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 month he would step down in the wake of sexual harassment

allegations. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ emily: i'm emily chang. this is "bloomberg technology." a new number two. coinbase's insider trading suspicions. investigation into a sudden spike in bitcoin cash just before it was officially introduced on one of most -- america's most popular cryptocurrency exchanges. apple 2018 plans for a custom

application that works effectively on the iphone, ifad, -- ipad, and mac. first, uber has a new number two. the world's most valuable startup has named bonnie hartford's chief operating officer -- bonnie hartford its chief operating officer. she is the second high-profile hire by the over ceo. move,n interesting considering the other uber news out early wednesday. top courtan union's has officially ruled that the right healing service should be regulated -- ridehailing service should be regulated as a transport company, not a tech o ne. joining us now from london, frederic court and eric newcomer . let's start there. who is this, and why is he right

for this job? >> he has a long history with dara cautious ascii -- long history with the ceo. i think that's part of it. a did a good job at orbitz, deadly company. he was able to get a good exit, selling it to dara's expedia. orbitz andnce at expedia is super relevant to over. it's relative expertise, having a good relationship with the ceo . he was doing this advisor role to feel the company out. emily: he wrote a series of tweets saying over already got more -- uber arlready -- and provides more flexible work opportunities than any other company in the world. a formere hire of airline industry expert imply

about the direction they want to take this company? >> i think it shows the global uber'snd seriousness of business as an employer, for one. his tweets speak to the amount he thinks about over -- uber about a global employer. i think that will be a top right party for him. -- top priority for him. the airline industry is a parallel that uber does not love. barney made the point to me that airlines are doing much better these days. they are more profitable businesses. but certainly that expertise as a business model comparison, but also as a similar service industry is useful background to bring to uber. emily: i want to talk about this in the context of the news out of the eu that uber will be regulated as a transport company, not a tech company. this is a big blow to uber.

what does this mean? >> it's bad for over because it means more regulation, more potential that they could have to pay their drivers more, have more regulated rules around how they pay their drivers, instead of being this digital platform that is super disconnected from the rules of local regulators. on the other hand, uber is already regulated as a transportation company in london and paris, two of its most profitable markets. it has already started to deal with this. dara's stance has generally been we are going to work with local regulators to allow them to regulate us as they want. obviously, we are going to have input. this is bad in uber -- and uber has lobbied against it, but the company is prepared to deal with what they saw coming. emily: as a longtime investor in europe, what do make of this decision, given the challenges that uber is facing, in london

specifically, where you are? >> it's interesting. it is confirmation that the arel regulators in europe looking at these tech companies and saying, we have rules and you have to operate within the context of those rules. in the short-term, it doesn't change too much for uber, because they have to operate within those parameters, but it does cap the potential. there appeared to be a service they were hoping to launch across multiple countries. there were countries they were hoping to enter just with peer-to-peer. that will not be possible. that restricts possibilities. it's an interesting time. as a user, the experience, the uber experience for consumers has been diluted.

drivers canceling. it's almost as if a change of guard, change of management, maybe relief of the pressure has had an impact at the level of the customer experience. i think bringing new management will tighten the grip on the business again. it's highly needed. in the short-term, uber has got to focus on its core. emily: what signal do you think this sends from european regulators about the gate innomy -- gig economy general? there are talks that it could expect a company like airbnb -- in the future, it may be regulated more like a hotel than a home rental site as they would prefer. >> there is a sort of general move and realization across europe that many of the tech companies that are global, that

have launched very successful services that have become dominant across europe have done that by pushing the boundaries too much. they are not paying their fair share of taxes. it's fair to expect a tightening of the grid. also a realization by the local authorities that they do need to create a level playing field for the local operators as well. and force certain rules, but on top ofl discipline those companies who have been able to use ireland as a place to do some invoicing. we see that changing with facebook as well. change. wave of politicians,s and from the local services and hey, maybe to say,

we have been too open. china has been very good at closing those doors. maybe europe needs to do that as well. has been know dara traveling a lot. how do you think this ruling will impact his strategy? >> i think there is a lot of europe that still needs to get figured out. with hiring barney, it is a statement, ok, internally, somebody else who is as skilled as me needs to run the internal business because there is so much to do outside. the situation in south east asia, competing -- there is a question whether uber will come to source of -- some sort of troops or -- truce or acquisition. questions.f i think he is very much going to be the public face, traveling around and establishing themselves better in markets, cutting deals, or making an

apology as necessary. emily: interesting. eric newcomer who covers bloomberg -- covers uber for "bloomberg technology." frederic court, thank you for stopping by. on the earnings front, blackberry is raising expectations it can hit its growth target by the end of the fiscal year in march. it won new customers from government and the private sector in the third quarter. blackberry's estimates the estimates -- be estimates -- beat estimates. stitch fix had its biggest decline on wednesday since becoming a public company. this, after reporting its spending more money than it -- it is spending more money than stitch fixexpected to expand inw apparel categories. one of the most popular cryptocurrencies on the planet is facing its biggest controversy to date. why coinbase is investigating possible insider trading on its platforms. "bloomberg technology" is

livestreaming on twitter. this is bloomberg. ♪

emily: it has been a wild 24 hours at coinbase. the platform is investigating allegations of insider trading in the hours before the company announced it would enable bitcoin cash. meantime, the volatile cryptocurrency market is gaining the attention of local -- global institutions. it has increased significantly in value, but it is not connected to the core of the financial system in general, so it is not levered. orders of magnitude is less than

the market cap. half the market cap of apple. it's in that order of magnitude. it's more like an equity type risk that has spread fairly widely around the world. emily: to wrap up all the news in cryptocurrency, let's bring in editor at-large cory johnson. what's happening at coinbase? cory: this is the great fear of an unregulated market, which is that someone will take advantage of that to do something illegal or maybe not illegal, just deceptive. it's a great fear for coinbase, certainly, and a great fear for anyone involved in this trading. the regulated trading that we are used to, that has investor protections built into it, centuries of investor protection built up over time are not extant in the world of trading in these cryptocurrencies. some could have jumped in there ahead of trade.

emily: the fear is that coinbase employees are front running? cory: or someone. we know coinbase was being attacked by hackers. there were denial of service attacks across the industry. we don't know who could have gotten into their systems. we don't know how their systems work. we know they are not regulated and monitored. anytime anyone uses the word regulation in any context, we can at least think regulations it is -- regulations exist as protections. investor protections and market monitoring that happens across most of the trading world, certainly in the united states, doesn't happen with boy: -- with bitcoin. emily: there has been a lot of chatter about this. , also alio manager bloomberg columnist, tweeted, "my own personal view is coinbase is a zero over the next three years due to sketchy stuff that will take them down." that's strong. cory: it is strong.

this is the issue. when you make a market, a fair and orderly market, a principal, guiding rule, letting investors know they are going to get a fair and orderly market -- it could destroy the business of coinbase. this kind of reputational issue is extraordinarily serious. emily: interestingly, as you have more novice investors getting into this, some of the alternative coins are becoming more and more popular, the cheapest going, for example -- cheapest coin, for example. cory: across the board, all of these sold off. bitcoin declined by about 2.5%. others were down today, 1.5% to 2%. the total size of market capitalizations, as we heard in that soundbite, are mind-boggling. ripple -- we'll have the ceo of ripple on. hold on to your seats.

the ceo will come on next week to talk to us. the ceo of ripple controls most of the ripple currency. they decided, as they build a real business around the currency and around the blockchain technology, they will sell off those pieces of ripple in regular fashion to take that risk out of their business and let people know what's coming to the marketplace. on some level, it seems to me what ripple is saying, we don't want to be in the business of holding on to coin. we want to be in the business of actually allowing this to be used in some interesting way so business can transact on ripple networks. emily: meantime, north korea is allegedly behind a big bitcoin heist on south korea. -- on a south korea exchange. tell us about that. cory: it shows us that some of the leaders in global hacking our finance -- focus on financial crime. as rudimentary as most of the technology, industry, power systems are in north korea,

they've had tremendous abilities when it comes to hacking. years exactly this time of three years ago when we saw the hacking of sony. we saw the release of all those inled to sony executives getting year three years ago when we saw the hacking offired, all about thish james franco that made fun of the leader of north korea, yet that seemingly ridiculous incident led to big changes in hollywood, but also showed us the power of north korean hackers in the past. those efforts have gotten only stronger as u.s. sanctions have gotten tougher on north korea. emily: the u.s. has officially blamed north korea for the want to cry attack -- the wannacry attack. coming up, there is a big change coming to apple's mac and ios users. how it is planning a one-stop shop or all of your app needs -- for all of your app needs. on the bloomberg. watch us live. if you miss an interview, you

can go back to it. play along with the charts we show you on air. this is for bloomberg subscribers only. ♪

emily: could walmart be getting ready to ditch checkout lines and cashiers? that could be the future for the superstore, according to a report from recode. store number eight is looking to reimagine the business. you can walk out with any item and walk out with any cash changing hands. it'll happen automatically. people will supposedly be able to shop via text message. a glimpse of one of the long-awaited projects -- products, a mixed reality

headset. e goggles punk-esqu come with a controller and computer pack to wear around your waist. they're facing increased competition from the likes of google and apple in the augmented reality realm. bloomberg has previously reported that year with costs between $1500 and -- the betweenld cost $1500 and $2000. apple will ditch having different apps for ios and mac's os. one single app will work with a touchscreen or mouse and trackpad, depending on which devices being used. for more, i want to bring in who else but bloomberg's mark gurman. what exactly does this mean? mark: developers will want to write more apps, make more money from apps, sell more of them. will -- consumer

consumers will only have to buy one set of apps. no matter what apple device you have, the apple will work -- app will work. emily: how will it work? mark: you will be able to download one application. it will automatically download and sink to all your devices. on an iphone, it will work with a touchscreen. on an ipad, a bigger touchscreen. will be extended and work with a trackpad, keyboard, and mouse, instead of a touchscreen. emily: does it imply that mac might have a touchscreen in the future? mark: i think it does. its part of a long-term initiative to make mac more like it -- it is part of a long-term initiative to make mac's more like iphone and ipad. emily: apple was not the first to you this -- to do this. mark: no, they were not. google android have -- google

and microsoft have looked into this. google with the new pixel book, you can download android apps. it's pretty integrated. apple's approach will be slightly different. it will be one type of app that expands to a different interface depending on the device you use it on. emily: i'm curious about your thoughts about these magically articles -- magic leap gogg les. mark: it's going to be expensive, between $1500 and $2500. their big and bulky -- they are big and bulky. it seems pretty involved. i'm not sure most people will want to wear that. it's a mixed reality headset, which is basically ar. it loops the real world and virtual worlds together. the concept of ar is enticing for a headset. you want glasses with ar, so i

could walk around say hi to you and see other things. how weird would it be if i walked up with that big thing and tried to talk to you? it's too early. google and apple and amazon in the future will set the stage for real ar that people will want to use. emily: this company has raised $1.9 billion already, and they are walking into a fairly competitive market. however, there has not been a breakout success. mark: good luck to their investors is what i have to say. we will see how it plays out. they have been hyping up nothing until now. now they are saying they are going to have a headset soon, but it is still just concept photos. it seems a little suspicious, but we will see. emily: he will wait for your review. mark gurman, -- we will wait for your review. mark gurman, thank you. more on uber's new coo. how he could help turn the company around. you can listen to the -- listen

to bloomberg on the radio. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered.

leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. 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 says the fight against islamic state in iraq and syria is almost over. trump: today, the

coalition to defeat isis has recaptured nearly 200% -- 100% of the territory once held by the islamic state in iraq and syria. we will be finished pretty soon with the isis situation in those two countries. insa: trump called the king saudi arabia to express wasdarity after a misslile supposedly fired at his residence. the former president of brazil says he is not worried about the upcoming decision of an appeal over his conviction on corruption and money laundering. he had previously served two terms. he said he will remain a presidential candidate until he's officially barred. a human rights watchdog says 92 people were killed during kenya's month of election turmoil. the opposition linger -- leader

has accused kenyan security forces of killing scores of his supporters. the incoming president won the election with 98% of the vote. has accused kenyan security global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. it's just after 5:30 p.m. here in washington, 6:30 thursday morning in hong kong. we i -- are joined by sophie kamaruddin. good morning. global news, 24 hours a day,sopd traders have lost the holiday spirit. treasuries retreating after the passage of the u.s. tax bill in congress, extending the glow oil -- global selloff. asian stocks are set for a soft start after a mixed session in the u.s. more gyrations ahead for the japanese market as they count down to the boj's last policy meeting of the year. after the picking up biggest decline in two weeks. the boj does expected to stay in

a holding pattern close out the quietest year for policy since 2013. bitcoins looking for a third day. $58.rading above i'm sophie kamaruddin in hong kong. up next, more of "bloomberg technology." ♪ emily: this is "bloomberg technology." i'm emily chang. back to the top tech story of the day. uber has tapped into the travel industry yet again, naming barney harford as its new coo.

will overseerford the company's food delivery business and serve as dara khosrowshahi's right-hand man. this news comes the same day as the ridesharing company took a major hit in the eu. the eu court of justice ruling uber a transport company, after rejecting -- another court rejected its claims to be a tech company. is this just about needing another grown-up in the room? is this about his background in the travel industry and the future of uber as a travel company? >> this is someone that dara khosrowshahi knows well. he worked for him. there was a transaction company -- of companies between them. this is someone who has competed against dara khosrowshahi. this is someone he has a lot of trust in. when dara is away, as we saw with the case, for example --

dara was in london, dealing with london regulators, at a time when they were in crucial negotiations with soft over softbank -- with softbank over softbank's investment. the guy can't be in two places at once. handsds a next repair of and he needs them to be -- he needs an extra pair of hands and he needs them to be someone he trusts. this is not a case of mark zuckerberg/sheryl sandberg. khosrowshahi is an adult. he has been around the block. he has run a major global corporation. this is about needing an extra pair of hands to get the job done and run operations when dark pressure shockey's around the world -- when dara khosrowshahi's around the world. emily: what about dealing with an exodus of executives, talent, low morale after the year that over has had -- that uber has ha d? >> it's been a terrible year for

uber. we know that very well. they need stability. when dara is overseas, they need to know that the person at home is a trusted right-hand person. it looks like this is what the role of the new coo is going to be. emily: what do you think this means for the competition? lyft, market share has been increasing in the bay area. uber is moving towards having row, evens ducks in a as new skeletons continue to come out of the closet. >> the way i look at this is uber needs to -- needs stability, needs to get its house in order as quickly as possible before lyft gains more share, before more people go to lyft. if you are an employee and you are thinking about going to a ride-hailing company, do you go to uber were there has been this much turmoil, where you have the london regulators coming down on

you, with the ceo just left six months ago, or do you go to lyft? that's one area of stability. you are a consumer, do you want to go somewhere -- do you uber?ad lyft or people are asking these questions more than the ever have before. uber can do to bring stability, the better. emily: how big is this eu situation? >> in europe, it's a big deal. it really limits their ability to maneuver there. it means that uber pop. this thing where unlicensed drivers, which is what we all use in europe -- you just can't do it. they had been putting limits on over -- uber pop in many european cities. the kinds of drivers that uber has to bring in, they have to be licensed, they have to go to extra training and probably have to be paid more. uber's hands.ties

remember, there are no appeals here. to me, it's a setback in europe. emily: tom giles, our executive editor of tech. uber's hands. thank you for weighing in. meantime, the biggest piece of tax legislation in the last 30 years was passed through congress. here is what president trump had to say earlier from the white house. president trump: we are going to bring at least $4 trillion back into this country, money that was frozen overseas and in parts of the world -- some of them don't even like us and they had the money. well, they are not going to have the money long. emily: the debate over tax reform has been raging for weeks and could have major impacts across industries, including technology. you are joined by our bloomberg tax reporter, laura davidson -- laura davison. you are joined by our bloomberg the effect of corporate tax rate

has been brought down. we know that this will impact cash overseas. how will this impact the biggest tech corporations that have a giant pile of cash overseas? 4aura: trump said about $ trillion. others say close to $3the effece has been brought down. trillion. tech and pharma companies have it stashed overseas. the tax laws -- they would get hit with high tax rates to bring it back. 15.5%. a lower rate, at 15.5%,ar, it will be they can bring that money back. republicans say they hope companies will reinvest in their facilities, in r&d, hire more workers, pay the workers that they have more. we'll see if that pans out. the last time there was a repatriation tax holiday, there ended up eating more stock buybacks, dividend payoffs -- up being more stock buybacks, dividend payoffs, ceo compensation. tech companies are excited to have more free access to that cash now. emily: there was an announcement

of a special bonus to over 100,000 employees. what does that signify in terms are respondings or will respond to the lower rate? laura: this is the poster child example. republicans could not ask for a better headline today as this bill was passing. look, companies will take the tax cut that they have and give it to their workers, push that money out into the economy to help it grow. they have really ambitious goals out there to have the economy grow, 3% or 4% per year. this is an example of that happening. we will see if there are others down the line. if so, that could help the popularity for this bill. it is not a popular bill right now. less than 50% of people in recent polls have said they approve of it. emily: there has been a lot of interest in bitcoin over the last several months. there is a provision in this bill that would increase tax liabilities for investors looking to trade in cryptocurrency. what is the impact of that? laura: i have a little bit of

bad news. tax break foreat bitcoin, and now it is no longer there. section 1031, called a like kind exchange, used for farms, ranches, real estate, you could buy a bigger ranch. by a different set of cryptocurrency -- buy a different set of cryptocurrency. you could keep upgrading and keep passing the tax bill down the line. the tax bill limits that so it is just for real estate. you can't use it for any other sort of fun asset anymore. emily: i won't be able to get my bigger range now. -- ranch now. darn it. coming up, netflix is betting couch potatoes will want to stay home for the next movie blockbuster. we will have all the details, next. this is bloomberg. ♪

emily: a story we are watching. disney will weigh in on the at&t/time warner lawsuit. oldjudge for the case will hold a status conference call. last week disney announced it will acquire assets from 21st century fox. hold a status conference call. that merger could face regulatory scrutiny. netflix's latest film is a big budget, hollywood style blockbuster. smith,," starring will will start streaming friday and will be available only on netflix. it's a push to up-endthat mergee thelatory

industry. netflix already has a sequel in the works. joining us from l.a., bloomberg's lucas shaw. this is music to my ears as a mom who never gets to go out and see movies. what is netflix's strategy? lucas: it is to satisfy someone like yourself. as much as the tv business has changed as a result of net tax, the movie business has stuck to its model pretty stubbornly. if you want to watch "star "jumanji," you have to go to the theater. the movies that are available at home tend to be smaller budgets and they are still in theaters at the same time. if you want to watch a movie with will smith, he has been one of the biggest movie stars of the last 20 to 25 years, you can do so from your couch. it will look every bit as good as it would in the theater. emily: is there any data or prediction of just how many people will do this verse is

going to theaters? lucas: -- versus going to theaters? lucas: there is no data for how many people will watch will smith's movie in the first weekend. we have started to get viewership of a couple of big netflix shows, like "the crown" and "stranger things." it's a little harder to measure with movies. you've seen a gradual decline over the past 10 years in the amount of time -- the number of times in any given year that people go to the theater. one of the reasons cited for people staying at home instead is because they can watch something on netflix that is every bit as satisfying. emily: what is the data about "stranger" and things" showing? lucas: the first episode over the first weekend was watched by 10 to 12 million people, as much as the most-watched show on cable, like "the walking dead."

"the crown" was more like 3 million people, which is sizable, but not gigantic. nielsen is only measuring in the u.s. netflix'shalf of audience is global. and i don't think mobile phones are included. emily: how is netflix's strategy playing out, vis-à-vis amazon studios? especially given roy price leaving over sexual harassment allegations, as well as the star of "transparent." amazon studios doesn't really have a huge hit right now. lucas: in terms of original programming on the tv side, netflix has been a lot more successful than amazon, really more successful than anybody else out there in the streaming landscape. on a movie site, amazon was really the first one to have a lot of success. they won some oscars at the most recent award show. they were making these

critically acclaimed movies. earlier this year, they were involved in "the big sick," which garnered a lot of acclaim. we are seeing maybe a shift. netflix has "mudbound" out right now that is likely to pick up some award nominations. "bright" -- i'm not personally allowed to review it at the moment. it is probably not going to be the biggest movie of the holiday season, but they don't need it to be. if you are sitting at home and you have nothing better to do and you are with your family and you like willit is probably note the smith, you are going to sit there, watch 30 minutes, an hour, maybe an hour and a half. there will be more and more of these. they just hired a guy who, starting later next year and after that, will be producing a lot more big-budget movies. emily: all right. lucas shaw for us, our bloomberg entertainment reporter. thank you. i now have my menu for the weekend. coming up, the man who led microsoft and google's efforts in china, kaifu lee, bricks down the challenges facing u.s.

companies -- breaks down the challenges facing u.s. companies trying to break into china. this is bloomberg. ♪

deepening itsis push into china as it seeks the anbang edge in one of tech's most competitive fields -- seeks in one of tech's most competitive fields. i spoke to kai-fu lee on this week's episode of "bloomberg studio 1.0" about the road ahead for u.s. tech companies in china. >> when i joined google and went to china, we had made a decision we would comply with government laws, and that allowed us to grow a business from about 9% market share to 24% and grow in search revenue from nothing to almost one billion. i thought we were given space to do our business, but,

ultimately, i think the legal restrictions and google's values really didn't allow google to continue to operate. emily: youtube getting shut down was really the beginning of a series of shut down -- shutdow ns. facebook was blocked. twitter was block. >> none of these companies had a chance of succeeding in china. american companies were just too far removed from the chinese user's needs. google eventually agreed to create a chinese interface. that would get in such a way of the silicon valley-centric way of the world, where one platform would serve the world. that egocentricity would have caused every american company to fail in china. if you look at the new companies that rose up in china in a very tough competitive environment, i think we chat is clearly a better product than facebook messenger. i think -- is a better product

than ebay, if not than amazon. the chinese payment system, fully connected, frictionless micro-payment, peer-to-peer, is clearly better than paypal and the credit cards. many people compare it with gladiators in the coliseum, and i'm afraid that silicon valley companies are just no gladiators. they would get killed in china. emily: you left google in 2009. google left china a few months later. what happened? >> i had no idea. i was surprised. "new york times" called me one morning and said, can we get a quote from you? i said, what? they said "google just let china." i said, i had an idea. i can't give you a quote. emily: google said they didn't want to respond to the censorship demands of the chinese government. was that the right call? >> hard to say what's right or wrong. i think if google --

google is a very value-centric company, so it will do things according to its values, for which i think we all respect. but on the other hand, that makes it impossible for the company to do business in china. and i would prefer to see engagement and engagement would give users more choices, and that would ultimately i think lead to competitiveness and better products. but that, of course, requires following along. and if you choose not to, i guess you would have to exit. emily: do you think google will ever return to china? >> i think it's very difficult>> . hard to say ever, but the core product cannot return unless they follow the laws and regulations. i do think some secondary products, facebook's oculus is launching in china. i think some of google's new pntext that are maybe -- new roducts that are maybe not as

core could potentially be launched as an experiment. i think google is a great company, and i would like to see them lunch products everywhere. emily: facebook has been making overtures, shaking the right hands. whatsapp recently blocked. instagram and facebook. are still blocked. do you see a scenario where facebook can have a substantial presence there? >> if i were mark, i would definitely launch oculus. i would work hard and getting more chinese companies to see facebook as a platform for ads, so the chinese companies can project positive images worldwide. i would consider, if i were either google or facebook, launching the open-source ai projects in china. china wants to be the world leader in ai, so there is a case where the interests are aligned. it's always better to start in an area where the interests are aligned, rather than going to an area where there is conflict.

emily: what you make of tencent's investment in snap, buying a 12% stake? is this the beginning of bigger u.s. ambitions? >> i think tencent is very smart about making global investments. i think they teach a lot to the companies they invest in. i've spoken to evan, and he really appreciates all that tencent has taught them based on chinese users' behaviors social,, things like that. tencentan has taught through its experiences. very powerful and amazing learning machine, so these investments are teaching what they know, just like tencent and facebook were connected by yuri milner. there is learning going both ways. i think tencent -- i don't think they have global domination ambitions. i think they are primarily a chinese company, but they want to continue to increase their

presence and learn and teach at the same time. emily: that was kai-fu lee, ceo of sinovation ventures. tune into the full episode of "burke studio -- "bloomberg studio 1.0" tonight. we are livestreaming on twitter. check us out weekdays at 5:00 p.m. in new york, 2:00 p.m. in san francisco. that's all for now. this is bloomberg. ♪ >>

♪ bloomberg'se from asian headquarters. ime yvonne man. republicans finally passed the tax cuts, the most extensive rewrite in three decades. not a single democrat supported the bill. a collectiveed shrug and pulled little change. yields run to a nine-month high. . >> i'm betty liu. it is just past 6:00 p.m. on wednesday. putting financial risks, poverty and pollution at the top of the list in 2018.