Evasion. Big numbers and equally big questions. Critics say the recordbreaking da vinci is too good to be true. Yvonne just when we thought we got over this big hurdle on tax reform in the house, clouds looming in the Trump Administration when it comes to russia. A wall street journal report just breaking special counsel Robert Muellers team last month had issued a subpoena to president Trumps Campaign requesting some of these russia related documents. We are seeing some moves in the market on the news. Betty we are. The subpoena did not compel any officials to testify before a grand jury, but it caught the campaign by surprise, and also noted that bob muellers team is expected to interview current and former white house officials, including the Communications Director hope hicks. There is certainly more to come in this story. Some of the away bullish headlines from the u. S. About tax reform. In the meantime, lets get more on that with first word news with courtney collins. Reporter thank you. First up, the zimbabwean president held direct talks with the general who seized power and wanted to and a 37 year rule. However, bloomberg is told he is refusing to step down, hindering plans for a transitional government. The army wants him to quit so they can claim it has not launched a coup. Under the under mugabe, the economy has halved, leaving 95 of the population unemployed. The worlds biggest ipo has launched a big investor. Norways trillion Dollar Sovereign Wealth Fund wants to diversify away from energy, having dumped call. Billion would remove a Cornerstone Investor from the aramco ipo, and strengthen those who say energy is a asset to be avoided. Lloyd Blankfein tweetinged the debate, that many Corporate Executives referendum. His third message in a month is indicative of the unease in the Business World about the uks decision to quit europe. A recent survey for the confederation of british of companiesd 10 are preparing for no deal. The tim andrews yield the tumultuous year for samsung and other korean conglomerates are threatened to get worse. The new conglomerates bureau starts operating next month, but the Charity Foundation is said to be the first target. The authority will examine whether they used charity to maintain power without having to pay billions of dollars in taxes. Day,l news 24 hours a powered by more than 2700 journalists and analysts in more than 120 countries. Im courtney collins. This is bloomberg. Yvonne thank you. Lets take a look at how the market is shaping up. Lets get the latest with sophie kamaruddin. We are starting to build up on this rally. Bad. E asia began the baton was handed off to the u. S. We are continuing buyers going out in full force. This could be a tumultuous week for asian sucks asian stocks. Focus following the wall street journal report that Robert Mueller is said to have subpoenaed Trumps Campaign, but it is hoping the loss is near the 113 handle. The big picture here is that the optimism around global activity, goldman is doubling down on that optimism. Goldman is also going long on the korean won, which jumped over 1 thursday. It is continuing to fall below the 1100 mark and the upper momentum is continuing into 2018. The korean won has been the bestperforming currency in asia this year. This week,has woes the biggest drop since october. We are keeping an ion oil stocks today. Norways wealth fund plans to dump big oil. We are seeing oil stocks in sydney on the rise, extending the jump we saw on thursday after rejecting a takeover offer. It is said to be lowering bids. We have Fairfax Media continuing to slide amid a view of its unit domain. Aussie stocks are trading higher for a second day, but are eyeing a what loss. A quick look at stocks in tokyo, keeping an ion toshiba. Also said to be interested in toshibas pc usiness. Nintendo gaming ground, it says these which is the highest selling game where in the u. S. In october. Thank you. Sophie kamaruddin with some of the movers to watch. Back here in the u. S. , we were talking about tax reform, House Republicans passing there a tax bill, adding one point 3 trillion to the deficit over the next decade. Speaker ryan spoke after the bill went through. I just have to say how proud i am of this conference. Tax reform is so hard, but we know there are people who are really struggling in this country. We know we are coming through a decade of real economic anxiety. We know this is a nation that has so much more potential that is not yet tapped. Betty lets bring in news editor Jodi Schneider from taipei. Senate republicans have a much smaller margin of error, a tougher challenge ahead. The celebration might be shortlived. Reporter thats right. You will note that the white house had a fairly muted response, for President Trump, especially, to the win in the house. He sent out a tweet congratulating them, but in may when the house passed the obamacare repeal, he had a big rose garden ceremony. Even the white house is hedging their bets a little bit. It is harder in the senate. There are bigger political hurdles and fiscal hurdles. They have to use the mechanism that they have decided to use to get this through with only republican votes. They need to meet fiscal constraints the house did not have on the bill, and they can only afford to lose a few votes. No democrats are expected to go along with them, and they can only afford to lose a few republican votes. One republican senator, ron johnson, has already said he will not support the bill in its current form. Betty although he did say there could be some issues of his to be addressed, which seemed to reassure some. The Senate Version includes this proposal at the individual which was a key provision in obamacare. How much of a lightning rod is this going to be . Reporter potentially, quite a bit. The senate has not been able to pass in obamacare repeal. The individual mandate is what gets a lot of people into the program, if they get rid of that, a lot of lower income americans will simply drop out because they cant afford it. That complicates a lot of things. It hardens the democrats against the bill. You will not get any democratic votes, certainly. It could complicate things. There are other issues complicating things as well, like getting rid of the state and local tax deductions, severely limiting them. That cost some republicans even in the house to drop out. Bothther complication is the house and the senate in the end have to pass the same exact bill to send to the president s desk. The senate bill is quite different than the house bill, and they will have to reconcile them somehow. That is yet another hurdle. You mentioned the hurdles ahead, certainly going to be a little more tough, given the lower threshold in the senate. We want to talk about the lines we got from the wall street journal, saying that special counsel Robert Mueller is said to be, the team, has said to be issuing a subpoena to president Trumps Campaign requesting russia related documents from more than a dozen or so officials. Another hurdle when it comes to the russian investigation. Is that going to derail the discussions and the momentum from tax reform . Reporter the russian and roberton muellers inquiry has been a detraction in the past for the white house. A really contributed to the problem getting obamacare through, and some of the other things the administration wanted to do. We will see how this particular wrinkle is another distraction, but it certainly doesnt help. This has been a real reason that the Trump Administration has been unable to get much done on capitol hill. Yvonne thank you, Jodi Schneider, our Bloomberg News editor from taipei. Looking ahead, indonesia puts google and twitter on notice pornography. We will be in jakarta to discuss how far the government is willing to go. Coming up, stocks looking set to end the week in the green after a tumultuous few days. Some say a shortterm correction is on the way. Rick spooner is joining us to explain why. This is bloomberg. Yvonne this is bloomberg daybreak asia. I am yvonne man in hong kong. Betty im betty liu in new york. We are getting more headlines from the San Francisco fed president , john williams. The not a Voting Member of fomc, but is talking about rate hikes. He says in 2017, one more hike, three more in 2018. Thats his reasonable guess. He also says there is no need to raise rates that far. He also mentions he sees a period of continuity under jay powell at the fed, which the transition will have an early next year. Also says inflation will pick up in the next two years. Jay powell is a consistent supporter of fed policy path, this theme of gradual pace when it comes to hiking rates. Certainly, one more for december, three in 2018 is his reasonable guess. Lets take more context here, we are joined by ric spooner from cmc markets. Lets talk about these lines coming through from williams. What did you make of them . It seems like the fed is starting this mantra where inflation is heating up, but the bond markets continue to really doubt those calls. Safe from inflation or is the market just distorted . Im not sure. Sayeems very odd to me to there is settling of the yield curve going on. It is hard to pinpoint whether it is money looking for a home because it has been forced into other places by the bank of japan, or if we just have a very low inflation rate scenario. What i do see is that the risk to reward ratio is really stacked against being bullish in bonds now. Even if you dont think that theres going to be any inflation emerging for the next and is unlikely that bond yields are going to get too much lower than where they are now. On the other hand, if that is wrong, there is substantial upside. Is a lot of talk amongst academia talking about actually pushing up the fed inflation targets and perhaps reshaping fed policy overall. How can they even start having this conversation when inflation is not even at 2 . Well, i guess thats one of the big issues for the next 18 months or so. If i put myself in the shoes of fed governor, i think just looking at how good the u. S. And i was looking at the good Industrial Production numbers this morning basically, inflation is the only weak link in the u. S. Economy at this moment. It is looking universally found in other respects. Tot allows a possibility keep going with normalizing rate 2 ,cy, get rates up to 2. 25 , then see what happens from there. Thats probably the way to go. If you get a sense there is a lower paradigm, leave them. Betty but theres one problem, because if you continue to have low information inflation and the curve continues to flatten, and you have a fed that continues to raise rates, is a possiblepe for massive correction in the equity markets if there is a misstep in the rate hike path . I dont know about a massive correction, just because of rates. I dont think the fed will push things that far. Basically, the scenario is typically pretty typical in the early stages of a tightening policy, except this one is very glacially paced. The thing is that the out islook for profit margin supporting equities and is likely to stop more than a fairly mild pullback, even if rates start to rise a bit. Profit growth can withstand rate rises and valuations can withstand some rate rises. Where we could get a major pullback is if we get a bout of geopolitical risk coming to the fore. That would see the current high valuations turned into below normal ones, and that is quite a way below where we are right now. Betty looking at a perspective from where you are in asia, im curious how you think the tax , orrm bill, if it passes whatever happens to tax reform in the end, how do you think that might affect asset prices in asia . Look, starting point on that question is that the market expects tax reform. If they get it, there probably wont be too much reaction, or there could be a bit of a positive announcement effect. Probably the biggest scope for volatility will come if there is disappointment on the Corporate Tax cuts in the u. S. See somed actually. Elling of u. S. Stocks we may see valuations averaging out with the u. S. Losing ground and those in asia picking up a bit. Joining us, you for ric spooner, chief Market Strategist at cmc markets asiapacific for a wider perspective. You can get a roundup of that story and many more you need to get your day going, bloomberg subscribers, you can go on your terminal. Its also available on the mobile app. This is bloomberg. Yvonne this is bloomberg daybreak asia. I am yvonne man in hong kong. Betty im betty liu in new york. We are getting headlines from toshiba, the Company Making they made have not made a decision to sell their pc business. Say they are not considering any additional contributions from chip buyers, and say they have not entered talks with individual companies, despite some reports that they may be looking to sell the pc business to Companies Like lenovo. The nikkei reporting on that. Certainly we can narrow down the rumors. Some reports said toshiba may pour money into the chip unit before the sale. Seems like they are saying not of this is happening yet. We will follow those headlines coming through from toshiba. Switching gears now, indonesia has threatened to ban some of the biggest social media sites from the country unless they comply with stringent demands to filter pornography and other content deemed obscene. This is putting google and twitter in the spotlight. Lets go to jakarta tower Southeast Asia economy and politics reporter. Good to see you. What is this all about . Reporter good morning. This all started last week with the government threatening to block whatsapp, the messaging service. That was all because the gifs that you see or use were being used to spread pornography. The government wanted a crackdown, and that spread to the likes of google and others, to twitter. They have all been put on notice. To give you an idea of the size of the problem or the market we are talking about, indonesia is a country of 260 Million People. There are 63 million smartphones in use. Facebook alone counts about 90 Million People with users. It is quite a significant market. The government is concerned about not just the spread of obscene material like our free, but also the use of these services, these platforms to spread radicalism and extremism. Certainly aesia is country of many prolific users of sent social media. Hearing from the ministry, they said the worst cases that will not allow them to be in indonesia. How seriously are they taking this action . Reporter we push 10 a number of times during the interview to make sure this was not an idle threat. It doesnt seem like it is. Theave us an insight into conversation he had with the operators of whatsapp. Some of the language i cant share with you now, but he made it clear they would not be operating in indonesia unless they complied with the new rules. Ministry hastions also summoned representatives from google and twitter now, and will be taking the same demands to those companies. Betty is there some other motive behind this . Indonesia, as we know, the worlds biggest muslim country. 260 Million People, 90 of them or more are muslim. It is moderate islam, but underlying that is the values of society really are probably conservative, and the government is resting with what many governments have been doing, the destruction disruption of the internet, trying to preserve values that are under threat from the amount of content that younger people can access on the internet. Betty that makes sense, but its all happening at the same time that the indonesian president is seeking to grow the Digital Economy. How does that play into this . That is the battle, isnt it . Spoke toter who we said they are aiming to grow the Digital Economy to 730 billion by 2020. 130t it to be billion by 2020. It is going to be a huge part of their growth going forward. To kind of nurture the Digital Economy and allowed the platforms to exist, but at the same time, they want to preserve those values they hold dear. Betty thank you, our Southeast Asia and politics reporter. Much more ahead on daybreak asia. This year has been a roller coaster ride for korean conglomerates. Things may be getting worse for the big names. We will be live in seoul, next. This is bloomberg. Friday little bit of rated r skycam. 830 in singapore right now im yvonne man in hong kong. Betty and im betty liu in new york. Nonoil domestic imports coming in much better than domestic exports domestic excuse me. Expectation work for a gain of its also interesting to see electronic exports coming reversal. R. 5 a nice a lot of expectations were that we would see this rebound but it some be quite weak given of the weaker demand we are seeing around asia particularly in china. Chinese imports coming in a little bit weaker than anticipated. The singapore numbers coming out , quite exceeding expectations of 12. 5 . Yvonne i would say smashing expectations. Heard dropping some of the dovish language in their statements. Raising singapores growth productions for this year as well as next. Previously projected 2. 8 for this year. To 5. 1 . Rdquarter gdp some bullish figures there for singapore. Well see how that reacts when markets open. Courtney House Republicans have tax House Republicans have passed their tax code overhaul. Estimated 1. 4 trillion to the federal deficit over the next decade. Studies save many of the benefits would go to the highest earners. The senate is debating its own plan and it is not yet clear that republicans will have enough votes to pass it. China sends an envoy to north korea