♪ juliette: coming up on "bloomberg best," the stories that shaped the week and business around the web. -- around the world. from paris to seoul to washington. with new faces entering the spotlight and familiar figures leaving the stage. >> he has the government mainly to the right. >> he has definitely pushed the softer line toward north korea. >> at different times, at -- for different reasons, people asked for a diert fbi director. now they will get one. juliette: in the midst of these storms, markets are staying calm while leaders look to gauge what is on the horizon. >> i'm still worried about european banks. >> markets are really not good at pricing binary events.

>> i look at where the possible source of the next crisis would come from. it is not the banks, it is non-banks. juliette: top executives respond to the results. >> the pessimism about espn is highly exaggerated. >> the strategy we announced at the end ola year is the right thg do. >> i must say that we are optimistic. juliette: it is all straight ahead on "bloomberg best." hello, and welcome. i am juliette saly. this is "bloomberg best." your weekly review of the most important analysis from bloomberg television around the world. to global politics dominated a big part of the week. starting with france's election -- presidential vote on sunday. >> the polls are now closed in

france. so, it looks like we have a macron win. the pollsters are not filling it out. we think of it is likely a 65% vote or somewhere around that number for mr. macron. >> i am watching these amazing scenes. i am watching european flags being waived. how long will be before i can buy a eurobond? >> if it is up to emmanuel it is one of the cornerstones of his program. it is to give europe its own budget. it is a step in the right direction for europe. definitely. make emmanuelle -- emmanu macron in the second round of voting.

>> i would like to say a few words to those who voted for marine le pen today. don't boo them, they have expressed their anger, the disarray, their disbelief at times, i respect those as well. but 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. >> at the end of the day, i think it is a positive results for markets and we should not discountha but at the same time, he needs to find a majority in parliament and he needs to be able to do these reforms. clearly there is uncertainty about that. how much he will be able to do, if you look at trump in the u.s., even though the republicanwe proved to be more difficult, the full extent of the victory is that people want to debate for a long time. to be honest, it doesn't really matter. if he grabs hold of this, if he plows ahead, it is not unusual in an american context for people to win very narrow victories and try to do a lot.

in this sense, he came away with 66% of the vote. he has to govern mainly to the ght. france is e ggest welfare has the europe, it biggest self-made millionaires. he wants to change, you want to make france more business friendly, you want to introduce more productivity and that mea in the end, taking on the unions. -- campaignalm pain dominated by political and business scandal, we have traded some areas the u.s. is growi worried about his unpredictable neighbor to the north. tell us about the expectations of the day. >> presidential candidates have already started voting. just about an hour ago, we had the leading candidate cast his vote here. behind me, people are lining up to cast a vote. given that this is such an unprecedented vote after the there are still

questions about what will happen next. the turnout rate will be around 80%. a record 26% of eligible voters have already finished early voting. >> south korea is electing a new president. left leaning moon jae-in is poised to take power. >> his parents are actually north korean refugees. he has definitely pushed the softer line toward north korea and a lotf lks here are anticipating perhaps some easing of tensions. >> president donald trump late yesterday shocked just about everybody when he fired james comey. did anybody expect this? >> no one expected this. i can tell you i have spoken several republican political advisers to the president, senior aides on

capitol hill and all of them are pointing to the notion that this decision to fire director comey will lead to some more confusion in washington. and that any political capital the administration had hoped to seize upon passing health reform through the house of representatives, now seems to be in question. >> the president defended his decision on twitter. when things calm down, they will be thanking me. >> absolutely laughable. it fails to pass any smell test. >> nobody has been happy with his performance. the clinton investigation was very much criticized. i think it is time to take a new direction at the fbi. i think the president made a wise decision. >> the timing raises some questions, because of the interference by the russians in our election. believe the system has been compromised, but i do believe this. at different times for different , people ask for a new

fbi director, now they will get one. >> james comey is a controversial character. he did have serious detractors on both sides of the aisle. particularly among democrats. when he put himself in this investigation, he put himself in a politically untouchable position. to fire him now is its own goal tastrophic proportions. it is decision day for the bank of england. england keeps interest rates unchanged. the vote there was 7-1. the u.k. may need tighter policy than the yield term implies. get on it, the message this morning. >> the bank of england raising its conflation forecasts in 2017. two 2.7%, cutting its gdp forecast. >> they predicate this forecast on a smooth brexit. is there a possibility of a no, ofmooth brexit? >>

course not. >> if you look at the last 10 forecasts, they were exactly the same. they said wages will pick up. it will be 4%, back to where it was in 2006. every time in the last 10, they have been wrong. every forecast going forward, they lower the wage growth forecast and they get it back to two. before this forecast, the whole positive of this forecast rests on this illusion that wages will rise. they will not. and i am afraid it was complete nonsense what i heard today. >> we have some breaking news out of washington. the u.s. and china have reached a sweeping trade deal. jumping and donald trump -- they have -- where they would go behind the scenes. they had delivered on areas of 10 consensus is being reached. including agricultural issues, access to financial services,

which has been a bugaboo for a long time. big, glaring a omission about this agreement. and that is with the coal industry. another thing that is not here is the previous administration dealt with, that is environmental protection. when you take a broader step back, this is a reset. >> there is not going to be one silver bullet that suddenly takes our trade deficit from the 300. billion to zero. >> are you trying to get it to zero, secretary? >> no. we will get it as far as we can. but the important thing is, as we accomplished here, we want to do this by increasing total trade and by increasing the ability of our companies to export. that is the number one objective, because that is what will create more jobs here.

still ahead, as we review the week on "bloomberg best." 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. plus, a look back at a torrent of quarterly earnings reports. but up next, more of the week's top business headlines. austerity seems to be over in australia by the look of the country's ambitious new budget. >> we have a progrowth agenda. cusing on infrastructure investment program. juliette: this is bloomberg. ♪

♪ juliette: this is "bloomberg best," i am juliette saly. let's continue our global tour of this week's top business story.

talks, theynths of buy rival kate spade for $2.4 billion, helping the luxury brand cope with sluggish demand. >> coach has had a successful turnaround of their own brand but i think they camtohe realization that there is not much more to go. so if they are going to keep growing and they can't add sales with coach itself, they will have to keep buying other companies. enter kate spade. >> what is interesting is that coach went into footwear recently and it was almost ahead scratcher because coach was always known for handbags. can they be continent three? >> that is the idea for them tom, to keep growing market share. there is not a lot of cost synergy between the two of them. maybe it can create a conglomerate or a mini

conglomerate at a much smaller scale. >> sinclair broadcasting has confirmed its deal. this is not a big surprise. although, 21st century fox flirted with it in earlier reports. >> the price may be a surprise where sinclair thought they had theyen the bag and were hoping to buy it for somewhere in the high 30's per share. the final price ended up being 43.50 per share. that s iven by fairly late competition given fox and blackstone looked into buying tribune. they didn't end up in bidding in the end, but another broadcast tv company did and i think that push the price higher. yousef: shares of akzonobel lower today. rejecting a third offer from the u.s. competitor. raising the prospect of a hostile approach. is epg going to go hostile? >> is what michael seems to

be suggesting. if they don't negotiate a deal, hostile is the way to go. keep in mind that the dutch market is one of the toughest to get it done in. it will not be easy for them. adviserslliott petitioning efforts to out the chairman after his refusal to negotiate. are they going to get their way? will the chairman be outed or not? >> it doesn't look that way right now. the company actually said today, akzonobel said we don't really to oustd it would do the chairman. veryows we are in a difficult situation. elliott unhappy with the company's refusal to engage. three attempts by ppg to get them at the table and so far, they have said they are

not interested. they are taking the gloves off and trying to go the hard way. be the ppg says we have come as far as we could. we have tried three times. we have had fruitless negotiations with the other side. th i't really going anywhere, they can go hostile. very difficult. a lot of hurdles built in, or they might go away. veryard to say which way it will go at the moment. >> the australian government pushing ahead with a nationbuilding program as they tax the banks, sticking to a surplus protection that relies heavily on wage growth. take us through the highlights of the budget and some of the losers here, are the big banks in australia. >> that's right, some of the headline numbers first. $29.4 billion. there is a forecast to return by -- to deficit by the year 2020 or 2021 of $7.4 billion. some of these assumptions about

the return to surplus do rely on some pretty optimistic assumptions about growth. for example, gdp getting to 2.75%. inflation above 2% and iron ore at around $55 per pound by the march quarter. >> we have a progrowth agenda from the governmt cusing on company tax cuts. focusing on getting better access to key markets, focusing on significant infrastructure. forecastg is that this is prudent, credible and responsible. inflation, an increase less than expected in april as weaker commodity prices took a tall. >> what does this tell us about in terms of that reflation story? it won't really bother one way or another at this point. >> i think the economists we have been speaking to don't see

big change in the pboc. whether it comes to benchmark rakes or the -- rates or the move in the money market. but the reflation stories interesting because there was so much talk about this at the beginning of the year. you had the february number four produces -- producer prices at eight hereig and now dropping off. it has an impact on the deleveraging question here. corporate profitability has been helped, has been boosted by the higher factory gate prices now that they are coming off, they -- those profits will be more didn't it. it will make it harder to pay down their debt. the implications are broad and domestically and internationally. >> apple is extending its lead as the world's most valuable company. the iphone maker became the first u.s. company with a market value of more than $800 billion yesterday. a little more than two years

after passing the $700 billion mark. how big is this milestone? alex? alex: it is a big deal. the first time we have seen a company this big. but let's not forget, and saudi aramco comes to the market, it could be above a trillion. some are saying. 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? alex: that is the risk. a lot of the surge has been for 8. iphone we don't know to what extent apple will be able to deliver on those expectations. traders street bond who survived years of slumping revenues, those who have survived are on track to receive some of the financial industries biggest bonus hikes for this year. i have to say, i know so many

guys who have been pushed out, retired, fedrom bond trading over the last five years. are they finally going to get a break here, those who finally managed to keep their jobs? >> apparently, it is quite a reverse of fortune if you think about it. there is some research from a u.s. compensation. saying thatciation, bond traders will be the group of people on wall street. they are forecasting a 15% increase. precrisis, the bond trading desk was the envy of wall street. every wanted to work there. post crisis, not so much. really, this is quite a remarkable turnaround. yousef: sprint has started preliminary talks to merge with t-mobile u.s.. from softbank and sprint had formal contact with t-mobile owner telecom. >> the idea is that instead of

having come in the american case, two very large and strong wireless operators and then also-rans, you would have three that could compete with each other. the counter argument is that the currt situation has worked from a consumer perspective in many ways. if you look at the international context, most large economies are going from four wireless carriers to three. the u.s. is a bit of an outlier. in still having four. but 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 still think this is -- from a regulatory position -- a very tricky situation. juliette:

♪ juliette: welcome back to "bloomberg best." i'm juliette saly. barclays annual gener mting

this week with barclays ceo jes investors since a whistle ew her -- blower put his tenure at risk. eric sat down with him in london following the meeting. jes: since i got here, one of my goals was to be transparent with regulators. in many ways, we are partners in trying to avoid the xt financial crisis. this was a very constructive dialogue between bar lace -- barclays and the bank of england, the pra, it was very important to us. i respecthregulatory framework here, and let's see how this all plays out. >> if the unthinkable happens and you are deemed unfit to run barclays, does the bank have a plan -- a succession plan? jes: i have full support of the board. you saw the shareholder vote today. let's see what happens. >> have you seen the similarly

hartline approach brussels has taken recently? jes: the level of dialogue with the prime minister, her government, with the chancellor, with the regulators, has been really quite something. i think there is a lot of listening on both sides. we are a british bank. we are here to support the united kingdom. but also, we are the largest underwriter of european sovereign debt. france is very important to us, germany is very important to us. as i said, we have a large credit card business. we are continuing to engage with europe. it is born for us, it is important for europe. int like having to set up the united states, continuing investment banking in the u.s., the european union will require us to set up structures across more robustke it and more within the fold of europe.

>> you know what i'm getting at. does e rdness of brexit determine how great the impact is? jes: there could be decisions taken that might not be in the best interest of the free flow of capital. but i think one of the tenants -- if there were a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one thing that the g-20 step two is that as we, let's not inhibit by putting up barriers, the free flow of capital. so long as those barriers are not put up, they will be worked around brexit so that london will remain an important source of capital for continental europe. erik: 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. jes: i'm expressing what i

think. i don't think it is optimism or pessimism. it is what i think. and you know, we have a bank subsidiary in ireland. that is part of the european union. we have 1200 employees in continental europe, from milan, toralin -- frankfurt, to madrid. there will be uncertainty, but having been in the financial industry as long as i have had, its amazing how creative it can be. now we make sure we do it in a very safe and sound way. week'se: more of the most interesting conversations congp on "bloomberg best." including elizabeth warren and axel weber who was happy with the results with the french election results. but warns that europe's troubles are far from over. think there will be a

hard brexit in the end and that would put negative repercussions on europe. juliette: this is bloomberg. ♪

♪ juliette: -- >> 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 of the virtual economy 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. -- make profits. its gain is generated from the loss of others. i don't feel this kind of economy is a good thing. >> sir -- services industries are growing well, as opposed to the larger manufacturers. china's economy is changing. you recognize that, yes?

>> the new economy is the internet economy. it has created some jobs, at the same time, it has brought about unemployment. it's forced a letter brick-and-mortar retailers to close down. i notice in the u.s., the retail sales sector has been affected. i think the internet, e-commerce is a platform. it provides convenience to consumers. but so oits practices are not right. they are unfair competition. for instance, some of those in the industry are burning money for more traffic. worth 100a product yuan for 80 yuan just to stay viable. if they stick to their competition, i think it is fine. the problem is they have in -- improper means of competition. juliette: that was the head of china's largest soft drink companinn exclusive interview, telling stephen engle

he is concerned that the rise of the internet is damaging his country's economy. the economic future of europe with several business and financial latest this week. axel lieber spoke with kathleen about the political turbulence on european markets. jes: the biggest concern is not the immediate future, i think we we will see a relief rally for the euro, we will also see stronger data coming from europe, pmi's are very high. there is no problem for the rest of this year. but we are moving into an italian election election and there is a very strong anti-european sentiment. there is problems ahead. the brexit is now a countdown happening with problems that will only be solved in a 12 ho. there is more volatility ahead in the next two years for europe and that will be a rocky road. >> there was a possibility when

you were talking about this that brexit is much more than a risk to all that u.k., it is of europe. a big one that could hurt the global economy. what is the chance of that? how wl at happen? jes: markets are not good at pricing binary events. binary events could be a hard brexit. from what you hear from the british government, they want to have influence over immigration so they are not part of the common market and eyant a trade agreement with the rest of the world. that is the definition of a hard brexit. there is very little on the ntental europe and -- european side that will accommodate that british exit. this would be very negative repercussions on europe. most the continent and the u.k.. and it would spill over continuously over the next two years into market volatility. every speech the prime minister gives, every election outcome will be priced by market. there will be ups and downs,

more concerns. it will just emanate 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 europe, both in the u.k. and europe. >> what was your read on what happened in france over the weekend? you see that as a domestic story or does that tell you about larger political currents around the world? is that populism being stopped? >> i think centrism winning the day. i thought earlier that le pen could win if she had a strong left-wing candidate against her. but i knew, really, as soon as n, she couldn't win against a centrist candidate. i don't think populism has gone away. if you look at the voting, he got 20 million, she got 10, there were 12 million people that abstained. of those 12 minion -- if those

12 million people had voted, there is still a large protest vote that when you think about it, 22 million people didn't vote for macron. it is quite a significant move there, i think. >> do like that european equities at large? >> yes, i like swiss equities, german equities, still doing pretty well. the euro being weak really does help. -- help germany, as you know. it has the biggest balance of payments surplus in the world. it is a very significant advantage for us. -- for it. >> how about european financials in general? everyone of these banks is -- >> i am still worried about european banks. i think structurally, don't get me wrong, i think they are all trying to do the right thing. ubs is probably further ahead

than the rest in becoming a wealth manager. lloyds has done particularly well by becoming a pure u.k. retail bank. but they are still getting hurt by the goldman's and others. they are still really dominating investment banking globally. juliette: >> turning to the u.s. economy, last week, president trump told bloomberg that he is actively considering a breakup of giant wall street tanks. giving a return to the glass-steagall act. this week, bloomberg's chief washington correspondent spoke with elizabeth warren about the possibility of working with presentrump toeve the 1933 law. elizabeth: you bet. i mean, i am ready. >> how realistic is it? elizabeth: i am ready. i've got the bill. remember, i have a bipartisan bill already. my cosponsor is john mccain.

>> have th bn any back back channel discussions on this particular measure? elizathnot that channel to the white house but we are certainly reaching out to the administration generally. >> have they been receptive? elizabeth: so far, we have had some good conversations. i am ready. because this is one of those basic things. people get american it. ande is one kind of banking it really ought to be separated from high-risk gambling banking. smaller banks would more easily compete against the bigger banks in those circumstances and actually, small investment companies be able to compete more easily against investment companies. this is one of those walls that would let you have simpler regulations over all. if the banks were only doing

banking, the banking regulators could see that. if the investment companies are doing investment banking, the kind that they do, they kind of risk-taking, let's evaluate that separately. >> glass-steagall 2.0, is it a good idea? >> i don't know enough to tell you if it is a good idea or not. i understandhyhere is an inclination to go there. i think high capital requirements are good here. i think treating the balance idea.is a good yousef: are we fighting the last -- st with mark jes: battle? mohamed: 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. yousef: people are making comments on the fact that they feel that the bank has been -- in is the ability to oversee the shadow banking sector. they are aware of it.

they just d't have the ability to target it. mohamed: they are very much behind, the extent to which risk has not just migrated to nonbanks, it has morphed in the process. if you are worried about a systemic risk, a market accident, it is more likely to be out of the nonbanks rather than the banks. juliette: as always, plenty of concern among investors about how the federal reserve sees global, political and economic trends and risk. with june's meeting fast approaching. bloomberg caught up with the chicago fed president charles evans. manus: last time bloomberg caught up with you, you are to rate hikes into 2017. twodo you stand on that, given the temperance in the data? charles: my outlook has not changed that much. if anything, i think it was the first quarter data, it was weaker than we expected.

we are looking for the second quarter to make up for that so in averages closer to my 2.25 rate increase. 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. rate isthe unemployment low. we have strong employment growth for quite some time. this ought to support getting inflation. i think we do need to get his -- get it to 2%. manus: you were clear that is our mandate, along with full employment. you mooted the discussion around that. thethis is a little like cpi data, a little bit of a atn -- the wages stay 2.5%, does that muddy the path to a higher land of rates for the fed. normally, you would hope wages would be growing in the 3% or 4% range, and

two, plustarget of productivity gets you to 4%, i am not sure which one dominates that. they say that it was difficult to find workers with the appropriate skills. you would think that would lead to skills being bid up even more than that. manus: it just hasn't happened that way. charles: i am hopeful that it will move up. i think a resource slack has been eroded quite a lot. we are probably at 4.4%. arguably, we are at full employment. juliette: you are watching "bloomberg best,"

♪ juliette: you are watching "bloomberg best," i am juliet. it has been another busy week of earnings reports from companies around the world. quarterly results for disney.

>> a little beauty and a little beastly, i think for entertainment giant disney here. they reported better-than-expected earnings per share, $1.50, beating estimates of $1.41. we are touch short of expectations but the real focus is the network division. that is still a problem here. the loss of cable subscribers. this is a company that spends over per year on sports rights $7 billion contracts. >> it okto me that it is a story of theme parks and studios. is that the story from where you sit? >> it is the story from where i sit. from the quarter we announced, yes. both of those units were up 20% and 21%. the pessimism about espn is highly exaggerated. espn is still a very healthy, very, very profitable business. one of our most profitable bunees. it is a product that is in ma. the fact that there is still a lot of competition for live

sports rights, i think it only points out just how valuable this product is. no one has more of it than espn. >> snap is down more than 20%. in after-hours trading. anyway you look att,evenue, user growth, all of these numbers missed analyst expectations. which metric is most disappointing westmark -- disappointing? >> i think the user growth is the main thing people are looking at. snap doesn't have a very stable business. it is a very young company. you want to be able to see that there is a future. the future is in the growth. the future is in how many people , they 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. >> when you take the risk of one,g an ipo, you expect

two or three quarters, what they are going to do is good for you. out-of-the-box, they missed everything. uses, revenue, cash flow. there is nothing in the numbers like that at all. >> soft gains at the tokyo opened after four year profits beat analyst estimates, despite struggles in the u.s.. tell us what drove these results? >> it has been a good fiscal year. they reported a record ¥1.4 trillion in net income. of course, that is a one-off because during that time, they sold part of its holding alibaba. as well as its entire stake in super cell. the company also reported more than ¥1 trillion in operating profit. the company did not give a full four year forecast but one said that investors can expect operating profits as big as ¥1 trillion going forward. profit fella says

for a second year in a row. now it sees operating profit shrinking 20% to $14 billion in the year through march prompting this pledge to take a closer look at investments. >> how much is the u. to industry and demand a big player in how toyota views its balance sheet? >> it is a big portion of toyota's revenue and earnings. and, the yen definitely has a role in that. obviously, and appreciating yen does not help toyota. a lot of that has been factored 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 -- four kirsten -- forecasting lower earnings and a potential loss. juliette: commerzbank has reported a net income ahead of all estimates. net income was 270 million euros in the latest three months.

an average forecast of 74 million euros. commerzbank sayst still seeking to keep its tier one ratio at 12% or above. basic belief is that the strategy we have announced at the end of last year is the right thing to do. i think q1 was a good start into the year. a decent result, that means that the strategy is on track so far. that is comforting. anna: ing reported a net income of $1.4 billion. beating expectations. underlying pretexbe estimates due partly to the strength in its turkish banking division. do you share the markets opmi? >> we are optimistic. at the same time, it is not so much the market we wod looking at, rather the amount of clients. ofhas gone up from a total

36 million is the total in terms of clients and if you look at primary clients, it is 9.85 and as mentioned, the total amounts of loans we may net is 5.7 billion th qrter. we do see client growth on our side. that is really the part following the financials. that is the part that makes me happy. and you know, i'm optimistic about that part. whole foods reporting second-quarter earnings in line with estimates and it looks like the fight back against its investor is now in action. whadoou think of where it stands on this fight and these earnings? which markets are they reacting positively to? >> they are saying five new board members, some of the people who have been on the board for quite some time are leaving. 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

she says we accept this and go away. there is still potentially more that janet might want. it seems investors are happy what they are hearing from whole foods. >> dividend rates, we have a share buyback, all surprising things. they are trying at the very least. >> they are working with ever core to fend off janet. clearly, they circled the wagons here. they said they want to turn this thing around. john mackey, the ceo saying i am in control here and i think i can do this. that is the message this afternoon. >> brick-and-mortar retail is continuing to struggle. this time it is macy's, whose shares have been falling after earnings came out this morning. falling short of expectations right across the board. on earnings, revenues and sales. at the same time, they said for the year we think we will be held to hold up. how do you square those two things? they were off significantly on earnings per share but they say

they can make it through the year. >> i think it is a puzzling thing to say. the first quarter is often the worst for these retailers. you don't have the boost from the holidays, sometimes easter messes things up. maybe they still see that they have some sort of plan for the rest of the year. but it is puzzling. allianz reported pimco net inflows totaled 21 billion euros in the first quarter. europe's larger insurer confmean outlet for 2017 operating profit. euros plus or >> -one billion. the 200 million ahead of our outlook for the year, influences over a volatile business, it is too early to address o outlook. it is true, pimco is really on a great turn towards recovery. we had a great last quarter in q4 and now q1 continues. i think q2 will also continue the success story.

♪

♪ vix, often called the fear gauge, at its lowest level by one point today. lowest level since an 1993. extraordinarily low implied volatility. looks at historical movers buy index rating and basically want to focus on this part of the screen. not surprising, we have apple, alphabet on here. microsoft and facebook are at a record. 30,000e are about functions on the bloomberg and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorite. here is another function.

q you i see go. here's a quick take from this week. >> everyone 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. president donald trump's victory is part of a new wave of populism sweeping through the democracies of the world. what differentiates this from mainstream politia is that they anere present the will -- represent the will of the people as a whole. that allows them to dismiss any opposition to themselves or their policies as an attack of the popular will. modern populists often take this approach as they tap into 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. for politicians to be considered populists. one, they make an appeal to the people, championing that cause. against a despised elite. >> she will keep our rigged system in place. i alone can fix it. [applause] >> populists always use crisis to justify revolt. finally, language is used to shock the establishment. >> it makes the street unsafe. psident obama, you will go to jail. >>. the argument. because populists make big promises to shake up society, they tend to bump up against democratic checks and balances. courts andar, the

media designed to limit what governments can do. the temptation becomes to declare these institutions a elite conspiracy to block the people's will. >> i have a running war with the media. they are among the most dishonest human beings on earth. there is a reason populists emerge. they promise a correction for democracies that seem to have lost the represented the power. they offer a fresh start. the challenge remains for mainstream politicians to address widespread economic and cultural fears. otherwise, the draw of populism is not going away anytime soon. >> anything is possible if enough decent people are prepared to stand up againsthe establishment. thank you very much. juliette: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com. along with all of t lest business news and analysis, 24 hours a day. that will be offer "bloomberg

this week. i'm juliette saly. this is bloomberg. ♪

jonathan: from new york city, i am jonathan ferro. this is "bloomberg real yield." ♪ coming up, valuatis main elevated, volatility sinks. the epicenter of the reflation trade comes unstuck and china's deleveraging campaigros commodities. where are the investors who turned bullish? we start with a big issue. is low volatility a sign of investor complacency?