Even though we saw stocks lower today, it seems like this run is still intact, particularly if tax reform moves forward by the end of this year. Not so great for one particular asset, 8240, this chart i want to show you, gold. Week,rd this earlier this if we get tax reform through and Interest Rates rise, which they look set to do, that was also pointing to the fed minutes, gold will suffer. We have seen gold slip from a oneyear high in september. , it though it is choppy looks like that down trend is in place. Dont buy gold. Some people would beg to differ thing gold has reached a bottom and you still have to find a decent return in this situation. Given fed minutes and inflation coming you have to wonder how much higher these rates can move and the dollar move. Exactly. If there is no inflation, or very little inflation, that is the same case for gold. Lets pull up the chart for the u. S. Markets and show you how we , particularly after those fed minutes. The dow, s p, and nasdaq closing to the downside for the most part. Lead in for us. We are seeing futures go nowhere. The dollar looking soft ahead of thanksgiving. Take a look at how things are faring in new zealand, up. 1 on the index. For retail sales this morning, the smallest increase in two years thanks to automobiles and hospitality sectors. Australia down, taking a breather this morning. Pretty flat at the morning on the asx. It will be a quite open the next hour. Japan is closed for labor thanksgiving. They are starting earlier. South korea a one hour delay. Take a look at the dollaryen, 111. 23 right now, its best day in six months with a 1 gain overnight for the yen. We are below the 112 handle, but it has been trading all around. When it comes to you for that thanksgiving holiday. I hope you dont get stuck in holiday traffic tonight. I will be getting out of here as quick as possible. A closer look at the u. S. Market, mixed. We have more. Stocks down and the dollar as well. Yes, what got lost in the mix of the down close is the nasdaq did hit a record. Closing lower. It is the market going on positive investors take a break for the holiday with no trading on thursday. The big focus of the day was the fed signaling the december rate hike, dovishish is the way a lot of people on the street are taking it. Green light, the and the december rate hike signaled here. Lets go back into the market snapshot. The dollar the klein the biggest in eight months, lowest level since october. Some are saying that even though there is a great review on where the fed is going shortterm, 20 18 is still a wildcard. 2018 is still a wildcard. Keep an eye on that. Of big movers, Sandridge Energy jumped and is moving bigtime after hours on report that carl icahn has taken a 13 stake. Tivo wins a big Patent Infringement case against comcast. At t moving higher. We saw time warner moving higher despite the negative news for both companies on the justice on strong coming about antitrust and perhaps blocking the merger. Perhaps aimistic the positive judge will be hearing the case. That is the latest there. I also want to get to the latest on oil. Wti also climbing on that Inventory Data. We are well into the high 50s now. We were hovering around that mark. The Inventory Data was more bullish than expected with some optimism going into the opec meetings. At westhere is a look texas intermediate, the new yorktraded oil, entering contango. That is being viewed as bullish, at least locking us out of the range we had been in for some time. Thank you. Su keenan live from new york there. Lets get to first word news with courtney collins. Uber is facing at least three investigations abroad and calls to testify before congress. In reaction to the covered up data breach. Private watchdogs in italy, the of. Are looking into a lack adequate security, while the federal trade commission in washington is being urged to state in. To weigh in. The chances of a new grand coalition in germany seem to be rising with senior members of the social democrats thinking they could name their price for rejoining chancellor merkels team. Others are adamantly opposed and prepared to face a new election. The chancellor has ruled out trying to form a minority government and indicated she would prefer to go back to the voter. Inruption suspects held saudi arabia are said to be paying to avoid trial. Bloomberg has been told that some have signed agreements to transfer a portion of assets in exchange for freedom. Some of then netted kingdoms wealthiest people, including members of the royal family. Authorities say they may recover up to 100 billion in the purge. Billionaire investor mark cuban has a question for President Trump, asking if he knows how big an impact alibaba has had on the stock market. 5 of the increase in stock market by you, 250 billion come at 7. 5 times are Monthly Trade gone towith china has one company. Alibaba shares have almost tripled since its ipo. There has been no response from the white house. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. The latest minutes from the fed moved markets, renewed concern inflation will remain sluggish. There is a renewed whiting to divide. Widening Kathleen Hays has been looking through those minutes. It has been brewing all year. Janet yellen now showing more concerned. You could even say finally worried about inflation because inflation has fallen farther from target. What is interesting about the november minutes is that it does show that even if we are worried about inflation and the future, they are still on board for the december rate hike, but the question is what happens next. This is chart 6897. White linetarget, a headline inflation at 1. 6 , but the core rate is 1. 3 . It only hit the inflation target once in five years for one month. Some of the key phrases. Many ready to hike rates in the near term. December rate hike is done. March rate hike, pace of rates in question pace of rate hikes in question. The does say inflation must rise before they hike again, but they all agreed on a very important sentence and that is the fed will monitor inflation developments closely. That means they are putting more recognition on the failure of the inflation to reach its target and it will be an important deal as janet yellen leads the fed. Last night, she to open the door to the dangers of low inflation although she still seems pretty be is is going to move higher, but she is at least expressing got out more than she has in the past. That was an interesting comment, the most salient point out of the conversation. Stay with us. Cofounderbring in the and chairman of wayland Global Advisors p or good to have you here on this thanksgiving eve. Global advisors. Good to have you here on this thanksgiving he. I wanted to play a comment from a guest we had in the last hour who says there seems to be more debate on inflation and puts into doubt the Interest Rate hikes for the following year. On the aboutainly inflation. I think this signaling that the december rate rise will happened, but it would not surprise me if it is not unanimous. The big question is what happens in 2018. Im not sure we will see enough inflation for the three rate as the plots are suggesting for 2018. Are you doubtful too. This whole process is quite surreal because the fomc is wedded to a very old policy mix in their minds. When they think about households, inflation, this whole fixation with the 2 inflation target, but what is really going on here is they are having to admit that inflation inquite high and it is assets, the stock market, real estate, and some very large Asset Classes moving very quickly. There was a misunderstanding over what quantitative easing would do. They thought it would impact statistical inflation, wages, that sort of thing. According to you, where should inflation effectively be . Know is that they have managed to cause a bull market in global equities, not just the fed, the other Central Banks too, and they have doubledigit price increases for residential and multifamily housing, which is not helping the consumers at all. Privately if you sit down and talk to people in the fed as i do occasionally, believe it or not, they admit there has been a reaction, but not the one they were looking for. The bond market, a lot of people, and the bond market represents people looking at the economy and saying there is no reason. The yield curve is flat. You want to raise longterm rates, then you will hurt people trying to buy a house they cant afford. The Financial Stability argument is interesting, but if the fed focuses on too much does it potentially create a problem by moving when they dont need to move . If you not going 175 Miles Per Hour down the runway, you cant pull back on the stick. There is not that kind of demand for credit, and inflationary consumer demand out there. What you have is a scarcity of assets, which is a different matter entirely, Institutional Investors who are still having a hard time finding the duration they want to put in their portfolios. Do think the Central Banks are buying too much . They are continuing to buy. The fed should to the mortgagebacked portfolios as quickly as they can. We are down 30 . Be selling 50100 a month. Until you do that, you cant interest price. They got this backwards. They went into qe after the drop in price. How do reverse that . Youd like to know the portfolio and see if the market can sustain any kind of price increase. What is this all about . It is about how much risk of the street is willing to support. If i am the fed and i see this bull market in the bonds, i should be taking advantage of this. They want bullets for the next downturn. It should be get those securities into private hands in case we have buy them later. I think they got it wrong, innocently enough. The funny thing is that the bond market is the mechanism for policy, and they dont really understand it. It is striking to see them talking about inflation. Talking about that yield curve kathleen just mentioned, i have a chart 7207. We are inching closer to thats zero line mark. How does chair yellen interpret this right now . Is the fed willing to see her out the yield curve or an inverted one . I call this the yellen put. She is wedded to this narrative they have created about raising shortterm rates. If they stick to that, you will have an inverted curve by next year. In thefast it has moved past month. It has taken a lot of people by surprise. You raise a very important question. Hang on as we will continue with you. Chris whalen, wayland Global Advisors. We will be talking banking in a few moments and jamie dimons rambunctious talk. Plenty more ahead on daybreak asia as we head into black day higher for fridaycyber monday spree, we talk about the state of retail 8 45 hong kong time. Looking at the future of health care, the university of melbournes david grade and explains how paralyzed patients could walk again. You dont want to miss that one. This is bloomberg. This is daybreak asia. And jamie dimon welcomes chinas decision to relax the rules on Foreign Ownership and is eager to go and wide ranging comments at the Economic Club of chicago. He said he felt better about the banks treatment following the financial crisis and said he would never trust the government again. For a competitive tax system in the u. S. And if he has to pay more, so be it. We should get rid of carried interest, deferrals for hedge funds, and if you want to raise so bee comes my rate, it, but dont have an uncompetitive tax system in a competitive world. That is a mistake for america. Whalens bring back chris still with us. Dimon. Y fired up jamie the one line, hes willing to pay higher taxes to get a Corporate Tax rate of 20 . Is he a lone wolf in this camp right now . There are a lot of responsible people on wall street who feel the same way. I am delighted to hear him talk about carried interest. Is wrong for Financial Professionals to pretend they are taking risk when they are not. Overall i have always liked jamie dimons take on public policy. He is right about the crisis. The governments behavior was shameful. The way they strong the bondholders was wrong. They did the government of favor, but there you are. Talking about how he once to get rid of carried interest in deferrals for hedge funds, which the house and senate bill currently does not completely do, even despite the fact that king the campaign President Trump said he wanted to drain the swamp so to speak, so do you think these loopholes will derail the tax reform getting done this year . It is a strange calculus in washington. You never know how and why anything happens because it is all done at the last minute. We have not had a budget for most major departments in the government for years, but they will have to buy enough votes to get them over the line. Look at Susan Collins for example. It is unclear whether she will support the bill. Ultimately they all want something because that is why the process take so long. Who can be bought and who cant be bought . It is a negotiation, a commercial transaction. Differentto go in a direction. There was news out of j. P. Morgan about them possibly considering setting up or brokerage business for bitcoin and allowing their institutional clients to access these futures that will be traded on the cme. Jamie dimon on one hand thinks its a bunch tulips, but on the other hand a brokerage business. That is what their customers want. There is a mass delusion abroad and in in the nation. This is a fraud decorated with technology. That is what bitcoin is. A fraud . I give you a legal tender dollar and you give me nothing. You give me a number. It is a gaming instrument at best. We have a lot of people fascinated by the technological aspects of this come also it is not connected to a government and subject to the kind of manipulation. It is a very interesting phenomenon. The government has had a monopoly on money for 150 years in this country. Bitcoin challenges that. You think this is a bubble that will burst . It is a fascinating social experiment. ,t will be extremely volatile putting it on Balance Sheets and buying it for customers. How are you going to value it . That theres a buyer, then there will be a seller. It is a collectible. It looks like a security, but all these icos have had to pretend they . Are charitable endeavors, so who knows ive put this next to elon musk and tesla. Are stories of overtime and shows you how confused we are and how difficult it is. Tesla has product. He will never make money in that industry. Good to see you. Happy thanksgiving. Happy thanksgiving. One feature on the bloomberg we would like to bring to your attention is tv. You can watch us live and see previous interviews and dive into securities or functions we talk about. Of the become part conversation by sending us instant messages during our shows. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. This is daybreak asia. I am betty liu in new york. A quick check of the business flash headlines. A Warren Buffett backed company rose to a ne to year high. The bid derail talks come although nippon said there is no guarantee a deal would be reached. Berkshire hathaway is the biggest show holder just under 10 . The agreement to make films with sony has ended after one year. The collaboration ended after the poorly received in emoji movie. It now faces government scrutiny of overseas investments. Sony has described the Partnership Open ended and an opportunity to highlight chinese elements in films. Managingn sachs toshibas emergency share sale. Tohiba needs the money reverse negative equity and avoid being delisted. Greenlight capital and third point are planning to invest. It almost equals the local Goldman Sachs unit entire profit for last year. Bloomberg has been told chinese regulators have asked an bang insurance to lower its holdings. Sources say it will be a love no more than 5 from now on. The stakes are worth a combined 25 billion at wednesdays close. This is bloomberg. Sunny skies, looks pretty good on this thursday. Inhave seen a onehour delay south korea as students take their exams. Difference r im sure the kids just one a day off. Wednesday in new york, markets have closed mixed, but there was some selling after the fomc minutes ahead of thanksgiving tomorrow. Put theushing home to turkey in the oven. Im betty liu in new york. I am it yvonne man in hong kong. This is daybreak asia. The latest fed minutes show many fomc members are ready to hike rates in the near term. That is being taken as a clear signal that december will go ahead as planned. The pace of hikes for 2018 is an open question. Remains worried that it will take longer for inflation to reach of the 2 target and asset bubbles are concerned. Zimbabwes into room president promised a new unfolding democracy. He will be sworn in on friday and will be the ruling party candidate. He is a former spy chief and it is his sacking that led to the downfall of robert mugabe. Unemployment is said to be above 90 in zimbabwe. The spanish judge investigating the catalan separatist government says a she wants them grouped together in a single entity. The suspects were part of a complex conspiracy and the best solution is a combined investigation in state supreme court. Observers say that increases the chances of the group being freed on bail ahead of Regional Elections in catalonia next month. The United NationsHague Tribunal has sentenced the former Bosnian Serbian commander to life in prison for genocide and crimes against humanity. That includes the massacre of a rate of 8000 muslim men and boys in 1995. Europes worst atrocity since world war ii, the verdict is the last for the tribunal, which has convicted 88 people for war crimes committed in the former yugoslavia. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you. Things giving is just around the corner and japan is on the korean tradin