all i can say is that god loves this country and we all know it or who would not be where we are without him. we love all of you. and makeeep fighting it the greatest presidency with same. [applause] >> how good was that? another man who worked so hard and knows it inside and out, kevin brady. [applause and cheering] kevin brady: ok, guys. thank you, mr. president.

day.is an exciting i wore my -- champion ofll the the world series. i figured you would get some slack on that. historical in so many ways. know taxk when did you reform could be achieved in america for the first time in 31 years, my answer is always the same. november 8 when president trump, you were elected president of the united states. when you put together, the great ideas on tax reform from inside and outside congress, i have seen many of you with us.

remarkable leadership and courage from the men and women senate, and the especially my colleagues in the house. , mr.e house and the senate willingness to go across, save the table with us, and on the phone with us, to for yourne, but leadership, you would not be with us today. thank you so much. and let me finish by speaking directly to the american people. onre are three days to put your calendar. the first is new year's day. on new year's, our country will have a new tax code for a new you're a of american prosperity. new year's day.

in february, look to your paychecks. hard working americans will see the results of the hard work of this president and this congress to make tax reform possible. it will show in your paychecks. , this16, that hated day april 15 will be the last time you ever filed your taxes under your horrible broken tax code because you will have a new one. so it is a great day for our country and economy in the great day for america. thank you, mr. president. president trump: thank you. you did a fantastic job. another man with us all away in a matter when i called, he was there or he would get back within minutes, kevin mccarthy.

>> to the president and much -- you listenesident, to voices no one else was listening to. elicit the parent fighting for their children. you know what? people, you heard them. we would not be standing here today if it were not for you. it does not matter if you are overseas fighting for america. so many people back here got your phone call fighting for tax reform. is a big day for america. it is america's comeback. [applause]

come february, check your check. that will be the pay raise of a vote for donald trump. the beginning of a next century america. thank you and god bless. president trump: i want to conclude by saying this will be a big day when people look back at our country. it is a whole different attitude, whole different way. i really want to end by looking back in thanking all of those whole standing behind me worked for years. this was the culmination of a few months work, but they have been working on getting it done, mitchell or paul or kevin or oren, they had worked on this for years and years.

i just want to turn around and thank them all. there are very special people. thank you very much, everybody. >> that ends the celebratory event at the white house. the south lawn at the white house. the president spoke following the passage by the house and the senate of the tax cut bill. it just now remains for him to sign into law. we heard from mitch mcconnell and paul ryan and we heard from orrin hatch and mike pence. did i miss anyone? scott, don young, two senators from alaska. >> this is as united as the gop gets and it was all fixated on president trump himself. an extraordinarily successful year and exquisite residential leadership coming from paul ryan, the house speaker.

remarkable leadership and entrepreneur, president donald trump, a man of his words and a man of action. huge compliments to the president and all the -- from all of the speakers. >> kevin, this was nothing short of a lovefest. >> absolutely nothing short of it. senator tim scott from south carolina said it was he who first mentioned 2018 midterm elections, taking it had on that this will be the push back. he started for at&t, developments. many of them union members and $1 billion in domestic investments. and then chairman orrin hatch sheer will on the behalf of the president trump assuring in. it was not without any

last-minute political hijinks. just having to re-vote on legislation earlier today. this is a united republican party and sometimes a -- a defiant republican party pushing back against critics. question, a republican party trying to gain momentum as they head into the next calendar year. he hopes it is just the beginning of his ability to pass his legislative priorities. joe: it was pretty striking how few of the speakers address taxpayers and how many of them were basically praising president trump p or what do you make of the fact that that was the focus? this is a congress that had its differences with donald trump and he has taken to task --to take cam for to task for other issues. republicans get to have a coup by a moment.

it is a bigot, schmidt. polls suggest the public is not really sold on it yet. they came to washington and promised a big tax overhaul. we can debate the merits going , but it is a good day for donald trump. they can be happy donald trump is not taking aim at them and calling them by the first name and praising the job they are doing for a case. united,rats will be finding whatever they can in the tax overhaul to pay cap in the coming months. we are all to me is behind the president in ultimately united here. >> absolutely right. the lawmakers here at the white house right now, many of them in the house of representatives are headed back to capitol hill were

at 5:00 today, they will be at an historic meeting discussing how to avert a partial government shutdown by this week. a lot of the senators including republicans standing behind the president, including mitch mcconnell, house -- have differences particularly over reduction payments, saying they dismantled obamacare with the tax package. now they have cost-sharing production payments. that is not good news for senator susan collins who really made a deal with mitch mcconnell to get on board. . in january, a one-month extension. they -- the bottom line trying

to make sense of what it means, it is a big win for republicans reforming the tax plan. democrats are united in their opposition against this as you look ahead to the midterm elections. >> absolutely. the president is really punctuating the fact that this was the biggest in history in terms of a tax cut reform bill. we are looking at the numbers from the treasury department. if you look at the tax bill of 2012 in 2010 and 1981 on inflation adjusted basis, up to $220 billion, the others are much bigger. 210 alien dollars for 2018. -- $210 billion. >> the bush tax cuts were temporary and only expire for the upper rate. that does not get a lot of discussion but it is significant

. >> economic recovery tax act of 1981 takes toppling. the current administration takes -- is back in several places. 1.2%, potentially. let's bring in dan. it may not be the biggest tax cut in history. >> you can say it was legislative. in 1986, republicans controlled only one, and that was the senate. get the bill through, that as to pass or the account here jim baker, dan, they got it done but they had to accommodate the other party significantly or it would not have got -- would not have gotten to the senate.

if you just do it on a partyline, you can do that. >> that is what it has done here. you know have to sell this tax legislation. in 1986 because it was done on a partisan basis, it has by and from the opposition and to some extent, the public, which is not the case here. .alk about where we are >> you can argue about the extent of the booths, but it is a fiscal expansion. typically the fiscal what -- fiscal rains pulled back, 4.1% in the u.s. it is not 6% and not 7%. was in a recession. this is happening in a completely different point in the cycle. attention,got the

still in a moderately expansive page. you talk about china, and it is still an expansive policy. with coalition talks, the spd is looking for tax cuts potentially at the price of joining merkel. it is not just the u.s.. it is interesting globally. >> we want to thank our reporters standing by on the south line of the white house, gordon, thank you for your perspective. and dan, our bloomberg columnist. >> the international rescue committee and former foreign secretary. why there may be no alternative to a heart exit. that is next. this is bloomberg. ♪

>> breaking news. the first secretary of state now, i think there is a story going on here. allegations against him of misconduct. he is a deputy prime minister. actually have an official deputy prime minister, allegations us for government, and they hear a time gain in the brexit negotiations. accused of having pornography on the future and behaving female.riately toward a we will bring them to you. julia just mentioned,

theresa may residing over negotiations within the british cabinet divided in brexit. the differences do not appear to be narrowing. was it british foreign secretary before he became the head of the international committee. he joins today to discuss why these kinds of negotiations are historically difficult. >> two things are going on. there are two negotiations. other negotiations are within party.erning people who want to crash out of the party tomorrow and others veryre very concerned, concerned about the economic and social political consequences of brexit. that is causing a trauma in the u.k. and across europe. >> can you tie this into the brexit vote and into the push back in germany, the recent

austrian vote that had very right-wing members go to their leadership? >> there is no question the agration in europeback has been real factor. he takes the failure to ensure people in jordan and lebanon were properly cared for meant domain of them were taken care of in 2016. the british case is different in the main issue of the referendum , comingcoming outsideof to britain i.e. within the european union. both of them point to a single issue in my mind. it is an issue in the u.s. as well. an you get middle-class -- economy that, is 80% services where all industries are dying and new ones are not creating jobs in that kind of fashion as before. toa pragmatic approach brexit, as you look at the labour party, is a little hard

to find right now? >> on the brexit issue, labor is uber pragmatic. are not able to persuade waivers. the leader of the labour party is seen as a dogmatist. is, on the brexit issue, he was not a fan historically but he is being pragmatic. the danger is that all options narrow post-brexit. spending options, the political options, and social options. it is an argument we lost in the referendum campaign. is an inevitability but i will say one thing. economics will be very challenging. we're losing -- living off investment decisions made.

in 2018, we will live with the lack of them made after june 2016. that will color the decisions hat -- that have to be made about whether to go through or withdraw from the deal. it seems like the degree of disagreement is widening. that the cap between different positions, and within the u.k. those who want to leave, i am wondering if that is accurate. what do you think could be done? >> i do not think the divide to, i am wondering if that is accurate. is deepening but the decision is clear and that is making the futures britain has. the biggest challenge of the moment is the government has interpreted brexit in the most mild way. they want to pull out of the customs unit.

they reported with a tragedy, betweenhave to choose links in the u.k. and links in the republic of ireland? you are seeing the consequences of the brexit decision come through and that is in order to keep the party together. >> back to the top story, the president selling -- a big win at the white house. there.ator was the only member of the senate to run a fortune 500 company. great to have you on the show with us. do you think today will be as a turning point for voter sentiment around the president and also unity in the gdp? >> this is a capsule on a very

successful year of the administration. worked ontrump regulations and we pulled back rules and regulations this year. is releasing energy potential and we now have an historic tax -- tax bill which will make americans competitive again in business around the world. the tax bill is not very popular. what is your explanation? >> even before the bill is finalized, he told people many points of disinformation. we have called that out. the tell tale is when americans go get the paycheck in february, they will see the impact of the bill. the best benefit to a person in america will be the person who gets a new job. they will begin to see the reality. the tell tale is when americans go get thewe will continue to th about what we just did. >> one of the biggest concerns american site in the polls is

perhaps tax cuts benefit the wealthy companies. the president passes economic advisor is grappling as well. he is surprised that the tax plan is so unpopular at the moment. something the administration will work on. he also said the white house was trying to strip the innovation in the tax code but was rebutted by congress, that those members a congress basically hit brick wall and would not let the white house through. what is your response to congress getting in the way of closing the tax loophole? pointsbill like this has that will not satisfy everybody. i was on the president'side on that one issue. that is also the energy and farming industry. back to the first part, this can be corrected by a few simple facts. fourian income family of

is going to get a 60% tax cut in the bill. a 75%king mother will get tax cut making median income. the points will be proven as we get into the bill. is a comprehensive bill that makes america's businesses competitive around the world. a lot of people woke up and realized america is back in business. i give the president and his administration the credit for that. >> he said he was thinking at&t for their announcement, giving andit for the tax overhaul giving more than 200 thousand people a bonus. the skeptic might suggest in light of the tensions of getting the deal done, that it is an operative -- opportunistic move it what you make of it? >> that is a sinex field. it is a sign of confidence

coming from the board. will see many more examples of it. we have a 20 year high in the business community and consumer confidence at a 16 year high because they believe the president was listening to them in the election and is acting upon it. i believe the american people respond positively to that. >> congratulations on success today. >> thank you. >> we are looking at stocks and indexes that are -- we have modest declines, it has been unchanged all day. >> the republicans got their tax bill. >> they did. >> they first have to fund the government. >> exactly.

trying to occupy them between now and friday at midnight. >> here is when the democrats can put -- this is bloomberg. ♪

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[closing bell] >> u.s. stocks closing lower, modestly lower, after the house and senate passed the tax bill. ♪ scarlet: i'm scarlet fu. joe: i'm joe weisenthal. if you are tuning in live, we want to welcome you to our coverage. scarlet: u.s. stocks closing lower but we should make clear that they are still near record highs. this is perhaps the best joe: example joe: of buy on news. it's really modest. we did a little bit of it yesterday, but it feels like directionless late your holiday trading. 5 exactly -- scarlet: exactly. trading volume, lower than average. a lot of action in the bond market that we will get to shortly, but we want to highlight individual names here.

the highestg to levels since october. what's interesting is that it is praising congress and the president for its tax cut will saying that 200,000 workers will get a bonus to celebrate. the backdrop, here, of course, is that at&t is trying to convince the department of justice to let it go ahead with its time warner acquisition. perhaps the skeptics in the interpretation of this is that it is opportunistic. joe: that's a very cynical interpretation. scarlet: well, that's one way of looking at a record high for fedex shares, citing solid demand trends and a rebound from the june cyber attack edits tnt express unit. it is now on track for a record season of holiday deliveries as well. blackberry at the highest levels of 20 15 with full-year sales coming in at the high-end of its forecast. chipotle, take a look at that, down by 5% on, guess what?

another possible illness outbreak in los angeles. the burrito chain can't get away from this. joe: all right, let's take a look at the government bond you market. look at that, short-term rates with 10 year yields up to 2.50. yesterday we were talking about the biggest upward moves in about 12 weeks, continuing today. putting this and perspective, if we look at a one-month chart of the u.s. 10 year, you can really see that we were initially in tos range of 2.3, 2.39, back 2.3, and then in those last few days a pretty solid move higher. if we go to germany, you might think -- is this about the tax bill? maybe, but the story is international. looking at german long-term rates, it's the same story shooting higher in the last couple of days. the implication being that it is

more the global optimism overgrowth, things looking pretty good. we are really seeing that it is not dramatic in the grand scheme of things. but by recent standards a meaningful selloff at the long end. global bonds selloff means that for the most part the dollar is weaker as well but if you look at it versus the yen, starting there, it's at a one-week high. it has been steadily moving up over the last few days. at dollar-yen is currently 100 1341. overall it lost ground versus most of the g10 currencies, looking at the euro or the pound, certainly the bloomberg dollar index is down. the biggest loser among the major currencies that i saw was the crone. looking for a reason, joe, there was nothing specific. it certainly under pressure. traders said there was no evident flow, but the euro is at its strongest since december of 2008 and we have seen some weakness of late over the last

couple of months likely driving inflation higher and boosting exports but it also means the central bank will have to take action. joe: i think we need a crone block soon on the show. look atdities, taking a oil, gold, and copper. oil and gold not doing that much. gold getting a tiny bit, but not much. copper, 1.5%. one of the leading gainers. just going back to that rates move, the theme being signs of global growth and copper being one of the things you classically look at, lending credence to the idea that the backup in rates is about continued optimism over the global economy. and those are today's market minutes. now for more on the gop historic victory with sel. kie great to speak with you. joe was just accounting the moves in the fixed income

market, globally. it's backed up in yields. do you attribute that to what we saw today with congress passing this tax cut? or is this something, as joe was saying, that's more global in nature, driven by this recovery global growth story. hi, good afternoon. i think that joe hit the nail on the head. the global economy is doing quite well and in addition, this tax cut stimulus will take us from 2% real growth to a 2.5% real growth next year. importantly, we are going to be deficit spending and that is going to have to be funded by more treasury issuance. we have actually calculated that next year we will see a $700 billion increase in treasury supply. with the fed tapering, obviously the private sector will have to buy those bonds. we think they will have to do it at a higher yield. the truth is the global economy is doing quite well. we've got tax stimulus coming

when the economy is doing decently and more treasury supply next year. that, our thinking, means higher yields. joe: kind of a cliche question of this point about whether there are aspects to the tax bill that have been priced into that aspect, but markets aside, when you talk to people, are there things that you see in the tax bill that you don't think investors fully appreciate the ramifications of just yet? i think on the consumer side you are looking at a 2/10 pick up and you are basically talking about some consumers getting an extra $2000. our sense is that some of them will go to vegas and spend it. they will shop. on the corporate tax cut side it's pretty significant for profits. 2018 seeing an increase versus this year, 10%. in terms of free cash flow, you're looking at free cash flow picking up and because of the

tax cuts, about 5% to 6%. this is a big deal. we think that some of this will circulate back into higher wages . we saw the announcement from at&t today. we could see an impact on capex with a bigger share on buybacks and near-term i think it provides tailwinds to the economy and for the equity market near-term. this is something the federal reserve made clear as well at the last fomc, but you don't see much changing after that. 2019 2020 was kind of the same. what do you see in the way of sustainable growth into 2020? monththe fed last basically just revised up their growth forecast for next year from 2.1 to 2.5%. that's consistent with the pimco forecast for the economy. we see the economy picking up a bit next year. where we would differ from the

fed and the market is the market is pricing in only two rate hikes next year and we think we will probably get three and if you really pushed us, the bias could be more than that. remember, these tax cuts are coming at a time when the economy is already at full employment. the unemployment rate is at 4%. there are already wage pressures out there particularly for skilled workers. this will further exacerbate that situation. the reality is that wages are probably going to be headed higher, as will inflation. this tax stimulus could ironically be upset by faster rate increases from the fed. do you think -- how much of a risk is there of a curve inversion? mark: i don't think that the curve is going to invert. i think that the very flat curve right now reflects slow risk curve in the marketplace. as inflationary expectations pickup, which they should, we

should see that curve steepen. the other thing that's very important is we have to look -- this is a global environment. if you look at hedge yields from a japanese perspective right now , buying treasuries, they are very low. every time the fed raises rates, the hedging cost goes up. this is a long way of saying that every time the fed raises rates, the treasury market becomes less attractive to foreign buyers. the reality is that this curve should steepen because there will be less foreign participation for treasuries and when you add in that $700 billion in incremental issuance next year, we think that's a recipe for a steeper curve in 2018. again,: but time and treasury always seems to find a way to make a comeback here. talk about how you want to position yourself in 2018, 2019. what you do versus the emerging markets and developing markets? mark: sure, basically we are underweight interest wrecks --

risks in the developing markets. particularly japan, the u.k., and europe. we think that those yields are too low, given the state of the economy. we think that central banks will be reducing their support for bond markets. we do think that higher yields are likely in developed markets. this is in contrast to emerging markets, where many of these economies are seeing inflation come down, as opposed to the risk we are seeing of inflation coming up. it looks pretty attractive in the emerging markets. we have been favoring brazil and mexico in terms of owning rate exposure. , thank yourk kiesel so much. up, many on wall street having a change of heart on the gop tax overhaul. what is on top of their list of worries against what the president calls the biggest tax cut in history? this is bloomberg. ♪

crumpton -- mark: i'm mark crumpton with first word news. the gop tax bill we're the house of representatives and president trump declared the largest tax cut in u.s. history. joined at the white house i house and senate members, the president said that it will help to repatriate large sums of money from around the globe. >> we are going to bring at least $4 trillion back into this country. money that was overseas in parts of the world where they don't even like us and they had the money. well, they won't have the money long. the tax bill goes to the president's desk, though it's

not clear when he will sign it into law. the disgraced former archbishop of boston whose failure to stop child molesters in the priesthood led to the worst crisis in american catholicism died in rome at the age of 86. a survivor of clergy abuse said of the cardinal -- how is he going to explain this when he comes face to face with his maker? >> this was a guy in such a position of power. he had such respect from so many people. he had the audacity -- the possibility to do so much good within the archdiocese. he chose instead of protecting the children of the archdiocese, he decided to protect a bunch of child molester priests. pope francis said nothing about it during his general audience. the pontiff will preside over the funeral rites tomorrow.

the public agency that owns the tracks where an amtrak trailed -- train derailed on monday that killed three, wounding scores more, said that critical speed technology that could have prevented the accident was not in place. they said that work to install a sophisticated gps technology known as positive train control is not expected to be completed until next spring on the newly opened 15 mile span outside of seattle, washington. the train wasthat going 80 miles per hour in a 30 mile-per-hour zone. firemen in california are racing -- bracing for the return of dangerous wind gusts that they fear could revive the flames. firefighters used the calm conditions to build containment lines. the blaze had burned for two weeks northwest of los angeles, it's about 55% contained and is now the second largest in the history of california. officials say that the new wind could cause it to grow into the

state's biggest fire ever. global news, 24 hours per day, powered by 2700 journalists and analysts in 120 countries. i'm mark crumpton and this is bloomberg. breaking news, bed bath & beyond reporting results and comparable sales for the third quarter less than what analysts had been looking for. analysts were figuring a 2.5% drop. you can see a big bump up in after-hours trade. analysts have been looking for $.37. clearly, higher than the consensus estimate there. of focus one a lot growth margins. as we go through the numbers and if anything else sticks out, we will keep you informed, but in the meantime they are building on the gains by better than 7%. "what'd you miss?" the wall street rank-and-file, eagerly waiting for the overhaul

of the tax code, but now that the moment is here, many traders are coming to the conclusion that the real gains will go to billionaires and the captains of industry, leaving them in the trenches. this has more to do with just the fact that they live in new york, new jersey, connecticut, high state and local tax areas. >> some of these things that we talked to these employees about was essentially the deductions that will now be capped. talking about the state and local taxes, but you also have mortgage interest deductibility and on these mortgages that's a big thing. job expense reimbursement will be as high, things like that. number two, you have the pass-through at issue. which to be fair, they will have a cut, but for hedge fund managers, for example, they will not benefit as much as these smaller businesses. you had one trader sipping

a bloody mary about to go tropical, quitting the republican party over this. you know, most people, our viewers aside, aren't going to be sympathetic to a lot of these people, are they? crying not a lot of of people will do for the which individuals not getting what they wanted, but probably some kind of cut in some cases. not much to cry four. joe: but it is interesting. you talk to a number of people saying they will quit the republican party over this. of course the few republicans that did vote against this were the congressman from the hamptons, the stuff like that. republicans in westchester, stuff like that. it speaks to this split that's happening where the money wing might be feeling alienated. >> exactly. some of the hedge fund managers i spoke to donated to republicans. one of them, and i think this is

what you're talking about, it's one guy who said that he spent weeks berating a republican he donates to to try to get them to understand that the reason i'm upset with this tax bill is because corporations are getting too much. they didn't feel helped in the tax bill in the way that corporations have been. scarlet: their employers will get the tax cut, they themselves won't. perverse push for them to consider quitting my job and work for myself, that way i can be a pass through and get a tax cut as a result. >> that or just in general they disagree with the idea that certain kinds of his this is, certain kinds of pass-throughs are now favored and others are not. like hedge funds, we brushed aside, but their point is they employ a lot of people, too. joe: the flipside of this is that no one wants to pay higher taxes but if you want to work for a hedge fund and can't go to north dakota, it's like it's not great to pay taxes in new york,

but they have pretty great jobs. >> that's true, but new hampshire, florida is another big one. even in the northeast proximity there are other states where you could consider it. scarlet: i guess what it comes down to is that a lot of these guys you were talking to were voting for republicans because of the tax cut promise and not much else. in fact they disagree with most of the republican party platforms. we talked the people to said exactly that, saying that the reason they voted for them was on financial issues, on social issues they disagreed or didn't have an opinion. lauren keller, thank you so much. writing one of the most widely read stories today on the bloomberg. coming up we will be looking at them major index forecast. the charts you can't miss, coming up. this is bloomberg. ♪

scarlet: it's time for our weekly segment with abigail doolittle where we look at in depth charts and bloomberg functions. is katiewith me today stockton. thank you for taking the time, of course. here we are at the end of the year, monster rally for the s&p 500. the best since 2013. what is next? katie: positive seasonality is upon us. we do have santa claus coming to town. the santa claus rally is around this time of year abigail:. is that next week into the first week? katie: there are arguments about it but in my history attends to be the last five days of the year in the first two days of the new year. we are approaching that time. positive momentum,

you can see the whole year has been characterized by an uptrend in the s&p 500. higher lows and recently we received a breakout in the s&p 500 that gave way to more all-time highs. there's really nothing wrong with this setup. some people might be uncomfortable with how steep the uptrend is or how far we have stretched from initial support, but for me as long as the momentum is there it's something you want to stay with, especially with the positive seasonal influence upon us. abigail: two questions. i'm hearing a lot about the cloud here. why do you like that so much? do you think we will test that support relatively soon? i think we will see a test on that later into january and february. the cloud model, which is what i call it, is a great gauge of

support and resistance in potential areas of buying or selling pressure with prices above potential areas of buying pressure. it would be natural for the next pullback to come into that cloud-based support, if you will , stepping in. the reason i expect the pullback to develop later in january and into early february is from a sentiment perspective. we said that last time, where we said that sentiment was conducive to the uptrend. i have a feeling that as we get more rotation into the same stocks it will get us to the point where we need a correction later in january. buyers, i sawns something about how they are betting on the vix in january. i know, double the 20. scary. the nasdaq recently hitting 7000. katie: the nasdaq composite has seen impressive upside follow-through from the breakout of the 2000 high, way back here, we have long since forgotten it.

that immediate followthrough is quite a list. the take away from this is that you can feel comfortable buying breakouts. seeing that momentum kicking in as soon as resistance is relieved from the charts. compositee nasdaq sets a very good example for other major indexes around the world. abigail: speaking of that, i know you think the stoxx 600 could see something volatile. katie: that's right. the nikkei 255, the bottom chart right here. the very nice breakout above that level is clearing 2015 resistance, receiving a multiyear breakout with new all-time highs, so to speak, and a major breakout for the 225, but following what we saw not too long ago in the nasdaq composite. looking at the stoxx 600 or the

european primary benchmark in the top window, you will see approachinglso resistance from its 2000 high. the breakout over that level would be a new all-time high reminiscent of the breakout we saw in the s&p 500 in 2013 which also saw immediate and persistent upside follow-through. so, there's lots of evidence showing that might happen. i have to ask you quickly, emerging markets have been such a hot trend. what do you think? katie: we have seen rotation to emerging markets where you look at the relatives there with good stabilization versus the u.s., the u.s. really lost its leadership stronghold this year and i think that will be telling for 2018 where we see additional rotation. great stuff. katie stockton, thank you. coming up next, a bloomberg scoop. how does apple plan to combine apps as early as 2018?

this is bloomberg. ♪

with i'm mark crumpton first word news. president trump is celebrating the passage of republican tax legislation claiming it for fills his campaign promise to repeal the affordable care laws. the one point $5 trillion measure was passed and a revote by the house today, the senate approved the legislation early this morning. the senate has thrown his support behind nikki haley, who threatened member states with possible retaliation if they backed the resolution criticizing washington's decision to recognize your rousseff him as the capital of israel. >> they take hundreds of millions, even billions of

dollars and then they vote against us. we are watching those votes. let them vote against us, we will save a lot. we don't care. this is an like it used to be where they would vote against us and we would pay them hundreds of millions of dollars and no one knows what was the -- what anyone was doing. mark: nikki haley said that the u.s. would be taking names. the letter was shared with bloomberg news by one u.n. ambassador and confirmed by three others. judge roy moore, still not having conceded his loss to doug jones in last week's special senate election and alabama. but he may have no other choice. the secretary of state said today that all military and provisional ballots have been counted and that roy moore remains well short of the 20,000 votes he would have needed to close the deficit. there were also not enough votes to trigger an automatic recount. no additional ballots are agile -- eligible to be received.

i human rights watchdog says that 92 people were killed during the months of election turmoil in kenya. the new report today says that dozens of people were assaulted. the opposition has accused kenyan security forces of killing cores -- scores of supporters. won theident there election with 98% of the vote. per day,ws, 24 hours powered by 2700 journalists and than 120in more countries. i'm mark crumpton, this is bloomberg. let's get a recall on today's market action. a historic day from a republican perspective. it got the tax bill passed. all that remains is for president trump to sign it. either way, part of it is that we are already near the record highs and a lot of this had been priced in. nonetheless, you are seeing a bit of movement to the downside,

the dow off by 28 points. "what'd you miss?" a bloomberg scoop. apple is said to have a plan to combine iphone, ipad, and mac apps next year. cutting the workload of developers who will be able to design a single application that works with all devices. joining us with the details is mark gurman, who broke this story. why didn't they do this earlier? sense. it makes so much market: it's part of this long-term initiative mark: to make -- mark: it's part of that mark:: it's part -- it's part of their initiative to make the mac more like an iphone and vice versa. the latest they have explained to us is that this is one of the biggest changes to happen to the mac operating system since it was converted to the iphone operating system about one decade ago.

joe: what does it mean for users? how will we notice this? it means a lot for the end-user as much as it means for the developer themselves. you will be able to run your applications on your mac and it will be optimized to the keyboard track mouse interface versus the touch interface on an iphone. basically that is going to be one type of app as opposed to there being separate types right now. whatever you have you will be able to run on any device at the time. get to thewe ever day where iphones, ipads, and macs run on the same operating system? mark: i think so. i think that's the long-term game. apple denies it, that they want to merge the mac in the ios. they say they want separate devices. it's a strong indicator that this is something they are looking towards. on top of -- on top of that they

are looking to expand the iphone chipsets to their computers. that's in addition to the main intel cpu. scarlet: this announcement seems to have more implications for mac users than iphone and ipad users. that's interesting because i get the sense that mac users feel like they haven't been catered to for a while here. does this suggest that apple will be focusing more on the mac and making sure that the software and that the technology and innovation and resources will go towards the mac, rather than kind of taking it for granted? exactly right. apple has neglected the mac in recent years. we got a great story talking about that and since that time they have re-shifted their priorities. what they are doing here is giving it some love again, but giving it an ios iphone bent. it's not really giving a lot of attention to pro mac, it's just

expanding them to the max, making the ecosystem of applications far stronger for customers. is this something that apt developers have asked for? mark: four years. wish lists every year, they have given this every year it's been on many wish lists for many years from multiple developers that we have spoken to. this has been a long time coming for some of their most loyal app developers. right, mac users, getting some love there from apple. -- full --full exit some analysis ahead. this is bloomberg. ♪

scarlet: "what'd you miss?" bonds and equities in developing countries will continue to streak ahead. that is according to a recent bloomberg survey. our next guest is just as bullish, saying that assets have more room to run in 2018. gabriela santos is a j.p. morgan asset manager and market strategist. reallyar asia was driving things. gabriella: absolutely. it was a super tough year as

growth started to bottom last year, improving this year, led by a strengthening asia and emerging europe, i would say. thinking about what's really going to change for next year, that's an acceleration of latin america, from mediocre growth to trend growth. joe: the story will be that growth is expected to pick up in latin america and that will translate into outperformance. gabriela: correct. i would say especially on the equities side. expect a translation into solid earnings growth next year. valuations generally reasonable and as we think at local storycy bonds, solid there with inflation levels very low. something that we hear a lot from guests is that a lot of it is tech. not the em companies of old. if you look at the industry, is there anyone that particularly if -- particularly excites you?

a lot of the indexes there have been changing a bit. they are not so much commodity heavy. they are a bit more exposed to things like financials. if you think about a region that is starting to rebound, it is those cyclical domestic oriented sectors that outperform. scarlet: is there a tech sector in latin america? if you look at the index it's just one company, it's not where you go for the tech exposure. it's about the solid consumer base and the rebound in credit growth. still see political risk in latin america. this week was all about peru. we don't know what's going to happen in brazil next year in terms of what's going to happen with the ballot. how concerned with that make you about your forecast? it definitely creates volatility.

in the lead up to the political event in emerging markets you see a you to run up in the candidates that lead the polls and things going the other way. it is very volatile, but i don't want to underestimate the really solid undercurrent of growth going into next year for the region, which is a really solid base when you think about earnings and fundamentals for companies. the thing about it is we planted the seeds for the rebound next year. the election outcome, is that watering the seed? or is it a kind of pesticide that disrupts the long-term picture for the region question mark scarlet: yeah, kind of bifurcated. gabriela: it tends to be extreme the different outcomes. talk perhapss about one of the biggest markets in latin america, mexico. how does that fit into your thesis that em will be leading the way? of aela: it's always kind story about next mexico. it's a manufacturing economy

with something that was an asset back when commodity prices were falling. mexico has been much more stable than the other countries. accelerationory of from below. mexico has always had that exposure to the u.s., instead of china, for the rest of the region. something that was an asset and has become something of little bit more played out. more difficult. because there is that nafta attention that continues. that little thing. up until this year, we have seen many years of em underperformance. 2011 was it? historically, can the up cycles last just as long? going back for the longest week of history, what does that tell you? the thing that's most important when you are comparing the potential for performance is the gap between em and dm growth. emerging markets grow faster

than developed markets, but how much faster? is the gap closing or expanding? that's what gives outperformance. to what extent does it still matter, let's say, the liquidity market being driven by central banks? you hear that there is easing far out on the risk curve being the story isbut if now tech in asia and strong financial consumer sectors in latin america, does that make you sort of less sensitive to the classical easing cycle we have seen in the past? gabriela: i believe so. when we think about the taper tantrum of 2013 and the withdrawal of the emerging punch bowl assets with a strong bad time, that's when markets were going to chase. it was very technical, very temporary, but now it's very different. it's about equities and fundamentals.

it makes them much less sensitive to whatever the fed may or may not do. in terms of where you want to be, clearly equities are at the top there. then what, vocal currency debt? talk about why that part is played out. thinking about exactly this story, investors going to emerging markets just for the -- theyhey wanted didn't want currency exposure. tight andincredibly expensive. when you have u.s. dollar assets they are directly vulnerable to the fed rate hikes. yen debt has fairly high duration. local currency data is much more about what local central banks do. scarlet: so, avoid hard currency debt. gabriela: i wouldn't say avoid, i would say be careful. scarlet: correct. our thanks to gabriela santos. coming up next, investigations

on widespread accusations of insider trading. the latest bitcoin drama. there is one every day. this is bloomberg. ♪

♪ "carlet: "what'd you miss? more twists and turns in the crypto craze. according base, looking to trade bitcoin cash, surging up 40%. sending coin down the most in two months. keeping track, yet? now the san francisco-based currency broker is facing accusations of insider trading. here with this story is and he

mathis. just ask when again what it going cash is versus those who have not kept up on every step here. initiated --e any uninitiated, bitcoin cash is a spinoff. it happened in august, this split that happened when the mining community decided that they would start using another blockchain. a different blockchain. it split off from bitcoin. bitcoin was over here, bitcoin cash was over here. operating on different blockchain's. joe: it's one of the biggest exchanges in the u.s. for buying bitcoin. why do people find the sort of conditions surrounding the announcement that they will also buy and sell bitcoin cash to be interesting or suspicious? big deal that would allow trading in bitcoin

cash because for all of those intervening months they had not allowed it on their exchange and what you would assume is that the price would go up, which is what happened when they made this announcement. they are huge in terms of volume. so, you solve the surge. but the other thing that happened was there were trades happening before coin base even announced that they would allow bitcoin cash to trade on the exchange. you see some trading happening with some increase in price happening before the announcement came out. joe: as soon as that happened, the ceo of coin base last night had to write up a medium post. nothing good happens if you have to write up a medium post. if i have to go my whole life without having to write a medium post, by the way. i will say that about other investigations and seeing if their own employees were the ones buying bitcoin cash ahead of the announcement. annie: precisely. if you had no it -- known that

they were going to lift bitcoin cash, you could connect the dots. but the thing that they are investigating now is did any employees inappropriately trade ahead of the announcement. does wade into some territory that is a bit uncharted in terms of regulation because these are not actual securities. everything when it comes to post regulation and bitcoin is unprecedented here. tell us more about how it might be traded and used, beyond what we have heard. right. bitcoin cash has already been trading on other exchanges. you can already trade bitcoin cash in other places. or other -- crack or other places. it was basically a big announcement as they come with

so much extra volume and clout in the marketplace. it was kind of a stamp of approval. are you mentioned that we in uncharted territory, from a regulatory standpoint. between this and the flimflam companies at 1000% after announcing their crypto, everyone is inviting the regulators in. mark, it's a big question right? any of these a securities that are not securities, you think, ok, if they find examples of insider trading, it's not technically illegal. but it does go in the face of, it goes against policies. scarlet: for now, that's what we have to work with. , thank you so much. let's turn now to the energy sector. saudi arabia's energy minister says that he's very optimistic about oil prices in the year ahead. he spoke in riyadh. >> it's premature to change

things from a we had in vienna in november. we never expected december, the first few months of 2018, to be the months when we would see on oil in general. surprises, seen the which have surprised few people, especially with gasoline and the products in general. but if you look at the totality of the number of products, that's consistent with the seasonality that we expect as we continue this high level of by theity and compliance countries that are party to supply constraint agreements. markets will always overreact to short-term events.

overreact whenem this data came out and from my perspective i am looking for the long-term, i am looking for really the second half of 2018 to see where we are in terms of supply and demand. there is no intent based on what we leon. saudit: that was the arabian minister interviewed earlier today. it is now time for the bloomberg business flash, a look at some of the biggest stories in the news right now. after almost three years the swedish central bank has formally ended its program of on purchases. the bank governor promised continued support into 2019. >> we would need to keep the policy rate at minus .15 for some time to come. that's what we would need to make sure that inflation rates were at 2%. presently, that's good.

we wouldn't want stay there for the coming years. we need to move carefully and slowly. they plan to reinvest almost $8 billion and maintained the outlook for rates to rise. a reality check for the board at sky tv. they have been warned that if the government blocked the 20th century fox takeover, the pay-tv provider won't be able to count on a bid from disney. fox has a 39% stake in sky and disney would acquire that by the end of next year, but is it required to bid for the rest of sky? glaxosmithkline turning to bank of america to help them find a antibioticss business. the u.k. drugmaker is looking to sell treatments from its portfolio. the business would be worth up to $400 billion in the sale. and that is your business flash update. joe: coming up, what you need to

know for tomorrow's trading date this is bloomberg. ♪ . -- trading date. this is bloomberg. ♪

scarlet: "what'd you miss?"

not much when it comes to the equity indexes. sagging lower on this day when the republican congress passed of their tax cut. joe is not too excited. coming up, joe is getting excited about this. earnings reported tomorrow, 19 of them, after the bell. watching the bank of japan as it announces monetary policy overnight. will be i know you watching. the winter solstice occurs tomorrow, marking the first day of winter in the northern hemisphere, the first day of summer in the southern hemisphere. shortest day, longest night. joe: starts to get better after that? scarlet: 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. alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." president trump is celebrating the package of republican tax reform.

the $1.5 trillion package was passed in a revote by the house today. the senate approved the legislation early this morning. house republicans are moving toward passage of a strict-down, temporary funding measure to avoid a government shutdown on saturday. that's after a number of senate measures were pushed back to next year, including a plan to stabilize affordable care act market. that is something that was promised to maine senator susan collins before getting her tax vote. some members of the house refused to support the measure. pope francis will participate in a funeral mass on thursday at st. peter's basilica for the archbishop of the boston diocese, who resigned under pressure for having failed to protect children from pedophile priests. he died tuesday. senator al franken has given an official timeline for when he will step down. franken plans to resign january 2. he had announced earlier this