>> coming up on bloomberg best, the stories that shaped the week and business around the web. from paris to seoul to washington. we have some familiar figures leaving the stage. >> he has the government mainly to the right. he has definitely pushed the softer line toward north korea. times, aterent different reasons, people ask for a different at the eye director. now they will get one. >> markets are staying calm while leaders look to gauge what is on the horizon. >> i'm still worried about european banks. at where the possible

source of the next crisis would come from. top executives respond to the results. >> the pessimism about espn is highly exaggerated. >> the strategy we announced at the end of last year was the right thing to do. >> i must say that we are optimistic. >> it is all straight ahead on bloomberg best. >> welcome, i am juliette. this is bloomberg best. global politics dominated a big part of the week. starting with france's electi on sunday.

>> the polls are now closed in france. a emmanuelke we have macron win. we think of it is likely a 65% vote or something around that number for mr. mccrone. -- emmanuel macron. >> i am watching european flags make way. how long will be before i can buy a eurobond? he is the president. it is one of the cornerstones of his program. give europe its own budget. it is a step in the right dictn for europe. >> manuel valls crone fish about tomacron has the

-- >> don't boo them, they have expressed their anger, the disarray, there believes and i respect those as well. i will do everything i can in the next five years to see that these people no longer have any reason to vote for extreme ideas. >> i think is a very positive result for markets and we should not discount that. to find a majority in parliament and he needs to be able to do these reforms. how much he will be able to do, if you look at trump in the u.s., even though the republicans proved to be more difficult, the full extent of the victory is that people want to debate for a long time. it doesn't really matter. if he grabs hold of this, if he plows ahead, it is not unusual for people to win very narrow victories. he came away with 66% of the

vote. he has to govern mainly to the rit. france is th biggest -- one of the biggest states in europe. everything from the right that you would want to change. you want to make france more business fridl your to introduce more productivity. that means taking on the unions. bycpaign dominated political and business scandal, areas theaded some u.s. is growing worried about his unpredictable neighbor to the north area tell us about the expectations of the day. >> presidential candidates have already started voting. we had the lead candidate cast his vote here. you can see behind me, people are lining up to cast a vote. given that this is such an -- ecedented vote at

there are still questions about what will happen next. the turnout rate will be aroun 80%. a record 26% of eligible voters have already the next early voting. south korea is electing a new president. he is poised to take power. >> his parents are actually north korean refugees. he has definitely pushed the softer line toward north korea and a lot of people e anticipating some easing of tensions. >> president donald trump shocked just about everybody when he fired james comey. did anybody expect th? nobody expected this. all of them are plenty for the notion that this decision to

fire director comey will lead to some more confusion in washington. through the house of representatives, they now seem to be in question. >> the president defended his decision on twitter. they will be thanking me. >> absolutely laughable. >> nobody has been happy with his performance. the clinton investigation was very much criticized. i think its me to take a new direction at the fbi. i think the president made a wise decision. >> the timing raises some questions because of the russians in by the r election. >> i do think the system has been compromised but at different times for different reass,he last for a new f ei director, now they will get one. >> james comey is a

controversial character. he did have serious detractors on both sides of the aisle. he put himself in a position that was -- he was politically untouchable. to fire him now is its own goal of catastrophic proportions the bank of england stays unchanged. the boat there was 7-1. the u.k. may need tighter policy than the yield term implies. england raising its conflation forecasts in 2017. cutting its gdp forecast. >> they predicate this forecast on a smoke frexit. >> is there a possibility? >> now.

>> if you look at the last 10 forecasts, they were exactly the same. they said wages will pick up. back to where it was in 2006. every time in the last 10, they have been wrong. they lower the wage growth forecast and they get it back to two. before this forecast, the whole thing rests on this illusion that wages will rise. thewi not. it was complete nonsense. >> the u.s. and china have reached a sweeping trade deal. >> we was on abt is hundred day. where they would go behind the scenes. on areas ofivered 10 consensus is being reached.

also, usb. >> there is a big, glaring omission about this agreement. >> another thing that is not in ouis anotherhi that the previous administration dealt with, that is environmental protection. when you take a broader step back, this is a reset. wax there won't be one silver bullet that takes our trade deficit from the 300 billion to zero. are you trying to get it to zero, secretary? >>, now we will get it as far as we can. we want to do this by increasing total trade and by increasing the ability of our companies to export. that is what will create more jobs here.

still ahead, shareholders meet and speak with bloomberg. elizabeth warren says that if president trump was to break up wall street banks, she is ready to work with him on legislation. and a look back at a torrent of quarterly earnings reports. austerity seems to be over in australia by the look of the country foster ambitious new budget. >> we have a progrowth agenda. >> this is bloomberg.

>> this is bloomberg best, i am juliette saly. day on monday. talks.owing months of

for buy rival kate spade .4 billion, hoping the luxury brand cup. coach has had a successful turnaround of their own brand but they came to the realization that there is not much more to go. they're going to keep buying other companies. enter kate spade. where want to put recently and it was a head scratching because coach was always known for handbags. ut kate's fate been in footwear for a while. can they become elementary? >> that is the idea, to keep growing market share. there is not a lot ofney between the two of them. the idea is to create a conglomerate or a mini conglomerate area -- mini conglomerate.

>> sinclair broadcasting has confirmed its deal. this is not a big surprise. a surpriseay be where sinclair thought they had th one in the bag. the final price ended up being 4350 per share. -- 43.50 per share. >> they developed at combining and potentially buying tribute. they didn'and updating any and. but next are dead. that is another broadcast tv company. i think that push the price higher. they rejected a third offer from the u.s. competitor. raising the prospect of a hostile approach. that seemed to be indicating

-- if they don't do that, hostile is the way to go. keep in mind that the dutch market is one of the top ghetto transactions. it will be easy for them. > the advisors and petitioning backed his efforts to out the chairman after his refusal to negotiate area are they going to get their way? will the chairman be outed or not? >> it doesn't look that way right now. they said that we don't really know what good it would do. shouldour backing and we put -- we would probably bring back somebody that shares our view area it shows that we are in a very difficult situation here. had three times by pbg to get the negotiations to the table.

they might wel be that the pbg says that we can have come as far as we could. this isn't really going anywhere, they can go hostile. >> the australian government pushing ahead with a nationbuilding program as they tax the banks, sticking to a surplus that relies heavily on wage growth. take us through the highlights of the budget. >> i will give me some of the headline numbers. $29.4 billion. to return byrecast the at 2020. assumptions do

rely on some pretty optimistic assumptions about growth. the gdp getting to 2.75%. >> we have a progrowth agenda from the government focusing on company tax cuts. significant infrastructure. everything titans together. >> this was less than expected in april as weaker commodity prices took a tall. >> what does this tell us about in terms of inflation stories. it won't bother the pba see one way or another. >> i think the economists we don't seespeaking to

big change in the pboc. that the reflation story ieresting because there was so much talk about this at the beginning of the year. there are close to eight your highs and now we see this dropping off. impact on the deleveraging question here. profitability has been held and boosted by these higher factory gate prices now that they are coming off, they are likely to be more difficult. the implications are broad and international. extending its lead as the world's most valuable company. more than $800 billion yesterday.

a little more than two years after passing the 700 billion mark. how big is this milestone? alex: it is a big deal. when saudi around comes to the arket, it could be above trillion. it is still a big deal. >> what will happen when the iphone eight cycle is worth through? is that when market value will go higher? >> that is the risk. been forthe surge has the iphone eight. apple will be able to deliver on those expectations. nd traders have -- who survived years of slumping revenues, those who the biggestd see bonus hikes for this year. i know so many guys who have

been pushed out, retired, fired from bond trading over the last five years. those who finally managed to keep their jobs? >> there is some research from a u.s. compensation. they say that bond traders will be the group of people on wall street. they are forecasting a 15% increase. everyone wanted to worker. this is quite a remarkable turnaround. this is: two people familiar with the masses. how do i think about this? >the idea is that instead of large and strong

wireless operators, to also-rans, you would have three big ones. -- it hasr argument worked from a consumer perspective in many ways. if you look at the international context, most large econoes are going from for wireless carriers to three. the u.s. is a bit of an outlier. this is a sensitive subject. everybody knows what they pay for their phone bill. no politician wants to be the one to tell consumers they will have to pay more. i think this is a very tricky situation.

>> welcome back to bloomberg best.

here is the nel meeting this week with the ceo jeff bailey. eric sat down with him in london following the meeting. since i got here, one of my goals was to be transparent with regulators. we are partners in trying to avoid the next financial crisis. was a very constructive dialogue between barclays, the bank of england, the pra, it was very important to us. let's see how this all plays out. the unthinkable happens and you are deemed unfit to run barclays, does the bank have a plan -- a succession plan? >> i have full support of the board. this is the best one. we will see what happens. have you seen the similarly

hartline approach that was taken recently? it has been quite something. we are a british bank. we are here to support the united kingdom. the largest underwriter of european sovereign debt. fnce is very important to us, germany is verimrtant to us. we are continuing to engage with europe. i think it is in order us and for europe. the european union will require us to set up structures across europe that make it more robust and more within the fold of your. >> does the hardness of frexit

determine how great the impact s? >> there could be decisions taken that might not be in the best interest of the free flow capital. if there is a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. let's not inhibited by putting up barriers, the free flow of capital. so long as those barriers are not put up, they will be worked around frexit. >> relative to some of the peers, on the subject, you're an optimist. at least you are constructive. >> what is the upside to be optimistic? what gives you that degree of confidence that they don't have. >> i'm expressing what i think.

i don't think it is optimism or pessimism. it is what i think. we have a bank subsidiary in ireland. that is part of the european union. empye in200 continental europe. from franklin to madrid. there will be uncertainty but having been in the financial industry as long as i have had, it is amazing how creative it can be. now we make sure we do it in a very safe way. off mostf the week interesting conversations coming up. webereth warren and axel who was happy with the results the french election results.

>> there were very negative repercussions on europe. lackshiis bloomberg.

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of the billboard music awards just by using your voice. the billboard music awards. sunday, may 21st eight seven central only on abc. >> i think we should encourage the development of the real economy. as it is creating real wealth. today, the virtual economy is overgrown. the key tenant is money be getting money. however, now it is actually money out of the pocket of the real economy. >> it will not help accumulate wealth nor will it may profits. gain is generated from the loss of others. i don't feel this kind of economy is a good thing. let's services industries are as opposed to the laer manufacturers. china's economy is changing. the new economy is the

internet economy. it has created some jobs, at the same time, it has brought about unemployment. it has forced a letter brick-and-mortar retailers to close down. >> i notice in the u.s., the retail sesector has been affected. i think the internet, e-commerce as a platform. convenience to consumers. some of the practices are not right, they are unfair competition. some of those in the industry are burning money for more traffic. they sold a product worth 100 a.m. -- e-2 u.n. just to stay viable. if they stick to their competition, i think it is fine. the problem is they have in proper means of competition. china'sthe head of largest soft drink company in an exclusive interview, telling even angle is concerned that the

rise of th internet is damaging his country's economy. lacks here is the economic future of europe with several business d financial latest this week. we can talk about the political affect on european markets. >> the biggest concern is not the immediate future, i think we will seesome stronger data coming out of europe. pmi's are very high. there is no problem for the rest ts year. there was a very strong anti-european sentiment. there is a countdown happening now with problems that will only be solved in a 12 hour. that is going to be a rocky road. >> there was a possibility when you were talking about this that

more than a risk to the ok. it hurts the economy over into global markets. what is the chance of that? good atts are not pricing binary events. binary events could be a hard brexit. what you hear from the british government, you want to have influence over immigration so they are not part of it, and market. they want a trade agreement with the rest of the world. that is the definition of a hard brexit. little that will be coming forward to accommodate that accent. be very negative repercussions on europe. most the continent and the u.k.. it would spell of a continuously into market volatility. every speech the prime minister gives will be priced by market. there will be ups and downs,

more concerns. it wl a volatility into the european markets for two years to come. banks like us have to choose strategies that will make sure that we can be of continuous service to our clients throughout the u.k. and europe. >> what was your read wt happened in france? is that a domestic story? does a tight of a larger political currents around the world? is that populism being stopped? >> at a centrism won the day. i thought that le pen could win if she had a strong left-wing candidate against her. knewon as met from one, i she couldn't win against a centrist candidate. i don't think it is populism. if you look at the voting, he got 20 million, she got 10, there were 12 million people that abstained.

there is still a large protest vote that when you think about it, 22 million people didn't vote for the crown. it is still a big, significant move there. >> do like that european equities are at large? >> yes, i like swiss equities, german equities, the euro being weak really does help. it has the biggest balance of payments surplus in the world. it is a very significant advantage for us. everyone of these bands is in the middle of planning. >> i am worried about european banks. let's don't get me wrong, i think they are all trying to do the right thing.

they have particularly well by becoming a pure u.k. retell bank. they are still really dominating investment banking globally. the u.s. economy last week, president trump told bloomberg that he is actively considering a breakup of giant wall street tanks. week, bloomberg's chief washington correspondent spoke with elizabeth warren about the possibility of working with president trump to revive the 1933 law. i am ready. >> how realistic is it? irony have the bill. bipartisan i am a voter already. my cosponsor is john mccain.

>> have they been any back channel discussions on the tequila measure? the whitet counter house but we are certaly reaching out to the administration generally. >> so far, we have had some good conversations. that is what i want to see happen. i am ready. this is one of those basic things. the lawn wall re may resistant but most of the american people get it. there is one kind of thinking that you have and it ought to be separated from high risk gambling banking. smaller banks would more easily compete against the bigger banks and actually, small investment companies be able to compete more easily. this is one of those that would let you have simpler regulations over all. and the banks are all right -- only doing banking.

if the investment companies are doing investment banking, the kind that they do, they kind of risk-taking, let's evaluate that separately. is it a good idea? >> i don't know enough to tell you if it is a good idea or not. i understand why there is an inclination to go there. are ak the requirements good idea. i think treating the balance sheet transparently is a good idea. would have to look a lot more at the deilof what would be proposed. >> are we fighting e st battle? >> i think we are to the extent that it has migrated. if i look at where the possible source of the next crisis would come from, it is not the banks, it is the nonbanks. >> people are making comments on the fact that they feel that the -- in tbeen ability to oversee the shadow banking sector. they are aware of it.

>> they are very much behind. this has not migrated to nonbanks, it has morphed in the process. anif you're worried about acde, it is more likely to be out of the non-next rather than the banks. >> as always, plenty of concern among investors about how the federal reserve sees global, political and economic trends and risk. bloomberg caught up with the chicago president charles evans. the last time bloomberg caught up with you, you are to rate -- rate hikes into 2017. do stand on the temperance in the data? >> outlook has not changed that much. if anything, i think it was the first quarter data. we are looking for the second

quarter to make up for that so 2.25erages closer to my rating. i'm mindful of the fact that for many years we started out thinking that growth would be stronger and then by the time we finished, it was lower than that. growth strong employment for quite some time. this ought to support getting inflation. i think we do need to get his 2%. mandate, along with full employment. you muted the discussion. this looks like the cpi data. in the bit of a? . past to theney the highlight of rates for the fed? i think that normally, wages would be growing in the three or 4% range.

you can get three or 4%, i am not sure which one dominates that. they say that it was difficult for them to find workers with the appropriate skills. you would think that the skills would be bit up even more than that. i am hopeful that it will move up. i think a resource slack has been eroded quite a lot. we are at 4.4%.

>> you are watching bloomberg best, i am juliet. it has been another busy week of earnings reports around the web. we are quarterly results for disney.

>> a little beauty and a little beast. they reported better-than-expected earnings per share, one dollar 50, beating estimates of one dollar 41. we are touch short of expectations but the real focus is the network division. that is still a problem here. a lot of cable describes. this is a company that spends over 7 billion dollars per year on sports rights contracts. >> it looks to me that it is a story up the parts and studios. >> it is the story from where i sit. both of those units were up 20% and 21%. the pessimism about espn is highly exaggerated. yes get is a very healthy, very profitable business. one of our most profitable businesses. it is a produ tt is in demand. the fact that there is still a

lot of competition for live sports rights, i think it only poin o just how valuable this product is. knowing has more of it than espn. snap is down more than 20%. revenue, user growth, all of .hese numbers coming shy of expectations. let's which metric is the most disappointing? >> i think the user growth is the main thing people are looking at. a very stableave business. it is a very young company. you want to be able to see that there auture. the future is in the growth. theyan see how many people add to this app that they can later make money off of. the growth rate is just not what investors were hoping for from this young, hot company that is incredibly popular among young people. >> you take the risk of buying an ipo, it is two or three quarters --

the first quarter, out of the box, they missed everything. uses, revenue, cash flow. there is nothing in the numbers like that at all. profit, theyer beat analyst estimates. tell us what drove these results? >> it has been a good fiscal year. ty reported a record 1.4 trillion in net income. that is a one-off. part of it is holding alibaba. the company also reported more than ¥1 trilonn operating profit. they said that investors can as bigoperating profits as ¥1 trillion going forward. for profit actually fell

the second year in a row. this happened in 14. this prompted this pledged to take a closer look at investments. >> how much is the u.s. auto and demand a big player in how toyota views its balance sheet? >> it is a big portion of toyota's revenue and earnings. the depreciating yen does not help toyota. that is a factor into the stock price. what people are concerned with is if they are able to stick with their outlook for the coming year. there are also lower earnings and a potential loss. >> commerzbank has reported a net income ahead of all estimates. in the270 million euros

latest month. i had of the average forecast of 74 million euros. commerzbank says it is still hoping to keep its ratiat2% or above. >> i think he basically is that the strategy that we have announced at the end of last year is the right thing to do. thewe with a good start into the year. that mnshat the strategy is on track so far. that is comforting. a net income of $1.4 billion. they thanked it partly to the strength of the banks in the turkish division. >> are you sure of the market's optimism? >> we are optimistic. it is not the market we would be looking at. i would rather look at the amount of clients. they have gone up from a total million -- it is the total

in terms oclnts. if you look at primary clients, it is 9.85, as mentioned, the total amount of loans we may net is 5.7 billion this quarter. we do see client growth on our side. that is the part following the fincials. that is the part that makes me happy. i'm optimistic about that part. those reporting second-quarter earnings in line with estimates and it looks like the fight back is now in action. what do you think of where it stands in these earnings? which markets are they reacting positively to? >> some of the people have been on the board for quite some time. they're doing more cost-cutting. they will change the way they purchase products. definitely some positive news there. i'm not convinced this means

that they say that they accept this and they will go away. there is still potentially more than janet might want. >> dividend rates, we have a share buyback, all surprising things. at the verying least. >> they are working with every core. they circled the wagons here. they said they want to turn this thing around. john mackey says iming control here and i think i can do this. retail isnd-mortar continuing to struggle. macy's has been falling. falling short of expectations right across the board. on earningsrenues and sales. >> for the year we think we will be held to hold up. how do you square those two things? i think it is a puzzling thing to say.

the first quarter is often the worst. sometimes easter messes things up. maybe they still see that they have some sort of plan for the rest of the year. it is puzzling. they totaled 21 billion euros in the first quarter. outlet formed an 2017 operating profit. 10.8 billion be euros. ourhe 200 million ahead of outlook for the year, influences over a volatile business, it is too early to address our outlook. we had a great last quarter in q4. now q1 continues. i think you two will also continue the success story.

>> is not really a measure, and implies volatility. the lowest level by one point today. extraordinary low another volatility. basically, you want to focus on the new part of the screen. we have held that -- alphabet on here. microsoft and facebook are at a record. likes there are about 30,000 parkinson's -- options on the bloomberg. maybe they will become your favorite. here is another function. to you i see go.

.- quic go here's a quick take from this week. >> everybody is listening to you now. you came by the tens of millions to be part of a historic movement the likes of which the world has never seen before. >> u.s. presendonald trump's victory is part of a new wave of populism sweeping through the democracies of the world. what differentiates this from mainstream politicians is that they alone are present the will of the people as a whole. that allows them to deft y opposition -- take any opposition to themselves as an attack of the popular will. the backlash against immigration and globalized economy that many voters feel is left them behind. here's the situation. populism does not lean left or right for you and center.

from hugo chavez to the far right nationalist marine le pen and france, the uniting factor is how they conduct politics. according to one author, there are three core requirements. one, they make an appeal to the people, championing that cause. s will keep our rate system in place. i alone can fix it. >> they are trying to shock the establishment. it makes the street unsafe. >> president obama, you will go to jail. itbecause populist make promises to shakeup society, they tend to bump up against democratic checks and balances.

to temptation becomes declare these institutions a conspiracy. with the ongoing war media, they are among the most dishonest human beings on earth. seem to have lost the representative power. they offer a fresh start. the challenge remains for mainstream politicians to address widespread cultural fears. otherwise the drop of populism -- >> everything is possible. they are prepared to stand up against the establishment. thank you very much. >> that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com. that will be all for bloomberg best this week.

thank you for watching.

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