host: the stories that shaped the week in business around the world. gulf coast.hed the >> there is production impact and refined product impact. host: tensions rise over the north korea nuclear threat. sharp talks with from the eu. and, the jobs report. >> it is very good. >> this is a weak report. perspectiveions and

on markets across the globe. >> i don't think the growth can be sustained. largerainly, it dampens transactions. getting millions the common andg preferred. >> and brian moynihan speaks , about the high stakes of regulatory reform. >> those are the most important things for us. capital, liquidity, things like that. >> it is all straight ahead on "bloomberg best." ♪ julia: welcome. i am julia chatterley. this is "bloomberg best," your weekly review of the most important reviews and interviews

from television around the world. last weekend hurricane harvey was in the u.s. gulf coast and the city of houston. on monday, the big storm was the big story. >> floodwaters overwhelmed swaths of houston as tropical storm harvey continues to inundate. leaving the u.s. fourth-largest city crippling the energy industry. help us with perspective on how big this issue is. >> in terms of the houston damage, it is unprecedented. we are seeing places flood that don't normally flood. if you are familiar with houston, it has a tendency not to take water on fairly well. in terms of the industry itself,

we have started to see refinery outages ramp-up. even after harvey hits, we are seeing more and more shutdowns as the storm moves from west to east and starts to hit major infrastructure in the region. >> what we are looking at are at a production, demand, and refined products impact. also, for the first since the shale boom, we are seeing this impact a key export hub for products for crude. >> i have a chart looking at gas prices. we saw a real surge a couple of days ago. we see it at a two-year high. right now, we know a lot of refineries have been taken off-line. that is where you see gas prices spike in days and weeks to come. >> the japanese prime minister shinzo abe saying apparently north korea has fired a missile that passed over japan airspace. >> it appears a north korean missile has flown over japan. we have begun to gather

information and analysis and we will do our best to ensure the safety of our people. >> the government here thought to assure citizens is aware they -- it is aware of the situation. they made a decision not to shoot the missile out of the sky because they determined it was not headed for japan. it has tried to assure people we are on the same page with the u.s. and south korea. in touch with leaders. the government has stepped up pressure on china and russia to take a greater role to try to tame north korea. >> moments ago, president trump released a statement. the world has received north korea's latest message loud and clear. this regime has signaled its contempt for its neighbors and for all members of the united nations, and for minimum standards of international acceptable behavior. it only increases their isolation among nations of the world. all options are on the table. >> i don't think a military response is on the table. as far as sanctions, i think that is being examined. >> breaking news out of china. the foreign minister saying china does not favor unilateral

sanctions against north korea. he says china is working with united nations on responding to north korea's missile test. more about collective response -- more they collective response is what china wants to see. the u.n. council met in emergency session to discuss how to respond to the latest test, which came less than a month of -- less than a month after the imposition of the toughest sanctions yet on north korea. >> the world is united against north korea. there is no doubt about that. >> they admonished pyongyang, with strong, stinging words, but are they going to back that up with actions? like the nikkei newspaper reported, that japan and the u.s. will be pushing to impose some sort of oil embargo or strict oil sanctions on the north koreans. >> president trump kicked off his long-awaited campaign to overhaul u.s. tax policy. he just finished speaking in springfield, missouri where he

pushed congress to reach a deal on taxes. president trump: i am fully committed to working with congress to get this job done, and i do want to be disappointed by congress. do you understand me? >> did we learn anything about the direction of tax reform or was it just a speech? >> it was just a speech. this really got the ball rolling publicly. republicans in congress have been working on tax reform for some time. this is going up in public and making the case. the details are still knotty and they have to figure that out. the next step is can they turn this rhetoric over we are united, we will cut taxes and it will be great, into a bill by the end of the year and that is a really tough sell. vonnie: let's focus on the cost of harvey. and you analysis from a firm focuses on damage caused by wind, storm surge and inland flooding. it says it all could reach as high as $90 billion. >> the storm made landfall as a severe but conventional hurricane, then wandered over to

houston to become the largest metropolitan flood in u.s. history. vonnie: before the latest call for major tax cut by president trump, he took a moment to offer support for texas and louisiana in the wake of harvey. president trump: there has never been something so historic in terms of damage. vonnie: that revealed how the storm may add new limits to trump's goals of historic tax cuts. >> when lawmakers come back, many want to attach relief to a short-term spending bill and a debt ceiling extension or expansion. as you recall, president trump talked earlier about forcing a government shutdown if his border wall funding is not met. there are fiscal conservatives who want any spending increases to be offset.

we have a new dynamic, this may reduce chances of a shutdown because of the optics and the reality of lawmakers not wanting federal services suspended. but also adds more costs to the mix that has to be offset from somewhere if fiscal conservatives are going to carry the day. >> it is jobs they in america. august results have missed for the past six years. incentive estimates are 180,000 jobs added to the economy in august. bloomberg's michael mckee is at the labor department. michael: another august disappointment. 156,000 jobs created. the unemployment rate rises to 4.4%. that is not all. earnings up .1, the annual rate unchanged at 2.5%. >> year-over-year core inflation is increasing at 1.4%. it is down from 2.1%, only six months ago, so, the fed is focused on wages and inflation

to the extent there is a reflective in that. this is a weak report. >> if you look at the dad of -- if you look it the data we had this week, we had a gdp number of 3%. a jobs number that is still very good. if i were to tell you at the beginning of the year that at inauguration day we would be at 3% gdp and 4.4% unemployment, you would have said those are great numbers. that would be an amazing accomplishment. we are there. overall, we are very pleased with where we are in the cycle. we still know there's a lot of work to do. the president is focused on that. that is why we launched our tax agenda this week because we think we can grow the economy further from here. julia: still ahead, conversations with bank of america's ceo brian moynihan and the bank's biggest shareholder,

warren buffett. plus, an exclusive from jackson hole with governor kuroda, and more of the week's top business stories. a tie up in china creates the world's largest energy company. >> their total assets will be about 271 billion u.s. dollars. julia: this is bloomberg. ♪

♪ julia: this is "bloomberg best." i am julia chatterley. let's continue on our global tour in silicon valley, where uber found a new ceo. >> it is official. expedia's chairman. uber confirming a new leader. he succeeds the cofounder travis kalanick who left after tremendous investor pressure.

>> travis and his allies were pushing for the former ge ceo. benchmark and its allies wanted hp ceo meg whitman. the dispute has turned to litigation with the benchmark suing travis in court. dara is a great pick. he has been ceo of a public company, which uber hopes to be. this is a sign that perhaps it is going to be his first job, to repair these divisions on the board. >> incoming uber ceo met with uber employees wednesday and said he thinks the company should go public in the next 18-36 months. >> it seems pretty far to me. it is a distant thing. lots of hurdles in the interim. this is a guy who ran a public company for a long time. he understands and said the importance of going public at some point.

vonnie: whole foods got cheaper. amazon completed its $30.7 billion purchase of whole foods today. prices on items from fish to produce have seen prices slashed. >> they are down around the store. as much as 43%. they marked down certain produce like avocado and apples. certain kinds of organic apples, bananas. things like that that people think of as whole foods staples. one major change is right when you walk in the door, there is a stand of amazon echo's they are selling. vonnie: the biggest ever deal for a breakthrough new cancer treatment that will help diversify the company. >> gilead has been saying for more than a year that it needs to go out and do something big, and it was planning on taking those billions of dollars in

cash ignorant from its hepatitis c drugs and looking for how it was going to diversify the company. did we think it would be kite? it is one of many names that have been talked about out there as a potential takeover for somebody. to an extent, yes. but today, the announcement, it was definitely a surprise for a lot of people. >> china is creating the world's largest energy company. merging the top coal miner with one of the country's largest power generators. this is really on an enormous scale that we're looking at here. >> it is absolutely huge. we're looking at a tie up between the country's top coal miner and one of the country's largest power generators. in terms of the size and scale, the total assets will be 271

billion u.s. dollars. in terms of revenue, the second largest amount in terms of power companies in the world. in terms of capacity, they are number one. with this points to, this merger, is a new direction for soe reform. it is about merging state-owned enterprises within the same sectors to create synergy. this is an example of one, and we expect to see more in the power sector going ahead. >> apple is planning to change the way you use your phone. we have less than two weeks from the big unveil. images have been viewed by bloomberg news. a major feature is missing. the home button.

ahead of the release, apple touched another record high. walk us through what we have learned after viewing this phone. >> our colleague has seen images of the new phone, and the biggest thing that people are going to notice, a lack of a home screen. instead, there is going to be a gesture-based way to turn on the cameras to have facial phone as well as recognition. so your phone will see your face and open up. the screen is going to get more real estate for the screen to be bigger, and the phone is going to be thinner and have a faster processor, improved camera. >> apple is joining the battle for toshiba chip business. we have heard rumors apple might be in the mix before, but what is the latest? what is behind apple's interest now? >> there are many plot twists here to game of thrones. toshiba has been trying to sell this chips unit for months. they desperately need the cash. it looked like they were getting close to a deal with western digital, the american chip maker. apple is jumping in. apple has been in flux according to the sources we have talked to. they put in a bid that was $19 billion. but they need to figure out what they are going to do with western digital. western digital is a partner

with toshiba in this business, and have taken to the courts to say that they have rights in deciding who is going to get this company in the end. >> the signs of strength for the economy in china, the factory gauge rose to 51.7% in august compared with a forecast of 51.13%. >> the latest indications of growth are pretty much suggesting a steady as she goes for the chinese economy. the official pmi beat expectations, rose slightly coming in at 51.7% for august, pointing to slight acceleration in growth. some of the underlying indexes were pretty positive. we saw new orders picking up. and critically for china's corporate profit, we also saw big banks in the input and

output prices, suggesting that industrial profit growth story could be sustained for a few months longer. mark: mario draghi may need to act with caution when ecb policymakers discuss stimulus plans next week. inflation picking up more than economists forecast. underlying cost pressures failing to accelerate. is it the core rate of inflation, david, we should be focusing on today ahead of the ecb meeting next week? david: as you mentioned, core rate inflation was steady at 1.2%. the increase was driven by fuel costs. in august of this year, fuel costs went up and that is in stark contrast of august of last year, when peel costs were -- when fuel costs were falling. that caused the increase in the year over year level, which is of little interest to

policymakers because they have to look at domestically generated costs. those are the costs that monetary policy can affect. mark: let's talk brexit, the latest round of talks that ended in a stalemate. both sides deadlocked on the divorce bill. >> after this week, it is clear the u.k. does not feel legally obliged to honor obligations after departure. >> let's continue to work together constructively. to put people above process. mark: was any progress made this week in round three of talks? >> not at all. there was technical work on some of the complicated stuff, but really when it comes to the politics, these two sides are as far away as they have ever been. the biggest issue is this bill, the financial settlement that the eu wants the u.k. to pay, which could be as much as 100

billion euros. it is becoming clear today the u.k. is not really thinking it owes anything. trying to bridge that divide is almost impossible. mark: let's get to a bloomberg exclusive. the ecb meets next week to begin discussions on a stimulus for 2018. the final decision could be delayed until december. weeks before the current plan expires. >> they have a lot to do and not that much time to do it. starting next wednesday and thursday, the 2 day policy meeting, to formally discuss what they do with the bond purchase program, but not just that, suggesting it is little chance of a deal in september. the people we spoke to said the complexity of this means you really can't rely on october 26 either. that means the policy meetings of december 14 might be the one where the final details get to be announced.

that is not long before the program is scheduled to end at the end of this year. ♪

♪ julia: you are watching "bloomberg best." i am julia chatterley. the biggest shareholder in bank of america is now berkshire hathaway. they just exercised warrants to buy 700 million shares, locking in an $11.5 billion gain. bloomberg's david westin spoke with warren buffett about the decision. >> we exercise because the dividend we will get now, bank of america has increased their common stock dividend. now we will get 30 plus million dollars more annually from owning the common and preferred. if the dividend of the common got to where it exceeded the preferred, we would exercise our

warrant. it was fairly automatic. david: is this consistent with your overall philosophy of finding a good business over a long amount of time, manage what you believe in and investing in it, or is it just the deal? >> it is management we believe in. i followed bank of america since i read about it 55 to 60 years ago. it has got an amazing history.

they got in trouble. they made acquisitions. particularly countrywide. they were in significant trouble. that is like a great athlete being in a hospital, it takes them out for a while, but you have to get them back in shape. i came in at a time where people

were critical of the institution and, to some extent, the management. i believe they were wrong. i got the idea in the bathtub in 2011. when i got to the office, i called brian moynihan and we made a deal very quickly. david: bank of america, more than most banks, is dependent on

>> it is too complex by everyone's admission.

♪ julia: welcome back to "bloomberg best." i am julia chatterley. last week, central bankers gathered at the jackson hole economic symposium. in addition to speeches by janet yellen and mario draghi, plenty of conversations on the sidelines. let's start with boj governor haruhiko kuroda. he sat down for an exclusive interview with our kathleen hays. >> in the u.s. and in europe, inflation rates are actually close to their target, close to 2%. in japan, the inflation rate is still 0.5%, far away from our 2% target, so there is some

difference between u.s. and europe on the one hand and japan on the other hand. wages are not rising so fast, that is true. mostly in japan, but prices are not rising. here there is some kind of differentiation in the mindset, strong among business leaders, labor union leaders. they tend to be cautious in raising prices. so what companies are doing is they are heavily investing in labor, equipment, and so on and so forth, and also they are changing the business model so as to reduce labor content. by so doing, despite some wage increase, it has not been rising, so they are not required to raise the prices. kathleen: but they are doing well.

gdp growth up six quarters in a row. that has not happened in japan in years, you are exceeding on growth, and maybe something has changed to the degree that -- does inflation matter so much? japanese households like low inflation if you have the growth. >> two things, one, 4% growth is good, but i don't think 4% growth can be sustained. probably around 2% growth we can obtain this fiscal year, and even in the next fiscal year, close to 2% may be possible to obtain, but 4% growth is somewhat unusual, but i am quite sure that this 1.5% to 2% growth can be sustained in the coming years. ♪

>> i think we have been consistent on the strategy of looking at the economy, our medium run outlook, moving a little preemptively in terms of we don't want to wait until both of our goals are met. we have learned over time that is not a good strategy. we have been gradually moving. i think the gradual part is very important. we are well below what a taylor rule or other rules might tell us where we would be at this point, so we have been patient, gradual, and i think it has done pretty well for the economy. >> do you think the pace has been appropriate? do you see any reason it would tick up? there has been some concern, financial stability concerns expressed, prices of assets elevated. do you see any reason why you would want to move faster? >> we will always be concerned about financial stability.

that is a lesson we have learned. these issues loom large, especially as interest rates have been as low as they have been. you are right, there are some pricing in the equity markets that look different than historical values. i think part of that is generated by earnings, but also because interest rates are low, so we are focused on that. right now, i do not think that is a significant risk, but that is another factor that feeds into my view that a gradual reduction in accommodation is appropriate for where the economy is now. ♪ julia: interest rates were just one issue. several investors discussed the state of global markets on bloomberg television. david westin spoke with evercore's ceo on the impact geopolitical issues have on m&a. >> the hardest thing to measure

in the propensity to do m&a is the confidence or what is sometimes referred to as the animal spirits of corporate leaders. easy to measure is equity prices are good today, debt is accessible and reasonably priced, the economy is growing at a reasonable pace, so all of those things support m&a activity. the one critical component which there is no governmental statistical measure of is how confident do ceo's feel and how predictable do they feel the next 12 months. nobody wants to do a deal right out of the gate that looks, why did you do that? david: [laughter] >> and so, uncertainty definitely dampens particularly larger m&a transactions. david: so there is uncertainty and valuations. to what extent do they say

valuations are high and they look like they paid too high? >> well, valuations, you have to remember of the valuation of the buyer stock is also high, so some of these transactions are done on a stock for stock basis, so you are trading one fully valued currency for another fully valued currency. second of all, debt is very available and very cheap. literally any transaction that a company does for cash, for debt, is accretive and pretty strongly accretive. that is not the way i believe you should measure a transaction, but in the short run, it does have a very positive effect. ♪ >> are passive instruments and

etf's in particular distorting the stock market? >> i think they are temporarily distorting the market because they are distorting individual people buy the same names that are the big weights of the index and push them higher and higher. that will not be able to last for the long-term, which doesn't make sense. >> is this why value is out of favor as a style? >> for sure. people buy these expensive stockes and the value stocks are left over. the value stocks are what i call orphans these days, just left out and become smaller parts of the index, less and less research being done on these companies. they are neglected orphans. >> what about the fact that value managers are underperforming? that surely has to play a role. >> right, it becomes a self-fulfilling prophecy in the short term. we have learned over these years, that once everything becomes a common trend, everyone believes in, everyone thinks these orphan value stocks will underperform, once that becomes conventional wisdom, it never plays out that way. >> you have been at this 34 years at ariel, and longer if

you include your career before that, relative to what you have seen, john, how would you characterize the stock market now? >> it is an interesting time. i think there are some pockets of opportunity that are really special. if you do your homework now, it really can pay off and you look for these names where they have been neglected, misunderstood, and left out. i think this is a fun time to be doing research, thinking about industries and sectors where there can be some hidden gems there. ♪ julia: let's revisit erik schatzker's exclusive interview with bank of america ceo brian moynihan. they sit down on the day that warren buffett became the bank's largest shareholder, and the conversation began on that topic. ♪ erik: what kind of input are you hoping to get from warren buffett? >> i think he would say the same

thing, he has owned our stock for six years. it is not something he did in the last 24 hours. he has been a big shareholder and a contingent interest. i talk to him once in a while. he likes how we are running the company. erik: he said that to david. >> i don't think he would invest if he did not like what we are doing. our job is to continue doing a good job. erik: the treasury department has proposed regulatory reforms for banking. a lot of those can be accomplished without congress. if secretary mnuchin were to get everything done that he wants to get done outside of legislation, what would it mean for your bottom line? >> it would be good. i don't have a number for you. it would be good.

and it would be good for society and good for america and good for rules. if you think about, and there are three or four things that are important with what is going on. number one, the leadership in the agencies, there have been proposed people. second, there are rules that have been pulled back or rethought. then there are rules that have to be changed and tax legislation. what the secretary did is get input from investors, analysts, companies, advocates, professors, and so here is the set of principles we have to fix. the key one for us would be capital, liquidity requirements and technical rules in capital, and allowing more access to our capital account when we have $20 billion excess after the stress test. let us put that back in the market so somebody can use the capital because we don't need it to grow. those are the most important things for us, capital, liquidity and things like that. erik: oversight? >> voelker is too complex by everybody's admission. the question is what would that principles preventing and can you make it a straightforward execution?

that is probably a good idea, because right now you have five-six agencies working on different sets of principles. they all know it is too complex. the question is how we will go about it? he has proposed how to make it simpler, and now we have to figure out what we mean by that. we don't have proprietary trading. that is what we are not supposed to do, and we are not doing it. the question is how many times do we have to prove it? that's where it gets a little bit tricky. ♪

♪ julia: you are watching "bloomberg best." i am julia chatterley. let's return to our review of this week's top business stories with earning reports from companies around the world. >> the world's biggest oil refiner sinopec trading lower, .5%, this after posting a 40% jump in first-half profits.

another leave from a chinese energy giant, but you have to say this is down to downstream operations. >> clearly, rish, yeah. the stronger oil price around $53 a barrel, up 30% from last year, is a key part of what we are seeing in the positive results across the three big major energy producers in china. sinopec joining the others who reported last week stronger earnings. it is the best profit in the first half for sinopec since 2014. net income up $4.2 billion, so the chemicals unit in sinopec that is driving and has driven the first-half profits. and that stronger crude price. ♪ vonnie: shares in best buy down as much as 11%, facing the biggest reversal, the biggest intraday decline since january 2016 despite earnings that show the best sales growth in seven years. >> earnings for best buy were

actually very good. you mentioned they posted the best sales growth in seven years. if you look at my terminal, it shows that there. sales growth of 5.4% was double the forecast last quarter. the company also increased its forecast for full-year profit and revenue, so we initially saw shares rising, but when the ceo got onto the call, he sounded very cautious. what he said was today's good results cannot the scene as a that new normal, and the level of growth may not be sustainable, particularly the fourth quarter around the holiday season when we see a lot of promotional activity. it is very competitive. it was the ceo's comments on the earnings call that sent the shares tumbling today. ♪ >> it appears to be another nail in the coffin for athletic leisure. the latest warning sign comes from finish line, which cut its annual forecast. shares at one point falling the

most on record. you are looking at a spillover affecting companies like nike and underarmour and foot locker. >> that has been the bright spot, athletic apparel. the fear is that if that goes away, what will replace it? is there going to be a big fashion trend? for the sporting goods guys, this is a big problem because they've gotten used to inflated sales, and going back to normal will not be good enough for investors. for everybody else, it could mean we have to find a new trend. >> to what extent do you think retailers were caught off guard by this? that they were not positioned to take advantage of this change in brand? >> i think it is a big problem for retailer across all apparel retailers, they moved too slowly. ♪ >> china's biggest banks beat earnings for the second quarter, benefiting from resilient economic growth and the government's deleveraging campaign. >> bank of china was leading the

pack. they saw net income increased by 23% in the second quarter. they are one of the top four banks. the other three all saw an average net income increase of 3.5%. the strong, robust economy has helped, but it is the net interest margins that have been pushed up, particularly as a result of interbank lending. these four lenders are lenders into money markets. those rates have been pushed up. benefits of big banks, not so much the small banks. the other point of interest was wealth management products. those have fallen off, but more traditional loans have picked up strongly on the flipside, suggesting the government is having some success in deleveraging but giving credit to the real economy. ♪ jonathan: gas over diesel. porsche released a model with improved fuel economy.

the car company will also offer a plug-in hybrid version. the question now is the future development and you said the use of diesel fuel and technology. >> we will have to see now, but the diesel engine and combustion engine will be important for a long time to come. one should expect the combustion engines to stick around for a while and to set a date for when these engines might no longer be there is too premature. diesel is important for maintaining carbon dioxide levels. we would not be able to reach the lower thresholds without it. that is why they will always be a mix. matt: it seems like they are phasing out diesel to some extent. wolfgang porsche also told me it is not important to their dna as a company. it is important to the larger industry, their parent company volkswagen, as well as mercedes and bmw, but to porsche itself, diesels only make up 14% to 15% of their sales worldwide.

they were easily able to phase them out of the u.s. market in 2015 after dieselgate. it looks like they will be able to do that here, as well. >> if you are driving this weekend, get ready for higher gas prices. the pipeline that runs from houston to new jersey, they shut their supply down because they don't have the supply. the blue line is the colonial pipeline. the red dots are the inverted spread between branded and unbranded gas. it basically means yellow dots show unbranded gasoline is now pricing higher than branded gasoline. talk me through the supply issue. what is not getting to colonial pipeline and how long will that last? >> the main problem is a lot of refineries are down in texas. that is the main reason why the colonial pipeline cannot supply. it does not have enough gasoline to supply the whole area from florida to maine. the main areas of risk are

florida, north carolina, south carolina, virginia, and georgia. those areas really rely on the pipeline. the situation is not as bad as it was 10 years ago when katrina hit because inventory levels in the region are much higher. ♪ >> india's economy grew at the slowest rate in three years. companies and retailers spending ahead of the nationwide sales tax rollout. >> fifth straight quarter of slowing growth. it has been difficult for prime minister modi to stimulate growth. gdp in the second quarter at 5.7% from a year earlier. economists were looking for 6.5%. it was 6.1% the quarter before. >> the main reason has been uncertainty over gst rates.

that affected the manufacturing sector badly. remember, this was the second quarter performance after gst kicked off on first of july. companies in the manufacturing space were de-stocking goods and products and not producing because they were not sure about the tax rates applicable under gst. added to that is the lingering fact of demonetization and how that would play out as well. this is not good news. and economists say this is disappointing. the growth has fallen when they were expecting a rebound. ♪

♪ >> interesting to note is the function for all our bloomberg subscribers out there, ratt . this is bloomberg credit ratings trend function. i typed in fitch, the region china. take a look, it has upgraded 17 chinese companies, downgraded 14 this year. vonnie: another great function is refo , refinery outages and events. you can see in the bloomberg is you type in u.s. gulf coast, almost 2500 are out. julia: there are around 30,000 functions on the bloomberg. we enjoyed showing you are favorites.

maybe they will become your favorites, too. here is another function you might find useful, quic . it will be due to our quick takes, we can get important takes from this week. here is a quick take from this week. >> fish are a renewable resource. large numbers can be caught with little or no effect on the population because of natural reproduction. at least that was supposed to be the case. today, 90% of the world's fishing grounds are being fished at maximum sustainable rates, or overexploited, risking total collapse. fish accounts for 20% of the animal protein consumed by people all over the world. here is the situation. the united nations food and agricultural organization concluded fish stocks have

continued diminishing since the 1970's in the world's oceans and seas. the situation in the mediterranean and black seas is alarming. catches have fallen by a third, since 2007, and 59% of stocks are over-fished. advances in technology like sonar and satellite used to locate fish have sent catch rates soaring and commercial trawling nets practically vacant. then there are countries like china. it now sends boats that encroach on traditional fishing grounds of other nations. here is the argument. fishing regulations can only be set by governments in their exclusive economic zone, which extends 200 nautical miles from shore, but they have been mostly ineffective. closed seasons and catch seasons don't seem to curb the stress put on the fish population. another approach that has been more successful are catch share programs.

these grand a portion of the allowable harvest to individual fishers, communities, or companies. they can use it to catch fish or sell the rights. since fishers want their shares to rise in price, they have incentives to maximize value of the catch. fishing when demand is highest, slowing down during spawning season, therefore limiting damage to fishing stocks. another potential fix is aquaculture or fish farms. in 2014, farm raised fish surpassed wild caught fish as a source of food for humans. this solution may come with an environmental price. critics are concerned that fish farms are damaging coastal ecosystems by releasing pathogens that harm populations. relocating farms further inland and using a system to remove harmful contaminants are being experimented with has potential solutions. with worldwide demand for fish increasing, for once it is fish

not being around that is starting to stink. ♪ julia: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thank you for watching. i am julia chatterley. this is bloomberg. ♪

♪ haidi: nuclear warning, north korea has added a warhead to an icbm. the u.s. promising overwhelming response. betty: washington has the ability to send itself and its allies. china and russia call for diplomacy. haidi: the e.u. brexit leader loses patience. he said people need to understand the price of quitting. betty: counting the cost, the texas governor said hurricane harvey could be more