, we are expecting trump to make his announcement. what kind of details might we see tomorrow and from there? kathleen: i think trouble make the announcement. it does he do it in the rose garden? does he make a big ceremony? i think it is business as usual inside the fed. sorry janet didn't but we will continue the policy. janet yellen will step down right about the time she is supposed to. most fed chairs have pretty much served until the end. very seamless. there's not anything that happens so much publicly once we get past this announcement. a momentay with me for

but we will say goodbye to mike mckee. much, mike mckee joining us on this breaking news about jay powell being trump's pick for the fed chairman. the bloomberg news fed and economy reporter has been on this breaking news. i'm sure it has been many days for you on this fed news. is it unusual this was broken earlier? and that this was such a public display? the publicly in display and the discourse surrounding this fed pick. but in the past, we have seen a lot of public gaming in the lead up to this being announced because it is such a big market. when yellen was appointed, we heard a lot about larry summers versus yellen. , butnot about president the leaking thing fits with the other appointments. atty: it certainly has been

colander, so to speak. a lot of news leaking out. will that be the legacy for powell? the fact it was so public, so much speculation. so much speculation on this. will that be some sort of a debt for him? >> jay powell has been governor for years and people know how he approaches policy. he certainly didn't get his hands dirty at all throughout this entire process. nothing but collegiality between the people on the short list. i don't think that's an issue for him. i think it causes people to have time to really examine powell and look at what he said, what he's thinking. can be a little bit more prepared knowing what it might look like. for joining us,

our bloomberg fed reporter on this breaking news about jay named,being apparently, as the topic for the fed chairman. the announcement expected formally tomorrow in washington. we will be back with more. this is bloomberg. ♪

>> it is 10:00 a.m. in sydney. welcome to "bloomberg daybreak: asia." top stories now. there was one. president trump will make jerome powell the new president of the fed. the governor faces gradual rate hikes. financial regulations. >> and from bloomberg's world headquarters, i am betty lou. a case of highs and lows. facebook smashing estimates in the third quarter.

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