>> coming up, the stories that shaped the week in business around the world. a shocking attack rocks london. the health-care battle continues in washington. the u.k. and the european union set dates to deal with brexit, and the trump trade hits a speed bump. >> it is like someone flipped a switch that said hands off. >> explaining why he held out against a rate hike. >> the data is moving sideways. i am asking, what is the rush to raise rates? finance ministers pushback against protectionism.

>> i'm in discussion about a free trade agreement. if something is not good for mexico, mexico will step away from nafta. >> tech leaders push forward with grand plans locally and globally. >> i called for a moonshot of 5 million apprenticeships. >> 12,000 startups a date in china. >> it is all ahead on bloomberg best. ♪ rishaad: hello, and welcome. this is bloomberg best. week was marked by intense political disputes and startling events from washing 10, to westminster, to points in between with significant impact on financial markets. monday, attention was focused

on capitol hill. joe: fbi director james comey testified on the russian interference in the election, and alleged wiretapping. mr. comey: with respect to the president's tweets about wiretapping directed at him from the prior administration, i have no information that supports those tweets. joe: what is the number one thing we know right now that we did not know yesterday? >> a couple of things -- director comey's admission that there has been an investigation july is causing a lot of democrats to gnash their teeth in washington. the blanket denial that there is any evidence to support the assertions that president obama had trump tower wiretapped.

those are things that people have been talking about. when you have the director of the fbi and the head of the national security agency putting that on record in front of congress, it makes a big difference. matt miller: the top five contenders for the french president took the stage last night. hour face-off. >> the best way to send a signal is to cut off immigration. provocations to divide society. talk to me about where the euro did well. 108.ng 107, pushing what does the move tell us about market positioning? >> it was steady and gradual. it was not a sudden spike after

the debate, which implies investors were waiting to see what the poll reaction is, what the reports are. that implies it has more legs today. there is not immediate resistance. is forming a bullish formation. that implies more upside as well. it negates a previous bearish signal, which makes it even more positive. scarlet fu: stocks, the dollar, government bond yields retreating this tuesday as investors pull back on the post-election trade. tranquility was shattered as the s&p 500 declined the most in two months. 238 points on the day. small caps declining. >> you ask what is causing it and you get 10 different reasons. there are obvious ones. the market has gone so long without a noticeable dip. 109 days without the s&p topping

1% on a closing basis. it is like someone flipped a switch this morning that said risk off. >> there have been months where there is nothing but improving sentiment and data. given that the stock market has added several trillion dollars in market capitalization on the back of that good news, anything that would raise the specter in the timetable towards a fiscal reform, fiscal package, may cause doubts to creep into the market. i think that is what we are seeing today. .> breaking news in london shots fired outside parliament in westminster. at least 2 people are being treated according to a bloomberg reporter on the scene. police have said it was a terror attack. >> the attack started when a car was driven over westminster bridge, hitting and entering members of the public, including three police officers. the car then crashed near

parliament, and at least one man armed with a knife, continued the attack and try to enter parliament. >> lawmakers were kept in the building for hours. may was voting at the time. she was taken away in a jaguar. her residence is a secure location. >> the location of the attack was no accident. the terrorists chose to strike at the heart of our capital city. where people of all nationalities religions, and , cultures come together to celebrate the values of liberty, democracy, and freedom of speech. >> london's worst terror attack in more than a decade left 4 dead including one police officer. police have made seven arrests. >> we heard from the police commissioner saying the arrests and investigations are continuing. they believe the attacker was

inspired by international terrorism that acted alone. there are asking the media not to disclose the name of the attacker while the investigation continued. >> what does this do to the brexit negotiation? >> i think most people do not see that part of the battleground, if i can use an unfortunate phrase at the moment. look at the main arguments of the european union, really to do with economy, trade, and so on. on the security side, the only issues around the corner is when you begin to touch immigration. this guy was bored in britain. there is not an obvious way into the argument, but there will be politicians looking a little bit to see what there is. bloomberg has confirmed the house will not vote on the health care bill. news conference

hosted by paul ryan has been postponed indefinitely. >> i heard from a senior republican fours there will be no vote tonight, a huge setback for speaker ryan and president donald trump. their first big initiative. they have been barreling toward this moment for seven years as the republicans have been promising to repeal and replace obamacare, and they don't have the vote here they are being squeezed from both ends. republicans want to sing it to the right, others are not happy with the level of cuts. balancing those competing amands was always going to be monumental task. it is tougher than republican leaders expected. >> president trump may be ultimatum to lawmakers telling them to pass the health care bill or forget about repealing obamacare. when is the count? >> later this morning. i spoke with a republican from ohio who said all indications are the vote will be held today. outside and service of groups,

like americans for prosperity, are urging them to take their time. to wait a couple of days, until the weekend coming to continue working out their differences. it is a test for president trump, testing the house freedom caucus about where their loyalties lie. are not gop leaders confident they have the votes to pass the health care law. >> the idea that perhaps they do not have the votes. >> if you look at the bloomberg, there are more than 30 house republicans that have expressed sentiment that they are not happy with the proposal endorsed by president trump and put forth i paul ryan. this has become a contentious issue. one that threatens all of president trump legislative agenda, including tax reform. >> republicans lacking support. they have canceled voting on the health care bill. >> i spoke to the president. i told him the best thing i

think to do is to pull the bill. he agreed. this is a disappointing day for us. >> the leadership was very aware the feelings in the far conservative tea party movement anticipated how tightly that group would lock behind this. there was an assumption by the president and gop leadership that they were in power and could steamroll people in the following them. greatave had a relationship with the republican party. it seems both sides like trump, and that is good to you see that more clearly than anybody. i will not speak badly about anyone in the party. i think paul really worked hard. we will probably start going tax strongly to the big cuts and tax reforms. that will be next. as we review the week on

bloomberg best, timely talk about trade and tech. conversations about commodities with ceos with plenty of skin in the game. triesss headlines, uber tuesday or out of a skid, but one topics a gated will not be along for the ride. >> his role never measured up to what was advertised. this is bloomberg. ♪

rishaad: this is bloomberg best, i am rishaad salamat. europe, where the timetable for the u.k.'s disengagement with the e.u. has become more clearly defined. kingdom would officially begin proceedings to on marcheuropean union

29 according to prime minister may's spokesperson. march 29. how does this rollout for potentially the next two years? needs to pay up, please settle your bill before you leave the club, right? the estimates for the bill have been almost $70 billion. britain will not want to pay the bill before they start negotiating. the europeans may demand that. the u.k. prime minister theresa may leverage slip away as she filed for divorce from the european union. leaders arranging a summit for brexit talk on april 29, canceling plans to hold it be weeks earlier. how does that set the timetable for brexit? alongs is going to drag and be difficult for prime minister may to deal with. the summit on april 29 will layout guidelines for how the

commissioners want to deal with brexit. it will go to the eu commission. table pull directives out of that. then to the general -- they will pull directives out of that. then to the general affairs council what they will put that into laws for the european union to negotiate on. it could be until june or later until the eu is ready to negotiate with the u.k. least two months or more out of theresa may's timeline. one of the most powerful families in south korean business facing court. eldestnder and his three children accused of embezzlement and criminal char charges. parkis not about president , what is it about? isit is connected, but it

related to corporate corruption. own the palace hotel, hotels, supermarkets, there has always been allegations of cozy business relationships with government. while it does not involve the president, it involves allegations that they embezzle money, tax evasion, a host of corruption allegations that have been widespread. confirmed -- uber has confirmed their number two is leaving. number ofred of the controversies at the company, ranging from allegations of sexual harassment to the combative nature of the ceo. >> when they brought in jeff, morewere going to make him

marketing savvy. he was in charge of the ridesharing operation. now we are talking about an adult in the room that was going to be coo, travis was calling demotion., it was a his role never measured up to what it was advertised as when he was hired. >> let's turn our attention to the indian phone market. they have agreed to merge to create the new mobile market leader. the enlarged group will be twice as big as at&t by subscribers. this deal has been talked about for a while. they will create an entity that is valued at $23 billion and have 395 million subscribers. what does this mean? been consistently using

money. this deal is an opportunity to catapult to the big league. it is a position where they will hopefully start making money. is make as far as consolidation of cell contractors is concerned. electronic devices from certain italy's turn and north african cities. tablets, laptops, and dvd players must travel in checked baggage. >> interestingly, you would have thought the airlines would have come out more aggressive or played the protectionist laws. i have not seen any of that. emirates airline came out with a tongue and cheek reaction on 2500er saying we have channels you can watch, who needs laptops.

everyone is in their contingency planning rooms seeing how they will come to terms with this. fourth-quarter profits that missed estimates. while revenue jumped 40%, operating costs are surging. arestments is where they strapping for cash. >> they just missed because the cost of revenue jumped 60% from the year before. investors are ok to take a hit on profit margins because you are seeing growth in other revenue streams. they're not only relying on mobile gaming. they have in expanding into cloud computing, mobile payment, new content in the video business as well. shares of disney getting a boost after bob iger agree to an extension that would keep him on top until july 2019,

an extension of a year. it wasn't entirely unexpected, especially since they are having a have time replacing him. >> the succession plan the company spent 10 years crafting fell apart a couple of years ago leaving staggs left, the company in a lurch. they did not have a plan b. they are trying to entice bob iger to stay longer, to buy the company more time to identify a successor. bringing you an exclusive bloomberg story. credit suisse considering selling $3 billion worth of stock as an alternative to raising capital through listing part of its swiss units. they were going to ipo this was unit, now they are thinking after deutsche bank raised money, we can do the same thing. >> conditions have changed.

it was a year and a half ago, and conditions were different. the capital buildup, more recently, has been stronger than they anticipated. the shares have been holding up. the option is realistic. it would not have been on the table eight months ago. >> pending out $3.1 billion for bonuses at a time when its peers are downsizing. been ableedit suisse to do something others have not been able to deliver on? >> the legal issues that credit lease has -- that credit suisse has been facing, the settlement they reached with the u.s. authorities were not as severe as the case with deutsche bank. their wealth management business , while facing struggles last less capital.ed the bank's position is not as

worrying as some of the other european banks. ♪

rishaad: welcome back. i am rishaad salamat. speech was very much in the air with janet yellen and other officials making comments on monetary policy. the lone dissenting voice as they raised rates earlier this month, he explained his stance with bloomberg daybreak: americas. >> we all say that we are data dependent. i want to remind people, let's be data dependent. we have the dual mandate on stable prices, inflation, maximum employment.

let's see what the data tells us. i am not opposed to raising rates when the data tells us we are moving towards our dual mandate. it is moving sideways. i am asking, what is the rush to raise rates. it is mostly a difference in degree. i want to take a step back and say how has the federal reserve behaved over the last five to six years? termsinflation or cast in of the forecasts has been wrong. all expecting inflation around the corner. always being surprised when it is not. repeating the same mistakes all over again. are behaving as if 2% is the ceiling rather than a target. let's take a step back and after p this same errors. calls for it, we

should remove accommodation. acting like the inflation target is a ceiling, what should they be doing instead? >> the core of measure is around 1.7%. it has been that way for several months. the target is 2%. if the target is the target, 1.7% should not be more concerning than 2.3%. if that is the truth, that is what we really believe, why are we so worried and raising rates now when the job market continues to be strong? the ecb has a 2% inflation ceiling. we should decide as a committee, ceiling,t target, a and behave that way. we have it as a target, but we are not behaving as if it is a target. >> mean pce is up, almost 2%.

do you need to raise the inflation target to 3%? >> i don't think so. we need to be disciplined. there are different measures of inflation. there are in just meant measures. -- adjustment measures. you can look at data quarterly or annually. you can jump around and tell whatever story you want. to me, that means you have to be disciplined, picking the data set that you think is the most informative and stick to it. not being blind, but not picking and choosing the story you want to tell. replay interviews with tysons of tech. executives talk about a new initiative in china and how bidu is holding off hackers. next, the eu could be at risk of unraveling. a former italian prime minister

tells us how it can be saved. get their to really act together. rishaad: this is bloomberg. ♪ live-stream your favorite sport

at the airport. binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv everywhere is awesome. the all-new xfinity stream app.

xfinity. the future of awesome. rishaad: you are watching bloomberg best. i am rishaad salamat. political volatility escalated this weekend in many parts of the world. the stage was set at the g-20 when the joint communique did not extensively reject protectionism, raising the level of tension on trade. interviews throughout the week of bloomberg television addressed these pressures. >> is 2017 the year where the eu and the eurozone could unravel? mario monti: there is a risk -- let's face it, there is a risk. this is an occasion where the leaders of the member states

will have to get there act together, have a vision for the future, but to me, the fundamental factor which will decide whether the eu will one day unravel or not is whether national politics and member states will continue to drift toward nationalism, populism, or whether we will go back to a sense of historical responsibility because the eu has been an historical -- -- historical construction, and has achieved a lot for your. and that can not end as a side victim of irresponsible political behavior in most national countries. >> there is a lot of confusion about this chorus of different

voices not really speaking in constant from the u.s. administration about protectionism, trade terrors. is there a concern from australia's perspective of this whiplash messaging of who is driving policy and what the policy is? >> i do not want to state the impact, but of course it has an impact in terms of global trade. u.s. global will help to strike ,- will help to shape where globally, different economies go. is onsame token, my focus making sure we continue to open up new opportunities. i am in discussions with the u.k. about a post-brexit australia-u.k. free trade agreement. we are nearing the final stages with the european union for an eu-australia trade agreement. i have a high-priority on discussions with indonesia, and i was pleased off the back of meetings in chile that we got a look at australia and colombia,

chile, mexico, peru, being able to do a trade deal with those countries as well -- all of these are options on the table that i will be pursuing. >> the united states policy will have huge impact, not only for the u.s., but for the rest of the world. having more emphasizing on a fair and inclusive trade is actually a commitment, because many countries are not able to compensate those losing from globalization and the global trade properly, and that creates resentment. and weakening support for the global trade. this is the policy meter from all over the world. >> were you disappointed the communique did not include a specific pledge to reject protectionism? >> we hope it was stronger.

this is not a new statement. the leader meetings had a much stronger and explicit comment -- commencement -- commitment among the leaders of the g-20 economy to maintain this kind of corporation, and resisting, again, protectionism, because it is not only good for a particular country, it is good for the world. >> i am just back from china. there is no bigger strategic and economic gift we could give china than for the united states to move away from nafta. >> larry summers, former treasury secretary, told me right here in acapulco earlier today, or described, the future for america without nafta in dire terms. would you describe the future without nafta in similarly dire terms, either for america 04 -- america or for this country?

>> i think we have to prepare for all scenarios, and if what is on the table is something that is not good for mexico, mexico will step away from nafta. we are members of the wto, the world trade organization. trade between mexico and the u.s. would be ruled by wto, and we certainly -- there would be a future. why would we do that? why would the u.s., mexico, canada want to do that if we could have a trade deal that could be much improved in benefit of the three countries? so, yeah, you would have to plan for different scenarios, but it is so strong a case that creating value for the three sides, well-paid jobs, that is the case. >> if common sense does not prevail, and it is not a win-win not recruitrt does

enough to mexico come you're willing to step back and say we are not part of this free trade deal any longer? >> absolutely. ore losing steam and oil prices rose. insight into what lies ahead for these turbulent markets. speak to the big oil majors, there is tension about how much global demand for oil will increase. where do you stand? >> when we look at the oil markets, we see 2 important trends. oil demand will continue to increase this year and for years to come. we do not see a peak of oil driven by china, and more and more by india.

it is driven by cars, trucks, and industry. this is very clear to us. the second trend that is also is the u.s. note shale oil is making a strong \ --back, as we had for seen had foreseen a couple of quarters ago. we are going to see, we believe, a major boom of u.s. oil production, and more portly, production in terms of the numbers u.s. shale production. , tom keene: how fragile is a price decline? how likely are we to see a price break in oil? >> we see a significant chunk of the shell oil project making perfect sense. if it goes lower, we may see if the production growth might be weaker.

there is also an upside. if the price goes to $70, $80, we might see shale oil production growth might be much stronger than we and others currently anticipate. >> does the oil industry you are in now have a future if the oil trade is to believe that we will be between $50 and $60 a barrel for a long time? >> absolutely. the whole industry has restructured for a lower price, and we just finished a deal with bp where we are taking over assets in the north sea, and those, clearly, also would run at lower prices and higher efficiencies. we have been going since the 70% the company, about annual growth per year. we will continue to grow. the oil business will be around for a long time. i think the industry is starting to see green shoots of

investments all around. coming out of the u.s., an increase of about 5000 barrels a day. the supply side looks healthy. the iea has come out with additional, on the demand side, that the demand is also increasing. hopefully, we will get some reduction of the additional supply that is on the market. >> we will pursue m&a only if it creates value for shareholders. our strategy to temper growth. smart is very important. when i look at some of the recent projections, in chile, or even in the u.s., i think the price, the value realized -- we are good for the sellers. i am not quite sure for the buyers. is m&a on top of the list today -- the answer is no. >> we are here in china. you are talking to business leaders and lawmakers. what sense you get from them in

terms of the demand of iron ore? >> in relation to iron ore, we change. there is a clear push to reduce pollution, restructure the steel business, but that is not a bad thing for us at rio tinto. the reason is restructuring the industry does not mean the output will reduce. high cost, highly polluting, and then you concentrate on larger. you will need to liquidate. absolutely music to my ears. >> how closely will you focus on the property structure in china when you were drawing up your projection? >> we look at construction. we look at infrastructure. we look at energy.

say we are moving in the right direction. so, we have plenty of access points because we are supplying iron ore, copper, even diamonds. are there issues placing product absolutely not. , i am not concerned this year. ♪

cory: news out of apple, the tech company introducing a special edition red iphone 7. the sales will help fund the fight against aids, and they will also revamp the ipad at the lowest price yet. >> what is interesting about it is the margins on the ipad are worse than on the laptop, so one

might imagine apple would prefer to be selling laptops, but the difference is you have apps, so it brings recurring revenue. it is a way of driving more revenue over the course of the lifespan. on the ipad isce the way of getting the tool into customers hands and hoping they will spend more money with it. rishaad: technology companies have been at the center of some of the most important debates in business recently, including trade policy, workforce the -- workforce development, and immigration. this week, bloomberg's caroline hyde caught up with prominent executives at the cloud conference in las vegas and discussed how they are meeting complex challenges. >> the workforce will dramatically change over the next one or two decades and it will be driven a lot by artificial intelligence, these changes. that is why we need to start retraining and new types of job

development before this technology really hits, and i called for a moonshot, 5 million apprenticeships in the united states based on a lot of the things we learn from countries , you were based in germany and switzerland, that we can bring to the united states to improve the quality of our work force. i hope our u.s. government listens and creates the moonshot. >> do you think everyone can be retrained at the end of the day? >> absolutely. there are so many vehicles to educate people. especially here in the united states. phenomenal opportunities at community colleges k-12 systems, , and workforce development programs. there are so many people ready for these next-generation jobs. i look at the things we're doing with veterans -- bringing them into our company and retraining them using salesforce. on the bigger picture, salesforce will create 2 million jobs in ad $400 billion to the gdp by 2020, so we are really focused on creating these new jobs, getting people ready for salesforce jobs, and creating

platforms for that is so important. i think apprenticeships are the key, and also automation and one-on-one. caroline: you are looking at hiring a lot, and growing. you have been an inquisitive company. does that remain? are the valuations right to remain an inquisitive company? >> last year i thought it was clear there was a window open for m&a activity, and we took advantage of the window. we bought a phenomenal company, the number one company in commerce, and we delivered commerce solutions to so many of our amazing company's around the world. adidas will do $1 billion to $2 billion in e-commerce on the salesforce platform this year, and amazing private companies as well, like quip, this carnival -- this incredible productivity tool. a lot has happened, as you know, this year, which is the markets are roaring, so the m&a windows have really narrowed, and because the m&a windows have

narrowed, i just don't see us doing a lot of m&a this year. >> we have a very large business in china that we run all of ibm's it is ibm's business there. we were one of the first people -- we were there first. we have been almost 35 years in china. we are a very well respected brand. we are the partner to the banks. they are some of the most sophisticated operations and require volumes that are unbelievable to manage. in the cloud, we will partner. is one of the most successful private companies in china. a great attitude about agility and skill, and want to move. they have a huge business on the cloud. it will be both a customer of the cloud and a partner in the cloud, and it will be great footing, i believe, because they have a big ecosystem in addition to the ibm clients. so both our ibm clients in the large ecosystem around wanda coming together. i look for to that being a

successful partnership. it is our first partnership there. caroline: do you have a view on how dominate you want china to be in terms of revenue stream? ginni: it is a good hard for cloud. about china -- it is a good part for cloud. about china, you see these very large state-owned enterprises, or just large enterprises, really trying to build power and entrepreneurial segments. 12,000 startups a day in china. you really do need to look at those markets differently, and support them both. that is what this cloud will do. rishaad: cybersecurity is another critical concern for the chinese for the technology industry. chinese company baidu is facing challenges. >> baidu's head of cybersecurity knows he has a fight on his hands.

hackers test defenses every minute of every day. in the most serious case, he says a gang get was put together to try to steal prized automated driving technology. >> it is important we know somebody tried to hire someone in the underground market to steal the things from us. >> cyberattacks could come from hacking, but from sophisticated international gangs. baidu has responded by boosting its cybersecurity team, and also backing what might be called ethical hackers like the blue lotus team. >> you have the router, which means you have taken control of my phone. >> they showed me how to take control of my phone. >> i will test out one website,

by blueee hacked lotus. >> the professor says there is a growing demand for ethical hackers. >> they probe for weaknesses that could be dangerous and report them to companies like apple and google. >> baidu has teamed up with competitors including tencent and alibaba. >> the underground industries are getting bigger and stronger. so, we must help each other against the underground industry. we are not enemies. they are an enemy. >> threats are only expected to increase, and china's tech giants are gearing up for the long haul. tom mackenzie, bloomberg, beijing. ♪

jonathan: we can bring up debt go on the bloomberg, and you can see the holdings and how it will roll off in the coming years. these are big chunks of change that are going to roll off the balance sheet if this is an approach you want to take. rishaad: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you you -- you will find useful. c. it leads you to quick takes what you get insight into timely topics. this explains why the u.s. supreme court has become so controversial. >> u.s. supreme court justices are supposed to be protected from the pressures of election cycles and political divisions, but in recent years some decisions by the highest court

in the land have become more polarized, and its approval rating is sliding. a year-long vacancy on the court highlighted this divide. here is the situation. in the last year of his presidency, barack obama nominated federal appears scored -- nominated federal appeals court judge merrick garland to replace antonin scalia a, the republicans refuse to hold confirmation hearings. president obama: i nominated merrick garland more than three months ago. most republicans, so far, refused to even meet with him. >> the gop was betting that the republican president would win the white house. it paid off. >> i solemnly swear -- >> on january 31, donald trump nominated neil gorsuch. old, if he was

confirmed, the court could lean to the right for an entire generation. there have been controversial 5-4 decisions that extended an individual's right to own guns, lifted restrictions on corporate campaign spending, and limit class-action lawsuits. the supreme court carries the power to shift political direction. with supreme court appointment, presidents can influence the nation long after their terms and. that is why in recent years presidents have selected judges whose convictions are not likely to shift. >> i am so thankful tonight for my family, my friends, and my faith. >> here is the argument a number , of important decisions that rest on a 5-4 split has been rising. chief justice john roberts has claimed this could undermine the legitimacy as an institution that transcends politics. then there is the diversity issue. the slow turnover means the

court's makeup has lagged behind demographics. half of the justices are still white men. another big concern is there is no recourse when justices appear to violate ethical standards or hear cases in which they have conflict of interest, and lifetime appointment mean they can still work after strokes or other mental impairments. one solution is term limits. in a 2015 pokemon americans -- in a 20150 year 10 year poll, americans favored a 10-year term limit, but until there is more compromise, change seems unlikely, and the highest court in the land could continue to face divisions and challenges to its public approval. rishaad: that was just one of ick takes you can find on the bloomberg. you can also find it on bloomberg.com 24 hours a day.

that is all for bloomberg best. thank you for watching. i am rishaad salamat. this is bloomberg. ♪

david: your last name is krzyzewski. it took me a while to learn how to pronounce it. after three years, you had a losing record. mike: a lot of people were calling for my firing. david: you won the national championship. mike: i said we were going to win. we ended up winning one of the greatest games in the history of college basketball. david: last year, you won your third gold medal. to have the national anthem being played, there is nothing better than that. david: what are the most important lessons of leadership? mike: at west point, i learned that failure is not a destination. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was