alix: coming up on "bloomberg best," the stories that shape the week in business around the world. the central focus is on central banks, the bank of japan, the fed, the bank of england, all set directions that move markets. >> i do not need to tell you, that is a big change from where we were in december. alix: we will track this week's many significant political moves from beijing to westminster to washington. >> there will be a fight taking place outside of the senate with outside groups. alix: the best of the week's a list interviews. >> we had a massive stimulus package.

alix: it is all straight ahead on "bloomberg best." welcome and hello. i am alix steel. this is "bloomberg best." a weekly review of the most important is this news, analysis, and interviews from bloomberg television around the world. it has been a momentous week for monetary policy with rate decision from the bank of japan, the u.s. federal reserve, and the bank of england. on monday, the top headline was disappointing data from china. >> the latest data from china likely to heed more pressure on the leadership as they try to meet this year's growth target by 6.5%. industrial output and retail sales both slowed in the january/february. >> industrial output rising just 5.4%.

that is below estimates and that suggest sluggishness in demand from abroad. factory deflation has persisted now for some 48 consecutive months. retail sales is a key barometer for the government for consumption trends. it climbed 10.2%. that missed the 11% forecast of economists surveyed by bloomberg news. >> we are also seeing pressure on the currency. he did project a sense of calm at this annual npc press conference on saturday. what message is he trying to send it? no rush to buy u.s. dollars. >> he did say that. he is basically saying china's economy is steady as she goes. they have their hand firmly on the tiller, and not to panic. he says excess of policy stimulus is not necessary to achieve that growth target i mentioned.

he says as long as there is no big economic or financial turmoil, the pboc will keep its prudent monetary policy with a slight easing bias. >> the bank of japan today held its new benchmark interest rate unchanged at -.1% despite risks to growth. economists served by bloomberg see additional easing coming into japan later this year. john ripley used a term i have not heard, fiscal-ization. every reach the limits? >> i think we are coming close to it. japan has become a test tube for the whole world. they are the people who keep trying this stuff end up not doing it that well. they did not manage to get their economy going despite a very long time of qe because the government did not do enough. i do not send any real way that this is going in the right

direction despite current affairs. >> the longer it goes on, the harder it is to get out of it. it just goes to show how deeply embedded low inflation is in that economy because the outcome of that is not set to be any real wage hikes. on the surface of things, it looks like a tight labor market. is time a big issue? >> i think you are right, time is a big issue. that is the one place where it hits retail sales. if workers are getting more money, they will spend it, that is at least the hope. the one awful possibility of japan is deflation. if you keep on thinking something is going to be cheaper then you are more likely to keep your hands in your pocket. >> no change in interest rates, clearly, scarlet. that is what is most important now, but equally important, the fed scaled back its planned for rate hikes through the end of the year. policymakers expect to raise the fed fund's targets by one half

of a percentage point. i do not need to tell you, that is a big change from where we were in december, just three months ago when fed policymakers anticipated a full point of increases through the end of 2016. >> the people seeing this as something of a dovish meeting. if we have the dot plot, and take a look at what we are talking about, the fed has taken out to rate increases from what we have seen in december and it has moved now to 90 basis points at the end of the year which would imply two rate increases. that comes down from 1.4% to almost 1.5% in december. then they lose another 50 basis points in 2017 to 1.9%. in 2018, 3%. >> let's start with today's big bank of england rate decision.

they voted unanimously to keep rates unchanged and highlighted uncertainty around the so-called brexit. is that the big take away? the uncertainty that the bank of england highlighted? >> this is certainly the first time that the bank as a whole has really expressed an opinion about how this will affect the economy, so we have had mark carney express a view, but this is the first time we had seen it in the official minutes. it is a big thing. >> the bank of england is quite similar to the fed and its outlook. the domestic economy is looking fine, the external economy is not looking so good. >> you can see that again today in the minutes that they highlight the emerging markets as an area of slowdown similar to what the fed was saying last night. domestically, they are saying inflation should pick up. >> where are we on rates? the uncertainty surrounding the referendum, what are the

projections for the first interest rate hike? i know we did a survey yesterday, which they talked about interest rate cuts. >> that was interesting. there was no mention of a cut. last month, we had carney saying that the bank had room to loosen if things worsened. another official said it would not take much for him to vote for a cut. but today, in the decision, there is no debate about that, so while the market is pricing the chance of a cut, economists show the chances of a cut have risen, the bank does want to go there yet. >> let's get back to this breaking story. european leaders has reached a deal with turkey on a refugee crisis. ryan chilcote has been covering the story and joins us now from brussels. give us the details. ryan: what this does for the

european union is a game changer potentially. turkey has agreed to begin accepting refugees and migrants that have already made the journey from turkey to the european union. the eu will begin sending refugees and migrants back to turkey as early as this sunday. beyond that, turkey is saying it will also work harder to stop the flow of refugees from turkey to greece and the european union so we don't get into this problem. in exchange for that, turkey gets some other things it was looking for, maybe not to the extent. it gets the additional 3 billion euros had been seeking on top of the 3 billion that was allocated last year as compensation for dealing with the refugee crisis. it gets a promise that there will be more of an effort to help turkey get the eu membership for turkey off the ground, and finally, there will be an effort to expedite visa free travel for turks who want to get to the european union.

turkey would like to see that by june. the eu is saying as long as you meet all of the criteria we have for you, we are happy to see that. alix: later in the show, we will have more reaction to the weak'-- week's developments in central-bank policy with insights from bill gross and former fed chief alan greenspan. coming up, review of the week's biggest company news including valeant's worst day ever. ♪

alix: welcome back to "bloomberg best." i'm alix steel. we continue our review of the week's top business news with a company that did not have a good week.

in fact, in one bad day shares of valeant pharmaceuticals fell 60%. major investors lost $5 billion. let's look back at valeant's terrible tuesday. we have got to bring our attention back to valeant, shares plunging today after the drugmaker cut its 2016 forecast that is lower than what it predicted in december. what have we learned? >> this is one of the craziest things. one of the things that just happened on the call, they put out guidance earlier saying adjusted ebitda and then they put up a slide on the call and said, oh, it is actually $6 billion. they corrected their own release of guidance hours after issuing guidance. the stock is almost -- this is

going very badly. stephanie: what does that say about mike pearson? when he came back into the company, they do not come out with numbers because he said, we are not ready. we want to be sure our teas are crossed and eyes are dotted. here they are, boom, a big mistake yet again. who is checking the spelling over there? >> i am at a loss for words. this was supposed to be a call where -- mike peterson reassured everybody and in the time he has been on the telephone with analysts, the stock is down an additional 10 percentage points. things are getting weird. alix: pershing square coming out, saying the vice chairman is going to be on the board. they still say the underlying business franchises are worth multiples of what the current market price is now. when you hear things like that, how do you interpret that? >> i can interpret it that he is wrong and has been wrong. he is a very, very intelligent, astute investor, very. but he has been wrong on this. the business model that they adjusted to when they built this

company in the past several years is gone. the cost of capital for them is high. their leverage is massive. the products they look to grow have been coming down, not up. alix: while valeant's value shrunk this week, other companies took aggressive steps in keep growing. two european giants merged. >> starwood shares are moving this morning as the company received an unsolicited takeover bid by groups like anbang in china. it would start at $12.9 billion. what do we know about this deal? >> on saturday, i was a bit shocked that they announced they were going to buy shares from blackstone. this is three months after blackstone closed on the

acquisition of strategic. i thought, this is a nether -- another example example of chinese companies making inroads. they are putting $20 billion almost into the united states, into the hotels, into the real estate here in the company. >> why doesn't marriott have this locked up? >> they thought they did, it will be challenging. >> is there a breakup fee? >> $400 million. that is what marriott would get from starwood. so i guess that eases the pain a little bit. they are going to spend the next few days and the next couple of weeks, they will meet with her bankers and lawyers and figure out if they can top anbang, but it is an all cash offer and and a big jump from what marriott was offering a couple of months ago. >> insurance has seen a jump in

profit on the back of expanded banking residue and the volatility in chinese markets. china's second-largest insurer said profits rose 30% with net income moving to $8.3 billion. written premiums from life insurance jumped 19% to 46 million. what was the key driver? >> in 2015, they achieved a significant growth across all sectors of business. it is not just investment or banking business. in particular, you just mentioned premium increased to 20%. the prc business, increased around 15%. besides that, we had a good year on our internet finances, which we accumulated in terms of new customers, users, and the gradually migrate them to be our financial customers.

>> three times a charm. deutsche bank has agreed to merge a third time. a deal has been attempted. if it goes through, the merger would create one of the largest exchanges in the world. a lot of people said a merger of equals. for the people who do not think this exist, what you tell them? >> it is truly a merger of equals and this is because we both recognize and appreciate each other's strengths. the management team, the board have come together to develop the strengths and this is what we have done and delivered. an intermediate result. >> earlier david westin came to my desk and look at how profitable it was. how do you explain to deutsche burst shareholders this is not a dilution of earnings? >> i think the business sits between the companies are complementary. that is one. in the growth that the lsc has driven over the past few years

is deeply impressive. that has resulted in multiple expansion, which is impressive and overall, a trajectory of growth in its globally diversified businesses, which is very attractive. >> why is deutsche the perfect fit for lsc? somewhat argue that intercontinentalexchange or cme group be a better fit. >> i am 100% behind the transaction because it brings together two companies that are already having a global strategy and presence, but whose portfolio products every -- is actually very highly complementary. it would offer very significant regulatory capital and market savings. it would bring together to highly complementary index products, leadership position in

exchange derivatives, ftse, in china together with deutsche basel us highly branded stock. >> oracle shares popping as much as 4% in after-hours trading. the company reporting $9 billion in revenue, down 3% year-over-year. wall street analysts had expected $9.3 billion. oracle is beginning to reap the benefits for an investment in cloud-based software. >> the good news is the fast past business which is their application in their platform and service in the cloud grew 15%. scorching growth. the margins did not disappoint people. emily: how does that compare to the big names? >> it is doing better, but a part of that trend moving away from legacy software. moving away from legacy

hardware. the numbers oracle had to report have been bad for a long time. look at revenue growth, topline revenue growth, you can see a trend that you see with other companies. that is their legacy business of software that they sell by the pile, but the revenue growth over all is not growing anymore. i call it slowing revenue growth, maybe i was being too kind. when you look at the cloud results, which pat was referring to, the cloud is growing at a fantastic pace. this 50% number, they are taking on the biggest cloud software vendors and adding significant customers. >> talking about what is happening with rio at the head of copper and coal. this came a little bit out of the blue. >> i think in the wider context it is not a huge surprise. sam walters took over after the ceo had to resign. he is 66 years old now and said he did not want to do the job

for more than three years now. it is about time for him to move on and i suspect he feels he has done what he has to do. >> what has he done? >> he has relentlessly focused on costs. glencore tried to buy his company years ago and it looks in much better shape. mark: he has outperformed his sector peers. >> in absolute terms it has been horrendous but in relative terms, he has been a very good job if you look at the share prices. he has outperformed hp, and he is outperformed glencore. what is interesting about the new guy, he is the copper head and not the iron ore head, and rio is very much an iron ore company. does this signal a shift towards more copper? ♪

alix: you are watching

"bloomberg best." i'm alix steel. for the third consecutive week, multiple u.s. states held presidential primaries. on wednesday, president obama unveiled his nomination to fulfill the supreme court vacancy and combine that with regional elections in germany, budget day in the u.k., and the close of the national people's congress in china. it all adds up into an exceptionally busy week in politics. >> reservations over chancellor's refugee policy, as the democratic party failed to capture two western state in regional elections. >> it is hard to underscore how disastrous this is. the decline that the cdu has had in key states, and the conversation is all anyone is talking about. what you see of the map is where you see the christian democrats holding on in the east. that is a bit of an aberration. look at that blue state. 4% unemployment rate. by all accounts, things should be going well. that is really the birthplace

of the cdu, failed to go ahead and win back that statehouse. they also did not win back the other eastern states. when you take a look at what the alternative for deutschland has done, this is a right-wing party that initially sat on itself in opposition to the euro. now they have gone ahead and moved to the right, especially on the refugee question. this is clearly a sign to angela merkel that voters are unhappy. here is the interesting thing -- there has not been any signal or indication from angela merkel that she is going to change her tactic and stick with her refugee policy regardless of how unpopular it is. there are no obvious challenges to her and her own party. >> what are the chances of politics springing surprises? i am thinking of three major risks. donald trump in the white house, the u.k. leaving the eu, and angela merkel out of power. >> i think the last of the three is the least likely. there is no alternative to the chancellor so i think she is

pretty safe. i'm most concerned about the possibility of brexit. the antiestablishment zeitgeist of the time, the populism would lead one to think there is more strength than the polls have so far suggested. in terms of our elections, i have been wrong every inch of the way over last six months, so my predictions are no better than anyone else's. i don't know who is going to be the republican nominee now, much less the next president of the united states. >> donald trump did not get the sweep he wanted, but he did win at least three of the five states holding rybak -- five states holding primaries. marco rubio is out of the race. his campaign has been put out of its misery. what happens to his money? >> his supporters will be very up for grabs, especially his money. john kasich will be going after those people hard.

ted cruz is saying i am an open tent. that is not a real natural fit. rubio is an establishment favorite. ted cruz has run his whole life as an antiestablishment candidate. it is not a great fit. it is hard to see if those people will move to ted cruz, or if some of them will move to donald trump. >> on the democratic side, hillary has 400 plus more delegates than bernie sanders. with hillary, what happens for her to win over the independents? >> she has an unassailable delegate lead although she is struggling with independents. she had a great night last night. we are watching to see if ohio. bernie's miracle michigan would be repeated in a state with similar demographics but that did not turn out for him. for her, it was really a big night of delegates, which is what it is all about. she has really got the game very firmly on her side. bonnie: on the republican side -- vonnie: on the republican side, are the chances of a contested republican convention

rising? >> it remains high in ted cruz and john kasich continue to plug off delegates. that is a huge risk of the republican party, it risks fracturing the party not only for the cycle, but for years to come. >> journalists asking the chinese premier a question. this is the annual news briefing taking place at the national people's congress. he has been fairly candid about some things, talking growth prospects in the country. talking about a weak global economy effecting what is going on with his country. >> he says "we see both difficulties and hopes in the economy. we will push ahead." china will, with coal and steel cuts, he says, there is severe overcapacity in some sectors and he also says, there is much room for china to boost industrialization and urbanization. of course, the move to the big

cities, urbanization has been a big push of the premier. he also touched on the u.s. presidential campaign season. he says the u.s. presidential election will not effect u.s./china ties, but also added the campaign right now is "eye-catching." >> earlier today, the chancellor in the u.k. outline the budget for great britain and revise the growth forecast and warned of the economic risks of leaving the european union. >> corporation tax. and imposing a sugar tax in the u.k. on sweet drinks. >> it is a pre-referendum action.

on spending and tax cuts, i do not know, i was delighted that he says he can stick to his plan of eliminating the budget deficit. that is very important indeed, that is good. he says he is going to do all these by assailing government departments. i wish him luck. >> the devil could be in the detail. to put this in an international context, the g-20 were recently talking about how we needed to see more fiscal spending to stop the global economy from slowing. is he on the right track? >> he is right and the g-20 is wrong. >> you think so? >> absolutely. certainly in the u.k. context. >> president obama has nominated

merrick garland to the u.s. supreme court. he is a judicial moderate who currently serves as chief judge at the d.c. circuit court of appeals. this election sets up a fight with senate republicans who have vowed not to hold hearings on any nominee until after november's presidential election. >> what is his reputation as a judge? >> scrupulously fair, incredibly well prepared. writes opinions with incredible care. focuses on the particular case. he is not someone out to make right statements about the law. he is someone that sides the legal issues placed before him based on the case, based on the law and the facts. >> patrick leahy has tweeted saying it has been an average of 70 days for the person nominated formally to get appointed. rate the chances of this before memorial day. >> the president has said from

the beginning the senate will have pledge of time to see this nomination through, to hold hearings, to have meetings. the senate republicans who control the senate have said they don't see that happening. they don't want to hold meetings. they don't want to do hearings. there will be a fight outside the senate with outside groups on both sides of the aisle, making their argument, taking their argument to the voters and trying to press the senate republicans. at this point, we have not seen any signs the senate republicans will move even though the president says he is nominated a consensus candidate. >> coming up more high-level political conversation with canada's prime minister. plus, more reaction to the trio of central bank decisions. that is also to come on "bloomberg best." ♪

alix: welcome back to "bloomberg best." i am alix steel. among the most intriguing interviews on bloomberg television this week, a chat with the c.e.o. who led jcpenney's turnaround and blackstone's tony james explains why his company is bullish on energy investing. let's begin with our exclusive conversation with justin trudeau who sat down with john micklethwait. john: a lot of people look at canada's economy. you have a budget next week. they see an economy growing by 1.5% a year. they think it needs stimulus and not long-term spending like infrastructure. your government seems unable to mention the word. >> we had a massive stimulus -- you can say stimulus as many times as you like -- following

the recession in 2008-2009. we are talking $80 billion in debt that we kicked off with. this is much more modest. much more responsible. what we are looking at is not so much trying to jolt the economy into life as trying to lay the groundwork and foundation for better growth, better productivity, over the long-term and not just an instant influx of cash. i think the challenge when you are trying to shovel money out the door is it does not always get spent on the right things. for example, what we have decided on infrastructure spending, which is going to be a massive investment over the next 10 years, the first two years we are going to do the unsexy things governments hate to announce. recapitalization of infrastructure, making upgrades, the things you don't get to cut a ribbon and announce a shiny new building on.

signals on subways and things necessary to keep the pace up in terms of transit of people but that don't get the flash, but are desperately needed. that is what we are focusing on in the coming couple of years. and then we get into the bigger, longer term things once we have been able to plan them through. john: how will you pay for all of that? the issue comes up repeatedly, the idea you will need to raise taxes at some point. >> yes, we are aware right now the growth profile of our company is not giving us the kind of tax revenues we would like. that has been the case over the last 10 years. we have had lower growth and we should have.

the platform i put forward in the election campaign was designed around recognizing our growth is not great and we need to increase growth. the question is how you improve growth rates. do you cut the economy or do you invest in the economy? we think you invest in the economy. you put money in the pockets of the middle class and create opportunities to grow. >> you mentioned energy. blackstone's patience on energy has proven wise. did you miss the window? >> i hope not. no one has been right about projecting energy prices. when oil prices go up, you will have suddenly a lot of companies that were in the process of cutting back that need capital because they can drill wells profitably. they don't have access to capital. they don't have access to equity. they will need our capital even when prices go up. i think we will have a lot of activity. >> will it be your most active investment this year? >> yes. erik: we thought it would have been last year.

that did not prove to be the case. >> we were lucky we did not do much. now we have a lot of dry powder and interesting deals. we've started to make transactions already. we just bought a big interest in the largest north sea field. i think we have made great investments and will just get better. >> do you have an overall revenue target? bloomberg estimates 3% growth a year, it would take 10 years you back to that level should things go well. what level are you targeting? >> the business is different. you go back to 2011, consumers shopped in a different way. for us, we are simply going to create a strategy that will allow customers the way they want to shop. we are not setting a sales target as our goal. we are setting a growth initiative. we want to grow for 2016 between

3% and 4%. we think that is achievable. we want to create a strong, sustainable return. there are a lot of great companies that have revenue less than $20 billion. we are not trying to get to an artificial target. we are trying to create great return for our shareholders and consistent growth year over year. we think we can do that. last year, we grew 4.5%. that was significant. we are targeting 3% to 4% growth in 2016. we have growth projection similar to that for the next two years. stephanie: we have seen retail get slaughtered. your china orders surged. your numbers are great. what do you know that the rest of the retail climate does not? >> it is all about connecting the athlete with the consumer. all athletes, global to everyday athletes like you and i. stephanie: you don't think i am world-class? >> i think you are world-class in a lot of ways.

i'm talking about olympic level. the important part is to connect with the athletes and give them something they need and want. it could be something from a performance standpoint critical for them to perform at the highest level, but also something that aesthetically puts them in the right frame of mind, that they feel good about, that is empowering. stephanie: you said you want your women's business to double in the next five years. are you still on track? >> absolutely. women's business to us is incredibly important. women are more active than ever before. that is not a trend. that is a movement. we expect that to continue and want to lead in that respect. stephanie: when we think about women, we often think of names like lululemon. we have seen you advertise with maria sharapova. >> the women's opportunity for nike is huge. we are excited to be part of leading the effort. >> how has the marriage with facebook been so far?

>> it has been great. we have gone from shaking hands with mark with 60 people too many hundreds of people in two years. we have relocated onto the facebook campus, so the food has improved. we get free ice cream. it really has been great. >> you guys are under a tremendous amount of pressure. expectations are high. that can strain any marriage. how are you dealing with that? >> when we got acquired, it definitely woke everyone up. it was something we knew would happen. it was a moment where mark got up and said vr is the next platform. the world took notice, more than when we had been pioneering as a startup. there are a lot of people in the space. this is what we needed. it is the best thing for vr. there has to be lots to do and a huge ecosystem of content. the more people investing in vr, the more likely that is to be.

>> how involved is mark personally? >> i think he is quite involved. >> how often do you talk? >> given how exciting the space is and how many breakthroughs will come from oculus and in the vr space, mark is really dialed into what we are doing. whenever a president visits, he takes them into the oculus toward box shows them the latest demos. it really is the next big platform. ♪

alix: you are watching "bloomberg best." i am alix steel. this week, the bank of japan held firm on negative rates. the bank of england kept its benchmark at a record low and

the fed has scaled back its rate hike forecast. what does this mean for the world economy? experts brought strong opinions to bloomberg television starting with bill gross. >> does today's press conference amend your portfolio? will you make immediate changes? >> i think to some extent. obviously, it is a more dovish fed. it seems to me stan fisher has been overruled to some extent by janet yellen in terms of the forward policy. i still think it is interesting the market in terms of forward expectations for libor and fed funds only anticipates 30 to 40 basis points a year for the next several years. the fed is to looking at 100. the fed is still way above the market.

to the extent the market is lower, to a certain extent treasuries are fully priced at these levels. >> i am looking at the plot on the bloomberg terminal. you can see the december dots plot and ois curve below that. the big argument was the fed was out of step with the markets. let's go to the current plot and curve. they are chasing their tail. ois is going down because everyone is selling treasuries. is the fed at all connected to what is going on in your world? >> i think to some extent. they are connected to the stock market. the old bernanke put so to speak. perhaps the yellen put is still in effect. if the stock market went down by 5% or 10% tomorrow, the fed would respond. i don't think they are fully

responsive to the effects of interest rates zero bound or in negative territory. the effects are as such. they affect pension funds, insurance companies, bank net interest margins. basically, finance companies today in terms of the market are doing poorly because they sense interest rates will go up less fast than previously. it is a negative for the finance industry, for pensions, and savers. going forward, they cannot earn as much as they should. >> the first time since the asian and russian crises of the late 1990's, u.s. monetary policy is a focus on the risk to global growth. what is asia signaling to the fed? >> it demonstrates power shifting. once upon a time, the fed would have woken up and the domestic economy would have been a dominant factor in the thinking. now janet yellen looks at what

is happening overseas. it is increasingly part of their mix. asia used to be a great growth driver of emerging markets. that picture is more subdued now. the big part is china. it grew at a 25-year low last year. they are not getting traction. korea is one of the great post-world war ii economic miracles. look at japan swinging in and out of growth and contraction. when you consider that, in have mobile gdp, and increasing heart of global gdp. that is what janet yellen is cautioning. >> central banks are focused on growth. do you agree that is the fundamental problem? what should be done about it? >> it is certainly not the central banks' fundamental problem. the fundamental problem which confronts central banks is to

maintain sound currency. we have gone far from that and we have required central banks to do much of what the fiscal system tends to do. stagnation is a fiscal problem, not a monetary problem. if you look at the data, what you get struck by is the fact productivity growth on average over the last five years for virtually all of the major countries and a number of emerging nations are less than 1%. >> is it a productivity problem they face? >> it is a productivity problem they face. it is ultimately a fiscal problem. they are not all like the united states. the best way of looking at it is in terms of what is being produced.

why is there a shortfall in economic activity? >> why? >> basically because the longer lived assets, those which are the most risky to invest in, have been very significantly curtailed. nonresidential construction and assets of all types have been suppressed. plants and equipment namely. >> do you think janet yellen was trying to move because the rally was getting uncomfortable? >> the central bank is dovish. people are trying to make a connection to the shanghai meeting. did we see an accord here? was it all about to break the u.s. dollar's uptrend? in the short term, there is an element of that. but you have to consider in 1985 where we did see an agreement, the fundamentals were different

to current fundamentals. you have huge output gap differentials. in asia, you have wide output gaps. if you try to coordinate policies in order to keep the u.s. dollar from rising, how long is this going to be in an environment showing higher returns and asia lower returns? >> i know shares go down, people lose money. maybe someone gains on the short. who has lost money when we have seen the yen go 10 big figure since that meeting a couple of weeks ago? who have been the losers of yen strength? >> first of all, you have to think about what a strong yen does to economics. i would say economics this year is a loser. ♪

alix: as we wrap up "bloomberg best," here is a story of innovation for your ears. how do you get movie theater quality at home? they are looking to pump up the volume. >> this young woman from taiwan is meeting with the head of a hollywood giant, lucasfilm's skywalker sound. quite a feat for a medical student turned entrepreneur just two years ago. >> i was watching "transformers." the picture is so huge, the building falling down. everyone is running around,

dinosaurs. it sounded so funny. i was sad about that. >> he is one of the most important in the sound industry and says it will keep the more relevant as more people experience movies outside the theater. >> it is a concern to us if more people are experiencing entertainment on smaller devices. if they cannot hear what we are doing, it is harder to justify doing it in the first place. >> the hollywood sound veteran with seven oscars could not believe his ears. >> what got me excited was the ability it gives people in all sorts of venues, in all sorts of ways, to hear a surround mix. that is exciting. the more people can hear the mix the way it should be, the happier i am. >> the technology is so new only a handful of people have heard it and immediately invested in it. ambidio deciding the deal with disney's skywalker as well. watch our soundman experience

their work for the first time. a scene from "gravity" given the ambidio treatment. we encoded the audio here for you so you can, too. >> as a sound guy, you think it is going to change? >> oh, yeah. definitely. it is like a theater experience on your laptop. alix: if you go to bloomberg.com, you can find a demonstration of ambidio's surroundsound experience as well as the latest business news from around the world 24 hours a day. that will do it for "bloomberg best" this week. i'm alix steel. thank you for watching bloomberg television. ♪

♪ angie: a note of caution as beijing makes growth its top priority. a warning that china's debt levels are too high. positive on negative, christine lagarde says rates below zero may be good for the economy. we have an exclusive interview. evidence ars find was behinded gang the $100 million bangladesh bank heist. welcome to "first up" coming to you live from hong