>> asia-pacific markets expected to rise at the start of the last week before the holidays. tax cuts in the u.s. seen as the catalyst. >> president trump has no doubts. he awaits his first major legislative victory, saying the bill will rock the u.s. economy. >> and a boost of malcolm turnbull as the government through girardi -- as the government's majority is restored in parliament. >> bitcoin fans have reason to

cheer as the cryptocurrency heads to a bigger wall street stage. >> hello from sydney where it is just past 9:00 a.m. i'm haidi lun. we are in our out from the open of asia's first major market. kathleen: i'm kathleen hays. sometimes we say monday night, sunday morning in the u.s. a quiet recap. between bitcoin futures getting ready to launch and the tax plan on friday, i think we have got to wait to see how much this does not just rock the u.s. economy, how much it rocks asian markets as well. haidi: absolutely. with the comments, marco rubio throwing a stunner into the works and getting more pessimistic about tax reform. all of that seems to have changed. we could get the crucial vote before christmas. as you say, bitcoin mania again making headlines yet again. the thing to remind ourselves of is that this could be a much bigger deal given that there are expected to be much more players

involved. kathleen: the cme is a much bigger stage. if we look at the cbd launch as a curtain raise, a practice for the big time. stock market looking pretty good on friday. we will likely see followthrough in the asian markets with the dow jones industrial average gaining 24 points to 2675. the dow jones industrial average gaining .6%, nasdaq up about 6936.0 points to haidi: if you look at the set up in asia, we should be getting pretty positive. aussie stocks getting ready to rumble. take a look at training in new zealand ahead of a pretty data heavy week. a downside of about .3% when it comes to nzx 50 shares. .69.iwi dollar at about

are lookingustralia a whole lot more positive, the s&p ready to get into the last week of trading before christmas outside of 29 points or about .5%. the aussie dollar, 7647. potentially u.s. tax or form getting past, certainly seeing some resilience. the turnbull government is holding on to its slim majority and looking to use the results of the election to kickstart into the new year after what has been a very difficult 2017 for the australian government and all the kiwi at 1.0926. the first word news now with ramy inocencio in new york. ramy: thank you and good morning. first up, brexit negotiations. the u.k. foreign secretary boris johnson has stepped back into the debate, telling the sunday times he wants a deal that would give the government the power to reject eu laws.

he says failure to do so would render the country a vassal state. on the other side of the channel, the chief eu negotiator confirmed that brussels has no intention of offering the u.k. a more favorable deal than it has with anyone else. china is looking for deeper financial links with the u.k. post-brexit. trade talks in beijing ended with britain announcing more than $33 billion worth of support for u.k. businesses taking part in china's belt and road initiative. other agreements include speeding up the london shanghai stock connect, which would let investors in each country trade shares on the other's exchange. malcolm has regained his majority in parliament after former tennis star john alexander won a election in sydney. the voting saw a 5% swing against turnbull's liberal national coalition. if that were replicated in a general election, his coalition would be defeated. a poll on december 4 show the

government trailing the labour party by six points. in south africa, the vote for president for the african national congress has been delayed a second time with almost 10% of party delegates being excluded. just two people are left in the race. andty president ramaphosa jacob zuma's ex-wife. the bitter campaign has divided the anc, which has been in power since white majority rule ended in 1994. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. haidi: thanks so much for that. republican leaders expect congress to pass tax legislation this week, something president trump says will give the economy a major boost. roz has the latest out of washington. sort of last-minute momentum. were there any final hitches we are looking at? the president sounds pretty positive. >> the president is very

positive, his treasury secretary was positive, and we also heard from top republicans in congress , john cornyn on the senate side, the number two republican, and kevin brady, the top house tax writer, all sound very confident. it does not seem like there will be too many hitches. probably seeing a vote in the senate on tuesday and the house on wednesday. i think that is not totally ironclad, but it does not seem like anything is standing in the way of the bill. we won't have senator john mccain. he won't vote, according to a report from cbs this afternoon, but we think republicans still have enough votes to get this through. kathleen: go ahead, haidi. ,aidi: i was just going to ask the president is set to make a speech about national security. what are we expecting here? ros: very interesting speech tomorrow because president trump

this weekend at camp david really did not meet with any of his national security officials, the defense minister for example , or tillerson, the secretary of state. we think the speech is going to look at economic security and be kind of a restatement of drums very muscular america first policy that he ran on in 2016 very successfully. there was a report in the financial times this weekend that trump would call out china on economic aggression and being an economic competitor. we don't have confirmation of that or of any possible new tariff announcements, but the secretary of the treasury, steve mnuchin, did say that china is a competitor and we will reflect that in the president speech. -- in the president's speech. it could be an interesting time at 2:00 p.m. tomorrow. kathleen: interesting is putting it mildly. new paul lang -- so many people

pollimng. ng. a lot of us showing that people want democrats back in control in congress. what do you chalk this up to? the tax bill, all the news about sexual harassment cases hitting men in politics, in the movies? ros: in a way, it is all of the above. typical --inly not it is usual for the party in power, the party who has the white house, to lose seats in a midterm election because it is a bit of a referendum. i think americans, much like financial markets, really like to see not that much going on in washington. they like to have divided power. if there is still a republican in the white house, president trump, many americans would like

to see democrats have more feet in the senate and the house of representatives sort of as a check and balance. there is that dynamic going on. also the same polls from the nbc and the wall street journal showed that voters who don't like trump really don't like trump. pointquite an interesting that those who were strongly against president trump really outnumber those who are just mildly against president trump. it sounds like democrats are fired up for the 2018 elections. we saw that in alabama this week. wasink that's what kind of behind that interesting polling today. kathleen: all that's might be off the democrats if president trump is correct and this tax plan does get the economy going, but there is a long road to go before we see that.

roz grassi, thank you for joining us from washington, d.c. bitcoin futures, another big story. if really quite initial week on the cboe exchange. , but whentill abound the nasdaq rose out its version next year, all three of the largest u.s. futures exchanges will be involved. who better to tell us about it than the person who has been watching markets for so long? >> what it means is the revolution is underway. when we see the cme launch, it brings a much bigger exchange, 55 times the volume of the cboe. we are bringing a much bigger player. in terms of the way the contracts are traded, cme -- cboe has one bitcoin contract for future. cme has five. if you look at what has happened so far, cboe had about 10,000 contracts for 180 million in bitcoin that changed hands.

a lot of it had to do with the fact that some brokerages did not yet make the futures available. that is still being sorted out. we have not really seen this thing get off the ground and running. another thing cme will offer which you are also seeing on the collars to trading stop huge price swings. if thell cause trading contract rise as much as 7% or 13%. prices want be allowed to swing more than 20%. they also have special volatility halts, triggered initial hours for the cboe. is what a important of wall street wants to do is arbitrage. i had a nephew very interested in bitcoin because his whole age group in the late 20's is into this. what is wall street's interest? i pointed out that arbitrage is a big part. let's go into the bloomberg. that is where traders will go in and trade the difference, the

spread between the actual future and the underlying currency. the premium has declined from as high as 13% a week ago down to 2.5% as of friday's close. what that shows is that even with this initial introduction a a futures contract on limited exchange, you have already seen some efficiency introduced. it is a sign that the bitcoin spreads are coming in rather narrow. they have been cut in half after only a week. if you look back to last friday, 414 to buy the futures contract versus what was higher than the actual bitcoin underneath it. that is one of the things we will be watching as this comes forward. monday is the day that some of the brokerages will allow their traders to participate in the cboe. haidi: of course, one of the other things we are watching his price. bitcoin has been steadily pushing toward $20,000. what does that mean for the outlook? su: interesting in a number of ways.

if you look at the unregulated exchanges, that has had the currency run-up to almost $20,000. a lot of observers saying it has not cracked that amount yet. what is important for the wall street institutions is that they are not allowed -- again, bitcoin is not surrounded by any government regulated currency or commodity -- you can't really have a wall street financial former entity holding an unregulated instrument on their balance sheet. a futures contract, however, is something they can hold. even if you don't have the actual bitcoin, it solves the custody issue and risk with the regulated exchanges and allows wall street to get in on this. last week, traders are always looking for the wild ride and a way to exploit differences. on this vehicle and found a way, but there are so many things to be sorted out. we are seeing the spread between

the future and the underlying currency, but we have yet to see the volume really get under way. by this time next week, we will have a better idea of how this thing is settling out. haidi: thank you so much for that. another milestone in the opening of the bitcoin universe when it comes to investors potentially going into it. looking ahead, we will be live in camber as malcolm turnbull hopes john alexander's election win will kickstart the government. kathleen: the federal reserve sees three rate hike this year, but our guest is betting on four. we are going to speak to charles lieberman coming up next. this is bloomberg. ♪

haidi: what a holiday nightmare.

you are looking at live pictures of grounded planes at atlanta airport, the world's busiest airport. at then power outage heart of jackson international airport on sunday, grounding what looks like over 600 flights as of just before 5:00 p.m., according to a flight tracking service. the busiest travel time of the year at the world's busiest airport. we are looking at thousands of passengers stranded at this airport, kathleen. it is a bit of a nightmare for people trying to get last-minute business done before christmas and others starting to head home or head on holiday for christmas. kathleen: i would say if it had to happen, better happening sunday night. they have time to get it cleared up and get people back in the air. it is not good, but could have been worse. a week from today would have been the worst. those are some pictures that make me glad i was not flying this weekend. let's turn to the federal reserve. they met on wednesday, hiked their key rate, and projected

three more next year. we are going to talk to someone who thinks the market is not pricing in enough. we particularly want to know how he feels his argument is perhaps strengthened by the republican tax plan, which looks set to pass this week. that would be advisors capital management chief investment officer and managing partner charles lieberman. welcome, great to have you. we wanted to talk to the fed. there is an important link between the tax plan and fed. if it boosts growth, it seems to me it hastens the fed. are you so sure this tax plan is going to boost growth? are alreadyand cfos saying, i'm going to buy back stock and boost dividends? that does not sound like investment, new jobs, or more wages. guest: those are the more likely things they will do, but they will probably spend more on capital investment as well. the real underlying force is lowering the cost of capital.

that is precisely why the fed is not raising rates rapidly. it wants to raise rates as slowly as it possibly can, keeping interest rates down, keeping long-term interest rates down reduces the cost of capital. to the extent that companies are swimming in cash, it means to them that capital is cheap. kathleen: so capital is cheap. taxes,l -- so if you cut why are they going to invest more of this capital that is already cheap? guest: the demand is already out there, that is why the unemployment rate is so far down. the fed's statement is kind of strange because they increased their projection for gdp growth, reduced their projection for on employment, yet did not change their projection for interest rates. something is a little bit amiss. the excuse, because a couple of them are strongly in favor of keeping rates unchanged for as long as inflation remains below the target, so the excuse is

inflation has not picked up yet. if you look underneath the surface, you see wages beginning to accelerate, prices beginning to accelerate. i think the tax cut is going to strengthen that. kathleen: that seems like the biggest wildcard we are facing, chuck. get started, it seems to me it will boil up slowly. guest: maybe. it is possible it will boil up slowly and also possible we can push this as tight as it can get and incrementally at the margin it will put more upward pressure on inflation. that remains to be seen. i am absolutely open-minded on that question. haidi: given that we had some success -- it looks like the president is going to get his christmas wish when it comes to tax cuts being pushed through, does that change your view on the dollar? i want to throw up this quick chart. it has been a horrible, no good year when it comes to the u.s. dollar.

we are on track for the worst losses in over a decade, about 8% your today so far. that seems to the benefit of some asian currencies. do you think getting this legislative victory through changes the picture when it comes to the currency going into next year? guest: it will if we start seeing higher inflation and the fed has to raise rates more. the fact of the matter is, the market thinks the fed is not going to raise rates. i think the last part is certainly true. to the extent the dollar has been weak, that means foreign goods coming in here become a bit more expensive -- excuse me, a bit cheaper. it is a release valve, to some extent, for domestic demand, but it also means u.s. companies are going to continue to export very competitively overseas. that is an incremental source of demand. haidi: one of the guests we had last week said the fed is going to struggle to even grow once

next year because the tax cuts are not going to pass through when it comes to lifting consumption or inflation, because they are targeting the wrong segments of the demographic who would go out and spend. guest: look, without the tax cuts we are running over 2% -- almost 2.5%. the actual numbers are coming closer to 3%. that isbasis, sufficient to continue driving down unemployment rate at a pretty hefty clip. the risk is we actually reinforce that trend, so we push the unemployment rate down even further. i don't know where that view comes from. it does not make economic sense to me. the labor market in the u.s. is clearly very tight. every firm says it is difficult finding workers. we are seeing that in every possible measure on the labor market. record levels of job openings, record lows of people being laid off, strong job growth, the unemployment rate at cyclical lows.

every single account, time is not the fed's friend. kathleen: one of the big stories of these last couple months of the year has been the very flat yield curve. let's say you are right and inflation is going to start bubbling up and the fed will make it clear, we're thinking of more than three rate hikes, even four. what is going to happen to bond investors? what is going to happen even to equity investors if the yield curve starts steepening? guest: the yield curve is likely to react by steepening. when bond investors start seeing upward pressure on inflation, they can't sell off the short end because that is controlled by the fed, so they selloff the long end to cause a steepening of the curve. the bottom line is the cost of capital is on the long end. even if it rises, even if yields rise a little bit, capital is still very cheap. it is not really going to inhibit the economy. the biggest negative that is out there is rising interest rates

could scare stop investors. we could see a retracement in the stock market. right now it looks like clear sailing. kathleen: without that happening, where does the s&p 500 get in 2018? >> i think we are good for 5% to 10% higher on the s&p, corporate earnings pretty strong. kathleen: thank you for joining us on this sunday evening in new york, monday morning in sydney. chucklieberman -- lieberman. we will be joined next by the ceo of hong kong exchange and our interview with charles lee at 8:40 p.m. in new york. also on bloomberg markets: asia, we hear from allen. and don't miss our interview with former bank of england pozen.aker zach stay tuned. this is bloomberg. ♪

haidi: i'm haidi lun in sydney. kathleen: and i'm kathleen hays in new york. now for a quick check of the latest business flash headlines. tencent is stepping up its challenged alibaba, entering physical retail for the first time, buying a stake in a supermarket chain for $640 million in what is seen as a way to boost its digital payment service. the deal follows alibaba's initiatives to buy stake in a retail group last month. bidderthere is only one with a share option do later on monday. they will use vietnamese units to sidestep local laws against foreign ownership. brewers have been attracted to the vietnamese beer market, a 300% surge in the last 15 years. shares have jumped more than 50% this year. kathleen: china's electric

carmaker launched its first car three years after being founded and undercutting rival tesla. it has a range of 300 kilometers. this is bloomberg. ♪ ♪

sydney,t's 9:30 a.m. in markets open in 30 minutes time. it was the week before christmas, futures looking bright in sydney up five cents of 1%. kathleen: i'm kathleen hays in new york, it is 5:30 p.m. you are watching "daybreak australia." let's get the first word news. donald trump saying he expects the u.s. economy " to rock when congress passes is republican tax form package." this wiki is hoping for his first legislative victory. it was agreed behind closed doors by republican leaders. it would slash the corporate tax rate to 21%, tax cuts for most

individuals would expire by 2026. president vladimir putin called the white house for the second time in four, to think that cia for a tipoff that led to the breakup of suspected militant cell. ae information help target group that was planning a series of explosions across st. petersburg. the russian security service says seven people have been arrested, all claiming to be followers of islamic state. foreign sydney man has been charged with being an agent for north korea in australia. the 59-year-old is accused of attempting to broker millions of dollars of sales for components that could be used in ballistic missiles. he allegedly used encrypted messages to supply weapons. ghandi is the latest member of india's most famous

political family to take control of congress. , herarty losing support son is a new hope for congress for the next general election view in 2019. he has vowed to obliterate congress with the help of hindu nationalist forces. up in space, space tech has completed -- spacex has completed its to the national space system -- station. it was launched using a previously flown rocket. this is the first time space x has used a recycled rocket to carry a recycled capsule. the company is trying to drive down launch costs by using as much equipment as it can. global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. i'm ramy inocencio. this is bloomberg. haidi: malcolm turnbull has regained his one seat majority in parliament after john alexander won a by election in

sydney. our reporter joins us now. this is an interesting election. you have to give us some background. our story refers to this year's daul nationality fiasco. the fiasco has been broiling politics since july. it has called out about 12 australian lawmakers, most have been deemed ineligible to remain in parliament. daul nationals are required to renege their citizenship with other countries before entering parliament. quite a few haven't done that. being --uently is there subsequently being called out. there have been more, two members of the lower house, in particular are being called out.

deputy prime minister bonhomie joyce and lower house member john alexander. important, if they were ineligible to remain in parliament, the government lost it's one safe majority. yce -- they both face special won his tojoyce remain see of new england. john alexander faced polls on saturday. he had a much tighter fight against christina can nearly. still, he was able to get up and relieve pressure on the government. kathleen: john turnbull is in exactly having a great couple of years, is he? what does this mean for him? it takes the pressure off of him, he has had a tough year.

inhas had a lot of pressure his own party, his own coalition of lawmakers, about his leadership looking for direction. he has been accused of lacking vision. he has found it tough to get his policy agenda through parliament with the very narrow majority in the lower house, and also the senate sometimes has been referred to in calcitriol. he has been forced to do embarrassing backflips on things like a banking royal commissioner, large-scale investigation into the baking industry, which he didn't want, but had to gave in -- in the banking industry, which he didn't want. he has also taken measures to reduce energy costs, which have been concerning to consumers. in the last week of parliament earlier this month, he shipped it through the same-sex

legislation which he claimed victory for. mean he can got off on his christmas break fairly relaxed? or is there still pressure going into the new year? >> it's more relaxed. h to, he has two mont regather the troopss before parliament resumes in february. there will be budget updates, the media update budget will be released. he is hoping for good news from that to bouy up his message to voters that he is a sound economic manager. at the very least, his special election in the sydney seat has taken some heat away from the spotlight of his leadership.

kathleen: thank you so much to our government reporter jason scott, joining us in camera. let's move on to chile. billionaire sebastian the nara looks like he is going to win chile's presidential election. ing 54 point five with 91.7% of the ballots counted. this is an election closely watched by investors in chile and across latin america,. a billionaire is not going to lead chile, i guess. haidi: not to understate the fact that it is a big week when it comes to politics. we have had that result when it comes to australia. chile also voting in catalonia, that will be an interesting location of support. getting back to australia, the by election winner of the weekend comes as a media economic outlook is said to be

prepared. michael hayes joins us with a look at what we can expect. scott morrison announcing day-to-day expenses no longer have to be paid for. what has improved in terms of that debt level? >> with australia, it's commodity prices. we had a slightly better year than expected. meanty profits in term higher tax breaks. the government can find credit for employment. full-time employment has will. more people working, more people paying taxes. the amount of full-time hiring this year is the highest on record, so it has been impressive. profits and more company workforce, that has given them a budget fill up. is it sustainable? most people forecasting the trade, which incorporates commodity prices, will come back. the employment market the forward indicator suggests it

will remain strong. let's watch this space. the first time i've heard news suggesting there ahead of forecasts since basically the financial crisis. haidi: are we going to see him at use this better than expected outlook to push the corporate tax cuts? >> he will make that case. what he has been doing is the right direction. we could extend the corporate tax cuts from a small businesses, they can hire, invest more, do things for the economy. they have also started to flag the ability of tax cuts for lower income workers, which would be hugely important for australia. everyone is up to their eyeballs in debt. extra cash in the pocket would go a long way. but it is not cheap, an improvement in the forecast doesn't mean you have enough money to fund tax cuts. we will see. kathleen: australians expected

the government to take care of economy, while households continue to spend. is that still the prevailing attitude? or is the evolution of the economy, and all the things going on in the world starting to change that? >> the attitude still remains that the government should be running its surplus, paying down debts while consumers go on a spending spree. the consumers are almost at the end of the line. they have so much debt that i'm not sure they can borrow more to keep financing this. it has come to an end of natural causes rather than a shift. -- government relies australia relies on the consumers to keep the company taking over. if there is some way they can manage tax cuts, that would be a boost to the economy. at some point, interest rates will rise, people will have less money in the pockets. if there is more to get in there, wage risers are at a level last seen since recession.

anyway to get money in the pockets is a win. haidi: michael heath joining us from sydney. --kathleen: michael heath joining us from sydney. another thing taking off today is china, getting ready to start the important annual economic meeting. the central economic work conference. deleveraging financial stability, the priority we are hearing going into this meeting. we heard that earlier this year. when you look at the numbers, china has really deleverage much at all. maybe they are not doing this quickly, but they are still building up a lot of debt. credit flow, clearly those are still up from the numbers we have. it is a difficult balancing act when it comes to it. issues, structural changes that need to be made,

overcapacity that needs to be addressed, all while keeping this target employment number of to maintain social stability. if you want to look at it, in the 90's you had the big over ruling themes of policy growth over quantity, deleveraging, being a part of the environmental aspect. cracking down on pollution and getting that better standard of life. this week, the details will be looked for, looking for greater policy details on how that will be maintain. kathleen: it's interesting that this marks the start of xi term,g's second five-year it's a coincidence. one of the conjectures is that they may agree on a lower growth target at this meeting. we won't find out until march, that's when it will be likely to announce it. i think it will be interesting to see how much we learn in terms of after the decision is

made, and the policy going to be in limited when it concludes. we will have to wait to see how it gradually comes out. haidi: we have got so used to stability being the name of the game when it comes to china. last week, the tweaking the money market rates was an interesting reminder that you can't always expect for it to come through. the unexpected can really have the potential to rock markets. that is something we are definitely watching, particularly when it comes to the all the markets and the aussie dollar. let's get more on this event in china, what we should be watching as trading gets underway. there has been a relative calm when it comes to the market -- the money markets. in terms of longer-term borrowing, that's where we are seeing the interesting story. >> i think that's absolutely right. there's probably a temptation among china's fixed income

traders to breathe a sigh of relief. 2017,ave had a tumultuous yet now we are seeing those short-term rates being a little steadier. for the longer-term outlook, it suggests that would be a mistake. no room to let their guard down right now. if we put up a chart on the , that will show us the shy ball or rate, the shanghai interbank rate. you can see the premiums between three months borrowing rates. and one week cost has continued to widen. we still have premiums widen last week to the highest since 2014. it suggests there are some concerns about funding costs in the longer term. potentially, that could signal headwinds for chinese economic growth and its bond market. there is a less certain

long-term outlook there. all of this comes with other worries in the market. concerns around year and bank regulation checks, that needs to take place. that wall of short-term debt that is maturing. plenty for traders to digest as it comes to the end of the year. kathleen: i know you are interested in talking about forge excuse iron ore producers tumbled this year. you have been talking about how this would be quite a challenge for the new ceo to turn things around. threat to thether china -- thread of the china story. a big push to cut pollution, what that has meant for the iron millsrket, china still higher quality iron that helped with the environmental curves. it also means they can meet

margins when profits are quite high. they produce a product that is of a less high-grade. they have seen a dramatic turnaround in performance. in 2016, they rose more than 200%. they were the best performer among an index, australia's largest mining and energy companies, this year is the only to return a loss. challengeslds on the for the new ceo elizabeth gains. she is currently the cfo, she will arrive as ceo in february. she will need to turnaround performance, find a solution to the product.th china, the biggest market is turning away from the product it produces. if that is not enough, she will lead a drive to find new markets

and potentially diversify into other commodities. a lot for the incoming ceo to wrestle with next year. kathleen: if any of our viewers want to know more, a terrific story top mining stock becomes 2017's worst loser on china's steel ship. i'm sure our viewers will learn a lot. huge opportunity in china, they moved to ease restrictions on foreign investment. we hear exclusively from chairman jerry brimstone coming up next. this is bloomberg. ♪

♪ haidi: i'm haidi lun in see me. kathleen: i'm kathleen hays in new york. economic dialogue wrapped up with british financial services. standard life everything chairman jerry greenstone was a leading figure in the delegation.

speaking to bloomberg, he explained how western asset-management in china will rise growth for the next decade. >> just last week, we were given approval to start operating asset management business in china. we got napoleon foreign enterprises a year ago. we now have permission to start business. that business will be manufacturing and selling investment products in china. it's potentially a very important development. two years ago, they welcomed an application from us to get pensions license in china. this would make us the first four company to have a pet -- foreign company drive a pension license in china. complicated by the fact that the has no chairman at the moment. thingsanization of these takes time. >> that asset management side of

the business, are you adding headcount? >> the growth prospects derived largely from the fact that chinese portfolios are massively undiversified internationally. utilization in the insurance sector has met companies cannot invest in a much larger range of assets, including overseas. as it approaches, there are still licenses. in the direction of travel, that is opening up. i see asset-management into being oneout of china of the great growth areas in financial services for the west over the next 10 years. >> on the life insurance side, have you had discussions with your partners? are the willing to give you full control of the business at some point? >> we are creating -- operating alongside a strong partner is almost unknown in building businesses in china. great -- brave a

person to do it by yourself. if you get along well with your partner, i think you can see the venture categorized as some of the best relationships in china. switching and thinking to yourself do i want to take control of this isn't necessarily compatible with a partnership smart. it's there for the future. depend ongy doesn't getting control of the business at some point in the future. >> you have an appetite for chinese bonds? >> we certainly do. our emerging-market bond fund is one of the largest emerging-market bond funds. these bondidea, connect programs surely will come eventually. china will be cautious at the speed of development of them. i think we will see a number of baby steps. i think it is good to see before

you see complete fungibility between the u.k. are hong kong's efficiencies in china. jerry greenstone, aberdeen's chairman speaking with tom mackenzie. you can get a round of of the stories you need to know to get your week going in today's edition of "daybreak." christmas coming early for president trump in today's edition. is also available on the mobile and bloomberg anywhere app. this is bloomberg. ♪

♪ kathleen: i'm kathleen hays in new york. haidi: i'm haidi lun in sydney. you're watching "daybreak australia." a quick check of the business flash headlines. deal -- oracle has made a

at 1.2 million u.s. dollars. they will take 100% of the comics, which specializes in projects using the cloud. the deal was unanimously recommended by the board, but is due to a report. kathleen: longer leaves at an airport after a major power outage. the tower can operate normally, but other equipment is not working. are being sent elsewhere, delta sees widespread destruction for the sort -- foreseeable future. haidi: the fourth remains strong with the latest star wars movie. it enjoyed a $220 -- $220 million opening weekend. hollywood results but the latest installment well ahead of last spinoff, which took in $158 million in its first weekend. "the last jedi," is opening in china next month.

i saw it over the weekend. , that record-breaking streak that we have seen. kathleen: did you like it? haidi: i did. not unofficial motto by any -- notbut very enjoyable a fan by any means, but very enjoyable. that's it for "daybreak australia." up next, you will be with me over the next you hours. we will be joined by allies and reviewlking about budget in australia, with the next year holds in terms of commodity prices. where we will see this strengthening held in aussie dollar. 26 years without recession, can we maintain that? kathleen: you will also be speaking to leave and miller from china. he has been sending out some

people over china, gathering information. we will talk about what he thinks china has a lot of work to do at this conference. keep it right here, that's it from "daybreak australia." all the action on "daybreak asia." this is bloomberg. ♪

♪ >> president trump awaits his first major legislative victory. he says republican tax cuts will help the u.s. economy rock. haidi: optimism about that bill is expected to lift off. asian-pacific markets looking positive at the start of the last week before the christmas holidays. >> bitcoin fans have more reason to cheer as it heads to a bigger wall street stage. fori: a festive boost malcolm turnbull as the government majority is restored.