♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. politics from paris to washington with new faces entering the spotlight and familiar figures leaving the stage. >> he has to govern mainly to the right. he has definitely pushed the softer line toward north korea. >> different times for different reasons, people asked for an fbi director and they will get one. >> in the midst of these storms, calm. stay mostly

leaders look ahead to gauge what is on the horizon. >> i am worried about european banks. >> markets are really no good pricing. >> i look at where the possible source of the next crisis would come from. >> it is not the banks, it is the nonbanks. >> the earnings debate continues and top executives respond. >> the pessimism about espn is highly exaggerated. >> the strategies we announced at the end of last year is the right thing to do. >> i must say, we ar optimistic. >> it is all straight ahead on "bloomberg best." ♪ juliette: this is "bloomberg best." your weekly review from bloomberg television around the world. global politics dominated the

early part of this week, starting with france's presidential push on sunday. >> the polls are now closed in france. it looks like we have a macron win. we think it points to victory because we now think it is likely a 65% vote for mr. macron. we will see the number confirmed as we work through the night. european flags fly. long will it be before i can buy eurobond? >> it is one of the cornerstones of the program is to give europe its own budget. it is definitely not for tomorrow, but it is a step in the right direction. >> emmanuemaon has pledged the united kingdom's victory over marine le pen. >> i would like to say a few words for those who vote for

madame le pen. not boo them. after all, they have expressed their anger, disarray, and their belief, and 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 reasons to vote for extreme ideas. >> at the end of the day, it is a positive outlook for markets and we cannot discount them. at the same time, we need to be able to do the reforms. inneeds to find the majority parliament. he needs to be able to do the reforms, but there is uncertainty about that. when you look at trump in the u.s., they proved to be more difficult than in the beginning. >> the full extent of macron's victory, it does not matter. if he grabs a hold of this and plows ahead, it is not unusual in an american context for people to win very narrow victories and try to do a lot. he can claim he got 66% of the vo. he has to govern mainly to the right.

france has the least number of self-made millionaires, it has got everything for the right you would want to change. you would want to make france more business-friendly and introduce more productivity. that means taking on the unions. >> voting is well underway in south korea after a scandal. we have trade disruptions with the u.s. and growing worries about it unpredictable neighbor to the north. tell us about expectations of the day. >> presidential candidates have already started voting. about an hour ago, we had the leading candidate cast his vote here. you can see behind me, people are lining up to get their chance to cast a vote, but given this is an unprecedented vote

after the historic ouster after of the former president, they are questions to what will happen next. the national eleiocommission says the turnout rate will be around 80%. a record 26% of eligible voters have already finished early voting. vonnie: south korea is electing a new president. he is poised to take power in -- ending nine years of conservative rules according to exit polls. >> his parents are actll korean refugees. he has definitely pushed a softer line towardor korea. a lot of folks anticipating perhaps some easing of tensions. david: president donald trump late yesterd scked just about every when he abruptly fired fbi chief james comey. did anyone expect this? >> no one expected this.

i can tell you i've spoken with several republican political advisers to the president and senior aides on capitol hill, and all of them are pointing to the notion that this decision to fire director comey will lead to more confusion in washington in any momentum ty ped to see on passing health care reform last week now seems to be in question. vonnie: the president defended his decision on twitter saying that comey lost the confidence of most in washington, saying when things calm down, they will be thanking me. >> absolutely laughable. >> nobody has been happy with his performance, and i think, the clinton investigation was politicized. it is time to take a new direction with the fbi and the president has made a wise decision. >> the timing raises questions because of the interference part of russia in our election. >> i do not think the system has been compromised, but different times, for different reasons, people asked for a new fbi director, and now they will get one. >> had he done this at the outset, it would not have been surprising because james comey

is a controversial character and did have detractors when he moved forward with this investigation. he had put himself in the position that was politically untouchable, and then to fire him now -- it is catastrophic and baffling. jonathan: governor carney sat down and it is decision day for the bank of england. >> unchanged, the vote there 7-1 vote. the u.k. many tighter policy for -- may need tighter policy for the yield curve. get on it, get on it -- the message to the markets this morning. jonathan: the bank of england raising its inflation forecast to 2.7%, cutting its gdp forecast. >> they said they predicated this forecast on a smooth brexit. are the risks symmetric? is there a possibility of a super smooth brexit? >> no, of course not. >> the rest are on the downside. >> if you look at the last 10 forecast, they have done exactly

the same. they say wages are going to pick up, it will be 4%, back to where it was in 2006. and 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 2%. the whole positive of this forecast rests on this illusion that wages are going to rise. they are not. i am afraid it is complete nonsense that i heard today. >> we have breaking news out of washington. the u.s. and china have reached a sweeping trade deal. >> donald trump and he talked about this 100 day period where they would go behind the scenes to work out a trade deal.

they had to deliver on this. 10 consensus have been reached on trade issues including agricultural issues, energy, market access to financial services, which has been a bugaboo for the united states for a while, and u.s. beef. >> there is a glaring omission in this trade agreement and that is with the coal industry. another thing that in here is something the previous administration and some republicans worked on, and that is environmental protections. that was left off the table. when you take a broader step back, it is a reset. >>he will not be one silver bullet that suddenly takes on trade deficit from the $300 billion to zero. that is not the way it is going to work. >> are you trying it to zero, secretary? >> no, we will get it as far as we can, but the important thing we accomplish year is we want to do it 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. juliette: still ahead as the

review continues, berkeley's ceo meets with shareholders and speaks with bloomberg. elizabeth warren says if president trump wants to break up wall street, she is ready to work with him on legislation. plus, a look back at quarterly earnings reports. 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. juliette: this is bloomberg. ♪

♪ juliette: this is "bloomberg best." i'm juliette saly. let's continue our global tour of the week's top business stories with a busy day of m&a

on monday. >> following months of talks, the deal of the luxury company agrees to buy kate spade for $2.4 billion helping the company to cope with its sluggish demand. >> coach has had a successful turnaround of its own brand, but they came to the realization there is not that much more to go, so if they are going to keep growing and it cannot at sales -- cannot add sales with coach itself, they will have to keep buying other companies. so into kate spade. vonnie: coach went into footwear recently and it was a head scratcher because coach was always known for handbags, but kate spade has been into footwear for a while. can they be complementary? >> that is the idea, to continue to create and grow market share. there are not a lot of cost synergy between them. the idea is to create a

conglomerate kind of like an lvmh, but on a much smaller scale. david: sinclair broadcasting has confirmed its deals to acquire tribunal miaor $12 billion. >> the price may be a surprise from what we had reported about one month ago, where sinclair was hoping to buy it in the high 30's per share. it is driven by competition and fairly late competition for this asset. you mentioned that fox and blackstone took a look at combining and potentially buying tribune. they did not end up bidding in the end, but nexar did. i think that pushed the price higher. mark: shares of akzonobel lower today, rejecting a third offer from its u.scoetitor ppg raising the prospect of a hostile approach. will they go hostile? >> that is what they are indicating. they said they have until june 1

to come to the table and negotiate a deal. if they do not do that, then hostile is the way to go. but keep in mind, the dutch market is one of the toughest to get a hostile transaction done in. it will not be easy for them. mark: activist investor elliott advisers are petitioning a dutch court to back it efforts over fa to oust the chairman over his refusal to negotiate with pbg. are they going to get their way? will the chairman and up being ousted or not? >> it does not look like they will. they don't know what good it would do to oust the chairman because they have our backing. we are in a difficult situation here. elliott is unhappy with the company's refusal to engage. you will remember we had three attempts by ppg to get them to the negotiation table, and so far, they said, we are not interested. they are taking the gloves off and trying to go the hard way

going the court route. it might be the ppg may say, we have come as far as we could come we have tried three times. we have had fruitless negotiations or talks with the other side. this isn't really going anywhere and they could go hostile. very difficult. a lot of hurdles. or they might go away. very hard to say which way it will go at the moment. >> the australian government pushing ahead with the nationbuilding program, sticking to a surplus protection that relies heavily on wage growth. take us through some of the highlights of the budget. some of the losers are the big banks in australia. >> that is right. i will give you the headline numbers first. $29.4 billion. the deficits are narrowing in australia and there is a deficit in the forecast by the year 2021

of $7.4 billion. there are assumptions about the return to surplus do rely on pretty optimistic assumptions about growth. for example, gdp getting to 2.75%. inflation above 2%. and iron ore around $55. >> we have a progrowth agenda with the government focusing on company tax cuts, focusing on better access to key markets. focusing on a significant infrastructure progr, everything ties in together. the best advice for the government is this forecasis prudenancredible and responsible. >> china's inflation increased less than expected as weaker commodities took its toll. >> what does this tell us about what is going on in terms of reflation? >> you are right. economists suggest they will not

-- it is unlikely to be big change and they will not be any big change in terms of bpo see in the moves in the money market. rates that we've seen. its a reflation story. there was so much talk about this at the beginning of the year and you had that february number of producer prices close to eight year highs. now we have seen this dropping off. as you point to the commodity prices, that is really the main factor and the base fx, and it has a question on the deleveraging question because corporate profitability has been helped and boosted by these higher factory gate prices after coming off and those prices are likely to be dented. it will make it more difficult for corporates to pay down their debt, so the implications are broad both domestically and internationally. vonnie: apple is extending its most valuable company. they began with a market value of more than $800 billion. a little more than two years

after crossing the $700 billion mark how significant is the psychological milestone? alex: i mean, it is a bide. it is the first time we have seen a company this big, but let's not forget when ramco comes to market, we will talk about more unfathomable numbers. it could be above one trillion. it is a big deal. vonnie: what will happen with the iphone 8 cycle? market when we will see or is that the risk? >> a lot of the surge this year has been about enthusiasm for the iphone 8. we do not know to what extent apple will be able to deliver on those expectations. matt: wall street bond traders who have survived years of slumping revenue, those who have survived, on track to receive some of the financial industry's biggest bonus hikes. i know so many guys who have been pushed out, retired, or fired from bond trading over the last five years. are they finally going to get a

break? those who managed to keep their jobs? >> apparently. i mean, it is quite a reversal of fortune. there is research from a u.s. compensation consultant saying bond traders will be the group of people on wall street that receive the biggest bonus hikes this year. 1ey are forecasting a increase. precrisis, the bond trading was the envy of l ll street. post crisis, not so much. really, this is quite a remarkable turnaround. >> brand started pulmonary talks to merge with t-mobile. how do i think about this if i am a regulator? >> the idea that is instead of having in the american case, two very strong wireless operators and two -- you know, you have three big ones that can effectively compete with one another, but, is the current situation has worked from a consumer perspective in many

ways question mark if you look at the international context, most large economies are going from four wireless carriers to three. so the u.s. is an outlier in still having four. this is a sensitive subject. everyone knows what they pay for their phone bill. no politician wants to be the one telling consumers they will have to pay more. i think this is a very tricky situation from a regulatory perspective. ♪

♪ juliette: welcome back to "bloomberg best." i'm juliette saly.

barclay's annual meeting this week with a ceo and the first public meeting with investors since a whistleblower scandal put his tenure at risk. erik schatzker sat down with him in london. >> since i got here, one of my goals was to be very transparent with regulators. in many ways, we are partners in trying to avoid the next financial crisis. there is a very constructive dialogue between barclays in the bank of england and the pra and dsca. it is very important to us. i respect the repertory framework here. and we will see how this all plays out. erik: if the unthinkable happens, and you are deemed unfit to run barclays, does the bank have a plan, succession plan?

>> you know, i've got the full support of the board. you saw the shareholder vote today. let's let the investigation run its course. erik: have you reevaluated the risk of brexit to barclays with the hard approach theresa may has taken? >> the level of dialogue within the prime minister office, with her office and the chancellor, with the regulators, has been really quite something. 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 important to us. we have a large credit card

business. we have bankers and sales people all across europe. continuing to engage with europe is important for us. i think it is important for europe. i think, just like having to set up holding companies and the united states, the europn union is going to require us to set up structures across europe that make it more robust and more within the fold of europe. erik: you know what i am getting at. does the hardness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenets of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one ishe coordination of the g-20. one of the things the g-20 stuck to his eyes we reregulate the financial industry, let's not regulate and put up barriers, and so long as they're not put up, they will work around brexit so london remains in important source of capital relative to your up. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructive. what is the upside to be optimistic? what gives you that degree of confidence that they do not have? >> i am just expressing what i think. i do not think it is optimism or pessimism. it is what i think.

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 to paris. there will be uncertainty. having been in the financial industry as long as i have, it is amazing how creative it can be. [laughter] >> let's do it in a safe and sound way. juliette: more of the week's most interesting conversations coming up on "bloomberg best," including chicago fed president charles evans, elizabeth warren and ubs chairman axel reyba

who is happy with the results of the french election but is europe's troubles are far from over. >> there will be a hard exit at the end and back could have negative repercussions on europe. -- and that could have negative repercussions on europe. juliette: this is bloomberg. ♪

♪ >> i think we ou encourage the development of the real economy as it is creating real wealth. today, the virtual economy is over-growing. the key tenet of the virtual economy is money begetting money. however, now it is actually money out of the pocket of the real economy. it will not help accumulate wealth, nor will it make profits. its gain is generated from the loss of others. i don't feel this kind of economy is a good thing. >> 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.

but at the same time, it has also brought about unemployment. it has forced a lot of brick-and-mortar retailers to close down. i noticed in the u.s., the retail sales sector has also been affected. i think the internet, e-commerce, is a platform. it provides convenience to consumers. but some of its practices are not right. they are unfair competition. for instance, some of those in the industry are burning money in exchange for more traffic. they sold a product worth 100 at a price of 80 to snap up market share. they ruined the manufacturers, who were forced into lower quality to stay viable. if they stick to fair competition, i think it is fine. the problem is they have unfair means of competition. juliette: that was the head of china's largest soft drink company in an exclusive interview with his concerns about the rise of the internet is damaging his country's economy.

bloomberg also discussed the economic furof europe with several business and financial leaders this week. let's start with the u.b.s. chairman who spoke exclusively with kathleen hays about the impact of political turbulence on european markets. >> the bigger concern for me is not really the immediate future. i think the immediate future will see a rally for the euro and stronger data coming out of europe. pmi's are very high, so i think there is nprlem for the rest of this year. we move into the italian election next year. there's a strong anti-european sentiment there and europe sentiment and there are more problems ahead. the british exit, brexit, is a countdown happening now with problems that will be solved in the 12th hour.

there's more volatility ahead er the next year or the next two years at least for europe. that will be rough. >> you were talking about this earlier. there is a possibility brexit is more than a risk to just the u.k. it is a risk to all of europe that could spill over into the global economy. what is the chance of that? how will that happen? >> markets are not good at pricing binary events. that could be a hard brexit. the british government wants to have influence over immigration, so they are not part of the common market. they want to have trade agements with the rest of the world. that is the definition of a hard brexit. there is little on the cointal european side that will be coming forward to accommodate that british exit. it is self-chosen. i think there will be a hard exit at the end. that will have vernetive repercussions on europe, both the continent and the u.k. and wl spill over continuously in the next two years into market volatility. every speech and election outcome will be priced by the market. there will be ups and downs and more concerns. it will emanate volatility into

roan markets for two years to come. banks like us have to choose strategies that will make sure 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? do you see that as a domestic story? does that tell you about a larger political influence around the world? do you see that as populism being stopped or centrism winning the day? >> i think centrism winning the day. i thought earlier, le pen could win if she had a son left-wing candidate against her. i knew as soon as macron wonhe could not win against a centrist candidate. i don't inits populism gone away. if you look at the voting, he got 20 million. e t 10 million. 12 million people abstained. if those 12 million had voted -- there is still a large protest vote.

when you think about it, 22 million people did not vote for macron. it is quite a significant move i think. david: do like european equities, french equities in particular? >> i like european equities. i like swiss, german equities. the euro being weak really does help germany, as you know. h the biggest balance of payments surplus in the world. it is a significant advantage for it. david: how about european financials in particular? coerce banks reported better-than-expected trading results. >> i am still worried about european banks. structurally, i think they are all trying to do the right thing. u.b.s. is probably further ahead than the rest in becoming a wealth manager. lloyds has done well by becoming a pure u.k. retail bank but they are still being hurt by the j.p. morgans and goldmans.

they are dominating investment banking globally now. juliette: turning to the u.s. economy. last week, president trump told bloomberg he is actively considering a breakup of giant wall street banks giving a push to the return of the 1933 glass-steagall act. kevin cirilli spoke with u.s. senator elizabeth warren about the possibility of working with president trump to revive the 1933 law. >> you bet. i am ready. >> how realistic is it? >> i am ready. i already have the bill. i have a bipartisan bill already. my cosponsor is john mccain and several others.

kevin: have there been private conversations between your office and the white house on these measures? >> not that channel yet to the white house, but we are reaching out to the administration generally. kevin: have they been receptive? >> we have had those conversations. that is what i want to see happen. i am ready. this is one of those basic things. folks on wall street may resist it, but most of the american people get it. there is one kind of banking that is for checking and savings accounts. it really ought to be separated from high risk gambling banking. smaller banks could compete against the big banks in the circumstances. smaller investment companies would be able to compete more easily against the investment companies. this is one of those laws that would let you have simpler regulations overall. if the banks are only doing banking, banking regulators can see that and if the investment companies are doing investment banking, the kind of risk-taking they do, let's evaluate that separately.

>> glass-steagall 2.0, 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. i think high capital requirements is a good idea. i think creating the balance sheet transparently is a good idea. the next step, i would have to look a lot more of the details of what would be proposed. >> are we fighting the last battle? mohamed: i think we are to the extent risk has migrated. if i look at where the possible source of the next crisis would me from, it is not the banks. it is the non-banks. >> funny you should say that. overnight, there have been comments about the feeling the bank needs the ability to oversee the shadow banking sector. they are aware of it. they just do not have the ability to target it.

mohamed: they are very much behind. to the extent that risk has not just migrated to nonbanks, it has lost in the process. if you worry about a market accident, it is more likely to be out of the nonbanks rather than the banks. juliette: as alws is week, plenty of concern among investors about how the federal reserve sees global trends and risks with policymaking fast approaching. bloomberg caught up with the chicago fed president, charles evans.

>> the last time bloomberg caught up with you, you were two rate hikes for 2017. do you still stand by that given the temperance of the data? >> my outlook has not changed that much. if anything, maybe -- the first quarter data was weaker than i would have hoped for. we are looking for the second quarter to make up for that so it averages closer to my 2.25 rate increase. i am mindful of the fact that for many years, we started off thinking growth would be stronger and by the time we were finiedt was lower than that. the unemployment rate is at 4.4%. we have had strong employment growth for some time. this ought to support getting inflation up to our 2% objective. i think we need to get it to 2%. >> you were clear about that. that is our mandate, along with full employment. the debate around wages. if i look at the wages data, this is a little bit like the cpi data. a little bit of question mark for market.

is that money have to the higher -- does that muddy the path for the money to the higher land of rates for the fed? >> right. i think normally you would hope wages would be growing in the 3% to 4% range. inflation product of 2% with productivity growth, you get 3% to 4%. we are at 2.5%, depending on the measure. they say it is difficult to find workers with the skills. you would think that would lead to skills being bid up even more. and yet it has not happened. i'm hopeful it will move up. i think resource slack has been eroded quite a lot probably, we are at 4.4%, arguably we are at full employment. ♪

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

>> a little beauty and beastly for entertainment giant disney. they reported better-than-expected earnings per share, $1.50, beating estimates of $1.41. the revenue were a touch short of expectations. the real focus is the network division. that is still a problem. the loss of cable subscribers, content costs. this is a company that spent over $7 billion a year on sports rights contracts. david:t oks to me like it is a story of the parks and studios. is that the story? >> it is the story from where i sit for the quarter we just announced. yes. both units were up 20%, 21%. the pessimism about espn is highly exaggerated. espn is still a healthy and profitable business, one of our most profitable businesses. it is a product in demand. the fact there are still a lot of competition for live sports rights only points out just how valuable this product is. no one has more of it than espn.

>> snap down more than 20% in after-hours trading. anyway you look at it, revenue, user growth. all these numbers missed analyst estimates. which metric is most disappointing? >> i think the user growth is the main thing people are looking at because now snap does not have a stable business. this is a very young company. you want to be able to see there's a future. the future is in the growth. the future is in how many people they can add 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 buying an ipo, you expect one or two quarters where they will do a good job relative to expectations. the first quarter, they missed on everything. users, revenue, cash flow. there is not much to like in the story at all. >> softbank gaining at the tokyo open after full-year profits beat analyst estimates. that is despite the company struggles in the u.s. tell us what drove these results. >> it has been a good fiscal year for softbank. they reported a record ¥1.4 trillion in net income for the period ending march 31. that is a one-off, because during that time, they have sold part of its holdings to alibaba as well as its entire stake in the cell maker. it also reported more than ¥1 million in operating profit. they did not give a full-year forecast. someone has said investors can expect operating profits in excess of ¥1 million going forward. >> profit will fall for the second year in a row. the company's first back-to-back decline since i was two years

old in99 it sees operating profit-seeking shrinking to $14 billion in the year through march, prompting its pledge to take a closer look at investment. >> how much is the u.s. auto industry and demand a big player in how toyota sees its balance sheet? >> it is a big portion of toyota's revenue and earnings. the yen definitely has a role in that. the appreciating yen does not help toyota. i think a lot of that has been factored into the stock price. what people are concerned with is, are they able to stick with their outlook for the coming year? they are also forecasting a potential loss. juliette: commerzbank has reported first-quarter net income head of all analyst estimates. they said net income was 217 million euros ahead of average forecasts of 74 million euros. it says it is still seeking the ratio at 12% or above. >> i think the basic belief is the strategy we have announced the end of last year is the

right thing to do. i think q1 with a good start into the year and decent results proves the strategy is on track so far. it obviously is convincing. >> i.a.g. reported first-quarter net income up 1.14 billion -- of 1.14 billion euros, beating expectations. that is thanks partly to strength in the turkish banking division. >> how optimistic are you going forward? do share the market's optimism? >> we are optimistic. at the same time, it is not so much the market we will be looking at. i look at the amount of clients.

it has gone up from a total of 36 million total in terms of clients. if you look at primary clients, it is 9.85. as mentioned, the total amount of loans we ma n is $5.7 billion this quarter. we do see client growth on our side. that is really part of following the financial. that is what makes me happy. i am optimistic about that part. >> whole foods reporting second-quarter earnings in line with estimates. and it looks like the fight back against the investor activist is now in action. what do you make of where it stands in the earnings which the market is reacting positively to?

>> they are saying five new board members, a new chair of the board, so some ppl leaving. they are accelerating programs. they are doing more cost-cutting. they will change the way they purchase products to centralize operations. definitely some positive news. i'm not convinced this means janus goes away. i think pontlly there is more they might want. it seems investors are happy with what they are hearing from whole foods. >> we have a dividend raise, a share buyback. all surprising things. they are trying at the very least. >> that is right. they're working with ever core to fend off janus. clearly, they haveired the wagons. they're coming out with a lot of use to say, we are on top of this and can turn it around. the c.e.o. saying i'm in control and can do this. i think that is the message from whole foods this afternoon. >> bricks and mortar retail continue to struggle. this time, it is macy's who shares have been falling in the premarket after earnings came out this morning, falling short of expectations across the

board. on earnings, revenues, and same store sales. they said we think for the year we will be able to hold up. how do you square those things? they were off significantly on earnings-per-share. >> i think it is puzzling thing to say. the first quarter is often the worst foreilers. they do not have used from holidays and easter messes things up, so maybe they still think they have some sort of plan for the rest of the year. it is puzzling. >> allianz reported pimco net inflows totaled 21 billion euros in the first quarter. europe's largest performer confirmed at minus half a billion. >> the 200 million ahead of our outlook for the year. insurance is always a volatile business. it is too early to address our outlook. pimco is on a great turn for recovery. we had a great last quarter in q4. now q1 continues. i think q2 will also continue the success story of pimco. ♪

♪ >> the vix, often called the fear gauge, not really a measure of implied volatility, at its lowest level at one point today since 1993. that is an extraordinary low by volatility. >> this is hmov on the bloomberg which looks at historical movers. you want to focus on this part of the screen. not surprising. apple set a record. alphabet, microsoft, amazon at a record. facebook, broadcom. >> there are about 30,000 functions on the bloomberg. we always enjoyed showing you our favorites on bloomberg television. maybe they will become your favorite. here is another function you will find useful.

quic . it will take you to where you can get fast insight into timely topics. here is a quick take from this week. pres. trump: everyone is listening to you now. you came by the tens of millions to become part of an 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 democracies of the world. wh differentiates populism is the claim they alone represent the will of the people as a whole. that allows them to dismiss any opposition to themselves or their policies as an attack on the popular will. modern populists often take this approach as they tap into the backlash against immigration and globalized economies many voters feel have left them behind. here is the situation.

unlike most "ism"'s, populism does not mean left were right or even center. from the late, radical socialist in venezuela to the far right nationalist marine le pen in france, the uniting factor is how they conduct politics. according to one author, there are three requirements for politicians to be considered populists. one, they make an appeal to the people championing the cause against the despised elite. mr. trump: she will keep our rigged system in place. i alone can fix it. >> populists also use crises or manufacture them to justify the call to revolt. lastly, inflammatory language is used to shock the establishment and prove politicians as one of the people. >> it makes the streets unsafe. >> here is the argument. because populists make big promises to shake up society, they tend to bump up quickly against democratic checks and balances. in particular, the courts and media that were designed to

limit what governments can do. the temptation becomes to declare these institutions as part of an elite conspiracy to block the people's will. pres. trump: i have a running war with the media. there are among the most dishonest human beings on the earth. >> there is a reason why populists emerge. they promised a correction for decries that seem to have lost t rresentative power and 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 people are prepared to stand up against the establishment. thank you very much indeed. ♪ juliet: at was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i am juliette saly. this is bloomberg. ♪

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