a new blockchain technology was the first to come out of jp morgan's blockchain for excellence programtill skepticism around the world about blockchain and cryptocurrency. to break it down further, monica clinton sat down with me. >> we are still in that phase right now where nobody is sure what the correct way is to go from a blockchain starting at zero to become a true decentralized network. one of the ways is to get tokens into the hat of -- the hand of many people around the world. coin list is helping us with that. we are doing a sale with coin list so people all over the world can get access. taylor: how has libra changed the regulatory scrutiny? >> it has brought more energy and people that before thought cryptocurrency and blockchain was so fringe into the limelight in a way that has been great for us because people have started thinking critically about, if facebook thinks this could be real, maybe it's not just a made up, fringe technology, maybe it actually has potential. all along, we've been in the corner that we think blockchain is usable for business and for people to ac

the blockchain technology, there were tons of blockchain technologies. went to a conference where people were proclaiming that blockchain actually is dead. there is a number of companies who were sort of the early adopters, the early starters in the blockchain space, who have shifted focus. it does tend to ebb and flow along with the actual price. they are saying, block chain is dead. we will see what happens in 2020. vonnie: that is phenomenal. our thanks. she will continue to follow those stories throughout 2020. it has been a banner year for withrate credits, double-digit returns. distressed debt in 2020. that is next. this is bloomberg. ♪ vonnie: it has been a banner year for high-yield. returning more than 14% year-to-date i sat down with marathon ceo's richard to discuss high-yield heading into the new year. that's have a listen. >> returns are stellar this year. the high-yield market is up 14% due to three primary reasons. time last year, how cheap high-yield had gotten when the markets were for sale. lasts the tightening from december's losses in

first digital technology to come out of the blockchain for excellence program.s still skepticism around the world about blockchain and cryptocurrency. monicak it down further, clinton sat down with me. >> we are still in that phase right now where nobody is sure is to gocorrect way for my blockchain starting at zero to become a true decentralized network. us witht is helping matt. we are doing a sale with coin list so people all over the world can get access. >> how has it changed the regulatory scrutiny? it has brought more energy and people that before thought it was so fringe into the limelight in a way that has been great for us because people have started thinking critically about, if facebook thinks this could be real, maybe it's not just a made up technology, maybe it has technology -- potential. we've been in the corner that it can be used to create resilient applications and sent data in a secure way. you can track supply chains and interactions between companies. we are working on a partnership with a company doing medical device tracking. hasbook ente

a more centralized blockchain.ne that they can see transparency and where they can control the money and where it is going to and coming from. it will be able to counter things like money laundering and increase the speed through different currencies that is a big pain point right now. it is expensive and slow this blockchain, the promise anyway whether it happens, the promise is that these are some of the benefits that can be delivered essentially, fiat currencies behind them. >> the blockchain is said to be a technology solution looking for a problem. that is the problem right there whether it is ease of payment but it still needs to be regulated. take it back it feels like a lot of the hype has fizzled out. it is becoming more mature there still is the lingering threat now we have the likes of the heavy weights industry joining perhaps regulating in an orderly fashion could provide tale winds going forward because people will start to trust it more. >> we have to be careful that the bitcoins and more consumer ap

a lot of the blockchain's have started to hit the market.have not attracted a lot of developer attention. momentum has shifted back to, let's build on the things that are working. stack of build up the the protocols, we are going to see more and more useful applications and services. that is what i am excited about. thatet: dozen example of -- does an example of the include something like libra? spencer: it remains to be seen exactly what form libra will take when it launches. i would qualify that in the horizontal competition era. if there is anyone who is going to compete horizontally, it is someone like facebook. i would not say it falls on the vertical construction camp. 2020, the block reward for miners is going to get cut in half. people say the vintage is going to lead to a search in -- a surge in price. who side are you on? spencer: i guess i am somewhere in between. it is priced in the truest sense. there are no risk free returns to be had. ?ill price rise around that is a nuanced question. there are two factors to consider. ae halv

joining us to discuss is spencer bogart, general partner at blockchain capital.t the cha i am showing inside my terminal, all about the fundamentals. trying to hold in support of the 200 day moving average, but the rsi does not look oversold just yet as you can see on the screen. your thoughts? spencer: overall, china late has -- china lately has been driving through the price action of the last couple of months, but you would think it is challenging to read between the lines on what china is doing. we have seen favorable moves in terms of xi jinping's move to blockchain the whole country. we have seen some moves like bitcoin miners who were once put on a list of industries being eliminated from the country, it has been removed from the list. we have seen some crackdown on some of the smaller, shadier crypto exchanges, some of the larger ones seem to be getting more credibility within the country. haidi: how much does the fate of blockchain, of bitcoin, these digital assets depend on a clear trajectory from china? because as we know with a lot of their policies,

the wholesale additional currency is what you see in blockchain. with any digital token, it is not necessarily have a life of its own, but it is used to affect the transaction. canada will issue additional currency. it does not get outside of that banking system. what people hold on to, so if the problem you are trying to solve is cross-border payments, you don't need a retail additional currency. our leaning is that for now, we don't see a need for retail, which means issuing currency directly to the public. that is not how money is issued in real life. and for all these years, it has always been through the banking system. there is good reason for doing that. the banks create out of a monetary base, create money through the lending ctivity. through the credit creation process. if central banks were to be directly issuing digital currencies to the general public, what do the central banks do with this money? central banks are not geared up to be the people who extend credit. that is the job of banks. so we need to think how that will work in pract

the wholesale additional currency is what you see in blockchain.th any digital token, it is not necessarily have a life of its own, but it is used to affect the transaction. canada will issue additional currency. it does not get outside of that banking system. what people hold on to, so if the problem you are trying to solve is cross-border payments, you don't need a retail additional currency. our leaning is that for now, we don't see a need for retail, which means issuing currency directly to the public. that is not how money is issued in real life. and for all these years, it has always been through the banking system. there is good reason for doing that. the banks create out of a monetary base, create money through the lending activity. through the credit creation process. if central banks were to be directly issuing digital currencies to the general public, what do the central banks do with this money? central banks are not geared up to be the people who extend credit. that is the job of banks. so we need to think how that will work in practic

ripple main business is a cross border payment system on blockchain used to is send money around the commerce globally. >> it's a big story. kate roan if in san francisco. thank you very much. lets put the $10 billion into perspective shall we gentlemen. >> lets do it. >> big are than the market cap of bed bath and beyond, whirlpool and planet fitness does ripple belong in the $10 billion club guy. >> i don't think so. but this is not my skating rink. >> not your fort. >> not my forte. the market decides that. i tone as the -- dsh remember the movie come to america. his mama named him flay if it's worth 10 billion to them it's worth it to me does that make sense. >> where you see the valueses, listen i don't understand. somebody understands something that i don't understand or we don't understand but you see so much money thrown in the companies and uber and all the companies having trouble. what does it tell you about the macromarket. >> it's the nature of something unknown and new. the dream can be big, right? and then at some point the child is grown and the dream is gone >> is th

they are floating this idea of having a blockchain technology, meaning the electronic or digital ledger that can follow the blood batteries, if you will, to make sure theirs are sustained appropriately. >> well, i have looked at blockchain in other sectors and more recently in the cocoa west africa child cocoa cases there. we have a case involving that. the problem is that blockchain tracks a finished bag that is sealed and then they can tell you that bag goes from here to here to here. what they're not doing, and what really is the problem, is they're not looking to see who produced the cobalt that goes into that bag. you need on-site independent monitoring in order to be sure that that bag was not filled up with cobalt made with children and none of them have even considered that yet. it takes more money. it takes people power. but that's the only way to be sure that that cobalt in that bag was not mined by children. liz: yeah. glen corps is a foreign company, publicly traded but not here, i believe. meantime, we will be watching this case. keep us posted. >> thank you for your intere

to play no real way blockchain in my opinion in a clear-cut fashion other than bitcoin. think that bitcoin shed rally as it is bitcoin. i think a rallies because it becomes the identifiable, that will bein able to embody the movement, the positive scale of block chain. i think we are in the early stages of blockchain and government rolling out and building into the space. i think bitcoin becomes the benefactor of that. and i think it goes much higher from here. the whole the magic -- the whole thematic will play out for a long period of time. -- what will quick be the top issue in 2020? internet.nese india's coming up, lopsided market rally has investors weighing their options. this is bloomberg. ♪ juliette: a quick take now at the headlines. fined as part of the ongoing affair. securities and exchange. -- carlos the rest ghosn. wrongdoing.y hong kong airlines has avoided becoming the first carrier to lapse from the city in more than a decade. it has to it has sufficient cash on hand by a stipulated deadline. and must maintain that amount in the future. it has been hard

they may want to go after blockchain and.se blockchain and ledger are the biggest threats to databases. i wonder if investors are watching blockchain growth and sitting on oracle it's saying it's not worth the money. >> the s&p at a new high every day. this stock hasn't made a new high in six months right there there is a message that the market is not impressed with results i think 54 is the key level if you are long under 54 the risk a larger problem developing. >> good sfuf stuff let us switch gears to the big semi conductor stock moving after hours seema modi back at cnbc hkq with more on broadcom. >> and updated -- of an upbeat sales forecast not enough to lift the stock but broadcom bets 5g will boost demand for chips in 2020 the company says in 5g cellular infrastructure we are leveraging our ethernet technology to bring the network to the edge. now ceo haktan acknowledge it's a tough year for semi conduct ner general. but he says the broadcom core business is holding up well and the ability to grow inorganically throu

vildana: it was the first cryptocurrency, and the blockchain drew a lot of people to bitcoin.new, fast, decentralized. an investor i spoke to compared it to the separation of church and state, the first time people were seeing such a technology in the finance space. a lot of people were drawn to it because of that. even with theand, volatility we have seen over the past 10 years, even in the past year alone, it's been incredibly volatile. those massive gains is what drew people to, and then to hold it, once they got in, whatever, it is due to the gains. taylor: thank you to build donna hedrick. netflix turned out films in 2019, releasing nearly 60 movies in its shift away from television. we discuss the company's evolution into one of hollywood's biggest studios. this is bloomberg. ♪ greg: this is bloomberg markets. i'm greg bonnell in toronto. taylor: i'm taylor riggs in san francisco. it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. starting with a group led by china's tencent, is buying 10% of the world's lar

don't think they will break up big tech because they need that to combat china with 5g, ai and blockchainnd military. the key is breaking up control of data that facebook and google have one of the ways is suggested in a solid open source software which you decouple the data. so my data on facebook from the app. you allow the user to control where the data sits and who can access that data at the moment, if i leave facebook, i loose all my friends network and the data i have. and facebook still holds it. really data is a human right at least in europe, we have legislation to legislate against that that means the consumer should be in charge of the data they have on facebook, be allowed to use it, to move it >> we could talk about this for hours and rest assured regulators will be talking about this for hours, days and weeks to come. thank you for joining us this morning. >> thanks, documem. >> still ahead, a new warning by one bank about what a democratic victory could mean for the markets. plus 2019 marking a dismall year for unicorn ipos why their struggles were a drop in the bucket. an

but this idea that there's a new rail created that is a blockchain rail thatai both bank and nonbanks can participate in to settle transactions through a token, it's coming our way faster than we like, perhaps faster than the five year time frame outlines i do think it's important issue for the fsoc to continue to consider and allat scrub treasury's viewing independent of what your agent over at the federal reserve banks as you put article one power on currency. let me turn and ask you a question about world bankat isss that we had a hearing a few weeks ago at the subcommittee on thatat topic, multilateral to build them. there was no treasure representative. we had an illness that day. one thing i talked about is the legislative mandates that are put on our managing director and our governor to direct votes at the fed. so my question to you, mr. secretary, are you concerned that kind of governance to support or oppose a financing project ties the handsec of the united states and leading to abstain on voting? >> i am. >> does treasury have an amount, a record of those abstentions and t

is it ai is it blockchain what are you focused on here >> that's a great question i went to the wellsecurities conference. 800 attendees and one bank analyst. >> you got invited to your own -- >> you said you got invited to the citi bank -- >> i got myself invited. >> if you are having a new year's eve party tomorrow night, maybe i can come to that i invited myself to this tech event. what hit me was the solutions that are out there now for the banks. i mean, it's like paint by number tayli tailored solutions the banking industry i run into the attendees, we've seen this done we've seen this done in the retail industry. we've seen this done in the manufacturing industry now just apply it to the banks so we're looking at, you know, ai we're looking at big data. we're looking at cloud computing. we're looking at digital banking. we're looking at electronic payments we're looking at faster processing with faster computers and then we're looking at the governance around all of this as scott mentioned. the ceos are very important. you need to have the chief technology officers in the c sui

it's not our job to determine whether blockchain is a successful artificial intelligence goes fast ornot. it's just to allow those markets and the market economy function properly. >> well, , with that, thank youo much. >> thank you. >> attorney general delrahim, it's an honor to have you. [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> this holiday week booktv is on c-span2 every day with primetime features each night. tonight, the theme is best sellers. >> watch tonight beginning at eight eastern on c-span2, and enjoy booktv this week and every weekend on c-span2. >> this weekend booktv features three new nonfiction books. >> stop and think of that just for a minute. the russians have won him for president and elected to against all odds to be president of the united states, and he is a russian spy. think about that for a minute. that's like landing a man on the moon. that's like the assassination of julius caesar, like christopher columbus. that's one of the greatest events of world history if they were able to a

the design thinking, the digital engineering, security, blockchain, and we will be first to market!launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. when his cancer relapsed, my mom heard about st. jude. julian was referred to st. jude children's research hospital where our discoveries have helped increase the survival rate of julian's type of leukemia from 4% to 94%. st. jude gave me my son back. your son... and sons and daughters everywhere. donate now at stjude.org or shop wherever you see the st. jude logo. >>> no likes, no pressure. more content that's facebook's new hypothe s hypothesis facebook will remove likes that people will post more if likes aren't counted because they won't be so self-conscious, so competitive. instagram's ceo has said in the past it wants quote people to worry a little bit less about how many likes they are getting and spend more time connecting if users are spending more time on the app and facebook can also sell more ads. >>> online shopping becomes more a

. >> in blockchain plays >> you know, i mean i'd still say if i looked at 2020, the easiest way to make in crypto is a position in bitcoin. i mean, as you guys mentioned it's done well this year what's interesting, is that you know crypto especially bitcoin does seem to be textbook in some of the systematic model. one of the best is tom demarks his combo counts and if you look at thecharts at 13s they have been turning points. bitcoin is getting close to a buy. >> a well-known guy to the show mark husgo if i screw up yorp stat, mark i apologize. >> of course he is watching. >> his whole point, a wealth management guy and hedge fund guy his point if you had one or two% of the portfolio in bitcoin one or two% you would have increased gains -- again i screw up the numbers -- by a couple% a year you substitute one or two% from some other asset class and you would have increased your overall returns very nicely. >> yeah, and if i think regulatory opposition which has been a dark cloud the last few months, if that diminishes next year, 2020 should be a lot better than 2019 for crypto. >> all

in particular, around technology around technology like ai and blockchain and rpa and so forth.k those people those people are demanding demanding on the ceo i'll tell you a story. i was talking to our people in new york, about 3,000 people, at an event last week we were talking about our new strategy at ey and so forth. i mentioned what we are going to do around climate. one employee stood up and started clapping, the entire room started clapping. that would not have happened not even two years ago one of the things i've encountered is what is ey going to do more to promote the environment? not just ourselves but every client, period conversations i have with eu and here in the u.s. >> that sounds like more than just a situation where stake holders are rising up. this sounds like an emboldened work force that can sort of push you around and maybe that's a strong job's market >> it is there is a balance to it one side is talent the oerther side is the overall climate. what is going on out there geopolitical there are a lot of pressures out there, pressures around growth the idea

the design thinking, the digital engineering, security, blockchain, and we will be first to market!. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. ♪ >>> international flavors and fragrances announcing it's going to merge with dupont's nutrition and bio science unit a company company. iff ceo andreas fibig will lead the combined company and service chairman the deal values dupont -- the unit, at about $26 billion. programming note, the ceo i-ofiff and executive chairman of dupont will be on "squawk on the street" at 9:00 a.m. on a first on cnbc interview. >>> we will start with an ipo report card for 2019 and a look ahead at the ipo pipeline of 2020 joining us is nelson griggs nasdaq's president good morning to you. so if i were to say to you the big theme of this past year. >> yeah. >> what is it? to me i would say it would be overvaluation in the private market and a sort of rationalization or shift in the public market. i think you would say something very different. >>

"closing bell" will be right back the design thinking, the digital engineering, security, blockchain,unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. will it feel like the wheend of a journey?p working, or the beginning of something even better? when you prepare for retirement with pacific life, you can create a lifelong income... so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today. >>> welcome back the streaming wars and increased competition between platforms has been heating up and that means fierce competition for talent, joining us is one of those talents, ian somerhalder and director and producer of star of the new netflix stories v wars dropping tonight at midnight welcome. >> thank you. >> you've been in a number of hit tv shows what's it like working with netflix versus some of the other prior networks >> you know, i

one of the big concerns i have is that the potential for digital currencies based on blockchain technology could ultimately undermine the role of the u.s. dollar in global markets. do you share that concern? >> i think i would be ever long-term concern if you consider the current proposals for stable coins, those over like a basket of to anchor the value or included very heavy weight towards the door just given the role of the dollar internationally currently and that would likely be the case for some time. but over a long period of time that would be an issue i would need to think about. >> as other nations, for example, were to pursue that, wouldn't they give them the ability to basically try to start shifting away from the dollar, the utilization of other countries? >> if other currencies were more useful in the payment system or useful forms of payments, again it would be an immediate effect but over a long time that would be a factor, yes. >> thank you. my time is up. a lot more of what to talk to you about this, both in conversation as those in questions. i will get further informati

the design thinking, the digital engineering, security, blockchain, and we will be first to market! we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. >>> question of the morning is just how reliable the dow transports are as a market tell. gain up 17 s&p gain 28. we'll watch that spread. w dois up 21 we're back in a minute when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer. there's room for more than just the business you came for. whether that's keeping up with what you always do... or training for something you've never done before. that's room for possibility. ♪ >>> jim, what's on ma

the design thinking, the digital engineering, security, blockchain, and we will be first to market!y, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. here, it all starts withello! hi!... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! wifi up there? uhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your local xfinity store today. >> president trump and house speaker nancy pelosi are dealing with nafta we're being joined now to talk about that al portman of ohio >> you don't want to sacrifice the good in pursuit of the perfect, senator >> it builds on the north american free trade agreement and it improves it and updates it this is a good thing the gdp growth, joe, is greater as estimated by international trade commission. >> it's a good deal for america. >> do you have any of the same concerns of senator toomey on any of the issues?

fsoc formed the digital assets working group to explore issues surrounding blockchain technology. i applaud that by my concern is that state banking regulators have been excluded from the working group and dodd-frank specifies that nonvoting members such as state banking regulators must not be excluded from fsoc activities, so i think it's important that we have our stakeholders in the state involved, and do you know why the state regulators have been been excluded from the working group? >> i don't. it's not intentionally. if the state regulators want to be part of it we'll absolutely accommodate them. >> i'd appreciate again it if you could keep us abreast of that. i also want to close out by thanking you for your part of this robust historic economy that we have. i see that we could even add another $68 billion into this robust economy if we could move forward with the usmca which i hope that very soon we can put the american people first and get forward with that. with that i yield back. >> the gentlewoman from michigan ms. tlaib is recognized for five minutes. >> thank you fo

the design thinking, the digital engineering, security, blockchain, and we will be first to market!unately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. wthat's why xfinity hasu made taking your internetself. and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started. >>> welcome back to "squawk box. joe biden's plan attacks capital gains. no malarkey in this one. robert frank joins us. >> good morning, joe raising the tax rate on capital gains. for those making a million bucks a year he would bring it from 23.8 to 39.6 that would be the highest rate since 1978 the question for investors is how a near doubling of the capital gains rate would affect stock prices and markets now history shows there