This is daybreak australia. We are still an hour away from the start of asias major market. Betty a brandnew week, but it will be a short week. It is just after 5 00 p. M. In new york. The thanksgiving holiday break already. Last week we saw a second decline in u. S. Stock. We ended on a red note. The s p and dow off by about one or two points as well. Decline, twoek of an a row since august. It continues to dog investors. Where is the fed going to go next year . Beheadedl tax reform and will we get it done by the end of this year . These Research Notes coming through last week. You have this market, nothing seems to bother it. You have something skittish starting to build, it seems like every headline might comes to that tax reform seems to be hurting the markets as well. We get this brandnew trading week started, lets take a look at new zealand where trading is underway. At about 1 10 of 1 . Australia, coupled members speaking early this morning about financial stability. Cindy futures with a little bit of a downside. Low lowest since june. With somes dropping concern over the political instability that may be building. You caught up with first word news. Good morning. Zimbabwe remains in a state of confusion after the President National address about resigning. He is expected to quit after meeting leaders to give up our last week. He and his wife were both fired from the party on sunday, four days after the military put them under house arrest. Is showing signs of stabilizing. Rose. That indicates china is having some upset and prices without forcing a sharp deceleration. Says theyxi jinping are for lifting, not speculation. Exploring the sale of its Nuclear Related assets to avoid being delisted from the stock exchange. The company is selling its holding against westinghouse. Toshiba will significantly reduce resources. Japan says it still has faint a partnership. The tpp would have covered 12 nations that account for 40 percent of the global economy. The remaining 11 countries are pushing ahead. There is always a chance the u. S. Will return. Frankly, the possibility of having the u. S. Back is slim, but japan would like to make an effort to persuade the u. S. To return. I believe the fact that 20 items that are still on hold will encourage the u. S. To come back to negotiations. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Promising to make some headlines this week. Spotlight is back on central banks. Kathleen hays is here with a preview. Lets start with the fed. There are a couple interesting points that we have to watch from the Federal Reserve this week. The minutes from the november meeting will be out on wednesday. No rate change was made. People want to see how predisposed the fed would be to raise the key rate again in december and maybe keep going next year. Lets take a look on the bloomberg. Of one the configuration more rate hike in december. Three rate hikes in 2018. Goldman sachs within the last couple of days putting out its rate hikes next year. Inflation picking up to 1. 8 1. 8 . It will be interesting to see what happens. The yield curve has been sending ominous signals. See is how tight the yield curve is right now, it is the tightest in 10 years. It started flattening, getting tight and tight, and next thing we knew, we were in a crisis. Get what happened since the fed started raising rates again. It could be a sign a recession is coming, no one is sure. When janet yellen sits down for a conversation on tuesday night at nyu in new york city, we want to see if she gets asked questions about that. Our bloomberg economists team is eager to see if she makes any hence about whether she might about if she will stay on after her term has expired. Urging the u. K. To be ready for a hard brexit. It will be interesting to see if any of these Big Questions will be addressed. Brexit will be big on two fronts. Tell us what we are expecting. Kathleen an interview with the bbc on sunday. Thathammond has signaled the u. K. Is getting ready to offer some kind of proposal to the eu on what they are going to pay the European Union tax it. They do not want to pay too much. They want to move on to trade. That is a big move and concession. On friday, donald tusk told theresa may they need to know something by early december at the latest. The chief negotiator on brexit with the u. K. Will be briefing eu ministers. The ecb is going to be addressing the eu parliament. Is the u. K. Trade secretary also speaking this week. Mr. Hammond is going to present the budget to parliament. One of the Big Questions pushed there is the debate about which inflation measure the bank of england should be using right now. In the budget, they can change this election. Herces told Bloomberg News is not going to do anything like that. He does not want to rock the boat. Haidi it is a fairly light week. There are a couple reports that are quite key. Japan and korea in particular. We will get the trade data in less than an hour. We will be dissecting that for everybody. Japans october trade surplus are seen shrinking a little bit. And Commodity Prices making that import bill higher. Exports ares goal strong. Strong. Till i am still interested in korea. That is not until tomorrow. Their exports for the first 20 days will be out. If we look into my next chart, toch is right here, it is underscore south koreas dependence on exports to grow the gdp. The is a lot of volatility in exports, but gdp has been growing. Growth rate of about 6. 9 yearoveryear. Stronger growth in the Third Quarter. They will be watching very closely to see how the exports come out if they support this view. The indications that they are ready to hike rates again is something to watch closely. We will get the minutes of the last meeting this week. Haidi no rest for the wicked. Kathleen hays with a look at what is coming this week. We will take a look at how amazons imminent arrival in australia is leading to optimistic tales predictions. Betty saudi arabia anticorruption crackdown may cost as much as 100 billion. The latest on that and what it means for markets, next. This is bloomberg. Haidi im haidi lun in sydney. Betty you are watching daybreak australia. Be ableies say they may to recover up to 100 billion from people detained in the anticorruption crackdown. Suspects are being offered deals to avoid going to court. Lets discuss all of this and the impact from saudi arabia from this crackdown we saw last month. Usaging partner gary joining backandforthes to the middle east. You have done deals there and you know the kingdom very well. What did you make of this news when you heard about the crackdown . Fascinating. It is not obvious. There are a lot of countries known for corruption. The kingdom is not one of them. It took everybody by surprise. Worth getting behind the headline of this, to think about what is really going on. Betty you dont think perhaps not as widespread in other countries, but the reaction that we had heard from people on the streets were quite pleased by this crackdown. Arabia hase in saudi never been corruption, as much between theng royals and everyone else. Arabia is theudi most populous country in the persian gulf, between egypt and saudi arabia. There are Something Like 100 million people. Poverty inlot of saudi arabia. There is a lot of rigidity. It is not modern. There is an international crowd here. It is a very closed system there. Sure, there is corruption, but that ther issue is have, have so much. This is the beginning of a new chapter for the country. It is going slowly. I am curious. As a foreign investor yourself, did you look at Something Like what is happening in saudi arabia and say we might want to rethink the country or not . We looked at the kingdom several times in the past. The attraction has come through different events. One event that was significant was the establishment of the university of science and ashnology, which was viewed the beginning of a new era. Reaction toit in the establishment of the shared campus. There was a movement to bringing youth and a more international crowd in students and instructors and staff. It never really went anywhere. There was a feeling that it would be Technology Parks and others. It never really happened. We looked at housing in the kingdom. It never really did anything. Housing, because of the rigidity in the country, the housing tends to be either super luxury for a handful of people were very gated, secure housing, neither of which are growth ideas. Haidi it is fascinating when you talk about this wealth disparity because so many comparisons have been made over the last week. The crackdown in saudi arabia and what is taking place in china. It i find fascinating is dual perceptions. A lot of people say this is destabilizing and introduces. Npredictability other people saying this is a cleanup that is needed. This is actually a positive when it comes to growth and development. I am curious where you sit on that spectrum. There has been so little that has taken place in that country. The ipo has been rumored forever. It is moving slowly. We know because of the disclosures required. It is difficult to do that. Particularly for a national oil into t. Entity. If it happens, in retrospect, it can be looked at as a bit of probation foundation for that. A decision to either consolidate power or move in the direction , asore consensual activity far as leadership in the country goes. Haidi i think it is fascinating. It is 8124 on your bloomberg. We are seeing this day correlation when it comes to oil prices in saudi stocks and prices. They tend to be closely correlated when it comes to how the oil is doing. Investors are getting really freaked out by these headlines. Eing made the detentions and corruption crackdown. Do you think this is a short time shortterm blip . This are not an expert in particular sector in this situation. I think it is a blitz and will get back into a zone. Low Energy Prices are continuing. This is a country that for a higherriod of time had Energy Prices. That has caused so much of the stress over the last 10 plus years. Betty speaking of stress, there is a lot of gray hair in washington over tax reform. Make of the tax reform bill . Does it have any impact at all on how you are doing business . Strangely, what is happening in the u. S. Has a little bit of a corollary and saudi arabia in saudi arabia. People have been living this unreal world. I am referring to the royals now. The politicians now in the United States are viewing tax such ain such through symbolic lens. There is a cost associated for tax cuts. To the extent that there will not be some massive addition to the deficit. Someone is losing. Not everyone can win. It is impossible. No one wants to focus on that professionala politician standpoint betty you are saying they are living in unreality right now. Does that make you less or about even, more or less confident in the economies that matter to . I think the economy will bump along. U. S. Not really view the in the context of the developed world growing much. Is a code that we do not see much happening. Interest rates in the last segment talked about flattening yield curves. No inflation. No wage growth. Nothing really happening. To the extent that immigration is threatened, growth has actually gone down. Betty there is certainly going to be more opportunities elsewhere. Thank you so much. Great to see you. We have much more ahead. More guests joining us exclusively on bloomberg. Former italian Prime Minister will be on at 8 30 this evening sydney time. We will have john chambers. You do not want to miss that interview either. This is bloomberg. Betty good morning, im betty liu and new york. In new york. Haidi you are watching daybreak australia. Lawmakers with legislation that would toughen regulatory scrutiny on minority stakes. We have more from San Francisco. Haslinda this would significantly increase the oversight on Foreign Investment in the u. S. , also which reviews foreign takeovers for National Security concerns. This committee generally concerns acquisitions, but under this new bill, even small investments could trigger review, especially in the most innovative and growing areas like artificial intelligence, robotics, and drones. This legislation comes from growing concern among lawmakers and the department of defense that investments could lead to the transfer of technologies to the chinese military. They are made it very clear that they want to become the leader of the in artificial intelligence. They want to collaborate with each other. Critics are concerned that this will actually have the opposite of the intended effect. Chinese investment has flooded the u. S. Market in emerging tech and helped fuel innovation. It will make it much more difficult for startups to get investment and make it harder for u. S. Investors to exit their investment. This also extends the review to 120 days. That will make it very difficult for earlystage startup deals to close. This bill may not be voted on for several months, but it is expected that the immersion of this deal has significant bipartisan support. Bloomberg news, San Francisco. A quick check of the latest business had lines. Apple says its new home pod smart speakers will not be ready for the Holiday Shopping season after all. Hardwarees the next project and was scheduled to ship in december. Last year, apples Wireless Headphones were held back from an october launch until december. Haidi u. K. Online fashion retailer has reached a historic spencer forpassing the first time. Capitalization to 4. 9 billion pounds. Hat nudged ahead it is a far cry from the 18 billion pounds the company was worth in 1997. Chinas grand plan to make the worlds most powerful tech pass. It will take a look live next. This is bloomberg. It is 9 30 in sydney, where markets open in about 30 minutes. A littlehowing positivity even though we saw about a quarter of 1 gain on the friday session. A little bit lower now. I am haidi lun in sydney. Betty and i am betty lou in new york. You are watching daybreak australia. After those declines on friday, asia a little bit lower. Extra to the first word news. Forinda Goldman Sachs sees fed rate hike next year. The bank says the u. S. Economy is heading into 2018 with strong momentum that is likely to boost wages and lift inflation. Goldman has lifted its outlook next year to 2. 5 . Says it is not opposed to removing the Obamacare Mandate repeals from the Senate Tax Proposal if it would help it past beard it pass. The treasury secretary and white house alleged that the director the sundayll toured talk shows. The government will make a socalled offer on the brexit deal before a key summit next year. The deadlock in negotiations. Linends warrants are in with the david davis from last week. China says it is cautiously diplomatica solution can be found to stop north Korea Developing Nuclear weapons. The ambassador said his government has done everything it can do to hold the program and the reason answer can be found if all parties engage. Envoy to xi sent an north korea last week just days after discussing north korea with president trump. Singapores Prime Minister says growth could top 3 this year. Addressing his party convention, he said singapore is benefiting from the growing World Economy but must upgrade domestically to sustain growth. Expects to expand social services and health care. Not a matters is of whether but when viewed global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am haslinda amin. This is bloomberg. Haidi thanks so much for that. Lets look at the markets feared dead markets. The s p ending another week of decline with concerns over the pace and tax concerns. The kiwi dollar trading at 68. 11. We are looking a little bit weaker after finishing fridays a session high than about one quarter of 1 . The aussie dollar seen downward pressure into the end of last week. We saw it falling to the lowest in about five months. If you want to look at gauges sentiment, it was falling against the backdrop of the weaker u. S. Dollar. Lets get more on what we should be watching us trading gets underway for this week in asia, adam has look ahead. Asian equities have had a huge year. What is the technicals telling us . Adam lets dive into the bloomberg and see what it is telling us. Call a what analysts double top. We have a high back in 2007, and then where we are now. We are reaching levels we have not had for 10 years. Technically, that puts a lot of pressure on the ability for equities to push higher. You have seen that in recent ofks in asia, that lack buying, just wanting to follow through and push it up high. I think it this point, it is a little tricky given we dont have any huge Earnings Releases or Economic Data coming out this. Eek to move the dial the thanksgiving holiday, we will get trading a little choppy on the back end of the week with the u. S. Markets closed. Place fora tricky asian equities. As you mentioned, they have had such a stellar year. The china related markets in tech sector have done very well. People are dialing back risk a little bit in taking some money off the table. Betty volatility sees the risk off. Volatility rising again in japan. Is it a sign things will get more choppy there . Back if you cast your mind 10 days or so when we first started to see these wobbles in Global Equity markets, was actually the japanese market that moved first on that thursday afternoon when we were up quite a bit and had a significant selloff. Every day premuch sick pretty much subsequent to that, we have seen the neck a, a good proxy for volatility. Lets look on the chart here. 8002. This shows you how volatility remains elevated in japan. You see this bike have highlighted with the yellow oval. It shows relative to where we have been in the early part of the year, apart from the spike in march. Level,still at elevated and we are seeing a bi