paul: i am paul allen in sydney. the latest at this twoline with saudi arabia biggest companies agreeing to build a plan to process crude oil. a final value of $50 billion. they will process 400 billion barrels of oil per day. saudi arabia is moving to a more diverse economy to wean itself off oil. he raise as job much as $2 million or the initial offering of their retail unit. 64y are offering this at cents a series which would value this at eight and $10 billion. i feel activity showing signs of picking up after only two details were completed in 2015 and 2016. paul: a focus for pitching their telecom business. from thecomes australian financial review citing documents sent into private equity buyers. goldman sachs made the pitch with formal papers due next month. they want a deal before the fiscal year ends. bros. justice league held a second top spot at the box office earning more than $13 million and 13 territories. earning aation coco top spot on the thanksgiving debut. it opened last month and has been a big h

let's get the first word news with paul allen. paul: u.s.x changes move a step forward on thursday with the senate finance committee scheduled to release his proposals. that's republicans plan to outline the bill with their colleagues after facing criticism of inside and outside the party. p,interview with michael treasury secretary stephen mnuchin signals the white house is continuing to work with lawmakers on what's continued -- considered a fundamental part of the administration's agenda. >> this is the part that is most important. we are going to get this passed. the objective is to get it to the president's desk in december to sign. hashe british government lost the second cabinet member .n a week she failed to tell prime minister theresa may that she meetings with israeli officials during a holiday in august. on tuesday, it was revealed she suggested giving british aid money to an israeli army project. , thetion figures due later consensus forecast is for cpi to rise to 1.8% on the year from 1.6% in september. slightly stronger reading

i am paul allen in sydney. in newi am betty lou york.d oil cuts until next year. the decision was announced after talks in vienna. it signals the strength of the new alliance between the world's top producers, russia and saudi arabia. we have this report from the austrian capital. as the meetings draw to a close here in vienna, opec in position to extend the agreement with an non-opec for production cuts for 2018. you are looking at january 1 to december 30 1, 2018. they expected a nine-month extension. libya and nigeria will be asked to be part of the agreement. not with cuts or curbs, but budgets. they will not increase production beyond current levels, 2.8 million barrels per day. the group will meet over the summer to review progress and what they call, recalibrate, according to market realities. what we did not hear was any it will be wound down once they feel inventories have come back to an accessible level, which so far has been a five-year average. yousefhat is bloomberg's in austria. let's bring in our guest from jpmorgan. the

i am paul allen. this is bloomberg. president trump continuing a trip through asia, heading to the apec summit. first, our chief north asia correspondent is back. having a look at how the trip is going. $250 billion worth of deals here. cynics saying, most of them were old and some of them are mo u's >> as well. with the boeing one -- as well. >> with the boeing one, many of these are done before state visits. there were $253 billion total worth of agreements. let's put it that way, instead of deals. they were signed or committed to buy the chinese and the u.s.. it plays well for donald trump as the dealmaker. was it all for show? 15 agreements were unveiled yesterday. another 9 billion wednesday, with commerce secretary wilbur ross. shale, gas, and chemicals deal with west virginia. also, the big joint venture in alaska with cytotec. $11 million in long-term supplies with another company. also, turbines with ge. next-generation nuclear reactors westinghouse. most of them were nonbinding agreements that could take years

with that story here is paul allen.s have amid an atmosphere of tension and animosity. mexico made a thinly veiled threat to scale back border patrol agent doesn't like the way negotiations are going. thee candidate ease existing deal to file a challenge to the u.s. on lumber duties. than the congress secretary bluntly warned the administration is move -- losing patience with the whole thing. republican leaders have cleared a way on the tax overhaul bill, senate tax writers released a draft with would make many breaks temporary and repeal a key part of obamacare. reopening a painful health care debate could cost republicans votes. at least one says he opposes the plan. bhp says litigation continues after the dan disaster but warns disaster -- settlements onng the incident which killed at least 19 in brazil. he also says that is a degree in urgency of withdrawing from u.s. shale. watchdog's anti-graft is charging 19 people over fake tests on the bridge. accused of falsifying things. they tamperedims with computers and sw

paul: i am paul allen in sydney.st word news. thanks. first up, senate republicans may have provisions to the tax bill that could trigger $350 billion in automatic tax increases beginning in 2022. some senators sought the provision to prevent the tax cuts from increasing federal deficits. the gop bill reduces revenue by $1.4 trillion over 10 years before accounting for any economic growth it might produce. president trump's re-tweaking of anti-muslim videos has wronged condemnation from lawmakers on all sides. the president's early morning tweet sparked rare criticism from the u.k.. prime minister theresa may said he was wrong in jeremy corbyn said it was dangerous and a threat to society. the president has yet to say why e read tweeted the post. theresa may visited troops in iraq, she said negotiations were continuing and the u.k. would honor its commitment to the european union. she also insisted there would be irelandborder between and the republican after brexit and that free movement will be respected. bali airp

let's get to sydney and paul allen with the first word news. paul: fed chair janet yellen says that while inflation should move up in the next year, it is not certain the current low environment is predatory. she told an audience that the fed is reasonably close to its goals, but tightening too fast could strand inflation below 2%. yellen will step down in february and had some advice for her successor. >> one of the most important things i have learned as chair and thought was important to making policy is to keep an open assumed not to simply that history is repeating itself. zimbabwe is entering the unknown after losing the only leader the country has ever known. something of a party mood gripped the country as robert mugabe reside. world'sear-old was the oldest head of state and federal zimbabwe since its independence from britain. he quit after being placed under house arrest by the army and being fired by his own party. reports from berlin say chancellor merkel is leaning toward a revived alliance with the social democrats, just 24 hours a

let's get to first word news with paul allen. paul: thanks.nisters, and aticials have put the prince a touching distance from the throne at the age of 32. he has launched a shakeup of the society to wean the nation offer oil. wasbillionaire prince included. he is a investor and companies like twitter. president trump is in twitter desk in tokyo. he was talking with shinzo abe and going to an estate dinner. north korea will be high on the agenda. the ground invasion of the north would be the only way to locate the nuclear weapons, but critics say soeoul would already be under attack. this man is to be released on bail in belgium after issuing a warrant for his arrest. 15 people are in detention sparking independence supporters protesting. the country has had its own separatist movement for hundreds of years. mark carney said the bank of england may not be able to cut interest rates to boost growth if the u.k.'s brexit deal turns out to be worst than expected. the decision to leave the e.u. is already hitting supply and trimming the pace of expa

paul: i am paul allen in sydney. the u.k.red to take a tough line with the e.u. they are in talks with brussels. they say they have done enough brexit talks. hopes rise of a breakthrough. he says he and the government are not afraid of the talks. open, liberal, comprehensive agreement to increase market access and ensure we do not have impediments to trade. we want to work toward that agreement. it is in the interests of the prosperity and people of europe. we not afraid not to get an agreement. terms. agreed on wto betty: bitcoin seemingly unstoppable surge toward $10,000 has yet to convict -- convince some. one had a blunt message for new york, "ovoid bitcoin like the plague." he says nothing is supported except hope, he says, when it comes back to $100. musk has denied being the creator of bitcoin, tweeting he has misplaced his own stash of the currency. there was a viral blog post claiming he was the mysterious satoshi nakamoto. this story is a story -- bitcoin just keeps on giving. i want to pull up a chart because we ar

paul allen joining us live from sydney. asian markets shaping up. gap weighing on the hockey. seen,pondent: that has the policy lose over 1%, making it the worst g10 performer. investors expect the rba to stay longer. mentioned, there was not much changed to the growth outlook in australia. and gold take oil a toil. the drop in the currency to about 75 and 46. we are seeing the u.s. two-year yield get higher so the convergence is also further eroding australia's premium. that is illustrated by the following white line. morgan stanley says the aussie will fall to 65 cents in 2019. all the stoxx tracking higher. stocks tracking higher. consumer staples holding on to slight gains even as growth is slower in the 3rd quarter. on profit surge. macquarrie ad-libs is is climbing.tlas a few stock ratings to consider. betty: let's turn to germany, where the political future of europe's weakest economy is hanging in the balance. angela merkel's coalition talks collapsed on the weekend. more with ramy. the dax defied the negative news. david: one might expect o

i'm paul allen. this is bloomberg.tocks are looking for signs of a north korean missile launch. big whe thattcoin ending close to $10,000 mark. bitcoin has been grabbing all these headlines. absolutely. i think we are still in this bubble phase that could last a long time. it does seem funny that people are calling arbitrary levels to be the resistance level -- the resistance level to be the target. we have an in uncharted territory all year. there is no reason for it to be $10,000t with $3000 for and $30,000. i saw overnight the manager who was setting up a bitcoin fund talked about $40,000. $10,000 would have seems crazier earlier this year. it is important to know when we're in this environment where people are purely buying for the momentum and higher prices, not for any other purpose that doesn't yield anything, it is not particularly useful. it is only for the prospect of gambling purposes. there is no reason to have a limit of how hurricane bill before the bubble will collapse. rishaad: absolutely. this could tu

let's get over to sydney and paul allen with your first word news. lost nearly 105 billion on billion bookings. the news is said to have been included on the company's report to shareholders. it comes as softbank has reportedly bid to buy uber from existing stockholders. several eager -- jerome powell assist the case for raising rates next month is quote coming coming together. he says while unemployment is low, there is no sense of an overheating economy. -- alignnts a while him with a dovish wing who believes the labor market can become even stronger without creating inflation. the saudi arabian energy minister says he is looking forward to a robust discussion when opec meets in vienna to discuss prolonging output cuts. the cartel and russia agreed curbs are working and should be extended, but there is no accord on for how long and how to end them. they say technical issues need to be hammered out before index strategy is a great. -- before an exit strategy is agreed. >> it is too early to talk about the agreement but studies vary in terms about th

let's get over to paul allen in sydney. or not to change marriage law was controversial. at least for the yes camp, they would say it is effective. paul: eventually it was. there was a lot of distaste for the entire process, but the results speak for themselves at 61.6%. on.pollsters got it spot every state and territory in australia voting overwhelmingly in favor of marriage equality. the next step, to make this long. the lower house resumes on the 27th of november for two weeks. malcolm turnbull said he will facilitate the introduction of a private member bill. let's hear what he had to say. >> it is our job now to get on with it. get on with it, and get this done. it is fair. the people have voted yes for marriage equality. now it is our job to deliver it. paul: malcolm turnbull went on to say the goal is to get it passed by christmas. yvonne: does this bring an end to the political battle over this issue, or is it just beginning once again? paul: no, we are nearly at the end, but not quite. there are a few things to iro

paul allen, in sydney. ♪ >> thank you.atest policymaker to approve the slow but steady rate strategy. he sees one more rise this year and expects three in 2018. he says there is no need to raise the pace. williams says the inflation will slowly increase. ofsees an area -- an era continuity. simple way president held direct talks with the generals who seized power. bloomberg is told that the zimbabwe president refuses to step down. the army wants him to quit so they can claim they have not launched a coup. they have left at least 95% of the population under employed. the world's largest ipo, has largest investor. they want to move away, they've offload all oil stocks. it would remove the cornerstone investor from the ipo. noti arabia says opec will terminate output until it is completely rebalance. speaking exclusively to bloomberg, his inventories remain in a production extension will have to be approved if reserves are not reduced sufficiently by march. we need to recognize that by the end of march, we are not going to be

mike kelly paul allen has a look at the markets.e had to the markets they are closing higher with the exception of the nasdaq new zealand has been the about 10 of 1%. we see a kind of flat just four points right now. the national us really a bank will close out with just four points. upbillion australian dollars to that meeting estimates for the diffidence there. moves trillion dollar may today with the trade balance 2 billionto expand to dollars. japanese stocks are touching a 21 year high. i am paul allen, more from bloomberg technology next. ♪ ♪ after weeks of waiting the public got a look at the alleged russian link ads that appeared on facebook, twitter and google as a widget to influence the election. according to mark warner or is more to be worried about than just these ads. just the tip of a very large iceberg. the real story is the amount of misinformation and divisive content that was pushed for free on russian backed pages. it was then spread widely on newsfeeds of tens of millions of americans. >> joining me now to disc

paul allen here in sydney. omberg has been told the gop tax bill to be released thursday will impose a one-time tax of 12% on u.s. companies accumulated offshore earnings held as cash, and 5% for non-cash holdings. an estimated two point $6 trillion is stashed offshore. according to a republican lawmaker, house tax writers plan on phasing out the corporate rate of 20% after a decade. big tech remains under fire on capitol hill for the perceived slow response to russian meddling in the election. democrats on the senate intelligence committee prorated beyers on the second day -- rated lawyers on a second day of testimony and criticize the companies for sending legal counsel. shinzo abe has praised the boj effort to revive the economy and reached 2% inflation, but stop short of endorsing governor corrode as governor. shinzo abe says he has faith in his policies. victory raisedn expectations that the current monetary stance will continue. to raises expected interest rates on thursday for the first time in more than

i'm paul allen in sydney.m "bloomberg technology" next. ♪ emily:emily: yesterday, lawyersm bloomberg and facebook were possiblelled about the -- about how russian interference in the 26th an election occurred on the platform. his ideas on what went down in congress this week. we again by asking what went down. into think if we separated three things, i think there is a responsibility once they understood the problem and the issue, to discover the scope of it and address it. and i think they are doing that. they would be a mistake to say that the responsibility for missing it come this is things that have come to light after the election come i was not anything that anyone new had happened in previous elections and there is extensive work to be done to figure out just how deep it was. emily: twitter has already announced some changes, what changes do you think they should they made a statement? they said that they will be more progressive on abuse, so i think those are great steps. i would like to see it be mor

i couldn't be prouder of the partnership with the national wildlife federation with paul allen's vulcan to raise the profile and make sure we're saving every single elephant. >> the president said he will work with the secretary who already recommended that trump modify or shrink several national monuments created by his predecessor. do you have much confidence in that pairing as it pertains to being mindful of the conservation of elephants abroad? >> we are hopeful. we do think the science is overwhelming. we're also concerned about big horn sheep and elk populations in places like the national monuments which is one of the ones being proposed for being shru shrunk. he is a sportsman. he understands conservation. we're hopeful we can have more data driving some of these decisions. we're encouraged the president's taking a closer look. we hope he takes a look at some other issues. >> we know the president is often watching cnn. this is, you know, your opportunity to give like a big push to him to help educate him perhaps about the elephant population in zambia and zimbabwe. what do you

lowering their forecast area paul allen has the main points of this. ou mentioned, i slightly lower expectation for inflation. one of the headlines coming out of this. we are seeing the aussie dollar fall a little. underlyingsaying inflation remaining steady. a slight downward revision there. the growth rate also appears to be revised downward. 2.5% for risk of fiscal year 2017. aboveing before getting 3.25% by december 2018. the underlying employing the outlook. changed. the bank has said they do not expect to reach that label -- that level of employment for a few years yet. the bank or shadowed a lot of this on tuesday. indicating, there was likely to be no substantial change to the economic forecast. with the exception of a slight tweaking of those expect haitians. -- of those expectations. yvonne: take a look at the aussie dollar. a bit of a dovish till. atty: let's take a look that. one aussie dollar getting you less than 77 u.s. cents. it is set for its first weekly gain. aussie has been fairly range bound. they have not been able to reach that fo

and my friend, paul allen, and i actually snuck into places at the university of washington, where they computers that weren't being used at night. and so we were fascinated by what the computer could do, but very few people were getting exposure. we had to go out of our way, and we were lucky that we did it all. and so then when the idea of moving the computer onto a chip that intel would make, and it would make the computer literally millions of times cheaper than the ones we were using. so both more powerful and available to people on a personal level. then the idea of, okay, it would be very different. the software you needed, the way the industry would work. we were super lucky to, uh, be there when that was happening. so what did your family think? did they say there's something wrong with this young man? he wants to just do computers? they knew i was obsessed with computers. that i would skip athletics, that i'd go in overnight, that i'd, you know, leave the house sometimes when they prefer i wouldn't go work at night on these things. and so i was kind of considered a little stra

she explained her objective to paul allen. >> we're hoping to model what is possible.wers think it should be possible. we think we have an issue with government departments at the moment that we want to see -- send a message that we see it as a priority. continue to send the message to a young woman. that is not a message that can continue. >> are there concrete steps you can take? >> when it comes to our core government, we already know the size of the gap. there's already some measurement there. i think is been plenty of examples with how individual companies can weed out the gender pay gap. we look at some of these and start lamenting it with those departments. >> a pair of prominent executives spoke exclusively this week. told robinson he how they are keeping up with technological changes and sparking new competition in the industry. >> fundamentally, i think it should be as offensive as possible. taking the challenge, which means understanding there is a need to change the model and embrace the new technology. what is atitalize the heart of the banking relationshi

i am paul allen in sydney. here are some lines just breaking now. the fed expects interest rates to rise somewhat further, the fed to weigh deregulation while keeping core reforms. those lines, just crossing now. betty: his testimony in front of the senate is going to be tomorrow, but these are some his preparedes in remarks. he also noted he will be guided solely by the feds mandate and said thec interest and fed must respond decisively if the economy faces new threats. jay powell is going to be facing the senate banking committee for his confirmation at 10:00 wall street time on tuesday to be the next chair. i want to bring into half for some reaction. that wes speculation might hear something different. kathleen: this is a 2.5-page statement. the testimony is tomorrow at 10:00 wall street time or 5:00 here in new york. you can see the senate banking committee decided to put this out on the table. let's just run through. as part of our fed team, i received these under embargo. i've had a chance to look at this. powell is expecting interest rates t

new zealand prime minister -- had paul allen talk to her. be looking at etp and trade -- at ttp and trade once again. betty: a lot on top as we are awaiting trump's arrival, departure and arrival to south korea. markets coverage continues with rish and haidi, next. 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. whentertaining us,es getting us back on track,hing? and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited.

at 19, he dropped out of harvard to design computer software with his friend paul allen.th a system that operates 90% of the personal computers today. >> microsoft was making a lot of money then. they were charging $200, $300, $400 for, say, a word processing package that really was costing them about 50 cents to print on floppies. >> hard working, modest, easy going, it would seem to a fault. of course, he does have at least one secret. but we'll fix that. is it true that you can leap over a chair from a standing position? >> it depends on the size of the chair but this chair, probably so. >> yes! >> i took a step before i did it. >> that's okay. >> bill gates wasn't just one thing. he was a brilliant guy. had great parents. family values. but he was a killer. he basically was a ruthless guy, and so was microsoft. >> no, no, no, no, no. somebody's confused. somebody's just not thinking. > there's no way. >> we'll figure it out. >> you guys never understood. you never understood the first thing about this. >> a lot of people make the analogy that competing with bill gates

let's get to first word news with paul allen.uments from an offshore law form show wilbur ross retains a stake in a shipping company with ties to a russian businessman under u.s. sanctions and to president putin's son in law. the commerce department says ross has never known of its relationship with the kremlin. reports from the u.s. say bill dudley is close to announcing his retirement. see in bc sides several sources and says the announcement could come in the next few days. the bait is ready to step down in spring or early summer, well before the end of his term in january 2019. the texas governor says 26 people have been killed and a mass shooting at a church, the youngest just five years old. a man walked into a baptist church a service south of san antonio and opened fire. youngnmen described as a white male fled in a vehicle and was found dead a short time later, although it is not clear how he died. the red cross said some staff colluded in fraud costing the agency $6 million. an internal order revealed likely collusion i

franchises up significantly from two, three years ago isn't ultimately how you should be -- >> thank paul allen for that >> aren't the values still there as they have been? >> right that's fair, but not fair. nothing is traded and the fact that you have declines in ratings. if that becomes something and you start to lose more and more to the nba, and do you know what he makes 10 million he gets 44 million who is doing a better job. >> compared to major league baseball, nobody wants this guy -- disney would rally if they got rid of goodell. >> we have to step away for a icbrk. back to business final trades after the break trillions of dollars going back to taxpayers. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy. not the debt. ♪ throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you ha

i am paul allen in sydney. here are some lines just breaking now.est rates to rise somewhat further, the fed to weigh deregulation while keeping core reforms. those lines, just crossing now. betty: his testimony in front of the senate is going to be tomorrow, but these are some his preparedes in remarks. he also noted he will be guided solely by the feds mandate and said thec interest and fed must

. >> i am paul from allen, texas. the question is, how much, if any of the success the federals had came from the fact that they were fighting indians in minnesota? brian: a lot of it has to do with that. this was george mcclellan's army , and the return of george gave them quite a bit of confidence, i believe. and indeed, when george mcclellan, six weeks after you can see fact, the gloom return in their letters and diaries. even those who were upset with the way that george mcclellan had divvied those weeks in october of 1862, even though it were made to express that, they were still regretting that george mcclellan was gone. we don't take mcclellan seriously. this campaign is one example of that. the history has been dominated from the confederate perspective, i think. we don't taken seriously, and we need to taken seriously because he represents probably the of fought in the civil war north. they should be a limited war fought in a limited way. -- it should be a limited war fought in a limited way. pats not somebod

paul from allen, texas. i would like to chase the issue about the washington defenses. notould seem to be that if by gettysburg, the washington defenses were in such a condition that no confederate forces existed at that point, that it could have enough throw away to really threaten it. but without paranoid behavior of lincoln and hallick, grant's strategic options were limited by the fact he had to stay between washington and lee's forces. chris k.: you bring up a fair point. and you basically explained the reasoning why grant -- of the heavy artillery men and puts them into the field is of history. i would summit the following, is first of all early would have something to say. and that points to the importance of where is ryan quint when i need him? you can have the best fortification system in the world, but if you do not have the people to man it, or garrison it, you are in trouble. in that is the situation washington in the summer of 1864. that is why when early goes into the valley and it starts entering maryland, they are hustling to get the federal troops back

. >> i am paul from allen, texas. i would like to chase your issue, chris, about the washington defenses. it would seem to me at least if not by gettysburg at least beyond it the washington defenses were in such a condition that no confederate forces existed at that point, that it could have enough throw away to really threaten it. but without sort of paranoid behavior of lincoln and halleck, grant's strategic options were limited by the fact he had to stay between washington and lee's forces. chris k.: you bring up a fair point. and you basically explained the reasoning why grant denudes the washington defenses of all those artillery men and puts them in the field as infantry. jubal early would have something to say. that points up to the importance of, where is ryan quint when i need him at the battle of minocqua see. you can have the best fortification system in the world, but if you do not have the people to man it, or garrison it, if you don't have an adequate garrison, you are in trouble. and that is the situati

allen? okay, thank you. host: thank you. paul up next in boilstown, massachusetts, independent line. caller: yeah, i have two comments, trying to find information on the proposed tax internet, so i can ead it myself and i can't seem to find that information, we don't need republicans or to try to explain the tax plan to us if we can read it ourselves. i have one more comment, i just learned that the tax plan plan is going to school of the graduate tuition waivers and i think this -- for devastating and -- uate students and is a -term plan for this country. you go to c-span.org al bills, gression they will take it up when they come back. it is still there, but i suspect it is, c-span.org, chronicle and you can go straight to the source there. joyce is up next, in durham, democrat's line. caller: yes. the ld like to respond to person that said on twitter that spoiled ployees were and overpaid. my grandson went to work for the postal service as a temporary for $16 an hour. miles per dayo 15 milese day had to walk 22 a day because someone called in sick. would like to see that person wal

toid: let's get a cross sydney where powell allen is standing by for us. paulw the prime minister have long been strongly opposed to this. obviously something has changed. what was it? the political climate has changed, david. it has always been fickle here in australia. it has gotten even more so recently. the government losing its majority over the whole citizenship saga. we now have a situation where it is threatening to cross the floor and a vote with the opposition in favor of holding this royal commission of inquiry. he has done everything he could to hold this off. he even canceled this week's sitting of the house of representatives. it is clear he camp at this off any longer. it was getting to the point where the government risked losing a vote on parliament which would have raised much more serious questions about confidence in those entire and -- in the entire administration. the only good thing that can be said is the banks have had a fig leaf of decency and calling for this inquiry saying it is hurting confidence, including an offshore markets, just

allen martin. >> i'm veronica de la cruz. the rain is making its way down the bay area, but ahead of the storm a beautiful sunset and dark clouds hanging over the sky. >> chief meteorologist paulng of the rainfall for us, but first joe vazquez watching the rainfall where it's the first tests for neighborhoods after the recent wildfires. >> reporter: the rain is coming down right now. it's been off and on the last couple hours, not much impact right now, but a lot of concern. >> i got burned out. so i'm kind of stuck with just having to take it as it comes. >> reporter: fires destroyed robert taylor's home in coffee park and now a rainstorm threatens to hamper his rebuilding. all along the storm drains in the fire zones you can see the straw called waddles. they're trying to keep the water supply from getting contaminated, but as you can see, it won't catch all the water from going down the drain. >> we have to hope it can filter a bit and not run off into the creeks. hopefully it will be effective. >> reporter: the burn scars where thousands of homes were wiped out are especially at risk for flash flooding. santa rosa's dramatic year may not be over yet. >> it's the rainy seas