>> coming up, the stories that shape the week in business around the world. a legal battle comes to a sudden stop. plenty to discuss in the latest u.s. jobs report. we examine abc's of a complex week of 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. >> a quick take on korea's nuclear structure.

it is all straight ahead on bloomberg best. ♪ >> hello and welcome. this is bloomberg best, a weekly review of the most important business news from bloomberg television around the world. look atke a day by day the week's top stories starting with a surprising turn in apples legal showdown with the u.s. government. >> the department of justice withdrawing legal action against apple after the fbi successfully bypassed the -- the lock of the iphone of the san bernardino shooting without apple's help. they were able to access the information they were seeking from the san bernardino shooters apple iphone with a third party involved that gave them the technical capabilities to do

that, likely some kind of mobile forensic expert the contracted with the government in the past. as of right now, it looks like is dropping their request for the company to write additional code. the rumors i have seen so far is an israeli company that worked the government on similar west and is savvy in some of these backdoor hacking around security features to access data on mobile devices. >> what is your take on what this means for apple's relationship with the government and the fbi? >> folks on the apple site will present this on a win, but it is win this -- n it puts off illegal their reckoning and demonstrates that

iphones are not particularly secure in the first place. given the rest of the outlook, i consider it appropriate for the committee to . proceed cautiously adjusting policy this caution is warranted because of the federal funds the fomc's ability to use conventional monetary policy to respond to economic disturbances is asymmetric. >> janet yellen at the economic club of new york with what markets are interpreting as a very dovish speech. did you feel like the markets reacted appropriately to a very dovish yellen? in a senseurprising of the direction it went, yellen doubling down on the dovishness was unexpected from what i've been hearing from people throughout the week, they were all thinking that because the other central bankers had come out and undermined what she had

initially said, that she would come out and be more hawkish, but the opposite was true, so the market was surprised and it ended up being a positive. there might only be one rate hike this year. there will definitely not be one in april as the probability shows. people are thinking it is no good time to get back in the stocks. >> people are looking for some kind of split coming out of the fed. they are being openly -- what weve and will see going forward depends on how the data comes in, and it more of a narrowing in. it's appropriate to because she is in the outlook for the economy, there is also a risk of being too tentative. metlife winning a big victory against the u.s. government.

the u.s. have labeled it too big to fail and gave it one of that -- given that designation, that life has been battling that name over the past couple of years. andurt ruled in their favor you saw the shares surged. what are the biggest implications of this ruling? metlife was one of four theynks designated as -- were the first to challenge it in their lawsuit. as too big toown fail. >> what was the argument that they should not be considered that? they made a due process

argument that metlife did not concede the process and was not transparent enough. it is not necessarily rule in their favor on that. assessd not properly metlife on her ability to material financial distress. >> saudi arabia has big plans to deal with the declining price of oil, create a $2 trillion mega fund. john nichols break that details on how saudi arabia will of all its economy -- will leave all olve it's a ev coming. it's it's the economy -- economy. >> enough to buy google,

microsoft, the alphabet, the whole lot of them. all those things are going to one thing and they still have changed despair and it fund is they will add land, property, other things and it's roughly twice as big as any other fund. >> his of session is understandable given the volatility we have seen regarding oil prices and that the country has not done the structural reforms needed. >> he has already cut all the subsidies and now they are moving to other things, it is a rather dramatic plan in terms of the economic transformation of the country. >> all of us were weaned on daniel yergin and robert lacey's books, and really read cover to window into first the 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 having? heading?are they there is an element of a group of mostly young reformers around the prints who want to push and step on the accelerator in terms of change. 215,000 jobs created in the month of march, that is more than the economists we surveyed expected by about 10,000. the unemployment rate ticking up to 5.0%, the first increase in the rate since may of 2015. a one-month does not make report, but this shows the some of the resiliency that sherry yeley in, the ambiguity that shery ahn deal with last week in her speech. >> it is a good report, wieters

did -- wages did better than expected and economists were saying 200,000 plus, so good numbers domestically. ist strikes me about the fed the fed is clearly counting the ecb and the doj, whether intentional or not, met by minute, the dollar is weak or but 5% against both the euro and the yen over the past month or they are data dependent, that focus on jobs and unemployment rates and wage .rowth markets fore the being confused, but clearly markets are a confused as to whether to be bullish about this report or look globally for other reports. >> we've got more economic data ahead. this week, we crunched the case , plusr housing numbers

japan's latest budget and how brexit fears are shaping banking policy. ♪

>> welcome back to bloomberg best. signs the u.s. real estate market is getting even hotter, on prices rose nearly 6% in january according to the s&p index released on tuesday. we had a perfect expert on hand to analyze them. home prices rose 5.7% year on year. for some insight, cocreator of the index, robert shiller. looking at inflation and payroll

and house prices, despite what's happening globally, domestically, -- things are still looking ok. >> we are threatened by the world, the world economy, but here is looking ok. up in aices are going number of places. i think that is a sign of our general optimism. the biggest year-over-year gains were portland and san francisco and the adult. is there a danger that we are seeing more and more that homes are creating bubbles and not exactly the rest of the country is in a fitting from this housing upturn? right now we are in a mood and the world economy of today, of trusting technology and not trusting our hands to do labor. on the other hand, some other high-tech cities like boston did not do well, it seems to be entirely regional.

it is interesting to see how much home price moves correlates over hundreds of miles. governments around the world are looking for signs of strength and growth, but in most regions, signals have been mixed at best. economic policy was early in the spotlight -- spotlight, this week. >> over to the world of politics and economic data, the country releasing sales data. the figures encouraging and the prime minister frontloading some spending? economic it out today was retail sales on household spending adjusted for the extra day in february for leap year they both fell and i think what it shows is the economy is really struggling to rebound after contracting, less quarter.

this gets back to one of the criticisms even though we have and haveyen weakened seen exports increase and corporate profits increase, we have not seen a lot of that trickle down, a lot of those benefits trickle down into the real economy. he wants to front of the budget to spend the money out right stimulate the economy and increase sales tax next year. they will do that barring a lehman type event. sound like a small thing, but the issue with getting women in the work horse is there are some women enough nurseries and childcare facilities, so he is reentering a lot of the things about economics they have been speaking about for the last few years. we will have to see what of these policies, one of the allocation of money and the policies are really effective. central bank for the focus once again today, and england sending a warning shot about the

so-called exit -- brexit. the boe announced its tightening rules for mortgage lending. >> that a lot of my plate this meeting and the brexit risks really fed into a lot of these other risks around certain credit areas in the u k and mortgage lending and car finance, the u.k. has a large deficit and also international risks in terms of market volatility and the one ability of emerging markets. the big picture is bank is going to become increasingly active on -- >> has abandoned the ruling

coalition of government doing a flesh blow -- fresh blow. >> she seems to be losing allies everywhere. she is a very resilient and defiant character, so no signs that she is going to step down but these things are continuing to run old and as long as that goes on, the markets will be enjoying the ride, because they see the endgame is very close and it is the impeachment or resignation. >> every time impeachment is mentioned, investment just rallies away and the market is beginning to believe that new government would reduce waits -- reduce rates. interest rates might come down in brazil after a very long period where they have increased, almost doubled in the

past three or five years. there is no a sense that if she strong,e reality very we saw a discoloration in inflation in february and that has fed into the swaps market and the very real sense that as they say, interest rates could come down by the end of the year to around 13%. >> trudeau made a campaign pledge to keep canada's fiscal down. a pledge already broken as it happens by your first budget. what message does that send to investors, particularly foreign investors? the message we want foreign investors to have which is the same message we want canadians to have, is that we are focused on growth, focused on growth that is going to help canadians, so the agenda is to help middle-class canadians succeed

after a challenging era, but importantly, we want to help them in the next generation so we made a commitment to growing the economy, something that we know will make a difference for the next generation and for investors, we know that they want to see an economy that is going to grow at a healthy pace over the long-term and is what we are setting out to do. >> is it safe to say looking at this budget that you and your government believe that spending is the only way to kickstart an economy like canada's at this point? first of all, we don't call it spending, we are making investments in the future of our country, so there are places where those investments might look like spending, but investing in education for indigenous people is going to help more people in the workforce over the longer term. we would say that we need to be doing things that are going to enhance our growth, fiscal measures are really a prescription for what we should be doing, given the canadian

situation, the low interest rates you mentioned are -- our a very educated workforce take advantage of a more innovative society is a positive thing for us. ♪

>> you are watching bloomberg best. takata faces rapidly in placing -- rapidly inflating recall costs. we continue our review of the week's top business stories. shows are tanking, down 12.17% at the close, the company ceo is out replaced by founder tim western. there have been a lot of

rumblings over the past couple of months, pressure, the stock has been down over the past couple of years. more ofng back is a bit a surprise because he has not run the company in more than 10 years and being in operational guys not his strength, but i don't think that is what they expect him to do. i think they expect him to come back and the a advocate for pandora, speaking on its behalf. >> japan's former telephone monopoly, nippon telegraph and telephone is expanding its region north america. a unit of the company is acquiring a portion of dell systems for about $3 billion. dell -- $10eing billion israel for the target and this is the paydown debt to pay down some of the debt they have taken on on a deal they did with three mc which they announced late, last year. telegraphrt of a free

process by dell, but they were going to try to raise money to pay down their debt, elsewhere. >> it is the hottest ticket in theme park in new shanghai sold-out hours after going on sale. is the first in mainland china and is three times the size of hong kong disneyland. give us a sense of what disney wants to get out of this park. >> they consider it as important as opening up orlando, this is a big deal for them and is a play on the growing, burgeoning middle class in china, increasing disposable income, a greater trend toward commercialism and consumerism and disney has been there with its films in the past but not with its parts or resorts which have historically been a fantastic business for disney. if you want to argue the statistics, the resort business is better in disney and they are

certainly a world leader. , ande door is wide open really surprising move, we had this competing off a group of rivals led by china's insurance, pulling their bids -- >> it's very vague considering as to why they dropped out. >>. a lot of details. various market conditions which could mean anything, but they have been working with jc flowers and -- on this deal and the deal was a were offering , but we havee heard from the founder and in an e-mail, she wrote the reason is simple, at the end of the day, they are a disciplined buyer. it would've been the largest buyout of a u.s. company by a chinese investor. sharesta corporation

fund a record low today on rising cost estimated for the auto industry's biggest recall ever. the callback on airbag inflator's could be as much as $24 billion of company's market million after307 hitting the lower daily limit. 7 million estimated below -- before, where did this come from? is a doomsday scenario figure and not necessarily by any stretch of the imaginations of and that is set in stone all stop >> how much of this is a negotiation with the automakers to pay $24they had billion, they would only be bankrupt which would leave the automakers holding the bag. >> this would definitely overwhelm takata's balance sheet as you pointed out. this is something that is going to have to be resolved both with takata and the automakers because takata is not going to be able to shoulder the cost

burden itself, even if we don't get to the point of a total recall situation. ispanies like honda which the cod is biggest customer, toyota, nissan, but also the american carmakers and german carmakers. takata has many carmakers around the world that are involved in these recalls and will have to shoulder some of the burden. --this is a drawn out winning a big discount on which is agreed -- the deals it to be sign on saturday, so he managed to get a big discount. >> that month of wrangling and pushing the deal to the breaking point was definitely not for nothing. the is getting about $100 billion discount on sharp. this is not a deal that sat well with all of the sharks board members.

does codirectors put it against it, pretty unusual in japanese companies. shares -- ed the question is, what's next and same day the announcement of the deal, sharp has reversed its operating profit to $170 billion in loss, a sign of challenges ahead -- >> it is pretty big of a deal if you look at what they are doing and historically. they have only had one other layoff, where they laid off 300

people. if you look at the broader employment is it is a small number. it is still significant. >> it is expected that their earnings will be down. >> it is driven by market eligibility earlier in the year which is what drove them to take a look at where they would focus resources going forward. their revenue will be weak for rest of the year. >> last week, tesla unveiled their new car. earning, it rose some 30%. we saw last night. elon musk can sell cars. a thousandple put up dollars a piece to get this car. can he make them? how many of them can he make? >> he has not spoken about how many he was going to build.

so many orders. they have a big factory that makes batteries they will open next month. he will meet demand. i do not know if you will be able to make 134,000 in the first year or not. demand and hisof ability to raise money, this is probably something they can do. the bigger problem is, will they make money doing it? the model as sold very well but the company has yet to turn a profit. cory: do you have a sense of how many he would have to make to make money? disturbing the fixed cost over more units? a matter ofo a getting battery cost down and they have been good at that. reports show this has been a profitable program. soul forever most

when hundred thousand dollars and he still did not make money on the car. we are on the dark because nobody in the business makes money on electric cars so we do not have a good model to look at. >> coming up, some of the week's most interesting interviews including a conversation on sexism. ♪

♪ alix: welcome to "bloomberg best," 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. tom keene: 2.8%, 2.5%, are we in a global recession? angel: no, we areforecasting 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. francine: and only in the last five weeks we have had the boj, the ecb saying more stimuluses 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 rnd, and that takes years. padmasree: when i first joined the workforce, people would not take me seriously because i either looked too young or worked too young, i wore bright colors, and i started working -- i came from india. emily: i seen you wearing saris. padmasree: 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 ceo of motorola, i wanted people to take me more seriously. i went to the extent of coloring my hair gray so i would look older. emily: really? did you ever feel like you were treated unfairly? padmasree: i do feel people -- people, i 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. francine: 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. dmitri: [speaking ukrainian]

koushik: 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. there is a struggle with many 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. it is not capital connect, but not only in the next few years but the long-term. swati: how does this give you confidence that you will get somebody who would be interested? koushik: it is not a consequence of confidence. looking at it in the same manner as when we went for the steel process. the situation was similar. yvonne: 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? mark: 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 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 bonds 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. on the one hand, there is the economy, and then you have got to make sure nothing goes wrong. ♪

♪ alix: you are watching "bloomberg best." i am alix steel. the fed chair janet yellen pointed to recent declines oil prices is a dangerous downside risk to global growth. natural 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 ward. what is the perfect gas price? tom: lots of perfect capital structure. if you have ample capital, you can make money and get outside of coal, $53, $350. alix: 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 feel investors will let them outspend their cash flow again? tom: i do. alix: why?

tom: because most investors are greedy. jonathan: oil up for the first time in five days. boosting the appeal of commodities. looking at the view on the commodity market, don't depend on crude getting back to $50, $70, a different strategy in place. libby: even the we have seen this pop in crude over the last month, we are going to see companies 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. tom: does the balance sheet adjustment continue now? everybody is expecting that will to be no will. does that improve? libby: they have challenges to the balance sheet, but they don't have the stress you see in producers. that will continue at $40 oil. >> do you 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. tom: 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 saw the saudi-kuwait yesterday. which country are you focused on tuesday the price move? elham: 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 level impact of oil could slow 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 taking the natural position for 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. ♪

♪ >> if you look at beef on the bloomberg, you can pull up where your see job growth and job losses. here are the states that are hit hard by the energy losses. >> an awesome function called noongo. oil tankers that are soaring oil

in the middle east gulf. all of them right here. alix: digging into gloco, 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. reporter: 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 young leaderble whose finger is on the button.

our north korea's nuclear threats to fear? monsieur the situation. on january 26, 2016, a 5.1 magnitude 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 bomb, they found a missile. the united nations and the u.s. respond to the threat of more sanctions. eliot: we need to dial-up sanctions and and toughen the sanctions enforcement, and that is exactly what this bill does. reporter: through different leaders, north korea has been ruled by a family of aggressive dictators since 1948. each had a strategy that deepened the isolation. nearly 30,000 troops stationed in south korea backed with power such as helicopters, nuclear b2

stealth bombers. the argument, this could be an attack. north korea has a long history of escalating and de-escalating hostilities to broker concessions. bill clinton: south korea, with support from japan and other nations, will provide most of the cost to make nuclear energy it is losing. matt: which leaves us in a tricky position. most talk for a 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 alix: you can browse the entire library at quic picks at quicgo.

best chargs fin the charts. best >> this chart can be accessed by 709go. 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. with the pce number and less 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 expected to raise rates in april. they are just about neutral here, and i wanted to show this race index that bloomberg clients have access to.

lisa: 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 analyzers talking about this, going into stocks based on the relative evaluation. caroline: i am showing you the slopes of what happened. this is on the trade basis. this is deutsche bank trading. you can get this at twpi index. 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 #bbggo. you can find news 24 hours a day at bloomberg.com. that will do it for "bloomberg best" this week. i'm alix steel. thank you for watching bloomberg television. ♪

>> from our studio in new york, this is "charlie rose." charlie: we begin with our continuing coverage of election 2016. donald trump met with the rnc and reince prebus today. it follows the comments that women should be punished for getting an abortion and his retraction. forcampaigsn are gearing up next