♪ coming up on "bloomberg that shapedtories the week and this is around the world. a legal battle come to a sudden stop. a speech from janet yellen sparked a rally and it is funny to discuss and the latest u.s. jobs report. from brazil to canada, we examine the abcs of a complex week for the global economy. >> we are making investments in the future of our country. >> the markets are still anxious about oil and gas. >> the way to play energy right now is through the energy infrastructure. >> but the quick take on north korea's with their situation with the week's most telling

chart. that is all ahead on "bloomberg best." ♪ alix: hello and welcome. i'm alix steel. this is "bloomberg best." rubio of the most important business news, analysis, and interviews from bloomberg television around the world. let's take a day by day look at the week -- top stories. starting with a surprising turn in apple's legal showdown with the u.s. government. department of justice withdrawing legal action against apple. after the fbi successfully bypassed a law without apple's help. >> the fbi has successfully been able to access information it was seeking from the san bernardino shooter's iphone without the assistance of apple. looks like there was a third party involved that gave them the technical capabilities to do that.

likely some kind of mobile forensic experts they had contract with governments in the past. it looks like the fbi's drop the request to have apple right additional code to circumvent security ios software. the rumors i have seen is that it is an israeli contractor that works with the government on similar requests and are savvy and some of these backdoor, hacking around security features jackson state on mobile devices. >> what is your take on what it apple's relationship with the federal government, the fbi, and the justice department? >> people on the apple site will present this as a win. you are finding the product is so insecure that people are lining up to say we can provide you with access. i am not sure if it works in anyone's favor.

it demonstrates that iphones are not secure in the first place. to then the risk outlook, i consider it appropriate to the committee to proceed cautiously in adjusting policy. this caution is especially warranted because with the law, theund rates so ability to use conventional monetary policy to respond to economic disturbances is asymmetric. >> you are listening to janet and with market interpreting a very dovish speech. feel the markets reacted appropriately? yes, it was surprising and the direction it went. yellen doubling down on the dovishness. they were thinking that the other central bankers had come out and undermined what yellen

initially said about being more hawkish. the opposite was true. the market was surprised and it ended up being a positive. the rates hikes, there may only be one this year. there probably will not be one in april. people were thinking now is a good time to continue to get back in stock. alix: there seems to be a split at least in the language coming out of the fed. what is your take on that? >> there could be communication challenges. they are openly communicative. forwardwill see going is more of a narrowing and. they are being a little too tentative. it is a risk being too tentative. the u.s. economy is stronger than yellen is giving credit for. >> metlife winning a big victory against the u.s. government.

it had labeled it too big to fail, one of only four banks to get that designation. they have been battling that name in court over the last couple of years. a court ruled it metlife's favor. you saw the shares surge. up about 4%. >> what are the big implications? of four banks one designated. -- they never took a quite as far as a litigation. >> arguing for metlife in court. what was the argument? >> he made a lot of arguments. repealinger successes

the rules. he has success in this arena. thatde a -- he said process was not transparent enough. order, theo-page stock cannot properly assess metlife's vulnerability to material financial distress. >> saudi arabia has big plans to -- grady $2s trillion mega fund. any sit down with mohammad bin nichols -- ud, john >> he's gets out his plan for the kingdom. out his plan for the kingdom moving the saudi economy away from oil and basing it around something new. this $2 trillion fun in which around co boko is enough to buy

which --icrosoft -- in they still have changed to spare. they are going to add land, property and it is twice as big been any other sovereign world fund. >> his obsession is understandable given the volatility. saudiare concerns that has not done structural reforms. and he is pushing very hard. it is a rather dramatic land in terms of the economic transformation of the country. john, all of us are weaned on robert lacey's book. into the window royalty. we understand this is a generational change.

did you get that tone in your interview, and if it is a generational change, where are they heading? john: it is something of a generational change. his father is king. there is an element of a group of basically young, reformers and step on the accelerator of change. >> 215,000 jobs created in the month of march. john, that is more than the economist we surveyed expected by 10,000. the unemployment ticking up to 5.0%. it is the first increase in the unemployment rate since may of 2015. this shows the resiliency yellen did last week in her speech. >> wages did better than

expected and jobs are doing about the same at the 200,000 plus. they are good numbers domestically. fed torikes me about the answer your question, they clearly countered moves from the ecb whether intentional or not. as you point out, minute by minute, the dollar is weak or by 5% against both euro and yen over the past month or so. the conundrum if they are data dependent and focus on jobs and wage growth. yet, it is global as opposed to domestic conditions. it grabbed yellen's attention. markets are a little confused as to whether to be bullish about this or be bullish. >> we got more economic data ahead. this week, we crunched the house

numbers. it japan's latest budget and how -- and baking policy. that is up next on "bloomberg best." ♪

♪ alix: welcome back to "bloomberg best." i'm alix steel. you signed the real estate market is getting hotter. home prices rose in 6% in january according to the s&p index released tuesday. but the numbers came out, we have the perfect expert on hand to analyze them. >> we just broke the january numbers for the s&p schilling home index. 5.7% year onose year. for some insight, who else, cocreator of the index, mr. schiller.

looking at house prices, despite what is happening, domestically in the u.s., things looking ok. is that your take? >> we were threatened, with things are looking ok. house prices are going up any number of places. that is a sign of argan optimism. >> the cities with the big gains were san francisco and portland and seattle. is there a danger that we are seeing more and more in the schiller data that those hubs are creating bubbles and not the rest of the country is benefiting? now, in the world economy, we are in a mood of trusting technology and not trusting our hands to do labor. on the other hand, some high-tech cities like boston did not do well. it seems to be regional. it is interesting to me to see

home price movements correlate over hundreds of miles. immunity that are hundreds of miles in diameter. -- communities that are hundreds of miles in diameter. signals have been mixed at best. for better or worse, economic policy was squarely in the spotlight this week. to the world of politics and economic data, the numbers for february are somewhat of a mixed bag second point more policy changes. the prime minister frontloading some spending. is that going to help? >> the economic data out today was retail sales and household for februarysted for leap year, they both fell. it shows the economy is struggling to rebound after contracting last quarter.

this kind of gets back to one of the criticisms of abenomics. we have seen exports increase and corporate profits increase. we have not seen a lot of that trickle-down into the real economy. he wants to promote the budget and spend a lot of the money out front to try to stimulate the economy. they want to increase sales tax next year. they will do that barney lehman type of event. e. may sound the case o has been reiterating a lot and speaking for the last years. we will have to see whether these policies, whether they allocate enough money. focus today.nks sending a warning shot about

brexit. central banks say risk around the european union can push up -- they had a lot on their plate at this meeting. there are risk around certain areas in the u.k. deficit and a large there are international risks in terms of volatility. their financial stability -- the big picture is the bank of england will become at. abandoned the

before an just weeks >> expected vote on her impeachment. >>she seems to be losing allies everywhere. no sign she is going to step down. the markets will be enjoying the ride because they see the end game is close. it is the ultimate impeachment resignation. impeachment is mentioned, investment rallies believe newng to government will reduce rates. >> very difficult to escape the conclusion the sense of interest rates may come down in brazil. they almost doubled over the past three or four years from

seven -- 7% to 14%. we saw a deceleration in inflation and february and that has fed into the swaps market and the real sense that interest rates could come down by the end of the year to 13%. pledgeh made a campaign to keep canada's fiscal deficit the more than $25 billion a plate already broken by your first budget. $25 billion. a play already broken by your first budget. message we want foreign investors to have the same message via canadians, we are focused on growth that will help canadians. helpgenda is to

middle-class canadians succeed. we want to help them in the next generation. we made a commitment to growing the economy. it is something we know will make a difference. investors, they want to see an economy that is going to go at a healthy pace over the long term. that is what we are setting up to do >> is it safe to say looking at the budget that you and your government believe spending is the only way to kickstart an economy like canada's at this point? don't call it spending. we are making investments in the future of our country. there are places where those look likes might spending, but investing in education for business people, this will help more people in the workforce. things need to be doing that are going to enhance our growth. -- skull measures are really fiscal measures are really but

we should be doing. the low interest rates give us the capacity to make investments with a very educated workforce to take advantage of a more and accretive society, is a positive thing for us. ♪

♪ watching are "bloomberg best." i'm alix steel. the cotton faces inflating began tosts and disney spread its magic to china. those are the major companies in the news is the continued our review of the week's top business stories. downd shares our tracking 12.17%. replacedndrews is out by founder tim westerfield. is that a big surprise? >> there have been a lot of

rumblings with the pressure the stock has been down over the past year years. not runng back, he has the company in more than 10 years being an operational guy is not a strength. that is not what they are expecting him to do. they want him to be an advocate for pandora and be the person who is speaking out on its behalf over potential customers. japan's former telephone monopoly is expanding its reach in north america. ntt data is acquiring a portion of del potro systems for $3 billion. why with del sell this now? $2 million is roughly the target. it is to pay down some of the debt they have taken on. thata $67 billion deal they announced late last year. processpre-telegraphed

that they would raise money to pay down debt. >> it's the hottest ticket in town. disney's new thing part in shanghai sold-out after hours of going on sale. ofis three times the size disney and hong kong. 3 million visitors are expected to walk through the gate. >> the ceo said it is as important to disney than opening orlando to disney world a generation ago. this is a big deal and a play on the growing burden a middle class in china. calmasing disposable and and consumerism -- increasing disposable consumerism. parks and resorts have been a fantastic business for disney. businesses the resort better than disney.

they are certainly world leaders. china is where they have to be. marriottwide open for to take over starwood hotels. there was a group of rivals, led anbang. various market conditions. they had been working with jc flowers and primavera capital on this deal. shareere offering $82 a valuing the deal at $40 million. -- $40 billion. interested in a contracted bidding war. if it had gone ahead, it would have been the largest investment by a chinese investor. >> takata corporation shares

plunged on rising cost estimated from the auto industry's biggest recall ever. a recall on airbag inflator's could be as much as $24 billion. the company's by you is cut to $27 million. -- $27 billion. where did this come from? >> this is a doomsday scenario figure, but not necessarily something set in stone. this amuch is negotiation with the automakers? if they had to pay $24 billion, they would probably be bankrupt. >> absolutely. it would definitely overwhelmed toccata's balance sheet as you pointed out. it is something that will have to be resolved with both the, and the automakers because the,

will not be able to shoulder the cost burden itself. even if we don't get to the point of a total recall situation. companies like honda, which is toccata's biggest customer. toyota, nissan, but also the american carmakers and german rs.makerstakat that will be worked out over the course of negotiations. -- winning a big discount which is the latest course in february. coming in at $3.5 billion. he managed to getting big discount. >> that month of pushing a deal to its breaking point was not for nothing. billion of the discount. ..88 per share this is not a deal that sat well with all of sharp's board

members. to directors out of 13 voted against it. an unusual sign of dissent for a japanese company. shareslion and preferred that they were supposed to buy from sharp. still looking out for information. begin to settle, the question is what is next? sharp has her first its operating process into a loss, a sign of challenges ahead. there are more layoffs coming on wall street. blackrock says it says to cut or hundred jobs. the biggest cut in the company's history. >> it is a big deal if you look at what they had that historically. they have only done one other 2013, with a laid off 300 people. if you look at the broader

employee base, it is a smaller number because they have 13,000 people. it is still significant that this is happening. >> is it because their earnings will be down? >> sounds like it is driven by market volatility earlier in the year that drove them to take a look at their businesses and see when they are going to focus resources. thereare estimates that that he will be weaker for the next two quarters. its affordableed sedan. tesla stock rose 60%. we'll tesla's new reveal help keep them in the fast lane. elon musk can sell cars. how much does he need to make? that is a good question. he is not talked about how many he is one to build.

they have got so many orders and they have a big factory that makes batteries. he could meet the demand. i don't know if he will be able to sell 400,000 of them. with this kind of the man and his ability to raise >> the bigger question is, can i make my doing it? the models could very well sell, but the company has yet to turn a profit and get cash flow positive areas those of the big tests for them. reporter: is there a sense of how many he would need to make in order to make money? i am assuming this is a fixed cross of more and more units. david: it is also a matter of getting costs down, and they are good at that. this suggests it would be a profitable program where is the model s was not. they sold for over $100,000 and still did not make money on that car.

we are in the dark. nobody in the business makes money on electric cars. we don't have a great model to work off of. alix: coming up on "bloomberg a conversation on sexism in silicon valley and why emerging markets guru has confidence in china. ♪

♪ best,welcome to bloomberg i am alix steel. it is time to look back at the top interviews on bloomberg television. we had a star-studded lineup with political leaders. let's begin that round up with a leading economist insights on global growth. keene: 2.8%, to five --

2.5%, are we in a global recession? >> know, we are progressing double growth -- forecasting global growth. there are indicators like the rate of growth of trade, which is 2%, and only five times in the last 50 years has the rate of growth of trade been below the rate of growth of the world economy. and every time that happened, we had a surreal slowdown or a slowdown. we are not forecasting a recession. we are just saying conditions are perfect. reporter: and only in the last five weeks we have had the boj, stimulus'sying more are out there. why does the flow of money from central banks that actually helping the real economy? angel: i think the question is, central banks have been that euros of the last few years, but they have done most of what they could do. they have been there and done that.

they have even been there and done that with most of the german fiscal policy. the question is now, you have to move toward structural change, you have to move to things like education, innovation, more competition, the tax structures, the rmb, and that takes years -- rnd, and that takes years. i first joined the workforce, people would not take me seriously because i either looked too young or worked to i wore bright colors, and i started working -- i came from india. emily: i saw you wearing saris. >> and i would wear only black and gray to work every day and sneakers and i love to stick with shoes. all these things that have nothing to do with my job or what i was doing as an engineer.

i was afraid to be who i was, of why wanted to be. and so i absolutely did that. when i became the eeo of motorola, i wanted people to take me more seriously. i been to the extent of coloring my hair great so i would look older. really? did you ever feel like you were treated unfairly? people, iel people -- think don't expect you to be competent. there is always this doubts and people are always skeptical. i have had situations where people are being skeptical about my type or what i am doing because i am a woman. it is hard to describe it. it is not blatant. ukrainian billionaire living in austria wants to end his self-imposed exile and returned to his home country. after posting a $140 million

bail two years ago, he is finding extradition to the united states or he is wanted on bribery charges. let's see where he is threatened with arrest. >> [speaking foreign language]

reporter: if we look at the macro situation as far as european concerns, the demand has been neutral since the global crisis. these are factors which are likely to change that currency is very volatile. many is a struggle with imaging markets.

when you look at other jobs and information plans, the board in tata steel looks at all of the injunctions, and then you look at plans, it is not something you can support or afford. , but not capital connect not only in the next few years but the long-term. reporter: how does this give you confidence that you will get somebody who would be interested ? >> it is not a const -- consequence of confidence. looking at it in the same manner as when we went for the steel process. the situation was similar. how concerned are you on china right now given what the government has said reiterating commitment to growth . are you confident they can do it? >> i think they can.

a lot of people don't understand the nature of the chinese structure, political structure and economic structure. it is a planned economy. so when the leaders and say we want to 6% growth, they get 6% growth. maybe it does not go anywhere, but they are going to get that growth. now they come to the realization there is a lot of waste. they do want to move to a market economy. there is a market economy allocates resources more effectively. so i am really not worried because the party, the government has control of some of the key elements such as currency, such as control and so on, investments and so forth and so on. i think they are in pretty good shape in that sense. are there problems? of course there are. there will be bankruptcies. in the paper today, one of the brokers got in trouble with their boss and so forth and so

on. we will get more of that. the basic direction is correct. they want to move to a service value. rishaad: it will take time. people should not rush it. but they'll someone to be more market orientated. we have seen how they behave when it comes to trading. it seems as though they want a market-based economy until he goes wrong for them and then they say, oh god, what do we do now? mark: it is a real dilemma. you can see the people trying to regulate. there is thend economy, and then you have got to make sure nothing goes wrong. ♪

♪ watching bloomberg best. i am alix steel.

the fed chair janet yellen pointed to recent declines oil prices is a dangerous downside rask to -- risk to global growth. gas prices are also falling shortly. we explored how to producers and investors are coping with the energy sector's all, starting with my exquisite conversation with natural gas pioneer tom warren. what is the perfect gas price? tom: lots of perfect capital structure. if you have ample capital, you can make money and get outside do three dollars, $350. -- $53, three and a $50. alix: deal feel like companies have had to -- do you feel like companies have had to cut rig prices? what are the longer term implications of that kind of shut down?

tom: it would be nearly irreversible. alix: so it is? tom: i believe it is. alix: how come? because they produce so much gas. tom: because they produce so much gas. there is decline for natural gas fields. if the company were to stop drilling, you are going to see declines in the 25% to 40% range year-over-year. alix: and that is not going to come back? tom: it will over time, but you have to start spending cash flow to do that. and remember, the company's income or their cash flow is going down as rises go down. not as much field to spend. alix: do you feeling investors will let them outspend their cash flow again?

tom: i do. alix: why? tom: because most investors are greedy. reporter: the appeal of commodities. looking at the view on the commodity market, don't depend on crude getting back to 50, 17, a different strategy in place. >> even the we have seen this pop in crude over the last month, we are going to see .ompanies in the energy space they have to have $60, $70, $80 crude. the way to play energy is through the infrastructure. these are companies with real aspects, real cash flows, and they have the ability to survive and continue to grow even in a $40 crude market. reporter: does the balance sheet

adjustment continue now? everybody is expecting that will to be no will. does that improve? : they have challenges to the balance sheet, but they don't have the stress you see in producers. that will continue at $40 oil. see that as bargains because they have been taken down by the entire energy sector unfairly? libby: yes, they have continued to grow, but prices have been hit just as hard as producers who have seen it cash flow deteriorate. >> tie it up, it doesn't make sense. oil companies are going to be stopping production or maybe going bankrupt, then why won't these companies prefer maybe down the road a little bit? libby: it is a volume business. even though you see bankruptcy, that production will be taken over by the better producers. our energy needs are satisfied

the majority by a hydrocarbons, that is not going away. >> when i look at the microeconomics of oil, we know the demand of economics, but it is still a relatively tight market versus on oil collapses we have seen. which country is the tipping point for you? we thought the saudi-kuwait yesterday. what's fun -- which country are you focused on tuesday the price move? >> definitely iran will come back to international markets and that will impact the actual of oil and vulnerable in the market. and also the oil prices. iran is at the top of the list and also iraq and the media, the political situation to get back to market would be the first country that crude is at a high could slowt of oil the prices. tom: and if it margin removed,

will be the response of saudi arabia? elham: with regards to saudi arabia, they need to get back to the long-standing principle of consensus within opec. the reality of saudi arabia position fortural the last two years, hoping they can control the market share, which clearly has failed, proves they need to get back, they need to get back to the season of consensus and the natural basis. ♪

♪ on theou look at beef bloomberg, you can pull up where growth and job losses. here are the states that are hit hard by the energy losses. >> an awesome function called

noon it go. oil tankers that are soaring oil in the middle east gulf. all of them right here. >> digging into goco, this is the whole spectrum that is going on in terms of global commodities. >> more important information on the bloomberg this week as we use the full range of functions to get the perspective on markets around the world. another function you can use to gain instant knowledge is quic go. this looks at north korea's nuclear abilities. here are some things are three does not have. human rights to talk about, political freedom, or assistance. here is what they do have. a nuclear weapons program with an a predictable young leader. our north korea's nuclear threats to fear? monsieur the situation.

, 2016, a 5.1 admitted earthquake was detected here with the results of the fourth degree or test in a decade. while military experts are skeptical that they detonated a full-fledged hydrogen bar -- baum, they found a missile. the united nations and the u.s. respond to the threat of more sanctions. andeed to dial-up sanctions and toughen the sanctions enforcement, and that is exactly what this bill does. differentthrough leaders, north korea has been ruled by a family of aggressive dictators since 1948. e such a strategy -- each had a strategy that deep into the isolation. nearly 30,000 troops stationed in south korea backed with power such as helicopters, nuclear b2 self bombers. the argument, this could be an

attack. north korea has a long history of escalating and de-escalating hostilities to broker concessions. >> south korea, with support from japan and other nations, will provide most of the cost to make nuclear energy it is losing. reporter: which leaves us in a tricky position. carrot and stick approach. the stick in the form of sanctions has not worked. if opponents want to risk military confrontation over the nuclear issue, the costs are stronger sanctions or just to wait for that doubtful of the kim dynasty. neither is ideal especially when his erratic behavior, including executing his own uncle, is added to the mix three of alix: you can browse the entire quicgo.at quic picks at

here are some of the favorites from this week. reporter: this chart can be by 709 go.ide -- you can also go to econgo. you one of the economists that worked for bloomberg intelligence, michael mcdonough, put together this chart. it is a modified rule that takes into account financial intuitions. that can be found at fcongo. it shows fed by his is closer to neutral. lessthe pce number and unemployment numbers as well as the details on friday, did not move any closer to neutral. the fed is not getting any closer to neutral bias. they still could raise rates, and michael on the bia group inected to raise rates april. they are just about neutral here, and i wanted to show this

race index that bloomberg clients have access to. >> this month, junk bonds gained more than 4%, and comparing that to -- i am looking at the yields on junk bonds in the u.s. versus earning yield on the s&p 500. you can see it was a time of four percentage points more than u.s. bonds were paying that a comfortable measure on u.s. stocks. that has plummeted to 2.9% higher in less than a month singly because the rally has been so massive in high-yield bonds compared to what it has been in the s&p 500. this is the reason you have got about this,lking going into stocks based on the relative evaluation. >> i am showing you the slopes of what happened. this is on the trade basis. this is deutsche bank trading. i index.get this at twp

we have not had the selloff we are currently set for in the first quarter since all the way back to the third quarter of 2009. we saw some 6% on the trade way basis for the pound. now we are down 5.5%. as is the day but we are seeing the bank of england financial policy committee once again raining that in. they are worried about the effect of the brexit. this is causing volatility in the index market. alix: you can find all of those charts on the bloomberg at g #bbgo. news 24 hours a day at bloomberg.com. that will do it for bloomberg best this week. i'm alix steel. agee for watching bloomberg television. ♪

♪ welcome to another edition of the best of with all due respect. it was a week of controversy large and small might campaign manager being arrested for campaign manager eating with pizza with a fork. donald trump has sparked yet another comment storm for comments he made on abortion. onis matthews in a town hall wednesday. chris matthews: should the woman be punished? this is not something to