♪ coming up on bloomberg press, the stories that shaped the week for businesses around the world. written goes to the polls again. a diplomatic rift disrupts the arab world. more bank rates and drama on capitol hill. >> i don't think it is for me to say if whether the president obstructed. >> this is a serious investigation. insight intohares the company's strategy. >> music is deep in our dna and so we wanted something that sounded unbelievable.

>> president trump says it is time to focus on infrastructure. business leaders tell us what they see in his plan. >> america should give back to constructing. >> we are going to have to find a way to get more private capital involved. >> we have to invest in fix things up. >> plus wall street's brightest the bloomberg summit. investors that returns are going to be lower. >> there is no longer the margin for error. >> it is all straight ahead on bloomberg best. ♪ hello and welcome. i'm michael mckee. this is bloomberg best. of the week'sview

most important news. the weekend terror attack in london raising the level of urgency. with the u.k. is governments emergency committee. it comes after an attack in london less several people dead. the u.k. election is just days away. -- jeremyne of the corbin has actually come out and said theresa may should step down. the number of police officers was cut under her watch it theresa may came out and said it is not just about the number of people. it is about the powers he give

to those police. she said jeremy corbin has spoke to every single piece of anti-terrorism legislation throughout the time so she referred to that, saying it was not a mark of leadership. egypt, the rain have cut diplomatic ties with qatar. it is a dramatic worsening of the long-running relationship with the ron -- iran. sea and air links between qatar and other countries being cut off. land links between saudi arabia and qatar cut off. that is a big deal. meanwhile, qatari citizens here in the uae are being asked to leave the country within two weeks. setmost recent spark that

this fire a light has to be the comments we saw from cap tars amir criticizing anti-iran rhetoric. claim those statements were the result of a hack. it looks like some states are not buying that. this all comes off the back of trump's recent visit to the middle east. that was just two weeks ago. you saw trump circling the alliesaround his air of and esau to making a lot of anti-he ran comments. -- anti-iran comments. that is probably the the catalyst behind this. meanwhile, president trump supporting the move to isolate the gulf nation. he wrote on twitter, during my recent trip to the middle east i said there can no longer be funding to radical ideology. leaders point to qatar.

what did we learn in the last 24 hours. ? some of the ports coming ships,ing to stop qatari but at the same time we are also seeing the effort to mediate in the whole issue. in the air on his way to jeddah mir on his it -- a way to jeddah to discuss it with the saudis. aboutt do we know christopher wray? >> he is not a politician. it is also reasonable to send some people with her from this

process. this is someone who is interested in the job. he overlapped with mueller. he spent a few formative years after 9/11. he was very involved in all the terrorism aftermath. he supported the patriot act and supported -- ran the criminal from 2003-2005. has a legitimate, esteemed career he is not the same stature as mueller. he is republican. most notable is he was chris christie's lawyer so when he got in trouble, he went to this person to defend him. the ecb lolling off further interest rate cuts and assigns that it is moving from its

students program. the council expects the ecb to remain on their present levels for an extended. of time and will pass the horizon of the net asset personages and dropping the line or lower. the objective was to begin the early stages of the next phase of this monetary policy cycle by highlighting the success and there would be through the growth now balanced. not only downside risk. the removal of the need of further easing at this stage. the inflation story is really complicated. three months ago, we would have expected that june would've been the time, but clearly the inflation forecast does not allow that. also, in the last question he .aid the risks have dissipated he is not said they had disappeared which really highlights what is on the mind

at the moment. comey addresses a committee on intelligence course of about three hours. he offered more details on nine interactions he had with president trump before he was fired by the president. >> i don't think it's for me to say whether the conversation ahead with the press and was an effort to obstruct. thing to a remarkable see the former fbi director accused the president of being a liar. he said he lied about him. he said he raise questions of the presidents intentions and motives regarding his termination. he praised bob mueller is the right choice to lead and declined to answer questions about whether he believed this rises to a structure and justice. that is going to be the question going forward. >> as he said yesterday, the president feels vindicated and

is eager to move forward with his agenda with the business of this country and with this public cloud remove. >> this is reality tv. is not a serious investigation. what is happening behind closed , but may make a difference will we have to understand is counterintelligence. not just whether the president feels vindicated. the best person to investigate this and more quiet and cerebral rooms is bob mueller and we will learn what we learned. >> she promises strong and stable. what we have is anything but. theresa may's election gamble has backfired with conservatives losing seats than gaining them. exceededrbin has expectations. the latest is theresa may is poised to form a government with

the northern irish. this is what she needs to do to have any sort of majority. >> we will continue to work with our friends and allies in the democratic union party in particular. this government will guide country through the crucial brexit that begins in just 10 days, securing a new partnership with the eu which guarantees our long-term prosperity. she ishe moment toughing it out. she has reduced the majority. she finds herself without a majority. >> it is the obsession with the market throughout the morning and the day. this is bloomberg's new --umnists, mark gilbert,

balancing act that we see in the election and the optimism of this software brexit. where do you stand on the idea that a honk parliament produces a software brexit? weaker government, unstable government. government going to be there to get through? it feels like the people should be worried about the prospects of a new election? onhael: still to come bloomberg best, and excessive interview with apple ceo, tim cook created plus, jamie dimon and larry summers on the trump economy. and bill gross on bonds. in coming up come up more of the weeks top business headlines. -- his bid toent split the company's stock has

solved -- stalled. >> there's not much you can do at this point. michael: this is bloomberg. ♪

michael: this is bloomberg best. in washington, donald campaigned on promises to improve america's infrastructure and monday he offered his first proposal. >> donald trump kicking off with the white house is calling infrastructure week. over theted heading air traffic control system to nonprofit corporations. >> this new type of committee privatizing air traffic control

similar to what we have seen in other industries such as financial services for it this is a big win for the airline companies like american airlines, like delta. it is how hert of is going to pay for it. that is the issue. that are preliminary aides looking at this as just a benchmark as part of what they hope will be an introductory big -- did on a larger and for. generalholders from motors have sided with management to split the company's stock. he wants to divide the companies stock into two classes. >> is at the end of it now? does it go away? there's him out -- there's not much else he can do at this

point. 90% voted against the proposal and he did not hear other shareholders come out and support them so not sure he has any momentum at all. the move comes as the european central banks says it was likely to fail. really well in spain and portugal. small and medium-size companies share. around 24% market >> for retail customers of the bank, i think they will be relieved that someone there is taking over, but for those customers that actually hold equity in the bank or hold any kind of bond or so forth, there could be problems in one of the big ones to look forward is

litigation. in spain, shareholders have the right to sue any company that may have made -- misled them in some way and there is anticipation there could be a lot of legal battles to come. -- qatari stocks have bounced back and he says he wants to show the government show commitment to stop terrorism. are we expecting this isolation to continue for a long time? >> the latest on the political with thehe is speaking qatari amir. this is to try to patch things up. the other part of this is global power starting to align themselves. qatarve turkey backing

and then you have the united states. is question remains what going to happen with russia and what is going to happen with china? here is what happened yesterday. if you take a look at the bloomberg. productu.s. crude and supplies, its highest level since 2008. that is what causes very deep slide in oil. the move yesterday was quite surprising because i thought all of it was shaken out. put that into perspective for us. >> it was a big surprise. the market was looking for another draw and we have another massive increase. a lot ofnted out increase in u.s. petroleum inventories since october 2008. that has the market ground

footed. some people believe the market is not rebalance. jpmorgan ceo is leaving the bank, making the announcement this afternoon. there is a big class feeling that jpmorgan and it is in the jpm of jamie dimon grid >> -- many incredible executives have come out and i mentioned a similar one where he got to a senior level inside the organization and the probably isn't enough upside for him and there may be greener pastures in another organization. left in kavanaugh's

there are for people with operating responsibility on the operating committee, plus marion lake who is the chief financial .fficer we want to take you back to the house for with it just passed the rollback to god frank -frank, which was one of obama's main accomplishment. there is a high hurdle in the senate. the committee chairman will be taking this up. he is writing his own legislation. he said he hopes to include or consider the choice act. he also says he wants to work with democrats on that with --

which changes what is feasible. hopefully we can get capital back into our economy. too much capital is sitting on the sidelines and will be no is the date banks have gotten bigger and our economy is life. ve. ♪

♪ worldwide developer conference kicked off and 10 is a, california. it is one of apple's biggest events of the are, setting the stage for hardware and software that will hit the market over the next 18 months. this year, the company announced , macbook pros,s

and topped it off with something new from the company. home.call it likes apple is going -- we call home pod. todd -- pod. --- -- hours after apple set downit, tim cook -- that down. >> what we tried to do is build something that was a breakthrough speaker first. music is deep in our dna dating back to itunes and ipod and we

wanted something that number one, sounded unbelievable and i think when people listen to it, they are going to be shocked over the quality of the sound. >> of course, it does a lot of other things. wanted a high quality audio experience as well. >> what about these other things? will i be able to make a call, order groceries? >> there's a lot of things you can do with it. there's a lot of things that syria knows how to do from the start witho we will and there wille be nice follow-on activity as well. >> you've been engaged with the

white house. you called president trump and urge him not to pull out of the curse accord. what does that mean with your relationship? listen to me.did i think he did not decide what i wanted him to decide. i think he just decided wrong. i think it is not in the best interests of the united states where he cited. this andhat i look at you interact with politicians who do not? my view is first and foremost, things are about can you help your country? and if you can help your country and you do that by interacting, then you do it. if i get the chance to go pitch the paris agreement again, i'm going to do it again as i think it is very important that we engage to fight climate change

on a global basis. where you caning solve the country by country. it requires a global action. omissions created in one country effect another? so it is something we feel very strongly about and i wanted to do every single thing that we to tell how important it was to stay in the agreement and unfortunately, he decided something different. been a remarkable week for exclusive interviews on the merck television. conversations coming up with others. and straight ahead, some big names in business way and on donald trump's infrastructure plan. >> i applaud the decision to

focus on infrastructure and to have their traffic control be the leading age. >> this is bloomberg. edge.ding this is bloomberg. ♪ >> we can't reduce our carbon

footprint on this week it with transportation. transportation is 40% of the greenhouse gases. the only way will do that is with clean cars. ofy will not just come out california, they will come out of china and other parts of the world. china is a real driver in the money that invest, the diligence i wantr innovation, california to partner with china in that endeavor otherwise we won't be able to achieve our climate goals. >> how much of a threat you think his post to u.s. innovation?

how much of that as under threat from president trump's decision to pull out of the paris accord? >> the role of america in the what has been my dues because of trump's pullout. in general, i would say the chinese are on the move, they are a rising power. >> that was california governor speaking with tom mackenzie in beijing after discussing clean energy technology, trade and investment with china's president xi jinping. meanwhile, this was an important week for donald trump us economic agenda. the president outlined plans for a trillion dollar infrastructure program. can he muster the political capital to get it done? we just discussed the state of the trump economy.

>> how do you see the u.s. economy right now? in the second quarter, trading value is taking a dip. i know that is the markets. baby talk about the economy. -- maybe talk about the economy. >> i think it was a waste of time. trading, wewe do serve clients around the world. if you say over 20 years, it will go up. i couldn't possibly tell you. this economy has been chugging along just under 2% growth rate for years. it is a long recovery, a weak recovery, half of the average recovery. spot init is a great we the american economy.

i think we can grow the economy more. i'll even relegated to slow growth. >> china is pushing infrastructure. what needs to be done in the united states? asked we haven't built a major airport in 20 years. it takes 10 years to get the average permit to build one bridge. we haven't built a bridge in new york city, the top as he was depressed and 50 years. i scan from hong kong, it is embarrassing. just need to get back to a can-do attitude about infrastructure, it is our country. we are getting behind and we should not. it damages growth. i could support they reform in air traffic control, they are right about that. they are right about radar being bad and the gps being good and radar. here is the problem, the center of their plan appears to be a

nonprofit quasipublic corporation. the only one that i can think of is the post office and amtrak. i will think most americans would regard that as a usually successful formula. i want to see why they think that this change in organization is really going to be enough to change things. i applaud the decision to focus on infrastructure and have air traffic control debut leading-edge -- be the leading edge. will they find a way of going at it or will they use this buzzword of privatization. >> if you had to pick one thing

that would help change the dynamic here in the u.s., health, growth, maybe 2%, 3% gdp, what would it be? the one thing? rational immigration policy. >> what other chances that we get that? >> well under 50-50. we spent our time on budgets that don't add up and on scandals and on tweets. make of theou president so far? starting with air traffic control. doing a to be talking about touch changes to municipal law -- do we need to be talking about changes to municipal law? >> this subsidizes invisible bonds -- municipal bonds. in total, we spent about $150

billion a year at the federal level on infrastructure. that represents 3% of the federal budget. it pales in comparison to what we spend on defense, what we spend on medicare, what we spend on social security. we are spending less and less at the federal level. when we has suggested is that if the federal government -- the budget it has at the federal level one feet resolved anytime soon, fundamental divisions between the republicans over tax rates and tax levels and between the democrats on other spending priorities. we will have to find a way to get more private capital involved. the only way is states. innocent how these. -- states,ms, municipalities, water systems. things we're paying for today. we have to get those things off

the balance sheet. we have to encourage privatization to find the funding to do this. the way to get it across the board's you can encourage the state municipalities to privatize their assets by giving them financial incentive. use $20 billion a year to get the states to sell their assets that they are under investing in , the airports and america, the water systems in america, get them to sell them and use a federal fund as an incentive. i think this is a good time for infrastructure. generally, because it is one of the few areas where democrats and republicans need to have an overlap that more is better.

class that has from asuffered confluence of good intention in terms of loss -- laws and policies. over all, it has made it impossible for people to build things. example, the united states could take 10 years or 50 years to get something permitted. in germany and canada, it is two years. it is stunning. these are real countries. g7?these two of the asked duncanhat we

earlier. these roadsome of and other types of infrastructure are getting to wearingt where you are out cars, it is a consensus which travels abroad. it is vastly inferior. i think we were rated d-by one of the big civil engineering firms, we're 16th in the world. think most people have said we have tos enough,

invest, we have to fix things up. >> you urge president trump not to fall out of the paris climate accord with other business leaders, hours later, he pulled out. -- impactat in fact your relationship with the president? >> as a lifelong republican, i endorsed hillary clinton. president trump ran, i wrote a note that says president trump has won, we have to give him the benefit of the doubt, we are. isn he thinks there something that is not in the best interest of the country, it is my fault they ought to stay in the paris, accord. the next generation of industries around clean energy is an important thing for the united states of america.

it doesn't impact our relationship. people can disagree, happen to disagree on this issue. >> tim cook says he thinks that the president decided wrong. he plans to keep an open dialogue because he thinks it is open -- important for america. what is your strategy and the number one things on your priority list when it comes to discussions at the white house? we are in favor of tax reform, we believe the idea to repatriate overseas is important. other hand, we are not for the border adjustment tax. that is difficult for countries. the retails, a lot of the tech companies -- we'll take that is in the interest of the united states.

that was what this country was built on, the ability to disagree without being angry.

>> welcome back to bloomberg best, i am michael mckee. hittersthe heavy together. we show several panel sections on bloomberg television as well as exclusive interviews, here are some of the highlights, starting with thoughts from jim chanos. this is the shifting u.s. relationship with china. is one of the interesting things about the administration, china was the boogie man 2016 in the campaign.

following one visit to mar-a-lago, the president and xi jinping appear to be best buddies. remember, we're not macro this policy could change tomorrow. of -- this has a lot of people very uncertain. yet this currency manipulator. china is our best friend in the western pacific all of a sudden. know, clearly, people are focused on north korea as they should be. the south china sea is still being developed militarily by china. you have the chinese currency stabilizing.

we will have to see, this administration seems to make it up as they go along. a trade war with china, i think that anything that will bring tariffs is a dumb idea. i think that will extend well beyond china. that will extend to our partners in north america, europe, they seem to be taking lots of puts these days. china seems to be where we are not picky. in general, rising tariffs are the general drop in global trade. how do you balance the --

caution with the need to earn some return? what you think are the most attractive and least overvalued assets. there are attractions and closed in bonds of five to 10%. their lever to some extent up of the chief leverage. you go there and you basically tell your investors that it is a changed world. returns are going to be lower. night,want to sleep at you need to accept the market as -- s, low volatility, >> what about treasuries? what about cash? >> i think

treasuries are the most talked about in the market in comparison to 25 basis points. 190 basis points. they all get to a 10-year jgb. that is 205 basis points. it is more attractive on a yield basis. was just that they are overvalued pricewise. investors should be cautious in terms of how much they want to on. >> you have a cash position? >> a large cash position. i put it in directional content. >> this is a zero duration benchmark. it has a negative one or two-year duration.

it is a lower than cash like return. this stage of the cycle, i think it is put it that investors figure of preserving capital and protecting against a negative scenario i can economic slowdown which could be a two-week cash to weigh increased. >> if we saw a downside surprise somewhere, where would that surprise be? >> it is usually the risk that you don't tend to think about. we spend a lot of time at our form over the past couple of weeks talking about risks to the market. there are plenty of risks, some of which are geopolitical in nature. this is a region where there is an increase in political uncertainty. the middle east is an area where we have seen other signs of instability as well.

there is plenty of risk from a geopolitical perspective. another risk we have been monitoring for a few years likes to this antiestablishment sentiment that exists around the globe. we have seen it over in europe, in terms of their political cycle, we saw it with this year recent ration -- residential election in this country. there's a lot of antiestablishment traction that is building. it is occurring at a time where economic growth is not too bad. you can have an acceleration of this process. those are a few examples of the risks. the final point i will mention risks, itinking about is very important to think about valuations, early 2016, people were worried about a lot of things, the valuations were such that there was enough margin for error with things stabilized and

you can afford it. whether you look at the equity there is no longer that margin for error. i think it is a market where you will be particularly susceptible to bad news, even small doses of bad news going forward.

>> i want to show you this, this is to get perspective on some of the credit. we have abu dhabi, we have qatar, here are some of those credit default swaps. iny have moved sharply comparison to some of its peers. >> there are about 37,000 things on the bloomberg.

we always enjoy showing you our favorites on bloomberg television. go -- q u i c go, uhis will give yo insight into our topics. >> actors are not like they were in the 80's and 90's. cyber criminals can be state sponsors, breaking into service and disrupting national elections. >> they introduce chaos and division. >> they could know in multinational landoll toporation by threatening release piles of sensitive data or they could be ages looking to expose the cia's on capabilities. these professionals are always finding new ways to gain entry into governmental, industrial and financial networks.

the hackers get more sophisticated. here's the situation, in 2005, with a 5400 databases have been disclosed. the biggest think the adobe act of 2014. are the own once at risk. the u.s. has been battling an escalating cyber war with china and russia for years. multiple u.s. agencies concluded that russia was behind the hack of democratic national committee emails hoping to push the election in donald trump's favor. this is something that vladimir putin denies. all habitats have unhappy endings. in may of 2014, many numbers were stolen from target. those numbers were useless because the pin codes work encrypted and the banks immediately closed all the cover

must attacks. cybersecurity is at the worst and best it has ever been. safeguards protecting individuals and corporations are always being improved. the massive 2014 hack of jpmorgan did not result in losses for customers. they were covered by consumer protection law. inspire jpmorgan to build a vast cyber security operation. the u.s. eventually identified the hacker. keeping data secure requires constantly updating technology. high-security comes with a high price tag. manyat was one of the quick takes you can find on the bloomberg, you can also find them at bloomberg.com along with all of the latest is this news and analysis 24 hours a day. that will be all for bloomberg

best this week. thanks for watching, i am michael mckee. this is bloomberg. ♪

♪ announcer: "brilliant ideas," powered by hyundai motors. >> ♪ i-d-e-a, ideas ♪ ♪ narrator: times square, new york , this giant projection is the work of artist pipilotti rist, part of an important exhibition about to open at a new museum in the city. >> you have the