michael: so far, bitcoin is the whole action. 95% of what happens are bitcoin transactions.here are other things coming. there are dozens of crypto currencies that have launched. they are called alt-currencies. only a couple have gained real traction. one viewers might now is ethereum. that is ongoing basis -- on coin base. there is another one called ripple. a crypto currency being put together in conjunction with a bunch of banks looking to do some more oversighted, understood collateral work together. there are others. there is one called monera which is fully anonymous, another one called z-cash which is fully anonymous. the frontier is very much very powerful. why is bitcoin so good? it is simple to understand. it looks like the dollar, it is a piece of script, it is tradable. that is a cheap limitation. the promise of the block chain is due to the fact that a token, or a coin, in the chain cannot only have a currency value treatable, but can have preset instructions. it can be a smart contract. you can preload the token with a set of rules to sell your shares in a cert

sense thatso a bitcoin is not truly anonymous.elieve in the revolution of crypto currency, some of the more truly anonymous currencies are the wave of the future. spike in the 20x new win partly due to the fact , butit is coming on line it is still early days indeed. am abellious or not, if i believer that crypto currencies,, is 2017 the year where we see it become more widely adopted and something everyone will know. ? thehe real missing part of link so far is when will crypto currency including bitcoin get wide adoption? it is still missing. have not seen many stores taking it yet. >> you used to be able to buy your coffee in bitcoin. why would you buy in bitcoin? nobody knows. now you can't. i do think they are coming as the banks in particular, as the clearing houses particular, start to bless the block chain and have investment funds targeted for the block chain. you will see more adoption, but does it change my day to day life? no. i did find one founder this year , doesn't have a bank account, doesn't use checks, doesn't ha

bitcoin, is this just a super charged u.i. trade and if so how long before the chinese authorities react? a stinging attack on london's brexit preparations. how close to the mark are his comments? we'll talk about all of those issues. let's talk about where the markets are now. the nikkei out of the gate this morning, playing catch up by 2.5%. keep an eye on that. really interesting story. we're watching what's happening with whole milk. we're talking about whole milk. the reason i'm talking about that is it has had an impact on the kiwi this morning. the yen is down by .2%. the others a little bit higher. we're watching the continuation of the story. plus oil prices. a quick indication where equities are going to go today. we think we'll see a positive session. let's get a first word update. >> guy, thank you. britain's prime minister needs to be told the uncomfortable truth about the difficultiesor negotiating brexit. that's according to theresa may's former envoy to european union. he quit as the u.k.'s permanent representa

of the bitcoin supply chain.y some of the people on the frontier. there is a sense that bitcoin is not truly anonymous. if you are a believer of the revelation --revolution of , you will seey the are the wave of the future. it is still very early days. wantbellious are not, you to believe that crypto currencies will become more adopted widely. will it become something -- missing is when will crypto currency and bitcoin get wide, practical adoption? i have not seen most first taking it. >> we used to be able to buy your coffee in bitcoin. there is been a rollback of some of the applications. they are coming as the clearinghouses start to bless the block train and have invested funds. you will see more adoption. does it change my day-to-day life? no. i met a lot of founders and 2016. one founder i met does not have a bank account or use checks. the only thing to get paid by him is using crypto cards. caroline: now two big news of the week during tesla hitting speed bumps. the carmakers latest delivery numbers misse

why is bitcoin easy to -- wise bitcoin so good? because it is easy to understand. simple to understand and looks like the dollar and at the euro. but also it's a cheap imitation and can't do the regular thing. but the excitement of the block chain is partly due to the fact that a token or coin in the block chain cannot only have a currency value that's but also havee preset instructions, called a smart contract. you can preload the together within a set of rules to vote your shares a certain way or get married or get divorced if we want to get divorced under certain conditions with if/then statements preloaded. caroline: a derivative basically? michael: a derivative with rules that are preset and you are committed to behave under certain circumstances and everyone under the contract can know the contract is self-executing and self-realizing. there's a lot of exciting new stuff happening on the frontier with monero and theriam and not just bitcoin, but bitcoin still has the awareness of the public. caroline: it's interesting because we were talking about movements i

we promised you more on bitcoin.oaster ride, plunging from record highs on january the fifth largely due to worries that china is tightening its oversight. guest to believes that bitcoin will soon be more valuable than gold. he joins us now from san francisco. what is going on here? >> this is crazy. therezie times. the regulation in china is forcing people to try and avoid which is having a tough time against the u.s. dollar. take a look as well at india which has cut 86% of the notes in circulation. a premium to buy bitcoins in india, up to 12%, we saw the same level of arbitrage in chinese markets. rishaad: you have this prediction that bitcoin will be worth more than gold. how? the principlesat of bitcoin, it has already met parity with gold back in the start of 2014. has whatrward, bitcoin gold wishes it had. visibility. goldill has scarcity like but it is extremely transferable. if i wanted to get a brick of gold to you, it would be tough but if i wanted to send you some bitcoins with the same level of value, i

is bitcoin becoming a haven?t people see the currency as something more immune than gold, and that has made it a popular alternative asset. an idea of hows big of a role china plays in this market. accounts for the majority of trading in bitcoin. chinese exchanges do not charge transaction fees, but with the , assetsreciating falling, capital controls tightening, bitcoin is becoming a popular way for chinese people to hedge the yuan and take money out of the country. rishaad: what are we going to see next? >> everyone in the bitcoin industry is bullish. rishaad: they have to be. >> anyone used to watching traditional markets has to be concerned about the gains we have seen recently. was this that coin high was late 2013, when crisis rapidly plunged afterwards news ofof a hack and tighter chinese controls, so anything like that could disturb the rally once again. rishaad: thank you so much for that. right, there we go, i look at u.s. carmakers. they have got themselves a bit of a christmas present, a seventh strai

i think bitcoin is misunderstood by many. this novel new approach to creating a worldwide payment network, similar to the internet. and block chain technology is really just an idea of a private version of bitcoin. instead of bitcoin, which is this openless, permissionless network that anyone can operate on, we see banks and financial institutions creating closed, private versions. that's certainly helped the general public, i think, start to recognize that, hey, bitcoin is just the largest, oldest public version of this technology. maybe this thing does have legs and i should look into it more. >> okay. thank you for joining us this morning. great to see you. >> thanks for having me. >>> coming up, confirmation hearings for president-elect trump's cabinet kicks off today. we'll talk to senator roger wicker about that process. then former treasury secretary larry summers weighs in on the gop plan to overhaul corporate taxes. "squawk box" will be right back. b i >>> the trump trade. markets searching for more clues on what pre

as long -- bitcoin block chain.computer power to protect it, but as soon as it drops to a low level, they might not have the incentive. interesting to know, more than 50% of bitcoin mining happens in china. at one were looking province, the energy is very cheap and labor is also cheap. china is really at the heart of this. >> china is certainly at the heart of coin -- bitcoin mining . as larger companies start to adapt a block chain infrastructure around the world, they will have to think through happening in china and they might have to participate in doing mining in their country to increase the security. there is a risk there, too much of the power being focused in china. >> absolutely, the power of decentralized technology. it's like if the internet only existed in the united states and the united states had control, it would not be very powerful. the more geographically it is distributed, the better and more resilient it is. our attentionus to block chain. as i said when i was introducing you, it is being looke

bitcoin hasming up, a new year lease on life.had multiyear highs as they closed out -- certain of 17. ford model s missed estimates. this is bloomberg. ♪ ♪ caroline: it was the best currency in 2017, it looks like they will still have run. joined by the partner of growth ventures. happens on the future is bitcoin. they are adjusting -- they are something that nobody understands. there are dozens of crypto currencies that have launched. only a few of them have gained any traction. trained on one of the most reputable coin it -- exchanges. there is another called ripple or it it is a crypto currency that is between a bunch of banks. they are looking for a a lot of collateral work together, to managing a currency. there is another that is fully anonymous. powerful,er is very why is it so good? because it is easy to understand. the promise, the excitement of onlylock change, cannot have a currency value that is tradable but also have a preset instruction. you can preload these tokens with a set of rules to have your shares vote. divo

and we check bitcoin, a huge mover lately. lot of people looking at the negative correlation between bitcoin and the chinese currency as the chinese currency has declined, bitcoin has run up because of the demand from the crypto currency has occurred. it crashed yesterday, down 20% after that stunning runup. down another 7.5% potentially on the back of the chinese currency strengthening. we don't really know. we don't know what's guiding it. we know that everybody is paying attention. i'll check gold. safe haven traditionally which got stronger yesterday on the back of the dollar selloff. miners rose to the top of the s&p for a change. given a bit back this morning. >> interesting on the bitcoin front, listening to a discussion on "squawk box" europe earlier today, two big correlations. one is with the chinese yuan. people looking at that. why is the yuan having these moves, and people pouring into bitcoin to diversify. that's a reasonable correlation, but it is is much more correlat to gold and geopolitical concerns. last yea

bond out why rowboa traders are cornering the market in bitcoin.♪ yvonne: after hitting a record high, then tumbling just as fast, bitcoin back in the headlines. traders that have grabbed 80% of trade in the crypto currency. dominant is automated trading when it comes to the world of bitcoin? fit, asin is a natural much as 80% of trading transaction volumes are done by automated trading. to spirit trying money a cross the borders. you have an army of professional traders using strategies that are deployed by some of wall street's biggest players, and these people see bitcoin as their new playground. yvonne: what makes the automated trading so popular? >> bitcoins market structure boxes,ll the right arbitrage trading across all platforms, 24/7 trading, so when it comes to man versus machine, machines are an actual fit for this trading. yvonne: there are risks to the bitcoin market, hacking, the chinese government may want to crack down on this, so how will the pboc set up regulations? >> the aftermath of this round of inspections on the exchanges, m

how about the price of bitcoin, by the way, plunging after it rallied nearly 60%.la taushi is here. what's been going on? >> if you looked at bitcoin you would have seen it was close to a record high level. then overnight it fell as much as 23%. it's cut those losses in half, but it happened in just a matter of hours and it was in response to a surprise surge in the chinese yuan after beijing clamped down on outflows and also reports of possible intervention in the currency market. bitcoin's become a convenient way for investors to move money quickly, anonymously and cheaply away from financial systems that are under strict capital controls. for that reason bitcoin and the yuan have developed something of an inverse relationship. when it falls it decentralizes vehicles like bitcoin and when the yuan rises, it sharply corrects. past spikes occurred in the financial crises in greece and cypress when depositors feared that their money would vanish overnight, that it would be taken back by regulators or the government. bitcoin's current run began on the back of product

i think we should swap gold for bitcoin with a record high price.old here is firmer, up almost 0.75%. >> almost parity between gold and bitcoin. >> amazing. gold is a much bigger market. jim mellon tweeting this morning, applauding those moves. i'm sure he's making good money on those trades. in terms of what to discuss today, fed minutes interesting yesterday. some people were essentially on the line, and they remain data dependent, so they will be reactive as opposed to pro active. so the market only pricing in two hikes as opposed to the third one that's been talked about, but with the fed just being reactive t has to wait to see the policy action. >> this is still a cautious fed and won't make assumptions on fiscal policy because wall street is excited about what to expect from the trump administration and congress. still references to gradual rate hikes, references to the strengthening dollar and the risk that poses to the recovery, to the yuan, some of the volatility we've seen there. so add it up, and it painted somewhat cautious, not hawkish

finally, looking at bitcoin. bitcoin yesterday hit a record high, down sharply against a declining dollar. this risk is confirmed by gold. in yellow, we have gold. in white, we have the 10 year yield. we can see they traded in verse for some period of time. now, gold is starting to rally so perhaps this will be a dynamic we will see as the year goes on. some tech names, facebook, amazon, netflix, alphabet all trading higher on the day. since with its best day november 15, really being helped out by a solid 2016. 50% shipped many units and were shipped during the holiday season. sharp contrast to the weakness that goals and macy's. up, morecoming interviews from the consumer electronics show. from new york, this is bloomberg. ♪ >> "what'd you miss?" the consumer electronics show is in full swing in las vegas. earlier today, we caught up with aol ceo tim armstrong and we asked about the status of the yahoo! hack. mr. armstrong: the yahoo! deal is strategic for our 2020 goals. we are hopefully -- we're hopefully wil

bitcoin serves as a legal loophole. many are selling it overseas so they can receive local money in exchange. and that's the latest in business news. here's a check on markets. >>> other stories we're following at this hour, heavy snow, strong winds and high waves could disrupt travel and could bring bigger dangers. nhk world's meteorologist roger speta has all of those details. >> across central and northern japan along the sea of the japan coastline, we're seeing a winter pattern absolutely dominating out here. you can see on the satellite picture, that is from the cold air moving out of northeastern china through far eastern russia, just pouring across the sea of japan, picking up all of that moisture and dumps it here along the mountains. in fact, some area's tote stall snow depth tops 200 centimeters and also towards owe kid doe, we've been seeing the snow pile up. and here in akita, it's blizzard-like winds have been reported, gusting up to 107 kilometers per hour. this was accompanied by 70 centimeters of snowfal

explain to us, what is bitcoin? digital or crypto currency on the web.on the web. invented by a programmer who we don't know who he or she is. it is peer—to—peer, there is no central bank looking after it for us. which has made it very popular in an era when central banks seem to be falling over themselves to debase their currencies. so no tangible notes or coins? it's all cyber. all cyber but accepted by 100,000 retailers around the world. you can swa p retailers around the world. you can swap it for dollars... you can buy your groceries with it in some places and swap it for other currencies. wasn't it the best performing currency last year? it's doubled, more than doubled over the past year. it's had some wobbles over its short history since 2008, but fell 20% overnight. what is over its short history since 2008, but fell 2096 overnight. what is the appeal of bitcoin? appeal is that it's not controlled by central banks or politicians. it competes with traditional currencies and since the financial crisis we had seen central banks and governments falli

and bitcoin, big, big move today. a record all-time high earlier, but it's seen significant profit taking. down 12% on the day today, back below 1,000, albeit following a sharp rise over the last couple months. >>> now to today's what's working series. we're looking at top tech picks for 2017, specifically software. ann winblad joins us. great to have you here. >> thanks. good morning. >> so everybody knows you as venture capitalist, private equi equity. you're here to talk about stocks in the sectors you know a lot about, particularly software and technology. last year you recommended microsoft. it's up 12% this past year. what do you like for 2017? >> well, i still like microsoft. i think they've got a lot of room to grow, especially with the linkedin acquisition. they're in second place between amazon in the fast-growing public cloud space, which should grow 22% compounded annually until 2020 up to about 236 billion in revenue. they're ran a 13 billion run rate last quarter for their cloud business. amazon will do

i do not think that will get selected to -- get so much into bitcoin itself. they already have an infrastructure in place, but as you point out so much of the transaction volume does go through china or is from chinese business in and out of the country. so the users in china are willing to adapt to these kinds of transactional services that are purely mobile. there is no physical bank to deal with and they don't mind. >> tim, thank you very much. >> coming up, what is up with the bromance between president trump and elon musk? is that why tesla shares have been rising? this is bloomberg. courtney: i am courtney collins, and you are watching bloomberg technology. donald trump and theresa may have kicked off a new era in u.s.-u.k. relations. they held a joint news conference at the white house today and stressed the importance of good relations between the two countries. trump: governments must be responsive to every day working people, must represent their own citizens. , we lookime minister forward to working closely with we strengthen our mutual ties in comm

you have seen money pouring into bitcoin. -- bit oftter of de-appreciation. areas too find make into assets. the health care tech industry has grown dramatically since obama care past. -- passed. ♪ >> you're watching bloomberg technology. that's get you started with a check of the first word news. this is the first time such a swap occurred after decades of reunification talks. the number of asylum-seekers arriving in germany plunge last year. the government figures about 280,000, far below the 800,000 2015.ught asylum in a new report from the u.s. government finds afghan security forces still not incapable of securing the countries themselves. an official warns the country needs a stable security environment to prevent it from again becoming attracted to al qaeda and other militants. been detained in brussels in connection to the attacks and paris in 2015 that left 130 people dead. the city was rocked by a series of coordinated terror attacks at a football stadium, restaurant, conference.during a in nigerian state governor says eight agencies are profiting f

and after rising the last few months, bitcoin is falling. more than 16%.se authorities are turning their oversight of digital currency. i want you to check into a particular chart. as we see it here, we're looking at how we have almost over the past few months seen record highs overall for bitcoin. coming back to what we have not seen in several years. a sudden fall off. you see a downward turn. china is casting its beady eye. it is falling and rising and in blue, the chinese yuan. you have seen money pouring into bitcoin. china wants to find new areas to make into assets. the health care tech industry has grown dramatically since obama care passed. ♪ >> an update of your top stories. donald trump has confronted two of his biggest political challenges over one week before he becomes president. he says he will not divest from his companies and laid out plans to avoid conflicts. he dismissed claims about russia but conceded that russia was behind the election hack. rex tillerson has faced a wide range of questions in his confirmation hearing including russia

also china and bitcoin. we were talking about bitcoin just last week.ng currency in the world, it was, hitting 1000 bucks. it's an online currency. but it doesn't exist, you know what i mean. the country's central bank said it wa nted the country's central bank said it wanted to investigate market manipulation, money—laundering and unauthorised financing. this has sent the currency more 16% lower. virtual currency, that's what it is. now the defacto boss of samsung has been questioned by investigators in seoul. lee jae—yong isn't just any executive. tha nkfully thankfully the me that! he is heir to a powerful business dynasty, the grandson of the founder of samsung. he's already given evidence to politicians about the scandal, but this is the first time he's faced questioning as a suspect. stephen evans is in seoulfor us. lots of apologies, but not much said about the actual act, any wrongdoing, no admitting to doing things wrong. lots of apologies. it's that kind of classic apology, i'm very it's that kind of classic apology, i'm very sorry, for trusti

you mentioned bitcoin, the biggest players in the bitcoin market.'s point of view, they need to keep the growth going, not only for themselves, but for the world. and to need to rise, going into the 19th party congress for the end of the year, about how they are doing domestically. >> nobody has ever faced a crisis with 3 trillion in foreign exchange reserves. let's remember the magnitude of currency resources. we go back to when china was trying to hold their currency unchanged against the dollar, 10 from $400 it has gone billion to $4 trillion. china can intervene if it likes, but the currency is not part of the imf basket. as part of that, one needs to move toward a more convertible currency. meansertible currency willing to sell your currency, although it to be traded freely in the market. jonathan: so that begs the question, what are they doing then? >> i think there are trying to prevent their currency from falling, if they go ahead with this, too try to maintain stability. that is a reaction to fear of political pressures. jonathan: there has

bitcoin, let's go into the bloomberg terminal and pull up a five-year chart of bitcoin, which brieflyme high today. 1130 was the all-time high, back down to 10 93, lots of renewed seen as an bitcoin, vehicle to move out of china and other troubled economies like been his way left. -- like venezuela. you go back to the end of 2013 when there was that parabolic , then it burst, but did not completely end, now rallying back. scarlet: that advance looks more sustainable. someone pointed this out to me that if you look at a longer never looked nearly as bad as it did. it looks like a steady ascent. scarlet: that demand is not look to change anytime soon. let's get you to business flash headlines. the largest department store company plans to cut more than 6000 jobs, 4% of its workforce. after holiday sales came at the low end of its forecast. macy's also cut its annual earnings forecast. late tradinged in after that retailer cut its fiscal outlook and reported disappointed sales for the most recent quarter. earnings will be three dollars 66 $23.65 a share. $3.60 to $3.65 a share. vanguard

ta take bitcoin out of it for a minute. >> i think you need to separate out, for instance, bitcoin fromprotocols that allow for the transfer of bitcoin. a lot of the crypto currencies right now aren't really currenci currencies. they're commodities. they're traded because they're not really -- they bounce around so much. it's difficult to use it as a currency. say you're a retailer accepting a bitcoin and it goes up 10%, you've lost all of your margin. so the first thing you have to do is convert it into a fiat currency, which costs you money to go and do. so you can't really use it as a currency yet. but the underlying protocol, the block chain protocol, shows some promise to take out costs in the system and some unique ways of thinking about different things like identity and protecting identity in different ways. anybody can avail themselves of applications written on top of the block chain protocol. so it doesn't really disintermediate folks, but it allows for more efficient transactions potentially. still early. >> one thing you do every time i talk to you is scare me. because you'

bitcoin bit every other currency as an investment last year. manus: you like bitcoins, don't you? 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. let's check out the markets in asia with juliette. juliette: yes, not just about bitcoin what it is about a loss of currencies today including the japanese yen which continues to strengthen as we saw japan close-out the session and hour ago. it is up by over 1% against the dollar at 115.77. coming off of those strong gains we saw. we saw automakers coming under pressure and closing out by 0.4%. the other big movement has been the yuan, the biggest two-day event since 2010. the offshore erasing some of its losses. if a structure companies in byna, it has closed higher 0.2%. a strong rally in hong kong at 1.4% with energy players leading gains. australian market in bull market territory. closing out at 0.3%. a lot of these of course also about this weakening dollar. manus: thank you very much. the very latest on the markets. earnings at the top of the hour, 2.3 billion pounds. an increase in th

you,robin, coming back to we've seen the bitcoin stories.e've seen the chinese try to get money out of the country and circumventing the rules that are currently in place. how creative are the chinese getting? seen evidence of them trying to find all sorts of alternative assets, hiding it in trade, falsifying imports data, but i think what jonathan mentioned was, he hit the nail on the head. what we're seeing now is, people trying -- it is a big coincidence, right? the annual conversion quarters get reset and we have the yuan rising the most since 2010. fixings, we have seen over the past couple of days, the pboc setting fixings which are not as weak as expected. yesterday, they said 0.18% weaker, when the fixing models showed it should be 0.3% weaker. the pboc doesn't necessarily have to follow the fixing models. tomorrow, what will happen is very difficult to say. is lastingnk this even maybe until the end of next week or so. guy: we're going to leave it there. thank you very much indeed for all joining in. mark cudmore, robin ganguly, jon

bitcoin big story last week.ecord all time highs and about 10% of profiting, down a little bit this morning, 3%. and gold prices to round things off is up a little bit. a quarter of a percent at 11.76. >>> it's a light day on the economic front. a pair of fed officials are also speaking. eric rosengren in atlanta. >>> with less than woo a week to go before president elect trump is inaugurated. powell, although he didn't mention the incoming president by name, he did elude to his proposals, suggesting that u.s. may be moving toords more balanced policy with what sounds like more fiscal support. robert kaplan more cautious when he spoke at the aea conference. he said it's too early to know if they'll boost economic growth. and then kashkari wants to force u.s. banks to hold more capital to head off future financial crisis and he revealed he's optimistic about his plan's chances under president elect trump. they have to be careful not to weigh too much into the politics. but they have to be reassured by the fact tha

there is a lot of trading going on here with bitcoin.ot apples to apples, but at some point this might overtake the price of gold. not really sure what that triggers. wti crude is flat after successive days of gains. traders and china are bracing for tighter liquidity. demand for cash surges before the start of the lunar new year holiday. oney markets were extremely .ight bonds is acai selloff in december. where are we now? reporter: money markets did have a con start to the year. .ou had a purchase rate part of that is a seasonal tightness. another part of that is if you remember, the pboc kind of started this liquidity crunch. there's also a bit concern about the situation. who is injecting the most cash. ,he most on record last month the pboc itself wants the situation to get a bit better. betty: can we expect the relief to continue? reporter: there is still some factors hanging over the markets. there is chinese new year coming up. it actually falls a bit earlier than usual, at the end of january. the other point here is also the yen

. >> a look at bitcoin as well. >> which we added into our daily check. >> some way away from the 1 110evels, down 2% today. 763. gold prices, they gained about a percent yesterday. three positive sessions in a row. looks like we'll hit four. >> yesterday the president-elect held a news conference for the first time since the election. his comments had market moving implications, starting with pharma. the biotech sector taking a hit when trump said the pharmaceutical industry in his words is getting away with murde murder. >> the drug industry has been disastrous, leaving left and right. they supply our drugs but don't make them here. they're getting away with murder. pharma, pharma has a lot of lobbyi lobbyists, a lot of power. and there's very little bidding on drugs. we're the largest buyer of drugs in the world, and yesterday we don'ted by properly. we'll start bidding. we'll save billions of dollars. >> pharmaceutical firms reacted to the president-elect's comments. allergan saying it is aligned with the priorities of the incoming administration. we want to create more jobs in the

in the back of this book is rogoff on bitcoin. his bitcoin of fraud? ken: no, it is a technology.ltimately has to regulate these cyber currencies just in the sense that, can banks take them, can retail stores take them. on the other hand, this volatility is kind of remarkable in something that was supposed to replace the currency. it is very unstable. in underscores one of the fundamental problems with why it will not relate -- with why it will not replace cash. francine: with the technology underlying bitcoin, is that the new discovery, that investors will latch onto it this year? ken: it is huge. it has so much with having to do with security, with preventing hacking. i do think over the long-term we will see central-bank digital currencies that will compete. i do not know if they will use -- let me tell you, the central banks are looking hard at that. francine: professor rogoff, thank you so much. ken rogoff, harvard professor, stays with us. coming up, michael mckee sits down with an exclusive interview with the dallas fed president. look for that conversation at 12:00 p.m. in

this is bitcoin. look at the ramp up into this year from last year.he big question surrounding this market is chinese ire's looking for a way out and maybe using bitcoin electronic currency as a way of doing that. good morning, happy new year. china? does 2016 get repeated? beginningthat at the of 2017? last year, we were about to see turbulence by china. the chinese authorities spent most of the year reconstructing the sector, putting more money into the economy and it is paying off. numbers are better than expected, manufacturing seems to be stabilizing. it is looking ok. 2017 is probably a story of stabilization for china. guy: so we don't have to worry about china, for now. that is an important point to make. how much cash you got at the beginning of this year is to -- this year? luke: we got a lot of cash. we have been raising the cash levels, just looking for opportunities is getting harder at the end of last year. with the election in november, that changed the market tone pretty dramatically. a lot of cash coming in gives us opportunities to l

bitcoin the other one to watch.rnight deposit rate in the terms of offshore, this is what we are seeing in terms of bitcoin, coming off again, the chinese government intervening in the market and having a big effect, so markets, you are right to focus on the pound, 1.22 is an interesting level. the next hour will be fascinating for sterling. manus: absolutely. anna: we are at 1.2195 right now. manus: commodities, gold, arising situation, warnings on equities, a correction. yousef is selling by with the stopping by with the latest. yousef: when it comes to the gold story, confirmation hearings, more voices telling us that valuations are getting too high, too fast, and one of them is larry summers, saying you're not pricing in enough trump risk. chart, itther this starts when donald trump gets elected early november, some other precious metals, and if you wanted a trump-proof precious metal, you would not have bought gold or silver, platinum. you would have wrought palladium , 16.7%. the irony is that hedge funds cut

. >> unless everybody's given up on this and they're all in your bitcoin. [ laughter ] >> i hope they'reuse i'd like some more buyers to come in. >> coming up next, your tweets and the final call from the options call pit. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only a

these hackers asked for bitcoin of all thing. why would they ask for bitcoin? to trace. and now criminals are starting to use bitcoin when they -- it was only $2,000 initially. they paid it. too much of a pain to try to work it out and get authorities involved. let me pay you your 2 grand so i can get my hotel back. this is something we could see more and more of. don't get upset or afraid they could get locked in. >> ransomware but what's being done to address this? this is not the first incident. >> we have seen libraries. >> hospitals. >> one in l.a. that paid the ransom ultimately. got people in icu. you need medical files and you can't get access to them. so authorities are telling people the organizations don't pay the ransom because that encourages others to do it. you're sitting up here and you exponentially costing hundreds of millions, maybe a billion dollars in ransom being paid. you could get one, as well. strahan, all of us into your e-mail. got to know, pay close attention, you have to click on an attachment before that ransomware downloads. get f

even bitcoin itself could be left behind.rency's biggest boosters say there is no guarantee to break into the mainstream. that is your global business report. head to bloomberg.com for more stories. david: donald is keeping up the pressure on the auto industry to build more cars in the u.s. earlier, he tweeted that it is finally happening. fiat chrysler is adding 2000 jobs. ford says it will expand in michigan instead of mexico. reaction from the north american auto show in detroit. thanks for joining us. before we get to that stuff come up let's talk about the f-150. the best selling vehicle in the united states for 30 years running. we are introducing a new powertrain, more smarter and capable than it has ever been. been >> long since you redid it from the ground up. >>we did that less than three years ago and from our standpoint we have been a leader in the marketplace and have to challenge ourselves as a leader to say what do we do next? technology.e this is a tool for our customers and we want to give them the best they

we have seen a flow into bitcoin in the last few weeks. that has come off in the last couple days.that money going to come into gold as well? all of these factors provide the ammunition for the bulls and it is hard to keep the bull's down. for: the bold bull call gold, it is 10%-13% up? are sayingultrabuls 1600. among the mainstream of analysts , 13 point five zero would be a good year-end price for gold. mark: eddie, thank you. great. breaking news, vonnie. vonnie: breaking the news that senior executives at bank of america earmarked 10% more to pay the fixed income divisions staff. --is a smaller staff in 2015 2016. the bank carved out 5% less for equities traders after that business slowed last year. individual trader payouts always very from the figures depending on what products they handle. our reporters reporting that bank of america will boost bonuses for bond traders, cut them for stocks traders. bank of america up 33% since the election. up about 0.2% now. mark: have a look at european equities and how they are trading. we are heading toward the close. it is going to be t

oversight of the crypto currency, the pboc saying the shanghai branch and onlineent conducted an exchan e bitcoin it hit an all-time high last week as it was seen as a safe haven. a former director jailed for assing inside information to plumber for cash and free work. stephen mcclatchy pleading guilty to offering merger tips used to make 10 illegal trades worth around $55,000. the plumber pleaded guilty and work with prosecutors against stephen mcclatchy. right, singapore has jailed its first foreigner on charges linked to investigations into .ilitias investment fund 1mdb this wish national is the fifth person to be convicted, amounting to more than $1 billion. we thought this clampdown was going to be a short brief one, but it has had some legs, hasn't it? absolutely. singapore wants to take a strong stand, to take action to theerve its reputation as least corrupt nation in asia. is swiss national convicted jens fred sturzenegger, a branch manager of falcon bank closed down since the event. charges, including failure to observe anti-money laundering rules. six countsguilty to and faces seven mo

. ♪ caroline: there is one asset we continue to watch -- bitcoin hitting a all-time high wednesday.ntinuedd adoption in china and other parts of the world. additional currency, which just turned eight years old, reached a new high of $1150. coming up, we will hear from a former cia dr. -- cia director jim wolf the. next, we are going to be talking about solar, turning to renewable energy. there seems to be a bright side to seeking the cheapest power on earth. solar power is more affordable than: some parts of the world. in some parts of the world. coal come back, or has solar won the war? chart told a thousand words. slumping and cost of producing solar energy. what is behind all of this? >> i think it's price a lot of people. most of it is improvements in technology as well as looking at subsidies that have helped the industry along. they gained economies of scale, and that is what is about. --rovement and expense expansion in production. caroline: we have a great chart showing how much the cost of solar farms has increased. by 2025, we looking at the dollar per kilowatt, which is

bitcoin retreated rapidly from wednesday's all-time high, jumping 23% from its intraday record.he virtual currency reacted to a rat -- rally in the yuan which posted a record to date offshore, the growing popularity link to the yuan and the ruby and speculation china make her its use as a way of awarding l clovis rick and. -- capital outflow restrictions. companies were told to move back to the u.s. by donald trump or pay the penalty and nissan has a similar response, message received, the top carmaker in mexico and would be hard hit in the trouble administration goes through with his threat to impose border tariffs. >> we will not make any move before understanding exactly what will be the new policy of the american administration. this is the second largest market in the world for cars. obviously we want the president of the united states -- he listed -- we listen. catch the ceo from nissan in the full interview and a half hour. global news powered by more than 2600 journalists and analysts and more than 120 countries. this is bloomberg. >> south korea and japan came online an

bitcoin beat every other currency, stock index and more as an investment last year, due to its popularitys with capital or currency restrictions. boeing rounded off 2016 with new geers, reaching a deal with on a jets. this is for several -- eight jets. it boosted ge's leasing unit to 170 aircraft. the revamped 737 is on track to make its debut later this year. 1% up.closed at global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. back to welcome bloomberg markets: middle east, i am rishaad salamat in hong kong. yousef: i'm yousef gamal el-din in dubai. opec plans to start production cuts this month, but the plan already felt in december. 3000 barrels per day, due to nigeria. we have the story. what is interesting about this latest? anthony: things are going in the right direction, opec trying to cut. these are the moving parts that are going to affect reduction going forward, namely nigeria as you mentioned. it was down. continued the pipeline and field issues. we saw libya up. those are the two factors that will be im

looking at that, and it going might have -- bitcoin.hind it, providing all the opportunities there. we have the so-called block chain behind it, which can be adapted to all sorts of things, not least syntax. that is in the next couple hours of bloomberg markets. yvonne: we will see you soon. thanks. concern over a hard brexit respite fromught the u.s. bond market selloff. that led yields higher around the world. let's bring kathleen in. exit, back in the spotlight. >> how about that? is not the only status quo in the spotlight. theresa may on sunday gave her annual new year television interview. she talked about brexit and what traders see. they say, we hear hard brexit in there. in the past, brexit is about negotiating a new trading relationship with european union, extending it to other countries. she says this isn't a hard brexit, but i will get the best deal possible for the u.k. a gossip hound falling on sunday, which continued monday. falling onhe pound sunday, continued monday. the pound got hit after the brexit. september, react

see capitall is to gains, sales, and income taxes on bitcoin and other virtual currencies.uthority has issued its first legal recognition of currencies, but enthusiasts say it could be the death knell in israel. it must still get through a public hearing and legislative process before taking affect, but few changes to the draft are expected. ausef: iran has delivered cautious reaction to the inauguration of donald trump. the foreign ministry says iran has little to say and it is to early to assess policy. these are the first official comment since became the 45th president on friday. the countries have not had formal diplomatic relations since the 1979 revolution in the takeover of the u.s. embassy. 's meeting fixed income investors ahead of a potential bond sale. the emirates is talking to investors in hong kong, taipei, and singapore, but it is not clear if it's plans to sell that after the roadshow. let's go to tracy alloway in abu dhabi. just attack the debt markets last year? tracy: that's right. we had abu dhabi come to the market in april last year, selling $5 billio

when an important country defends their currency, then bitcoin sells off, the ten-year falls to 2.35,d we read anything into that as far as our prospects for the country? i thought we were going to 2.7? >> i think we're going there. it's not going to be a straight shot. we've talked about this a lot. the markets have come a long way on a lot of very high hopes, which i do think are going to end i being validated. when you put pencil to paper on a lot of this tax, a lot of these things are going to be rolled up by the new administration, it is not going to be as easy to get everything done or as quickly as everybody thinks. to some extent this is somewhat of a pause as we start to really think about the details. even the border adjustment tax. this is a new element to this whole idea of corporate tax cuts and tax reform that complicates things that people don't understand it what does it mean, how do people feel. so to some extent the market will have a period where it tries to assess the details of what we'll get. and so it's natural to see a pause. >> if you look at a snapshot of the

most bitcoin trading takes place in china.n india the prime minister removed high denomination bank notes from circulation in november. some people have decided to pick up some bitcoins. >> it's like the ultimate safe haven currency. it was the best performing curren currency of 2016. among the elites, getting rid of cash is a big topic now. joe stiglitz and other people, you can't control this. if you're a central banker you can't control physical cash. >> you guys remember last year, you probably do, melissa, the first week or so -- >> first week of january? >> terrible. >> terrible. >> yeah. looking at the chart, ugh. up 170, a far cry. how is the lighting? >> in here? i hear the lighting is great. i will say the viewers can't feel this, but it is freezing in here. >> are you cold? >> i'm so cold. i can't even tell you. you're not cold? >> no. >> i'm drinking an iced coffee. >> that stupid nasal spray -- you're coming down with something. you are coming down with something. it's not cold in here. >> it's not? >> no. no. >>