♪ >> coming up on bloomberg best, the stories that shaped the week in business. the trump administration hits -- ground running, ask acting swiftly on campaign promises. >> he wants to create jobs in the u.s.. >> we will start adding fair shakes and better deals with trading partners. >> lots of people were hoping he would start with tax cuts and tax reform. >> the dow jones hits 20,000. we ask, what is in a number? >> we expect 10 ipos in the next three weeks. greed comes back. >> parliament will vote on brexit as the united kingdom leaves they european union.

not be quick. >> if anybody moves from london, they are welcome in madrid. >> corporate earnings, we will run down the results. >> investor confidence is there. >> one objective is to get a better balance of profitability. >> we are reviewing our priorities. >> that is all ahead on bloomberg best. >> welcome. this is bloomberg best, your weekly review of important business news, analysis, and interviews from bloomberg television around the world. , on monday, look three days after the in our president trump got down to business. >> president trump begins his first full week in office.

meetingbusiness leaders this morning. >> donald trump made a clear message to a number of business leaders, including elon musk and andrew liveris of dow chemical, he said he wants these leaders to create jobs in the u.s. and he wants to reduce taxes and regulations, make it easier for them. he also said it a decide to take their business to other countries and try to ship jobs back into the u.s., they will visit border tax. --so far, trump has it signed an executive order to withdraw the u.s. from the tpp. >> it was meant, ironically, as a way to contain china. he has also indicated he wants canadagotiate nafta with and mexico. i suspect what we are seeing in the markets now is, for several days, the markets were focused regulation, lower taxes.

now, they are beginning to wake up and say, there might be stuck we don't like him the trade front. >> he did what he promised he would do. >> it wasn't unexpected. what was unexpected was, people like malcolm turnbull from japan,ia, shinzo abe in the prime minister's of new zealand and singapore, saying, let's take this tpp with its 11 members and let's see if we can drive that forward without the u.s. u.k. court rules theresa may needs the permission of parliament to trigger the countdown to brexit. >> today, by majority of 8-3, the supreme court rules that the government cannot trigger article 50 without an act of parliament authorizing it to do so. >> the government determined to deliver on a decision taken by the people of the united kingdom and the referendum is granted by this house to leave the european union.

we will move swiftly to do that. >> the government will be working to try and put before parliament a brief, simply worded document, the aim of which is to try and give fellow lawmakers is little to object to as possible. the s&p, the third largest party in parliament, said they will bring 50 amendments to whatever bill is put before parliament. it forces the speaker of the house, you might hear more about him, he has to be, he is the man who decides how many of the amendments are allowed in and how many of them get air time. that will be crucial. >> to what extent will the ruling delay the triggering of article 50? >> i don't think very much. the expectation is that mostly, members of parliament and the house of commons, with the exception of some liberal democrats, and then some labor people, but the s&p will vote against. be a healthy

majority for the implementation bill. >> as the market gets opened in the u.s., we are on dow watch. up to thethe dow $20,000 level, -- the 20,000 level, up 106 points, 5/10 of 1%. we didn't get into the 20,000 door for many days. we got close a few weeks ago. we have now done it. >> wall street has forgotten about the dow. serious analysis is based on the s&p 500. index,, as a price rated isn't really practical in this day and age. it was fascinating to watch, the 20,000 become a resistance zone in early january. clearly, people were viewing it as a technical level, and to now, trump is in and we have really seen him, in the first couple days, focus on the very

equity friendly parts of his agenda. >> it finally happened. it held above that level, and as you can see, 155 point advanced for the dow. a lot of excitement, but what does it mean for investors? >> the bigger picture is, you had a breakout of the last 5-6 weeks, not only the dow, the s&p, and some of the other indices as well, the dax. from a technical perspective, that is pretty bullish. sideways consolidation pattern followed by an upside breakout. >> republican lawmakers are in philadelphia, putting together a plan for working with president trump. the president of mexico tweeted, he won't attend a meeting scheduled to take place next tuesday with president trump. >> this is stunning. the idea that donald trump would tweak to the president of mexico, don't come if you are not paying for the wall, then he

would get a response by twitter from the president of mexico saying, ok, i am not coming. >> did he have a choice? >> there are questions about the order of things and how this transpired. we heard reports yesterday that administration and the president were already thinking about potentially canceling the trip, based on trump's executive order to begin work on construction of the wall. >> the u.k. prime minister will address the republicans shortly. why is she doing it in this form? why not go to washington and address congress and both parties? >> she will be at the white house tomorrow. the development across the pond influencing perhaps the leverage that republican officials, including the trump administration, feel they have in negotiating a deal with the u.k. in terms of a trade agreement. now, that was before the withdrawal of the mexico meeting. a lot of moving parts.

why am i and washington? because theresa may will be here a little later on. the prime minister is the first leader to meet donald trump at the white house. from a financial point of view, how significant is this trip? >> i think it is important. the fact that trump sees the relationship with the u.k. as critical to the success of his administration, to make him i think what is important is trying to flesh out what he has in mind in terms of a relationship. challenge iny, the terms of an economic slowdown post-referendum is still out there. what we need to see is clear plans on how to see investments in the u.k. and continue to enable the economy to grow. >> what this president trump hope to get out of the meeting? that question to kellyanne conway inside the white house, and she told me the

focus is going to be all on trade. i can tell you that kellyanne conway also told me that perhaps , something they might discuss privately is ways in which president trump and his administration could assist prime minister may in helping her meet the march 31 deadline of triggering brexit. clearly, a lot of different moving parts behind the scenes. >> what about for him? does he need to come away saying, i got this out of the prime minister? or given his prime -- is problem with mexico, that he can get along with companies -- other countries? >> people tell me the goal today is to not have any hiccups publicly. ahead, we dig into the week's discussion of donald trump and trade policy, and what the dow 20,000 calls for.

topre of the week's business stories, including market moving memoranda from part -- from president trump. ♪

♪ >> this is. let's continue the global tour of the weeks top business stories. in asia, samsung is working to rebuild consumer trust and investor confidence after last year costs note 7 smartphone debacle. >> samsung has confirmed faulty batteries caused some of its galaxy note 7 models to burst into flames. what are they saying here? the batteries were part of the issue, causing that restart overheat and catch fire. they said electrodes in the first batch came into contact

into contactame with each other and caused a short circuit and the design and the manufacturing raises. the head of the mobile business, in a press conference today, about two and said and a dozen phones and 30,000 batteries were examined. the residue till the investigation. >> samsung announced it will buy back nearly $8 billion in shares on strong quarterly results. fourth-quarter profits doubled to almost $6 billion. by rising prices and memory chips and tv screens. net income for the fourth quarter for samsung, more than 6.971, $6 billion. written largely by rising prices --semiconductors, which

driven largely by rising prices of semiconductors and the recovery of their mobile business. in the fourth quarter, they expect earnings overall to decline quarter on quarter. >> opec and other producers agreed on a way to monitor compliance with the oil output deal. >> the saudi minister says they hope to reach the 100% level in february next month. everyone complying fully with their quota levels. they are setting up a committee of several of the countries who will look at exports, and they will look at so-called secondary sources, which are analysts that look at the market. >> president trump taking steps to a dance construction of the controversial keystone and dakota pipelines. >> one memoranda was on the dakota pipeline, and the third was on the idea of, everybody

has to be -- everything has to be done with u.s. made products and workers. for is an encouragement trans canada to reapply and a direction for agencies to look at things quickly and know where the president is coming from. these negotiations have not yet formally begun. >> the call for looking at he'dations that him american manufacturing, construction of new plants. he is asking for a collection of comments on that that will be published, and would help them guide the regulatory process going forward and perhaps a limitation of regulations. you could say he did something there. with the others, he says, i like pipelines. if you want to reapply, i am in favor. >> president donald trump acted on two of the most fundamental and controversial elements of his presidential campaign. building a wall of the border with mexico and tightening restrictions on who can enter the u.s. >> beginning today, the united

states of america gets back control of its borders, gets back its borders. >> this was an executive order in which the president ordered the construction of the mexican wall. one needs to be done by congress to move it forward? campaign rhetoric repackaged in the executive branch. now, the ball most of congress, where republican leadership, are alreadyul ryan, meeting with advisers on how to move the president's agenda into a budget. >> there are creative ideas i have been coming up with and others in the congress, where the initial makes down payment, but eventually, the security measures are paid ,or by things like increasing putting a border security fee on visa applications from mexico, and central american countries that are the biggest offenders of illegal immigration, to

things like border security fees , crossing the border, and looking at remittances going from the united states into these country, a border security fee attached to that. >> networking giant cisco announced yesterday that it will buy software maker app dynamics for $3.7 billion. this comes just ahead of the planned ipo. a pivot of theng company into the software and services business and out of the hardware business, why does this particular company help you to that? >> if you look at at dynamics, it is a cloud-based application performance management system, but in reality, what they do is, they translate application performance into business insights for the customer. they do it in private and public cloud. the synergy of what we see a the infrastructure level, and what

they see at the application layer, creates visibility than no other company in the industry can provide to customers. central bank is ordering the nations lenders to curb new loans in the first quarter of the year. a tricky situation, where you have to balance keeping liquidity and funding, but at the same time, credit risk. >> there are risks and the mountain of debt in china. you have to balance that. the pboc, especially as the chinese lunar new year is coming isquicker this year, january also the time when banks frontload their lending for the year, especially in mortgages. you need to balance the credit risks, and keep enough funding in the financial system ahead of and into the prolonged lunar new year holiday. the pboc is said to have ordered banks to strictly control new loans. this includes a request from the

pboc for banks to keep increases in new mortgage lending in particular, two in the first quarter, below the increase we saw in the fourth quarter. >> after months of negotiation, johnson & johnson one over actelion. they are buying the drugmaker for $30 billion. they will help johnson & johnson come a leader in blood pressure medicine. what made the owners of actelion go with johnson & johnson? how did they structure the deal? >> the answer is in the structure of the deal. everybody had been openly talking about the fact that the was reticent in giving up control of the company, and i think this is the best deal they could've put together in terms of the structure. he gets to run actelion two, whenever you want to call it, and johnson & johnson gets the assets it wants in terms of

bringing in near-term increase in sales growth. >> a bank settled on dublin for its main head -- hub in the eu. according to people with knowledge of the decision, choosing dublin as a hub for the european union is one thing. taking a host of people out of london is another. >> barclays has never been on the end of the more apocalyptic warnings about the demise of london after brexit. we can see, with their plans or -- to move or higher 50 million people in dublin, it will not change the structure of the group. what we can see our city's emerging as winners. we have dublin, number of banks looking to go there, and we have frankfurt. other banks like lloyd's are looking to set up and operate in

the eu. london is losing a bit, but this is in the end of the city as europe's financial center yet. -- isn't the end of the city as you -- europe's financial center. new --

♪ david: welcome back to "bloomberg best." it is an historic week on wall street with the dow topping 20,000 for the first time. what does the milestone mean? we covered it on bloomberg television. >> are we at an inflection point? is this an indicator of positive underlying fundamentals for a healthy market? exit is certainly, that is the help. i remember when i woke up in the middle of the night, november 8, ninth, and i saw the dow was down i think 600 points, since then, we have come roaring back 3000 points or 15%. it is basically hope, and the ,ope is we will see reform

corporate income tax regime, reform on regulatory regime that makes it advantageous to be a business in the u.s. and maybe infrastructure spending. there is a lot of optimism. it is manifest in the markets and in the dow 20000 and it has us day on the rauco stock exchange as hit that number. >> it signals momentum. what does that tell you about listings or potential listings of companies? how does this change your forecast of how many companies you will see listing on the new york stock exchange? >> let me take you back a year ago. in the first quarter of 2016, we had no ipo's, zero. we didn't raise any money for corporate america. companies weren't able to take money they hadn't raised and invested in their business. look where we are now. i met with my team upstairs, we expect 10 ipos in the next three weeks, including four on friday.

those 10 ipos are really big ipos. most are raising in the neighborhood of $500 million, $600 million. one we expect to raise $1.7 billion next week. it is good. >> where do we go from here? we hit the number, what does that tell you about what is around the corner? >> in the long-term, when we look over the balance of the year, we think both earnings and the economy are on track to essentially keep this bull market going. the near-term is a little less certain, because what we have really done is, we have almost destroyed this wall of worry, in large part, that the 7.5 years of bull market has climbed, and whether you think about it in terms of the low level of short interest out there in the market , the very, very high confidence levels on the part of both consumers and optimism in small

business, both of which, those numbers are extremely spiky. when we see those numbers dip in the past, with -- it is been difficult for stocks to sustain the kind of the momentum we have seen the last couple months. >> some people say rum numbers don't matter, but lots of people get thed to me that to retail participation, you need big headlines of the front pages to induce their appetite to buy. >> i think so. 1-iron he about this, and people still call this a rally, the market bottomed on march 9, 2009. so this is a bull market. the great irony is, this has happened without any retail participation. there has been net redemptions, if you count mutual funds and ats -- etf's. this makes a difference, because of the margin, retail investors are out of the market for a reason. serial misdeeds by wall street and the financial crisis.

greed comesually -- back. >> that is the kind of headline where my mother-in-law says, what happened with the markets? is that a signal that the real money should be selling? >> i don't think so. templeton said that bull markets pessimism, they grow in skepticism, and they die in euphoria. it is hard to say you have euphoria when you have net redemptions from retail investors. people thatlot of sat on the sidelines over the past eight years, that may start to want to get in. david: coming up on "bloomberg best," we will revisit interviews. donald trump's tough talk on trade. and brexit could mean big changes for european businesses. it might not be all bad.

>> it will lead to bankruptcy and opportunity. david: this is bloomberg. ♪

♪ bloomberg best. beltre simmons about trade drive fire. he called protectionist policies. bloomberg television discussed the effects on trade. here is some of that conversation. ♪ that things will go up. we do not think it will be across the board. we do not think it will be what trump was talking about during the campaign. we do think that there will be a major focus on the law.

ithow does this for how does look for the u.s. economy or the global economy? is in generally pretty good shape for the u.s. the main change will be for policies that will take place very late this year. in 2018,trend growth have think that we will be -- we do think there will be higher inflation. we do think there will be some in the balance rate. >> do you consider a strong dollar to be a factor? we think it is mainly based on interest rates. for example, we think there will be parity by the end of the year. policy will see itetary

monetize -- normalized. we think that the policy will be very easy to keep. ♪ >> how confident are you that the tpp will live on? >> this was not unexpected by the president. there will still be a lot that we can perceive. where these opportunities persist, we will see people step into this. there will be an australia first policy. our economic interest goes along with that approach. as everything is finalized with china, korea, and japan. that was a very important part of this. ♪ there are major border of

attacks. we already know that was coming. what formknow that will take. havelicans in congress been talking about a border adjustment tax. , previously last week, he said that he does not want a border tax. this sounds like a regular tariff, if that is what he is talking about i do not think the market will react well. think people were hoping that he would go with tax cutting and tax reform. some of these would come later if at all. and nowgural address moving that to the front. we have talked about

mercantilism and neo-capitalism in regards to china. if it has been working for china, could it network for the u.s.? >> it has network for china. you put it in a good way. protectionism,d economic isolation has been tried hundreds of times across the world. it does not work. it makes you poor, not rich. ♪ >> we are going to see real capital investments. we are going to see trade cooperation. we are going to eliminate off shoring. going to start getting a fair shape, fair deals with trading partners. all of that is going to happen at full employment. we are going to have a stimulative environment. that is going to be very positive, slightly negative for

the rest of the world but not the united states. been a wageu.s. has giver for the last decade or so. now we are going to be a taker for the next few years. -- is it asa simple simple as increasing the dollar? >> there will be a trade increase, with the deficit. the question is, how do we pay for it? third -- 30%. that is the only way to pay for it. it is broadening the base. switching your trade partners to pay. it is actually very elegant. ♪ break,ain's anticipated

we are looking at the outlook with investors. we delivered insight on that issue. firmago now to the terra chief. he says what is good for business. ♪ >> britain is going to have to continue to borrow money. will have a risk premium on that. interest rates will start to go up. that will lead to bankruptcy. it will lead to opportunity. this is one of the strange it is probably bad for the majority of people. on the other hand business will be good. >> just give us a sense of scale, how good will it get? give me some other numbers. how high will they have to go?

>> when i am talking about inflation i am talking about real terms. similar to a fraudulent getting boiled. it is not going to be quick. rates, itf interest is going to take some time. at one time the u.k. is going to have to pay for their debts. in terms of evaluation that has .ever worked o it has taken 200 years to leave the united -- european union. the only way we can to and payinue -- can continue to -- we need to jump several percentage points. >> my colleague francine sat another financial

industry chief. ♪ you do 19% of your revenue in the u.k.. moment,explain it for a how this happens when he gets triggered? >> in the short term of the u.k. is doing well. will be positive for the next six years. expecting a growth in 2018. expect growth, less lending, but more growth. absolutely are committed to the u.k.. we have grown a loyal customers, there will be less growth.

there will beke much different? >> we are a british bank. there will not be a lot different. about is what we care our customers. obviously, that will affect them. we need to work out what will be a new relationship between the u.k. and our continent area did we need to think about that. and the people, there are a lot of british people, i think about 50 million. let's think about the people and the customersand the people, tht of british, there are more companies trading with the u.k. and europe. >> are you expecting to see this double. >> the u.k. banks are moving operations. sense, how a lot

of these bankers are moving to madrid, spain? >> if anybody is going to move from london, we very much welcome them. infrastructurey in place. market, a critical mass they will remain in the central part of europe. ♪

♪ >> this is bloomberg best. they host of companies reported growth. amongst them if you text -- tech companies. ♪ >> alibaba shares are getting a boost.

the company also listed the yearly forecast, where is this growth coming from? >> there is not much coming from user numbers. it is x-ray coming in from the users more. with the euro, we see 30% growth. that is really big. when people are pulling out there phones and urgency, that is really important. china is large, but they are really hitting about the. we need to get more per person. trade with fourth quarter shares coming in below estimates. a one time and tax payment. did fall, but they also close at a record high yesterday.

how do you weigh the results? >> if you actually look at the results, the business was very strong. -- they arerading trading at 36%. means more youtube and more research. that growth could continue. the cloud business which is a new avenue, it is a large market. the growth opportunities continue to be there. this might service. ♪ microsoft profits exceeding an arriving by cloud-based computer. microsoft says they are valued at $26 billion after acquiring linkedin. , as your net double,s to grow and

there is no sign of that slowing down. the office 365 business is successful. paying toved from office, now we will pay for a subscription service. are finally seeing some of the opportunities try from that. interesting enough, windows did ok. they still have some opportunity. they are heavily involved with gaming. ♪ and earnings update from yahoo!. estimates, going up $.25. perhaps more important than the numbers is the acquisition by verizon.

reportedly off, the deal is still on but push back. >> what we see is a company trying to bail itself out. betterve been for the half of a decade. that is better than we have seen in previous years. they will take what we can get here. can they find the business under all the our bridge that is yet who? delivered, theer fourth quarter revenue is one billion euros. a billion euros is what we earned in the fourth quarter. 0.2.arket was making we got a little bit of a shake in the fourth quarter. >> i look at a slightly different. i think it is important to know

that we had a business that separated out lighting. it, but wel pursuing are now more towards a health technology business. we saw a 5% sales growth. 190 points of profit growth. we saw we had momentum. ♪ on thees at bowling are rise this morning after their fourth quarter earnings were better than analysts estimated. the improving global economy is increasing demand or jets. bighe military is not that of your revenue, do they plan to grow that military? >> i think the key for boeing is

cyber security. attacks are being paid for more than the military attacks. with boeing, we do not even know how big they are, but they are a very big player. trump has said we need to focus on. expenditures are increasing exponentially. wheres another area spending is increasing as well. growthd aircraft are big dealers. ♪ drugmaker isthe planning on buying back shares. how far down the path are you? >> we announced today that we are going to have a review this year. this is going to include all options, including retaining the business.

this review will not include the pharmaceutical part of our firm . we have already taken that an integrated in into our innovative medicines. we are just reviewing now, we are not down the path so far. we thought we should be open with it, so our associates know we are conducting this review. ♪ >> there was an 18 month high this month. it seems like most of the numbers were in line with that or hasiven risen. >> was to the bad news first. they were down 300 and 50,000 tons. that is down at 7%. been slightly down. petrol production was down as

well. moke -- the market is down. ♪ afterse shares up analysts predicted. in, you have already cut the dividend's. >> we are reviewing our priorities. we are taking out the investments in areas where we can. here i think we have great opportunities. we have a strong task, a strong position on technology. we have a very good financial position. ♪ >> the board is just that with their earnings now. first --.30 for the fourth quarter. some people saw this as a number

of vehicles sold. europe was much stronger for them. next year they will be seeing autonomous vehicles and more electric vehicles. towardsshifting overall europe and china? >> one of our objectives as a company is profitability. expectet into 2017 we do are going to be strong. also at the same time in europe and in china, we are going to continue our positive performance. we do expect our numbers to be down a bit. we take that to the weakening of the sterling due to brexit. ♪ >> numbers out of ubs this morning, there was a surge in the equity trading revenue. revenue, theyord

were broadly in line with expectations. ubs is seeing improvements in the u.s.. >> i have confidence there. we are talking regularly to our investors about it. we see a readiness and planning for investments. also in the underlying businesses. investorse clear that are looking for new administrations. ♪

♪ >> just digging into some of the functions, you can go into recommendations. getting into alibaba, you can whothat there are analysts

say they would buy the stock. are 30,000 functions on the bloomberg. we'll show you some of our favorites. we will show some in your favorites as well. q you i see go. will get into timely topics. ♪ constitution,a and army and an elected government. the united nations does not formally recognize them. the reason is because china considers them one of their provinces. there is a deeply hostile relationship here. taiwan is testing this relationship with their new female president did sigh and china by speaking

to donald trump when he was elected. no u.s. leader has talked directly to taiwan's president in decades. i says she once peaceful ties with china. that principle has hindered relations with china in the past. it is the understanding of the one china principle. trump said his support for the one china principle hinges on a trade policy with china. by a onee to be bound china policy unless we make a deal. >> with public opinion on china, polls show maintaining the status quo will have the most interest areas here is the argument.

taiwan has built there in economy into a technology powerhouse. much more than china did with the iphone. they are trying to keep the peace. they are trying to become less dependent on the mainland. many people say there is too much at stake. this election with donald trump has added uncertainty. aimed thousands of missiles at taiwan. u.s. they support the one china policy, they circumvent this by selling weapons to taiwan. ♪ is one of the many quick takes on bloomberg. you can also find them on bloomberg.com

that will be all for bloomberg best this week. thank you so much for watching. this is bloomberg. ♪

♪ could a master of drug and paragraph. this is the most talented and ambitious young artist in china. is representative of a huge group of your artists that are going to be emerging in the coming years. >> she is walkg