Emma its very, very, very quiet today. Clearly people, traders still enjoying christmas break. Not many of them at their desk today. The theyre going nowhere, and what we saw in the s p, volume opened was at about half of recent averages. Europe is closed, as you alluded to there. The next biggest market trading today is the nikkei, and that saw volume down about 44 f. We look for anything that may be dragging things down, its the tech sector thats down about 1 , and thats probably why were starting to see a few moves. And then lets look at apple, because thats one of the things thats been dragging things down this morning. We saw analysts have been lowering their projections for the iphone 10. They said shipments in the First Quarter next year are going to be much lower than expected. They cited lackluster demand. So what were seeing is a number of main apple suppliers falling today. And analysts see a 22 drop from their prior estimate in terms of demand for the iphone 10. So skyworks, broadcom, cirrus all down today. Lets move on to look at oil. This is a little green, bright spot today. We saw w. T. I. Is moving upwards about almost. 4 there. And its the fifth straight rise, and oil is up 2 in the last week, its fin gain in a month. We saw the saudis saying today they see oil revenues up 80 by 2023, and also take a look. Weve got some of the suppliers here in the u. S. Theyre up on that oil move, and then as we saw stagnant count after the second straight week so. Oil is the bright spot for us to be looking at today. Shery . Shery emma, thank you. Lets get more insight on the markets, as emma just told us, apple dragging down tech shares today. Mike, is this reaction on apple and its suppliers justified . Well, i think its a fascinating time for this to happen. Obviously big story from the Economic Daily out of taiwan, talking about a drop in their rojected sales from 50 million iphones, thats a pretty drastic reductions t. Happens at a time when most of wall street is probably still on vacation this week. You dont see the immediate analyst reaction that you would on, say, the middle of october, september. Apples stock was on fire this year, up more than 50 before this. And the an liz were still very bullish. 36 buy recommendations, eight sells. That puts up in the top 10 , top 8 , really, of s p stocks as far as how we sort of quantify buy and sell recommendations. So i think we might see a delayed reaction of this when more analysts get back to their desks and decide, well, do we want still to want buy . Laura youre saying it could be down even farther if we had the level of volume . Im curious to see what the Analyst Community reaction is. I do think it is a big reduction, at least according to this report in the iphone. For apple, the big question another big question is the home pod, voiceactivated speaker thats coming out earlier in 2018. Trying to take on amazons alexa devices. I dont think it deserves a lot of optimism backed into that, but a strong recession for that could maybe change it. But apple is amazing, because even after this 50 rally, its still cheaper than the overall market. So its not, you know, its not one of these way overvalued tech stocks. Its still basically a value stock, even after this huge gain. Shery i think the reaction has been more swift when it comes to asian suppliers. Go on the bloomberg, and you can see the oneday price change all in the red. But, ok, say all of these other companies or analysts come back on this holidayshortened week, were still waiting for that santa claus rally, arent we . Could we see that, and could apple just rebrand it . I feel so silly talking about the santa claus rally, but you kind of have to, because it sounds like one of the crazy cliches thats been around, but theres some truth to it. So technically the santa claus rally is the last five days of the year and the first two days of the new year. And financial did an analysis of it, and every analysis ive ever seen, its true, on average, this really happens. They say the average gain over the seven days is 1. 4 in the s p 500, which makes it the second strongest seven days of the year going back in time historically. And the percentage of time that the market is higher over those seven days is about 78 , which makes it the most likely seven days of the year to be higher. Well, five days in one year, two days of the next year. Its a real phenomenon. Whether its people getting christmas bonuses or Fund Managers adjusting their portfolios at year end. It is a real thing. Law are are the good tidings something we expect . This is an average. Are there certain sectors by which we normally see some selling going into the next year or even the first maybe week or so . Nothing ive seen thats too predictive on sectors. Its all what was hot in the year and what was not. Sometimes youll see a little bit of sort of rotation back into what wasnt doing so good. But not as just as strong of a signal as this week is generally good, almost 80 of the time its a gain for the market. Shery havent really done that well. Small caps, ok, they have done well, but they have still tracked the s p 500. The bloomberg tried it that theyve been lagging the s p 500 by around 6 . So given that we have seen this reform, the tax bill passed, could we see this reversal taking place now going into 2018 . Obviously, i mean, one of the Untold Stories about the u. S. Stock market in 2017, everyone attributed a lot to the tax cuts and the deregulation, and thats all fair. That was a big part of it. But the International Strength of the International HighInternational Sales exposure did really well. Small caps generally have the more domestically focused sales profile. So a good year for the u. S. Economy, if the economy is better than expected. I think we could see the small caps basically tied closer to the u. S. Economy than the large caps who are more internationally focused. Laura when we bring in some of the different classes as stocks, loft people, when i talk to them, they have the conversations theyre having with their Financial Advisors going into 2018. A lot of them talk about developing market stocks. Is that something that you think as a sector will be rising coming next year, maybe better than some in the u. S. . I think a lot depends on the Interest Rate outlook. If we get this reflation and higher Interest Rates, that might not be good for the stocks. Ainge lot rides on that. And given the fact that theyve risen a lot, markts up 32 just this year alone. Yeah, good year all around. That speaks to the strength internationally. Shery mark regan, thank you. Coming up, futures in focus. Were looking at bitcoin and then oil today. Oil has been on a rocky ride, but has turned higher today. This is bloomberg. Shery youre watching bloomberg markets. Laura lets check in on the bloomberg first word news. Emma chandra has more. Emma thanks, laura. President trump says to expect a new Healthcare Plan. He tweeted this morning, saying the very unfair and unpopular individual mandate has been terminated as part of our tax cut bill, which essentially repeals obamacare. The democrats and republicans will eventually come together and develop a great new Healthcare Plan. In russia, the kremlin says officials should review Opposition Leader alexeis call to an election boycott to see if they might be breaking the law. Today russias top election body voted to formally bar him from running in march as president ial election because of a fraud conviction. He says that is politically motivated. China announced plans to cap the population of shanghai at 25 million through the next two decades. Policy makers there are seeking to limit the number of people who call the nations mega city their home because of concerns about impacts on services. Shanghai is already home to more than 24 million people. After convicting two former soccer officials of bribery, the u. S. Court is going to decide the fate of a third official charged in the fifa scandal. Last week jurors told the judge they were divided over a verdict on his single racketeering charge. The jurors were told to come back and try again today. Global news 24 hours a day, owered by more than 2700 journalists and analysts in more than 120 countries. Laura time for futures in focus. Oil has expanded gains for a fifth day, and bitcoin has reversed a big decline. Theyre talk about whats driving those changes in the futures market is a chief strategist. Todd, great to have you with us. Lets start with oil. Right now trading above 58 a barrel, gaining. 4 . Is this all to do because of that baker hughes data . Good morning, shery. I think it has to do with a little bit of fear thats floating in the mideast right now. I think it has to do with some of the manipulation by opec. But overall, i think that oil is very near, if not at the top, very near the top of where its going to be. If you look at the overall formation and you look out into the future, oil is actually cheaper in may than it is today. So to me, that indicates that the fear premium has been built in here, and i think theres a few issues that theyre watching. Shery does that mean when we get the repair of the pipeline, which is, in fact, done by now, will we see more pressure on prices . I think so. I think youre going see we might float around near this 58 level for a little bit, but i think overall, youre going see much lower prices as we go into 2018, and i think youre going to continue to see them fall. I would not be surprised to see them in the 40s at some point. Shery when you say lower prices does, that apply to bitcoin . We are seeing it continue to rally. Was 50,000 the line under its fiveday slump . Well, i think when you look at bitcoin, obviously its new. Its under a lot of the fear of missing out trade. Theres a lot of people trying to figure out how to trade it right now. The exchanges arent offering it, and the margins, so youre going to see a lot of big and volatile moves. The bitcoin is probably going to be sold off, but i do believe that the crip toe currency space is here to stay, and i think its going to be a great alternative currency thats going to be used. I would think that the bitcoin price is probably a little bit of an bubble, and i think you will see some more dramatic falls. But any time we see dramatic falls, you also see dramatic rises as they try to cover. Shery there was a bloomberg column will be the fact that whether the recent price correction was, in fact, healthy, when will we have certainty on whether or not that was the case . I think it will take a while to watch how it trades. One of the things we have to understand, see about bitcoin and that space is that we need more volume. We need more real trade. Until we see that, its very hard to put a point point. We had coin based, a major dealer right now in bit boin that had to shut down on friday because of overall too much volume. And they couldnt handle it. Handle it. So as the exchanges start to move their products in and we start to see movement, then we can actually look for some of the healthy corrections and pinpoint some real good levels. But right now, were still in this very much of a wild west trade before it happens, and once it happens, we can get that done. Shery todd, great to have you with us. Thank you. Laura still ahead President Trump is predicting that democrats and recommends will eventually unite and pass a new Healthcare Plan for the country. Is it just Wishful Thinking . This is bloomberg. Shery beautiful, clear picture right now from new york. This is bloomberg markets. Its time for the Bloomberg Business flash, a look at some of the biggest stories right now am a bullish forecast in saudi arabia. People with knowledge of the matter say the kingdom expects oil revenue to jump about 80 by 2023. That in turn will help saudi arabia report its first Budget Surplus in a decade. Authorities expect production to increase from an average of 10 Million Barrels a year this day to 11 million. Theres a deal in the pharmaceutical industry today. St. Louisbased is buying decampo pharmaceuticals for 1. 2 billion in cash. They sell a drug for chronic conspiracy operation and irritable bowel syndrome. The deal is part of a bounceback this year for u. S. I. P. O. s. Four Companies Sold more than 1 billion in stock this year, fueled by a surging stock market and volatility, 49 more Companies Went public this year than last. The average amount raised also increased to 175 million. Nd thats your business flash. Shery time bring you more of the best conversations from 2017. We spoke with colony north star executive chairman tom barrack at the summit in new york. Hes a friend and advisor of President Trump. Bloomberg business week editor megan murphy asked him about trumps tweeting. I think whats happening is this president is saying my base is all of america, not the trumpsters, its not the forever trumpsters. Its not the never trumpsters. Its american people. And i think youll start to see him reach which hes done. Hes changing his points of view on things. Theyre softening on some things. Hes very focused on some of the ardent things. The tweeting makes everybody crazy. Right . Im actually going to give you a quote you said about that last month. You told bloombergs Erik Schatzker his tweets shouldnt be taken as off the cuff, theyve actually thought through them more than people think. Do you still believe that . Oh, absolutely. Bsolutely. Its like hes the uber of the presidency. Hes the rework of the presidency. Hes the amazon of the presidency. O as good as bloomberg is. As good as cable tv is, social media is a form of communication which mature adults at his level and my level have not had intense use in their careers, right . Hes found a new way of communicating, which is unsettling. President s usually have this cadence and this political balance of never saying anything, right . Say something beautiful. Everybody will nod. Everybody will say that was so poetically but it means nothing. So this president is sending shock waves. Its not off the cuff. When its off the cuff, hes doing it for a reason. Do you think its appropriate for the president of the United States to tweet criticism of the mayor of london in the immediate aftermath of a terrorist attack . Look, personally, if it were me, again, why do it . Right . Theres just no gain in doing it. Why does he do it . Because its how he feels. Hes communicating to the world im going to tell you how i feel. You can like it or not like it, but im going to tell you how i feel. And its part of what you get with the man. Es not politically correct. Shery megan murphy speaking with tom barrack. Speaking of tweeting, the president tweeting again this morning on healthcare, predicting a deal next year. Joining us to talk about that and the items on the congressional agenda for 2018 is steve dennis, congressional reporter with bloomberg news. Hes joining us now from washington. Steve, let me first go to the tweet itself. This morning, President Trump saying that a very unfair and unpopular individual mandate has been terminated as part of our tax cut bill, which essentially repeals obamacare. Democrats and republicans will eventually come together and develop a great new Healthcare Plan. What exactly is the president talking about right now . Is he referring to the Alexander Murray on bill on Insurance Markets . Is that going to be the backbone of a new package . Yeah, i think its a nod to moderate republicans like Susan Collins who have been calling for this kind of bipartisan approach for the past year, and so far has not really gotten anywhere. Susan collins in return for her vote for the big tax cut law got a commitment from Mitch Mcconnell to pursue this Alexander Murray package, as well as the nelson bill, which would have more reinsurance, in an effort to have rates come down. Now that you have the individual mandate going away, another thing thats going to cause a lot of upward pressure on premiums for health insurance, and so something needs to happen. And the question is whether theyre going to pursue this bipartisan package in the first part of the year, fulfill the commitment to Susan Collins, and maybe get some additional things you can add to it, to get some democrats on board, or are you going to see another return to the repeal efforts that failed repeatedly last year. And mitchell mcconnell, Senate Majority leader, has been skeptical of that. He basically said if they can find the votes to do, it you know, good luck. But he is really lowering expectations that theyll be able to have another repeal and replace effort. Shery if we could back up more broadly herement youve got trump talking about healthcare reform, and then you have paul ryan talking about welfare reform. And even in the mix there, Mitch Mcconnell is talking about or things, like immigration reform. Where do you see the picture going for republicans going into 2018 . Who is going to win snout you cant have all of these things as a top priority going into january. Yeah, theyre going to have to sort this out. Theres a big split right now between the conservatives who want to really take on issues like obamacare, issues like shrinking the food stamp program, and shrinking the Welfare Program and putting in tougher work requirements. This is something that is politically difficult to do with just one party. Historically you do this as Mitch Mcconnell noted last week, historically its something you do with divided government or with two parties, each sort of jumping off the cliff together. And i dont see any democratic support for these initiatives. And as long as the senate is to narrowly divided, 5149, with the number of moderate republican sen