choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. kong. an update with your top stories. seen by many as the candidate is saidinuity, powell to favor losing regulations. his nomination is subject to senate confirmation. u.s. prosecutors said money raised by goldman back in 2012 and 2013 was diverted by hiram

-- higher-level employees. the committees that oversee hong ,ong's financial sector lawmakers want to know how the hong kong exchange and its regulator will protect investor safeguards. global news powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. markets in hong kong coming out of the break, a snapshot of how we are doing. we will have an update and one half hour. this is bloomberg. ♪ emily: i'm emily chang, and this

is "bloomberg technology." of theeats estimates fourth quarter as the iphone x starts worldwide sales. the clock winds down to the of this will start -- the official start of the iphone x era. alibaba plans to go full steam ahead the rest of the year. business helps double revenue. my conversation with former twitter ceo. his take on holding big tech accountable. and intensifying the crackdown on trolls and bots. our lead is apple out with quarterly earnings. the company quarterly sales exceeding expectations. this is apple's most important

product launch in years. shares hit records this week. they rise in late trading. in stores sale worldwide starting now. we have pictures of you of the apple store in sydney. more than 200 waiting for the iphone x. they just opened the doors. lots of photographs happening. people waiting outside of stores in tokyo and singapore to get their hands on this new phone. joining me in the studio, julie, let's start with the numbers. they look good. the outlook is strong. it is a bold move to sell a device for $1000. the demand race -- the demand remains strong. there are some supply

issues. i did ask tim cook about this when i spoke to him on the phone moments ago. he did not seem worried about it. he said this is the most advanced iphone ever. he is happy with how the ramp is going. they will make reductions in wait time today or tomorrow. we can expect the wait time to go down. julie: that is the case. no organization builds capacity to hit the demand. they have a producing these devices for a while. apple always meets or beats expectations. they may be setting expectations of four to six weeks, but i would not be surprised if consumers get them in the mail before that. emily: knowing that this is the quarter coming up, with people waiting in lines for the phones -- julie: it is exciting for apple. represents 70% of

the revenue. at what point are they going to break out devices, and that there is a keen eye on their services businesses. emily: it grew 34% year over year. is, how long can they keep up that kind of growth? julie: it is also hard to get a bigger growth number. there is only going to be more momentum in this market. there is only more incentive for me to find out services like apple music that can work across all of the devices. this talk about china. apple return to growth in china. there were big questions of people would want to pay up for a phone this expensive when you have alternatives that are half

the price or less. i asked tim cook about china, he said the mac was strong. their services hit an all-time high in china. in addition to the iphone, the other businesses are doing well. he suspects china will love the iphone x. more data than we do. he will talk more about that. this is like going back to the early generations when people camped out outside the stores. you may see a lot of demand for the product. we may see a slowdown and how frequently they refresh that. we replenish our laptops every two years? are we going to see people get closer to a 30 month cycle rather than a 24 month cycle to justify the cost on a month by

month basis. emily: tim cook is pleased with the sales so far, but are you concerned about the iphone x cannibalizing their other sales? julie: they are very good at adjusting prices on the other products. they tend to still do well with those products. emily: as we watch the rollout around the world over the next 24 hours, what we you be watching for? don't know of there something specific we are watching for. thell be interested in release numbers, what the preorders are, how much demand there is for the device. seems to be strong in san francisco. they: we are listening into earnings call. we will bring highlights as we have them. i know you will be listening to that call. we will be catching up with this call throughout the show. thank you.

when we continue, the price of -- bitcoin moves higher. the latest boost in the price comes after the owner says they plan to release bitcoin futures later in the year. goldman sachs ceo lloyd blankfein gave his outlook on the cryptocurrency. >> i have a level of discomfort with it. i have a level of discomfort with anything that is new. i have learned that a lot of things work out well. emily: in the meantime, another banking ceo commented on bitcoin. credit suisse ceo called the digital currency the very definition of a bubble. coming up, we will discuss alibaba's dominance as the company turns in another blockbuster earnings report. take another look at this live shot from sydney, with a time is

friday, 8:00 a.m., the iphone x now on sale at the apple store. this is bloomberg. ♪

emily: after he and year of monster growth, alibaba has raised its outlook for revenue growth. china's biggest commerce company , results were boosted thanks to its core e-commerce business. for more reaction we are joined by kevin carter. holding in thep index. what is your biggest take away from?

kevin: it's amazing a company can grow at the rate it is growing. the growth rate has accelerated. a year ago it was growing 40%. last month it was 50's. what are your thoughts of the new retail plan? it makes a lot of sense. amazon has bob whole foods. it gives that distribution points, and physical locations. both jd and alibaba have been aggressive in this regard. they have partnered with gas stations. it is a new chapter of online's off-line. think itw big do you will be this year, and how significant? kevin: the singles' day growth numbers have not been as great as the annualized numbers for revenue.

we are forecasting a to 22vative 20 billion billion. that will be up from 17.8 billion all stop it will be at least 20, and possibly 22. one of the things exciting is that it is not just people buying physical goods. alibaba is an investor, and they sold 100 million return insurance contracts. it was 13,000 the second. it will be an exciting single day as it is. 61% growth as the quarter ends. think abouto you the future of alibaba and the chinese economy at large? how optimistic are you at the chinese will grow as it has? kevin: i'm very optimistic it will grow. the growth will slow down.

6.5% to 6% to 5%. that is almost certain. the breadth of the involvement they have in the economy, people do not realize the investments they have in other countries. it is not just e-commerce with alibaba. it is payments and physical locations. growth stillt of left for the sector and alibaba. about the ceo was asked the outlook for subscribers. he did not give a for -- a straightforward answer. what is your outlook? kevin: they did not give clear guidance. the user-based numbers are going to flatten out. they have a decent percentage of the population. curve ing will be the terms of members.

in terms of amount spent, i think that number has a lot of room to go up. shares have been surging. can the share price continue to grow? kevin: sure. and a long-term share prices follow earnings. in the short term they follow sentiment. evaluations are still quite reasonable. the whole sector of emerging about the same looking forward. you have 60% revenue growth for alibaba, and 40% for the sector. on a growth basis it is about one, with s&p 500 has a pe less than 5% revenue. investors with amid to long-term timeframe will do well. how much growth are you expecting to see in the cloud division? how critical is that cloud unit to alibaba's future? they have a hundred

percent growth quarter. the cloud, even here for amazon, the web services, both of those businesses are in their early stages. as an entrepreneur, i send my first cloud related deal with amazon web services. early for is still that business in china for alibaba as well. emily: kevin carter. thank you. chapter in the bitter legal battle between apple and qualcomm. qualcomm has sued apple, accusing the phone maker of not -- the two companies are embroiled in ashley dispute over technology.

apple says qualcomm is unfairly charging too much, and leveraging its strong market position in chips and legalese. republicans unveil a tax cut plan. we will give you all the details. that is next. take another look at this live shot from inside the apple store in sydney. the highly anticipated iphone x on sale now and around the world over the next 24 hours. we will be watching. ♪

emily: president trump said semiconductor company will return headquarters to the united states from singapore. president and the the oval office for the announcement. the president touted the amount of money that will come into the u.s. as a result of the deal. will move backey to the united states. it is something very special and important. you have seen this happen with numerous companies. with this commitment, more than $20 million in annual revenue will come back to our cities,

towns, and the american workers. house republican leaders rolled out there sweeping tax plan. among the highlights, cutting the corporate tax rate to 20%, and reducing the number of individual brackets. several of the biggest corporations including apple would no longer be able to escape taxes and the trillions in overseas profits they have accumulated. u.s. companies have stockpiled as much as $3.1 trillion offshore. apple, followed by microsoft and oracle. joining us with how this impacts what does this mean for a company like apple? mark: for apple, they generate profits locally. the 20% tax rate is a good thing. they also have an immense amount

of money overseas. the 12% tax on overseas cash is a big source of concern. they're going to continue to tax foreign subsidiaries going forward, assuming this tax plan passes, which is a big assumption. not great for big international companies keeping money overseas. apple has two hundred $50 billion overseas. we are looking at a rate as high as 12%, we thought would be closer to 10%. bloomberg has been talking to analysts saying it is borderline business unfriendly. i spoke to apple a few moments ago. , we have always been a strong advocate for tax reform. theill drive investment and u.s.. it will drive job creation and the u.s.. he said, we don't know the

details. and with the gridlock in washington it is not close to what we will see later. investors,re telling do not worry too much right now. this is not the final tax them. they will continue to make markups. it may not even pass. they have a very ambitious month and a half to get this through. it is crazy in the world of washington. emily: explain the impact you expect this to have on the private market. is whatplan we see now it is? mark: it has great things for private companies. there is a lot of talk during the campaign about a tax policy cult carried interest which -- that did not show up in the bill. groupnture capital trade has told my colleagues that they are expecting changes to the way

that startup employees exercised stock options, which allows them to defer when they have to pay taxes on a huge chunk of their compensation which they get in stock. that is a great thing for startup employees out here. caveat isexpected this tax on university endowments, which are huge investors into venture capital bonds will stop -- into venture capital funds. they are freaked out they are targeting universities. emily: what does it mean for individuals, specifically silicon valley ilion errors? as theyt as great helped. they tend to skew liberal, and are not as sensitive to taxes as other wealthy people. they did not get the high-end tax break that republicans, andcially the president

leaders in the republican party have been pushing for in the senate. also, the exemption for electric cars getting tax breaks. all the tesla lovers out here may not be able to get a tax breaks. is there just a lot more gridlock? mark: it is going to be a race to the finish. there describing it as a watered-down tax will. now that the details are public, especially to democrats in the house, there will be a lot of infighting over what stays in and what gets pulled out. that is just the house. emily: thank you for breaking it down. ceos declined tex to testify before congress this week. we found i would twitter's

former top executive thinks about this week's capitol hill hearings. once again, another live shot inside the sydney apple store. the highly anticipated iphone x on sale now. speaking on the earnings call as we approach the holiday season. he said, we expected to be the biggest quarter ever. headlines from the call. we are listening and right now. this is bloomberg. ♪

>> it is 1:30 here in hong kong. we will start off with china. this latest move is to rein in capital outflows. and get approval for sensitive projects. trump has praised president xi jinping over korea.

he believes the north korean nuclear problem can be solved. has. trump: president xi been pretty terrific. whether cutting the banking system of from north korea, cutting supplies down. north korea is a thing i think we will solve. if we don't, it will not be pleasant for them. pleasant, ibe guess, for anybody. >> the news out of venezuela, the country will -- restructure its debt. it will be making a one dollar billion payment on its oil bonds. goldman sachs is the biggest owner of its u.s. dollar debt. global news powered by 2700 journalists and analysts in more than 120 countries.

let's go to juliette saly for an update. looking at the japan is closed for a holiday today. the regional benchmark on track. stocks.vement and is ip we are watching the apple suppliers. we have seen some of those suppliers rally. chinese bonds are under quite a bit of pressure. the aussie dollar is falling after flat retail sales for the

month of september. hong kong retail sales are coming. this is bloomberg. emily: yesterday, lawyers for twitter, google, and facebook lawyers ongrilled by capitol hill. they were forced to answer about possible russian interference in the 2016 u.s. elections happened on their platforms. their ceos were notably absent all stop i spoke with the twitter ceo for his thoughts on what went down in congress this week. and how much responsibility these three companies bear. >> it was separated into two things. responsibility once they understood the problem and issue to discover the scope of it, and address it.

and i think they are doing that. it would be a mistake to say that their responsibility for missing it. this is stop that has come to light after the elections. i don't think anyone new what happened. everyone has been seemingly surprised by it. it is a matter of doing the detective work to find out how deep and broad it was, and attack it as quickly as possible. shouldwhat changes twitter do? made an aggressive statement about how we will be more transparent about political ads that are purchased. we will be more aggressive on abuse. those are great steps. i would like to see us be a lot more aggressive. emily: some people say the ads are not the problem, it is the number of fake accounts. people pretending to be somebody else.

twitter said in the hearings bots.hink 5% are i trust the folks inside the company if they are giving the number publicly in front of the house hearings. i expect they believe that is the correct number. ,he thing you have to remember sometimes there are researchers who say it was a lot higher. they're going off of raw api feeds. they're looking at tweets coming to programming interfaces before twitter delivers them to users. emily: is it true these networks are essentially ungovernable? you have hundreds of people

trying to monitor more than 300 million accounts. >> know. i do not think that is true. you can apply all sorts of machine learning techniques, and other kinds of algorithms to do the things you should be doing, and do a better job of. like protecting the community and making sure the information delivered on the platform to the greatest extent possible is not foreign propaganda, and fake news, to use the term of the day. these proceedings were called fraudulent. it is ridiculous to blame these social networks for potentially swing the election, and spreading information when there of whatad spectrum

misinformation actually is. what you think? i will try to take a more nuanced approach to the answer. on one hand, you could say people lie on tv all the time. to one or twot news networks and say, that was not remotely true. it is not facebook, twitter, and google's problem. it is everybody's problem. my position is more, we have to take responsibility for trying to prevent this from happening again. it is the leaders in the technology field who are delivering algorithms that we think are best suited to deliver the right information. we need to bear the responsibility for addressing this. i want some of the hearings, and counsel, of twitter's and is one of the more ethical people you could ever get to meet. i think it would have been better if those hearings were

more about problem solving in finding solutions, and less about political theater. you get long-winded statements that come with questions in the form of an accusation that seem designed to make the person answering look either complicit or stupid. choose one. i would like to see them be more about, let's work together to find solutions, and problem solve, instead of blaming people to get on the evening news. emily: is twitter a media company, and what is his responsibility? >> it certainly is in the media business. there is a sense in silicon valley that these companies are responsiblend only for distributing information, and not making editorial decisions. i think jack is acknowledge this. these companies, all of them, youtube, twitter, a spoke make

editorial decisions all the time. this does not meet our standard for nudity or pornography or whatever, so he can stay. this one does not need it, so it has to go. companies need to admit, we make editorial decisions all the time, and we need to live without and understand that being in the media business, even if we are tech company, means we are going to have to take more responsibility. emily: what are some solutions as you see them? you know how hard this is. >> let's be clear. the ads are not coming from wanting to pay for cornhusker moms for trump. it is not that simple. i think you should only take lyrical ads from organization --

you should only take political ads from organizations where the election is taking place. , that dos like that not let the election fall outside the bounds of that region in which the election is .aking place that seems like a simple and obvious one. legislationwith around things like transparency are that the organizations are ,ot going to name themselves but the former soviet republic of so and so. they will name the cells that sounds like the iowa or california grassroots republican organization or democratic organization. it has to be more about the organizations themselves a

formsered on filing their in the countries or regions where the elections are taking place. emily: you have been vocal about harassment on these platforms. twitter has said they will change the way they approach harassment. it will be more transparent. in the wake of rose mcgowan getting suspended as she was talking about being sexually assaulted. do you think it is too little too late for twitter, or can twitter get this problem under control? >> it is a problem they should address. of -- beld be more more aggressive in addressing it. i do not think it is too little too late. it is one of the most vital and important platforms in the world. to getiterally the way information or your opinion about something out in a moment. it will be that way for years to

come. get more aggressive now. emily: is it a matter of being more -- being used that is is transparent, what would also be helpful is for these organizations to provide certain for why a decision was made. it is one thing to say, we made this decision because of this specific tweet. but then people might draw the wrong conclusions. it would be helpful, i get how hard this is, but it would be hopeful to say we made this decision about this content for these kinds of reasons. that might not solve all your problems or answer everybody's questions, but it will give people a better understanding of what is going on behind the scenes, and why some issues are as challenging as they are. my interviewas with former twitter ceo, dick

costolo. while american lawmakers are not the only ones concerned about alleged russian interference in the political process, u.k. elections regular is looking whether russia used social media to illegal influence the brexit vote. it is speaking to a spec and twitter to see who paid for political advertising in the run-up to the 2016 referendum. coming up, two of the major players are heading in opposite directions. us. the latest numbers tell we will continue to monitor apple story.m the >> our entire business was up 75% over the year in the fourth quarter. in fiscal 2017 already generated the annual revenue of the

fortune 400 company. ♪

emily: shares fell to the lowest level since the delivery service launched its ipo in june. this despite the third-quarter revenue beating analysts expectations. editionon sees come from competitors like hello fresh and amazon. it is reeling from recent rounds of layoffs. alex, talk about the latest. what happened? was not a great day for blue apron. sales did the estimates, because estimates have come down a bit as folks are not optimistic

about where this company is going. when i looked at the actual results, a few things jumped out at me. the first is, you have to remember this is a company based on marketing spending. when it comes to customer acquisition, it is important for blue apron to spend on marketing. building had issues out their operations, they spent less on marketing as a percentage of revenue. quarter before the ipo. that is the share of revenue they spent on marketing all stop third-quarter came down to 16%, the estimate for the fourth quarter works out to be 15% of revenue going to marketing. why is that important? when you look at the customer's blue apron has and the amount of customers the cusp -- the company is losing, pre-ipo they were sitting pretty at one million customers. close to-quarter it is

856,000. none of those are good things for a money-losing company that is now jockeying against amazon, and has a fresh competitor, hello fresh across the pond. emily: what do they need to do to turn the ship around? alex: they talked about building out the center in new jersey. they scrapped plans for another location in california. a lot of talk today was on improving margins and pushing profitability so they actually have capital to put to use as they continue to build out. that would give them the ability to spend more on marketing, and spend more on acquiring customers as they go forward. stateg to that profitable is important, but again, the guidance fortheir the second half of the year for net losses, they expanded that

millionpoint of $135 just in the second half of the year. that is down $10 million more than they thought. why is hello fresh getting a more positive reception? alex: they came out and said they want to be profitable in 15 months. they cannot confident moving into the u.s. market. a lot of the onus is on the logistics. blue apron stumbled on that hard . with problems shutting down plans for the california center. hello fresh has more of their house in order. if you have the ability to continue billing out your operations and pushing from hello fresh is market -- hello --sh's market,

thank you for the roundup. coming up, more highlights from the apple earnings call, which is starring to wrap up. check out this live shot of the apple store in sydney. customers getting their hands on the iphone x. we will talk about demand. there are lines in tokyo, singapore, and around the world. this is bloomberg. ♪

>> we ended the quarter with 269 billion. -- billion of this cash

cfoy: that was the apple reporting just before the iphone the shelves. lines are already forming outside stores around the world. we are watching people getting their hands on the phone for the first time in sydney. apple ceo tim cook admitting he cannot predict when i found x -- iphone x supply will meet demand. what are the big headline takeaways in terms of what you have heard over the last hour? >> tim cook just said they do if they are going to move supply. a lot of people want these things. it is very difficult to produce.

cook also told me he expects that wait times will go theytoday or tomorrow, as start to get a better handle on things. he also said he is pleased with the ramp up. shots ofoking at live the apple store in sydney. people are waiting outside. they're waiting outside in tokyo and singapore. ideawill we have a better of how supply and demand will matchup? >> today i think. i noticed ons ago apple's website, shipping times germany and italy, a few other major regions including the united kingdom, are reduced three to four weeks. three other big regions, the , andd states and in canada hong kong we are seeing unavailable status on the website.

in the u.s. and canada, we're still seeing the five to six weeks shipping time. emily: there was an important question asked about pricing. what is the actual strategy here? >> the strategy is very interesting. they have price points for all sorts of markets. a $350 base price point two us in the united states may not sound like a lot of money for people. in places like india and other and developing markets, $350 is quite a bit of money for a phone. we will see if they make a cheaper iphone for those regions to grow their. saying they are up double every year in terms of revenue.

at the high-end for early adopters, people are ready to spend $30 to $50 a month, the iphone x is there for them. emily: thank you for joining us. the iphone x on sale now in sydney, singapore, tokyo. folks are waiting outside the door together hands on an iphone x. we will be covering this for the next 24 hours. that does it for this edition of "bloomberg technology." that's all for now. this is bloomberg. ♪ is this a phone?

or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.

anna: succeeding yelling. president trump backs jerome powell as the next fed chair. equity trading revenues miss estimates at the french banks. demands pundits. -- demands plunges. anna: president maduro says the country will restructure its repayments, saying u.s. sanctions have made it impossible to find new financing. manus: apple optimism. forecasts topses

expectations, sending suppliers higher in asia. ♪ anna: a warm welcome to "bloomberg daybreak: europe." i am anna edwards. manus: i am anna edwards. we will hear from socgen shortly. they are in talks with the u.s. authorities. this is a big issue for the banks. litigation hanging over them. resolution of matters could be weeks. they talk about revenue being down 19%. they have taken a beating, but i

suppose we give and take is they are nearly at the settlement point. we will talk much more about that in the next hour. anna: let's talk about the emerging markets debt space. i know you have a chart on venezuela. venezuela seeking to restructure its debt, blaming sanctions. one key question some investors are raising, does it really got to go through complex restructuring of debt? does it make it difficult with u.s. regulated companies? you have a chart. manus: we have, indeed. have a look at venezuela. is venezuela.

you want to understand about contagions. there is debt owed by the government and bonds owed, but they are going to make the $1.1 billion limit -- payment. the cbs was ahead of the game, but it is the mixed message. will they continue with that? anna: some people saying, what are you doing that? why are you paying that? a lot of questions there. we will find out. let's put of the risk radar. the apple mill. the apple bump is being seen across the markets. stocks in there that supply apple getting a boost in the apple story. generally, the asian equities picture is mixed. president trump planning his 11 day trip to the region.

also focusing on the jobs report. onr 300,000 is what i see the bloomberg. this may end up in the 2017 policy great. there is a lot to do in the tax reform. aussie retail sales next again. -- missed again. let's get to juliette saly with your first word news. juliette: societe generale's treesequities trading turned into core performance. a temple 19% from a year earlier, missing estimates as derivativeged for products. >> our business has more impacted on the equities side. , in linexed income

with global environments. in equities, we have been more impacted to our businesses. we have businesses oriented unstructured progress -- products. -- on structured product. juliette: venezuela's president has said his country will seek to restructure its global debt after the company makes one more payment. maduro blanket u.s. sanctions on making it impossible to finding financing. ands will be transferred for $1.1 billion printable payment on bonds that came through yesterday. billion payment on bonds that came through yesterday.

the ceo and chairman of goldman sachs says now is not the best time forecast cuts. -- time for tax cuts. is then't see this moment when you would want the most fiscal stimulus in the when you are mostly full employment. i don't know this is the moment when you provide the biggest stimulus. background is a terrific background. again, a lot of government service, service in the fed, service in the private sector. i think he is a credible candidate. i am not one bit disappointed. >> i am not -- i could not be more pleased with this nomination. i think he will be an outstanding fed chair. for himll be important to listen and learn the economic analysis. he has been an avid consumer and

excellent consumer of the that economists have put up. he is continuing to that. juliette: global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . japan closed today. saw june 1996 highs on the nikkei. the hang seng up .4%. we have seen small caps in particular on -- under pressure this week. .ustralia closing higher flat retail sales for december. we are watching apple suppliers and the region, most looking pretty good on the fact that the iphone x has gone on sale. you have manufacturing in hong kong up by 9%. sessiona had a good thanks to a couple broker

upgrades. air china has rallied 25% over profitk, a little bit of taking coming through on that stock in hong kong. anna: thank you very much, juliette saly in singapore. has talked up the strength of the u.s. economy as .e pledged he commented after being nominated by the president to lead the federal reserve. that, asat has -- republican leaders to get out a tax bill. our reporter joins us now. westpac says this could be the graveyard of proposals for 2017. let's talk about the upside. what are the key takeaways? is it a game changer?

>> ultimately, it depends on who you talk to. there are two separate implications that are there to be considered. one is for financial markets and one is looking at the actual economy. financial markets have taken tax cuts,owards progress towards tax reform is a positive. looking back all the way to the election outcome in november of last year when they thought trump win, the initial reaction was negative, but as financial markets started to price in relation and the fiscal stimulus from tax cuts, everybody thought it was a good thing. we saw stocks go up, the dollar go up. we are still in early days here. u.s. tax legislation is a torturous process. you have the house, the senate, they have to come to an agreement.

you have the potential for investors -- for filibusters. it is complicated and will take some time. if there is significant progress towards legislation being passed, we can expect to see a reaction in stocks. we can expect to see some reaction in the dollar as well. economy, itk at the splits along ideological lines. there are those who say that with $2.3 trillion worth of tax under books, u.s. companies are flush with liquidity. if they want to invest, they have money. invest,really wanted to the money and the borrowing power is there for them. there are others that say bringing me tax rate down to 20% will boost growth and boosting incentives for more spending. anna: that is the tax story, which could be torturous and deliver a big impact or not.

what about the expectations around rome health -- around jerome powell? he is very much a continuity candidate. he is the guy who has voted in lockstep with janet yellen on policies since he joined the board in 2012. there is no reason to anticipate a major shift in fed policy under chairman powell, assuming he gets senate confirmation. there is always the wild card. positionsother said that are still open on the board. -- other said positions that are still open on the board. unclear if the president will appoint other hawkish members. be keyre going to questions at a time when central banks more probably are

basically in an inflection point --er a decade of upping pumping liquidity into markets. they are shifting towards ending that stimulus. it is going to be a challenging time for chairman powell to be joining the board, and he doesn't know who his fellow board members are going to be. these are going to be key questions for markets and the economists. manus: thank you very much. a very comprehensive around up there. jane is our guest host the next hour. trade.tinuity who sits in the vice chair? if that is taylor, that could be perhaps a more grammatic announcement. jane: this is exactly right. we know powell is continuation.

many unusual to have so seats open on the board. several other seats that will come up. trump has the potential to really sway have the board will be. that is quite unusual, the amount of seats that are free. about trump,seen he probably doesn't want to much of a hawkish start at the fed. this is about regulation, two. probably, janet yellen's innfall was that, back august, remember she was outspoken about the need to maintain at jackson hole. it suggests trump probably errs

on another side. we have seen the dollar heading for a weekly loss. is this all around powell, or does it reflect something around the text question -- the tax question? i think this is a reaction to this news. their reaction to the tax announcements, there were certain groups that aren't pleased and some that were. if we take a step back and look on the yield curve, it has been driving the dollar really since september. we have seen yield pushing higher, dragging the dollar higher, and we got to a position ,here perhaps the news came out and now that we know some of the

tax plan, perhaps some of the difficulty now starts. we're going to have to push back and it is a rocky road to go. we had a guest that said now is not be time for tax stimulus in the united states. he focused more on the feds unwinding of the balance sheet. to require a going deft touch. perhaps the bigger story is the --. they have said they are going to be very careful. one thing we must put into isspective the balance sheet that because of population growth, demand growth, demand

for cash and dollars rout the world, the reduction of the balance sheet we will see will not be taking it back down to where it was before the financial crisis. that will turn into demand for the liquidity, meaning the reduction be anything aggressive. anna: in terms of the tax story, what is your assessment? we won't know what it is going to look like. but will be the overriding point of interest -- what will be the overriding point of interest? --l it overseas taxation will it be the overseas taxation? what will be the key part of this? jane: they are all important in their own right. think what is going to be key for markets in the next few weeks is how politically this goes down.

? is it going to be rocky -- is it going to be rocky, significant pushback? the market has been looking forward to the tax reform since september. if there was a lot of pushback, maybe we won't get this legislation through by the end of the year, and that causes implications for midterm elections as well. anna: jane, thank you very much. jane foley stays with us. we are getting breaking news. air france giving us their numbers. the opera and income coming in at 1.0 2 billion euros. -- 1.0 2 billion euros. they say the the improved bookings for the rest of the year. two years it has not been as strong. saying strong demand is spurring fares and a most all geographical areas, which is interesting. start up a newto

fairground in december. next, societe generale . we hear from the deputy ceo of france's second-biggest bank. this is bloomberg. ♪

♪ anna: this is "bloomberg daybreak: europe." societe generale has reported third-quarter results that show a drop in net income. equities and prime services revenues dropped 19%. bloomberg spoke to the deputy ceo. bitur business has more -- more impacted on the equities side, because on the fixed income, in line with the global environment. in equities, we have been more impacted due to our business. we have business more oriented

products, which are more sensitive to the low volatility. we have low revenue in our equity and prime services, -19%. announcement in earnings is your provisions of 300 million euros. you said you are going to seti -- settled the case is in the u.s. in the coming weeks or months. can you tell us about this? >> we are currently in discussions with u.s. authorities on to specific pending litigations you mentioned. -- on two specific pending litigations you mentioned. we now know when they could be settled.

we decided to complete our general reserve by 300 million euros this quarter. reserve, journal covering all pending litigations. -- this is a general reserve, covering all pending litigations. forgetting the outside case, it is also too early to say when this could be settled, but it is likely this case could take a longer time. when do you see a turnaround on retail? >> it is a good question. the rhythm and speed is continuing to decrease. we have seen a continual decrease in the number of loans. it is not the end, but we can expect the end is close. probably you could have lower impact next year due to this end

of the negotiation period. >> earlier next year or more towards the end? >> it is too early to say that. the trend is better than it was one quarter ago. you canthat mean relocate even more activity than you may have planned post-brexit if the negotiations don't clarify in the next few months? >> forgetting brexit, the situation is also -- regarding brexit, the situation is also of high importance to us. we need to understand when. fors an important question all of the banks, especially for us. the current situation of the bit concerning a for us. no more precise direction, the banking industry .ould have to make decisions

it is an important piece of information to have early next year. if not, we will have to make earlier decisions. we have are denounced -- announced that brexit will lead to -- scenario world case involving more transfers? >> it is the worst case scenario for us. was the deputy ceo. jane foley is still with us. mixed into societe generale and everybody's numbers is repressed volatility. when you look at the euro story, we were debating whether we would use one month, three months. the euro has been triumphant,

but that is what you say is a dollar weakness story. in my at the beginning of a new -- mi at the beginning of a new rise in the euro? at hasost of the year been weaker, part of the dollar weakness story we have seen this year has been because of the rotation back into the euro. back, from antep investment point of view, this is as good as it gets in the eurozone. no one would have anticipated that if the student here at the end of last year. we have no interest -- we have low interest rate policy, low inflation. that is a good environment for growth. it is still a very good story,

and that should be good for the euro. anna: jane foley stays with us. we are back to looking at the politics again, ahead. this is bloomberg. ♪

♪ manus: it is a live shot of london. a beautiful day out there. cable is bouncing. it lost 1.4% yesterday. battered, bruised, whatever phrase you want to use. mark carney pulled the rug from under the pound. a small reprieve for the pound is mine. -- for the pound this morning. nejra: i was there was a more exciting market story to tell you about. asian equities are treading water. we are looking