>> coming up on bloomberg best, the stories that shaped the week in business around the world. in the u.s., fears over a travel ban and health care plan. >> members of the united states senate have said it is a nonstarter. >> it is dead on arrival. >> talk about the coming brags it. >> i call it cautiously optimistic or upbeat with few giveaways. jamie dimon fires from the hip in an exclusive interview. draws the battle lines on trade. >> we have been in a trade war for decades. >> plus, executive insight from

the geneva motor show. and international women's day, the journey toward gender equality. >> companies with more gender diversity perform better. >> it is not so fast. >> it is straight ahead on bloomberg best. ♪ >> hello and welcome, i am scarlet fu. this is bloomberg best, your review of the most important business around the world spirit of the week began with yet another executive order from u.s. president donald trump. it was -- the january travel ban was blocked by court. >> president trump has signed a new travel ban. the directive removes iraq from the original list. [no audio]

go into effect until several weeks from now. it is a sign of this administration, they would put forth the kind of message they are tying to correct some of the mistakes they made from the first executive action that was shut down by the ninth district court. >> what is different from a legal perspective? there are concerns. how did the white house -- address those needs today? >> they tried to narrow the band so it would seem more reasonable, to pass scrutiny under analysis such as due process. the big question in the courts will be, what is the significance of president trump's earlier statements when he was a candidate in which he explicitly said he thought to impose a ban on a muslims? what is the significance of the interview his friend and colleague, rudy giuliani gave,

when he said trump's purpose was to accomplish a muslim ban without saying so. if the court to give credence to those of statements, then this order could be just as vulnerable as the last one. unveiledrepublicans legislation to repeal and replace the affordable care act. on twitter president trump tweeted be an almightyto fight on this. is there any middle ground? there is. one of the things we are seeing from republicans on capitol hill, you see senator paul making statements like dead on arrival. he is also saying, president trump says it is open to negotiation. maybe that is good news. it is the beginning of a long legislative process.

>> republicans have to show it does not increase the deficit. that it has no higher costs. that will be difficult to do. even then, if they are able to use the reconciliation process, seven of their members have said it is a nonstarter. this so-called replacement is pretty much dead on arrival. >> it is dead on arrival. what we want is for it to be repealed and they wanted to be replaced with something that allows more people to get insurance at a cheaper price. this is just another government program with new entitlements, new taxes. this is not what conservatives want. >> house representative jim jordan he will introduce a bill tomorrow that will be a clean, stayed up repeal of obamacare. some plan to introduce bills tomorrow that will be straight up, repeal obamacare. paul and senator lee in

the senate were saying, let's do something every single republican voted on and voted for. let's repeal it. but the same legislation on president trump the desk as on president obama's desk. the latest forecasts out of the u.k., the budget responsibility delivering a 23.5 billion pound cut in planned borrowing over the next five years. the gdp forecasted raising the 2017 economic growth forecast to 2% from 1.4%. the economy would be better after brexit, that did not transpire. the further you go out, the more the cuts come through. i would call it cautiously optimistic or up the. with few giveaways. at that growth forecast for 2017 from 2% from 1.4% in november.

the forecast was either unchanged or downgraded because there is the prospect of brexit looming. this is something philip hammond, the chancellor, did it knowledge. >> the growth forecast has boosted. for this year, the u.k. economy could be ok. >> 2% as possible. >> it is possible. we do not get into the meat of brexit until next year. it could be closer next year. we will have a struggle to get to. the ecb, 0%.in ecb saying affect purchases will be 60 billion euros from april to december. on schedule, it has already been flagged. 80 billion a month until the end of march. and the headline everyone was

looking for, the ecb rates lower for an extended. bank and passed the qe horizon. draghi begin to communicate that the ecb will wind down qe program? sequence ishe that,d guidance, changing then changing the asset purchases, the tapering. then the policy rates. that came through in today's press conference. the real change in gains would come earliest at the june meeting. i think they want to get over, the french election hump. a risk of an outcome beckett but put their economic outlook onto a completely different trajectory. they will get those uncertainties behind them. if we keep getting the same

momentum we are seeing in global market, like the u.s. june should be the point in time where we see a significant change on forward guidance. >> the payrolls report coming from d.c. right now. john, the wall street traders nailed it. 235,000 jobs were created. the whisper number, 230,000. higher than forecasted. 4.7%,employment rate, down by 1/10. the disappointment in this number, if there is a such a thing, 0.2% rise in average hourly earnings brings the year-over-year to two point 8%. lower than had been forecasted. >> solid overall, good for wall street. it has the goldilocks element in the comment -- context of eight

said hike cycle. less good for main street because wages could have been that her. >> doesn't move the dollar for them at all? what has changed in the last two weeks that drove them to come out? >> i think this report means we definitely get a hike next week . not mean we get more than three hikes for 2017. that is why the market likes it, because it expected a hike next week. the only thing it was worried about was, do we get a higher pass on future rates? this addressed that we do not. >> still to come, jamie dimon explains why he wants european banks to fly. we hear from the geneva motor show. plus, gender issues under the microscope. and more of the week's top business stories.

european car companies consolidate. >> we will launch our portfolio, a wider range of customers. ♪ >> this is bloomberg best.

the week's top business stories at the national people's congress in china where they announced key economic objectives are 2017. >> chinese premier delivering economic targets. the emphasis will be on civility and reducing risk. he sent a message about who is in charge in china. give me the key takeaway. of 6.5% threet and possibly higher was what they added into the phrasing.

they had cpi, 3%. debt for gdp around 3%. and the changing of yuan, signaling around the currency. thecontext seems to suggest data back and forth over the last two months do have the upper hand. cans there any doubt china reach the 6.5% target? >> on a year like this one they would do everything possible to achieve a 6.5% target. i do not see any problems. now the economy is doing very well. you have the property market booming, the old economy, traditional industries recovering. the service industry is growing at a rapid pace. the growth target can be met. >> deutsche bank's coo ripping up his plan, the 17 month old effort has stopped.

a billiondes offering euros in stock and reintegrating prospects. >> in terms of the stability of deutsche bank, there was a lot of worry over the existential future of the bank. this should but that to rest and give it a best in class capital raised to keep clients coming back in. when do we see a profit? there is no deadline attached to these proposed targets. this is a costly strategy to reintegrate. there is a lot of uncertainty and no clear trajectory. comfortablere sitting in the seat i sit this time, this year, then i would have a last year. more positive because the environment is good. we're seeing growth again. to some extent we have done hard work but there is quite a lot to do. still focused on improving controls and efficiency. but it will be more fun as we develop those in the future. >> general motors has agreed to

sell its long struggling european opel units to france's psa group, valued at 2.2 billion euros. the second-largest carmaker. >> a lot of discussion with the unions and government. this is mary from gm. exiting europe, finally. this puts them at number two. that is what he gets. scale, size, and brand. he will deliver synergies at 2 billion euros in 2026. what about gm? share buybacks are on the agenda. that is what gm plans to do. >> being that europe is from a regulatory perspective and customer preference perspective, has diverged from our global operations. as a result we need to find a way to get more scale locally here to make investments

necessary to be successful. >> having the opportunity to is aage two iconic brands big opportunity for a company like ours. to a larger group of customers. if we have brexit, it is much better the source from inside. let's turn to the latest on a brexit. sterling falling to a seven-week low against the dollar. theresa may faces a new setback in the house of lords. what happens today? what amendments will be added? >> house of lords looking to rewrite the bill. they won a meaningful vote to get theresa may to subject any deal she does strike in a couple years parliament for a vote. they do not like it, they view it as an impediment to

negotiations. undermine herwill negotiating position and they would like to see none of it. >> it is a blow? >> it is a disappointment. gets the, even if she bill passed next week, we might look toward the end of march for this article 50. >> the national people's congress in beijing, they for -- day four. they have been touching on topics including china's relations with the u.s.. a summit between president xi and trump, and beijing's unpredictable ally, north korea. is this some it possible? >> it seems like it. the two presidents will be meeting at some point. we have yet to know when or where that will take place.

it will be a reset of relations between the u.s. and china. after that phone call between president xi and trump he is expecting a positive relationship with his counterpart. rex tillerson will be there next week. he plans to address north korea. he calls on the north koreans to stop their nuclear program. the u.s. andd on south korea to stop their military exercises. he wants to see engagement and talk sense of china is ready to play a role in facilitating those talks. china's number two telecoms maker is fined for violating u.s. restrictions on the sale of american technology to iran. guilty and pay as much as $1.2 billion. give us more background in the terms of this settlement. >> this is a big settlement for zte. they are agreeing to pay $1.2 billion.

they are also pleading guilty to three felonies including violating export laws, obstruction of justice. it is a big deal for the company. it is clear the trump administration is trying to make an example out of the company. rossrce secretary wilbur held a conference where he said it is an example of how the administration will hold companies to counts for violating export laws. even though it began earlier, they are using it as an example of how tough they plan to be going forward. >> oil prices up by 10.5% over the last two days. u.s. production moving higher, stockpiled moving higher. more shale investment could kill the market. is this capitulation? >> no, i do not think we are there yet. so what is happening? massive, long position in oil. that way over several weeks.

what we are seeing in the markets, i do not think they are anticipating a massive plunge in prices. it is down from the level we saw last year. they are not expecting a rally. it is not capitulation, a recapitulation of the eucharist market. >> an extension of the opec, non-opec agreement? it really puts the nail in the coffin in terms of the need to do more, extend, coordinate further. far opecends on how wants to go. they can keep the oil price at 50 indefinitely. the question is, how far do they want to go? the fall of a president. parks impeachment is illegal. >> she lost all her powers and immunity. they are explaining to the public why president park geun-hye have to be removed from

office. they were saying that president parkhead continuously violated law. chancellor's influence in affairs. chancellor choi soon-sil is a close confidant of park geun-hye , and they were accused of colluding in order to get bribes and abusing president park's power. they say president park violated the constitution and abused power, the power of the presidential power for her interests. along with other charges. ♪

>> welcome back to "best of bloomberg," i am scarlet fu. down for an exclusive interview with jpmorgan's ceo,

jamie dimon. what will president trump do for the economy? >> here is what is positive, look at the policies, not the tweets. look at the top professionals in the military, defense secretary, the advisors. serious people with deep knowledge and deep experience. their mission is to have a growth agenda. that is, reducing corporate taxes, building better infrastructure that we definitely need, reducing regime that has held us back. i think it is good for all americans. middle-class, job creation. jumped because of the growth agenda. >> you have any doubt he will be able to follow through? >> the republicans have the house, the senate, 30 plus governorships. they have a better chance of getting those things done. i do not know the timetable.

from theeuphoria positive growth and pro-business there. the democrats a knowledge corporate taxes too high in america. they will not waste money because they are against bridges, tunnels, roads. it is time to look at the regulatory regime and recalibrate and make sure it is conducive to growth and does not hurt small business formation. ceos were terrified that if donald trump deregulate wall --eet too much is criticism, at the end of the day, steve mnuchin and others, they will work out things that make sense for everybody. we do not want a level playing field.

i want the european banks to thrive. nothe european banks do thrive, europe will not thrive. the regulators should look at those things and help european banks compete and thrive to grow their economies. they finance 70% or 80% of the economy. the rest is done through capital market activity. >> how do you right the european banking system? we have tried to help the italian banks. are we over the worst? >> we were that close to fixing it. we could have got it done. the banking promises not as big as others say. so much has been written off. i would like to see the banks -- banks were going pan-european.

because of the crisis in the old world. i think the right wing is pan-european. it is better, more diversified, creates efficiencies and assist them. i want to see mergers and acquisitions in european banks. >> will the euro in slow to? -- implode? >> problems are creating some of these concerns among the populations. the worst cases is that someone leaves the monetary union and that is hugely disruptive. plenty of interviews ahead on bloomberg best. bracing for european transition. they say it is high time for a fed hike. and, the geneva motor show. wilbur ross talks trade. he explains why nasa needs a fix. >> there were things we missed,

that we're not doing correctly to begin with. ♪ >> in the oil market, the

$57.57 for crude rose to a barrel, but declining to $55 the rest of the year. we will talk about the demand in terms of the supply response. >> when we think on the positive side of the ledger, we have seen two things. an upward revision to 2016 demand levels. also, a positive macro data to suggest there is upside growth risk in 2017. also on the positive ledger, you had core opec, saudi and the

rest of the gulf states with compliance better than thought. that is the positive ledger. on the negative ledger, in the u.s., supply response gaining momentum. two reasons. one is productivity gains, and access to capital. we did not change our forecast. the positive things offset the negative things and we and up in the same place. we are confident you will see inventory draws. was jeff curry at goldman sachs explaining his bullish outlook. on that same program, we spoke exclusively with a ceo. despite elections that could cloud the eurozone he is keeping a positive outlook. a we thought 2017 would be transition. but the reinforcement of the eurozone and we spend time to

save cap politicians, strategically about the next 10 years. forhat is the biggest issue societe generale right now? the lack of reforms, or the ecb? which is a bigger headache? there is uncertainty but it ans not translate so much in economy climate. the economy is doing relatively well. in france, in particular. this, the normalization of interest rates is important going forward because it would mean you would have more growth. you would also have additional political steps to help ecb normalize policy. be as, exiting rates would good thing. >> the other question, many

banks are coming out and saying european financials deserve lower valuations against u.s. peers because of complexities and politics. things are relatively weak. do you believe that? that a cheaper evaluation should be applied to your bank compared with similar u.s. institution? >> it is a too short review. in the short-term, the u.s. could benefit from a dynamic economy. particular, the eurozone, we have more work ahead. we have more work to build a financial service that is balance between capital markets and banks. we have to wait for a full normalization of the monetary policy. but there is far more opportunity for european players to take advantage of this construction, which would be more completed. i remain optimistic.

i see more and more positive steps in the european sector. career in the u.s., health regulation dominated headlines this week to read investors are waiting anxiously for the trump administration to move forward on trade policy and infrastructure planes. we discussed these issues with several guests, including commerce secretary, wilbur ross. he says where he stands on nafta. its own treaty. our economy is very different from when it was that treaty was entered into. digitalnot have the economy, services were not as important as they are now. further, we have had decades of .xperience with the treaty hard to get a several thousand page document right. there were things in it that were missed, things that were not done correctly to begin with. that might have

been ok back then but do not work now. there is a lot to fix. >> both canadian and mexican government have said things like that. there is room for negotiation, gives and takes. another model, we have a substantial trade deficit with mexico we have to fix. which is driving commerce? >> both. >> how mindful are you of the possibility of a trade war? were sanctions would be taken that might escalate, there would be reciprocal sanctions -- how mindful are you of that danger? >> we are in a trade war. we have been in a trade war for decades. that is why we have the deficit. the differences, our troops are now coming to the ramparts. that is the only change. >> it sound like it will be a shooting war. >> it is not a shooting war. if you have a bazooka, you do not have to use it. >> do you have a view on the

border adjustment tax? >> i am studying it carefully as it evolves. as we understand the intricate details of it and how it interacts with everything else, that is when we take a position. with american interpretation of international trade, how do we get back to a multilateral o, is thator is the wt dead? >> you're asking me political questions. i think the wto, like all institutions, is not perfect. but it has done a good job. maybe that place is where we went to far. the wto is still a place to do business. bilateral trade seem much less attractive. >> let's talk about the border

tax. the am not against of border tax, it can do good things and provide incentives for firms to take care of profits where they take lace. you will decrease the show again we had seen. it is not a solution to everything. the border tax will be paid by the farmers, it will not be paid by the farmers. we make money on the border tax because we have trade deficits. one day if we have trade deficits, we will have to have trade surpluses. and what is positive tax revenue spending on tax negative taxes in the future. form of debt finance, which will be financed by the u.s. taxpayers. the notion that they will pay for it is wrong. >> we are optimistic on growth. the one thing we will do in the

white house is set very realistic growth projections. we have looked bad at all the prior administrations in the beginning and saw what they put out for gdp forecast at the beginning of their administration. none of them got close to meeting their gdp project is. we will put out gdp projections we think we can not only meet, but beat. we would like to overpromise and under deliver then overpromise. we are seeing the activity we have seen from ceos and the fact we will be rolling back regulation, bringing new tax policies to the united states. we are optimistic about the gdp growth we see coming. >> if you look at the projections for gdp growth, it is up to 2.3, 2.4. do you expect better than that? >> we are already in the middle of this year. 2.3 or 2.4 projection

higher, it will be tough to move it dramatically higher this year. yes, we would like to outperform that prediction this year. year orow over the next two, we think we can substantially improve on that number is a get tax reform done in the second half of this year, as we continue to get the jobs created from the companies that committed job growth to us in the future. we think growing the gdp forward will be a line with our projections. projections are cautiously optimistic and we think we can outperform them. yes, we will continue to see growth. we will outperform where some of the projections are. fomc holds their march meeting next year and all signs point to with fed increase. they say it is about time. he joined daybreak asia to dig deeper into the upcoming decision. >> you say the fed is running

out of excuses. excuses not to raise rates. is there any left? creative at been times, coming up for reasons why they cannot raise rates. they have run the gamut of those. given the signal they have doeady sent, they would their credibility damage if they did not do it now. the other important part of this two-day meeting, march 14 and 15, the fed comes out with plots. fore was a narrow consensus increases in 2017. do you think that consensus might get bigger or moved to four rate hikes? what would you be voting for? >> my dot was on the high end. i think there would be more

consensus closer to three. i think they will still because this. what we have seen it since the election in the markets and performance of the economy is, in fact, the market has gone up. the forecast looks better. but there is more uncertainty around it. policieswords, what the trump administration will deliver, what it will look like, how effective it will be. no one knows for sure. what the fed sees, there is a lot of uncertainty. but in fact, what they call the risks, are to the upside. what they see, how to interpret what they are doing. even though there forecast may not move much. ♪ >> you're watching bloomberg

best, i am scarlet fu. auto executives gathered at the geneva show. they spoke about challenges facing their companies and the industry as a whole. the purchase of opel will affect their business. >> frankly, i do not think it will affect anything. i have always said that the industry is moving toward consolidation. you will see more and more players trying to gain, in terms of scale, it is logical because of all the investments we need to face in terms of products and technologies, geographic footprint and variety of your product offers. that is difficult if you're a small car manufacturer to be facing. what is happening is something which was predicted, forecasted, but in my opinion, also integrated in our own strategy.

>> you are involved in consolidation yourself, with mitsubishi. do you plan on going further? >> every opportunity we have to grow in transit we are by having newcomers, we will do it. we know how to play scale. we know how to transform scale into competitiveness. whether it is about costs or technology or quality. as we know how to do that, we want to play to the maximum. project has been done in a short period of time. it will be important to the performance. brexit has a huge impact. we are the number one player in the market. 30% of our sales are in a u.k. the weakening of the currency, of sterling, is a $600 million headwind. at $1.2it base is

billion. it has a huge impact on us. our team has been in business 100 years. we know how to adjust on issues like a weaker sterling, things we can do about it. more are things we will be religion on in terms of costs. >> what does that mean? do you have to lose jobs in england? >> no. but there are certainly more pressures on the costs for the company. we have to make sure material costs, logistics and distribution costs are as efficient as they can be. we made tremendous progress last year, year over year. we need to do it again this year. europe, for land, is the most important market. means we not only sell in europe, but we buy components out of europe.

need free ande fair trade. >> what about the production? do you have any special agreements with the british government, do you think they can offer you something. stay, obviously. concessions are made to other carmakers. not see concessions. we have a fixed operational footprint and have to change it quickly. therefore, the product -- the customer will decide. >> also this week, bloomberg television focused on critical issues of diversity in business on international women's day. women are global experts, influencers, joined us for their perspectives. join the governor of tokyo. she told us how she evaluates

the progress of women in japan. improvementa little since the new policies toward women are mixed and have been taken. but unfortunately, i should say the speed is not fast yet. -- have two steps advancing and one step behind. >> would you say the country is more open to female leadership? >> yes, i would like to believe so. i hope as many women as possible will be around for the assembly. the election will take place in july. by selecting as many women legislators or women politicians

at the local tokyo assembly, we will surely make tokyo change. less than 1/10 of u.s. neutral fund managers are women. that is lower than the rest of the world, where it is one in five are female. why is the u.s. so far behind? frome problem is twofold, two sources. part of it is a pool problem. we do not have enough women in the academic arenas. we see women underrepresented in stem science, engineering, mathematics. the second issue we have, it is a matching problem. if you're are a young woman coming into finance today, you do not see a lot of successful women portfolio managers that you can actually relate to. it is a complicated question. but i think those two things, the pool problem and the matching problem are probably

the most important sources or barriers to really seeing women's presence increased in portfolio management in general. with deregulation coming for the financial industry, with reflation trade gathering momentum, will financial companies have more to look forward to in terms of growth prospects, put aside gender equality initiatives because brighter days are ahead? >> we certainly hope not. being a representation at all levels of corporation, it is pitiful. when you look it ceos, it is less than 5%. boards, less than 20%. we do not think those numbers are good enough. find, companies with more gender diversity perform better. they have better return on equity, they are better managed from a risk standpoint. we hope corporate america has woken up to that. >> you guys s are doing somethig about that.

you are going to companies you have investments in and saying, you have to put more women on board. >> we are, indeed. roughly 25% do not have a single woman on their board. have 50% or more female representation. we will be engaging with those boards and look for them to make meaningful change and improve the diversity on their board. ♪ up someted to bring

proprietary data we have put together here at bloomberg. it is a bloomberg gender equality index. we track global financial firms that have best in class policies and practices in the general quality space. there are 30,000 functions on

the bloomberg and we enjoy showing you our favorites on bloomberg television. here is a function you will find useful. this will tell you to our quick kick -- takes where you can find timely topics. here is one from this week. the palestinians must recognize the jewish state. >> the election of donald trump has emboldened benjamin netanyahu. weeks after trumps inauguration, netanyahu's government said it would build a settlement in the west bank. the trump administration has said it does not view existing settlements as an obstacle to peace in the region. responding to israel's announcement, u.s. officials have said expanding settlements may not be helpful in achieving peace. >> of a like to see you hold back on settlements for a little bit. we will work something out. >> here is the situation.

bank is populated mostly by palestinians who hope to make it part of an independent date. palestine. israel conquered the territory half a century ago, israeli numbers have increased. since 1995, the population has grown four times faster than israel itself. dovish, theysh or have supported the expansion of settlements. why do israelis choose to settle in the west bank? there are three main reasons. one, religion. many religious jews point to the bible, that's a the land was promised to them by god. two, security. some think it is a better defense against the attacks like the kind that occurred in 1948 when arab countries invaded israel. three, affordability. others like the high standard of living made possible by government subsidies in the settlements. but according to international courts of justice, israeli settlements breach national law.

the argument is, barriers, buffer zones, and israeli soldiers to secure settlers make life difficult for palestinians. both palestinians and some israelis say it plays into a bigger problem. they prevent peace by dividing the land. any peace agreement would likely hinder israel on taking on the tough task of removing tens of thousands of settlers from the west bank. israel has removed settlers as it withdrew from occupied territory in the past. but those were smaller numbers. every single settlement were dismantled tomorrow, peace would not be obtainable without both sides of knowledge and uncomfortable truths and making difficult choices. where to drawh as borders, how to share jerusalem, and ensure each side's security. was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com along with latest

business news and analysis 24 hour the day. that is all for bloomberg best this week. they give for watching. ♪

announcer: "brilliant ideas," powered by hyundai motors. ♪ >> ♪ i-d-e-a, ideas ♪ ♪ narrator: and former olympic sailor, charles lim's stems from his affinity for the c -- sea. >> the working has produced have to do with the sea, the waters, which may not be routinely sort of represented. >>