>> coming up on "bloomberg best," the stories that shaped the week in business around the world. daily drama in d.c. twitter, taxes, trade, and turkey. just some of the trending topics. >> if you played this forward in terms of tax reform, every vote counts. >> it looks almost like a strategy the trump administration has to put a kibosh to these talks. >> there is a slow, but systematic attempt to remove the nuts and bolts of the affordable care act. michael: earnings season begins with a bang with big banks reporting. the crisis in catalonia continues. >> for 10 seconds, catalonia was an independent republic. >> doctored data spells disaster for a japanese steelmaker.

>> very damaging for japan and the entirety of japan's manufacturing sector. michael: the imf puts out a sunny growth forecast. christine lagarde sheds light on the report. >> while we see the sun shining, we are also seeing those clouds on the horizon. michael: the fomc minutes reveal inflation worries. the fed president as some inside insight. >> i am really nervous inflation expectations are low. >> we are not trying to address all of the relative price changes that occur in the economy -- we are trying to get that underlying rate. michael: plus, economists consider the conundrum of tax reform. >> it has to be base broadening as well. growth will pay for part of it, but not all of it. >> you might as well assume unicorns will come deliver packages of money. there is no reason to believe this. >> there are miracles, sometimes productivity growth picks up. and for reasons we don't always understand, but it happens. michael: it is all straight ahead on "bloomberg best." ♪

michael: hello and welcome. i'm michael mckee. this is bloomberg best -- this is "bloomberg best," your weekly review of business news, analysis and interviews from bloomberg television around the world. now, president donald trump's legislative agenda was going to be a big story this week no matter what, but monday dawned with some unexpected political fireworks. >> president trump made an interesting choice over the weekend. he can afford to lose only two republican senators if he wants to get tax reform done, and he decided to pick a fight with one of those senators. the president blamed senator bob corker of tennessee for the iran deal, said he was not running for reelection only because he failed to get the president to endorse him, and that he wanted the secretary of state job but he didn't get it. for his part, senator corker compared the trump administration to a reality show , said that the white house was an adult daycare center and the president's threats against other countries could put the country on the path to world war iii.

kevin: if you play it forward in terms of tax reform, every vote counts, and senator corker, while not the most fiscally conservative member in the upper chamber, his raising the fiscal issue really is in line with what some members of the far right and senate have also been saying, and that poses significant political risk for tax reform by the end of the year. >> president trump also demanding congress fund his border wall, saying that will be in exchange for letting dreamers stay in the country. how much more of a distraction will this be? marty: it will be another distraction. chuck schumer and nancy pelosi said that is a nonstarter. when you look at the polling of -- when you look at the polling, a vast majority of americans support a clean daca bill that provides protection, and it is going to be laid at the feet of the republicans if it doesn't happen. vonnie: a crucial moment in the crisis in catalonia. the president is set to address lawmakers in barcelona just moments from now. a lot of anticipation in that chamber.

maria: we're not sure of the wording people use. we are not even sure of the format the parliament might take place. we are not sure if the opposition is going to get a say here. we do know, however, they have a majority in the cabinet and parliament, and if they wanted to enact this law that could create and independent republic with an essentially two days, they have a majority to do it and can get it done. the question is whether puigdemont will use the word unilateral or back out last-minute. mr. puigdemont: the government is proposing that the parliament shall suspend the effectiveness of this declaration of independence in such a way that in forthcoming weeks, we can undertake a dialogue without which there can be no agreement. so we need to open up a time period to have a dialogue with the state of spain. so that's something else that should be done today out of responsibility. mark: spain maintaining it's ready to seize control of catalonia if the push for independence continues.

prime minister mariano rajoy said catalonia's efforts to break away from the rest of spain are fraudulent and fruitless. mr. rajoy: it was a fraudulent referendum in the first of october and cannot go ahead by that amount of people. maria: yesterday the catalonia region president made the symbolic move and said i'm ready to accept the mandate. for 10 seconds, catalonia was a independent republic and then said i'll suspend this for talks. mariano rajoy brey to crystal clear there is nothing to talk about, this is a complete fairy tale and his signal now, i'm ready to implement article 155 . time is running out and the catalonia president is running out of options. if he backtracks, his division will implode. if he says, i'm ready to continue with the republic, mariano rajoy will implement this article and he is out of government. scarlet: the fed released minutes from the september meeting and showed growing concern in the central bank that low inflation is just more than a passing fancy. policymakers said another rate

hike this year would depend on the strength of the economic data the next few months. carl: i think the minutes show that policymakers are taking the inflation backslide a bit more seriously than they were earlier this year, when they were very quick to write it off as transitory and idiosyncratic. now they're pondering whether part of that weakness may not be trends,roader global and that means now they are hinging their decisions to hike by near end -- the hike by year-end on the next couple months of economics data, but also acknowledge that the hurricanes are going to muddle those reports. so they're in a bit of a complicated position. i think what is interesting here , as we look at the roster of who is going to be at the december meeting, there are four or five doves, which means i'm not totally sure chair yellen will have the vote count at that meeting for a rate hike. shery: jpmorgan and citigroup kicked off third-quarter

earnings season. revenue from ficc trading plunged 27% at jp morgan and citigroup saw a 16% year-over-year decline in revenue from the unit. charles: you did have good top line revenue growth this quarter but when you balance out the top line revenue growth with a weak capital markets, particularly trading, because investment banking was healthy, you're getting literally no revenue growth. maybe 1%-2% revenue growth. if you look at loan growth year over year for the last 52 weeks, it has dropped from a high single rate of growth to maybe 1.3% rate of growth. if you look at activity in the trading markets, it continues to be fairly anemic. alison: one positive thing we did get in this quarter is cost control. both citi and jp morgan coming in very well on that metric, and that is important because as the revenue environment does become uncertain, you want to know the banks are doing what they can in terms of trying to protect the profitability of the firm, the fact that you can bring down costs and become more efficient,

obviously that provides more upside as the revenue picture improves. vonnie: bank of america posting its best profit in six years, higher rates helping there. wells fargo takes a surprise $1 charge for a precrisis mortgage billion billion probe. gerard: many of the metrics we monitor for these large banks came in positive for bank of america, the net interest margin, for example. we also point out that the expense control at bank of america is quite strong, and they continue to focus on reducing expenses to a $53 billion number for next year. the wells numbers, on the other hand, obviously have the one-time charge which we take out, so they came in line with expectations on the bottom line. the revenue growth was not as strong as some of the other banks as they continue to work their way through the scandal that they've been dealing with. vonnie: president trump has disavowed the iran nuclear deal without yet quitting the multinational accord. that's very important.

he has refused to recertify iran, which he must do every 90 days. he hasn't yet quit the accord. pres. trump: as i've said many times, the iran deal was one of the worst and most one-sided transactions the united states has ever entered into. john: we are in limbo now. essentially. and if you look at the broader geopolitical situation in the middle east, this is adding more uncertainty into the mix we have right now. again for business, this is not really what people wanted to hear. certainly they wanted a sense that this massive market, with all of its huge potential, will be opened up again, and it looks like this probably will continue for the next few years. michael: still ahead as we review the week on "bloomberg best," conversations with i.m.f. managing director christine le guard and ubs ceo sergio ermotti , plus fed presidents charles evans and eric rosengren.

and up next, more of the week's top business headlines. economist richard thaler is happy to win the nobel prize but he is not so upbeat about the markets. richard: i don't know about you, but i'm nervous. michael: this is bloomberg. ♪

michael: this is "bloomberg best," i'm michael mckey. let's continue our global tour of the week's top business stories. in japan, where a scandal engulfed one of the nation's top manufacturing companies. jonathan: shares of japan's third largest steelmaker continue to fall, being absolutely battered. kobe steel is down 20% over two days. this comes off after kobe steel admitted that their staff falsified data about the strength and durability of some of its products. enda: this is very damaging for

japan and damaging for the integrity of japan's manufacturing sector. remember, manufacturing and exports are the bloodline of japan's economy, the world's third largest. it comes on the back of other safety scandals lately, such as takata air bags. if this spreads overseas, we know kobe is one of the oldest companies and supplies some of the biggest automakers like nissan and toyota. if it does emerge that they have been supplying auto companies around the world, it would severely backlash onto japan's integrity and caused considerable consequences down the road. >> shares of kobe steel falling for a second day, down about 15.7% as of now as the data -- as the fake data scandal widens. it has now admitted falsifying information about another of its products but insists safety has not been compromised. >> iron ore powder was also seen to be, the data was falsified for that, and that was shipped to one customer. iron ore powder is used in a lot of machine tools and auto parts,

everything from exhaust and power steering systems to camshafts. so we're still trying to pin down exactly which customer that was, but so far the company has confirmed. one of the problems for kobe steel is, over the last few years, the steel industry has seen a lot of consolidation and mergers, which put more pressure on kobe steel to compete with these big, huge rivals, so it branched out into lots of other businesses. one of the things we're looking to see is a sell-off of assets not only to raise money to deal with liability but also to help it sharpen its focus on its core businesses. julia: the fourth round of nafta renegotiations begins today in washington. president trump says the u.s. will walk away if a deal doesn't meet his expectations, and he's repeated that. pres. trump: we'll see what happens. it's possible we won't be able to make a deal, and it's possible that we will. joe: there are a number of priorities of the trump administration in these talks that canada and mexico may regard as being poison pills.

real dealbreakers related to country of origin roles, things like that. do people have to prepare for the real possibility, in your view, that nafta could go away? sarah: yeah, joe, there's increasing chatter that it looks like some these proposals are so far off the limit, so politically impossible in canada and mexico that it looks almost like a strategy the trump administration has to put a kibosh to these talks, and this concern is bubbling through the u.s. business community. it looks like these proposals are trying to make the talks doomed, really, from the start. vonnie: congress failed to pass health care reform. president donald trump has now taken his own action. today, citing an executive order, which he says will promote choice and competition. pres. trump: my administration will explore how we can expand something called short term limited duration insurance. margaret: the outlines the president has announced are important in terms of both signaling his intention and kind of a tertiary effect, which

could be immediate, which is the potential to have a chilling effect on signups for the affordable care act heading into the enrollment period, and the prospect of pulling healthy people out of the existing system. vonnie: the trump administration is taking the most drastic step yet to roll back some of the provisions of the affordable care act, saying it would stop making subsidy payments to insurers. in a statement, the white house said, "the bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system." isaac: and let's be clear about what's happening here. there is a slow but systematic attempt to remove the nuts and bolts of the affordable care act in order to foster uncertainty in the market. and, i think, catalyze some degree of legislative action. mark: brexit talks have hit a

wall, the sticking point money, specifically how much the u.k. owes the e.u. >> basically there's no deal. a no deal will be a very bad deal. >> the u.k. is planning for all outcomes. it's not what we seek but we're planning for everything. emma: the progress that's been made is really teresa may's speech in florence, when she said that we would pay -- that the u.k. would meet its obligations broadly and continue to plan the budget for two years after brexit. what barney said today was there has been a new momentum -- he mentioned may's speech in florence, and said but the negotiators here today have not put flesh on the bones of what she said in florence with 15 months to go, the u.k. wants a bespoke deal. how realistic that is is up for debate. this deal has to be approved. there are months of approval processes once the deal is agreed, so it's looking pretty tight. scarlet: now the trump administration has formally proposed to repeal the obama era

clean power plan. this was a 2015 regulation aimed at curbing greenhouse gas emissions and a cornerstone of president obama's environmental policy. in a statement today, environmental protection agency director scott pruitt said, we're committed to righting the wrongs of the obama administration by cleaning the regulatory slate. any replacement rule will be put in place carefully, properly, and with humility by listening to those affected by the rules. jennifer: they're arguing the obama e.p.a. overestimated the potential climate change and health benefits from this rule while kind of downplaying the potential costs for customers, electric customers, and utilities, and they're arguing the e.p.a. under obama overstepped its authority. that this rule was way too broad , that it flouted decades of practice of regulating emissions at individual power plants, because the obama approach basically required broad changes to the electricity sector. the attorney general of new york and other state leaders have also indicated they're going to challenge this plan, and one of

the ways they will do that is by focusing on how the trump administration is justifying this change, if they have adequately justified, basically, a 180-degree pivot in policy. mark: deutsche bank chief y is facingohn cri increasing pressure to perform at the investment firm. the deutsche bank shares lost almost 80% since cry raised nearly $9 billion from investors in april. now there are rumblings if he does not deliver on key parts of his turnaround plan. his job may be at stake. is he on borrowed time? elisa: he has been for a while, actually. right as soon as he announced his strategic shift in march. we had investors saying that he does not have that much time to show this is going to work. and the numbers in the second quarter were somewhat disappointing, and the news hasn't gotten any better since, and what he's been described as is a fireman. he has come in, put out all the fires, and now it is back to

rebuilding the bank. and i think this is where investors are getting a little nervous that that rebuild is taking longer than they might have liked. vonnie: hsbc naming john flint as its next chief executive officer after new chairman mark tucker opted not to work with -- opted not to break with tradition and tapped a long serving insider to run europe's largest bank. would hsbc have been better off going down the barclays route and opting for an outsider here? lionel: i don't think so, and i think it is because there was not that much pressure at this particular time to choose an outsider. i think now we're seeing, because u.s. rates are normalizing, because emerging markets are holding up, because growth is there, that they actually want more of the same, which is more loan issuance, more cost cuts and a steady hand at the tiller and that's what mr. flint represents. vonnie: richard thaler won the nobel prize for economics for

his work in studying the role of human biases in decisionmaking and their effect on markets. the university of chicago professor co-authored the 2008 bestseller "nudge." this is the badge of authenticity placed now on upon behavior economics, if it wasn't already. justin: thaler most of all, more than any particular research he did, he was the guy that did all the blocking and tackling and the organizational work to make behavioral economics respectable, to create institutions, to make it possible for grad students to get money by doing research in behavioral economics. he was really the institution builder who didn't want to destroy mainstream economics but wanted to get people to pay more attention to the weird ways we think. vonnie: so less volatility in the stock market, yet stocks seem to be going higher. do you have behavioral explanation for this? richard: i don't know about you, but i am nervous. it seems like when investors are nervous, they're prone to being spooked, and nothing seems to

spook the market. if it's all based on the expectation of some big tax cut, surely investors should have lost confidence that that was going to happen, given what's happened so far out of congress. ♪

michael: welcome back to "bloomberg best," i'm michael mckee. the international monetary fund raised its forecast for global growth this week as it kicked off its annual meetings in washington, d.c. despite a stronger base line outlook, inflation and global monetary tightening remain points of concern. managing director christine lagarde flushed out the imf's report in an exclusive conversation with bloomberg's tom keene. tom: have we reached escape

velocity on all the agony of the last 10 years? christine: let's hope so, but it's not guaranteed. while we have certainly better growth and better growth forecast, 3.6% this year and 3.7% for next year, it's not shared across the world. you still have about 25% of the world measured in g.d.p., which is not enjoying that stronger recovery. while we see the sun shining, we are also seeing those clouds on the horizon, and countries and people not having the benefit of it. tom: how does the i.m.f. link constructive tax reform with the worldwide idea of getting our debt house in order? christine: well, you know, what needs to be done is to look at the evidence, at the data, at the numbers, and then determine policies on that basis, within mind two things. the revenue, the spending, and

the political objectives of being pro-growth, of wanting to improve the situation of the middle class, and of ultimately reducing excessive inequalities, if that is the case in that country. so that's what needs to happen. but clearly in those countries that have a heavy debt burden and those that have entitlements coming to fruition that will probably increase the spending, it is necessary to take into account that medium term and to make sure that any tax reform is revenue-generating. tom: what is so important here is the tone of the i.m.f. of a more optimistic world. obviously the united kingdom is off their game with a battle over brexit and all that, and there is other serious issues with emerging markets. but you also marked down the u.s. because, am i right, the i.m.f. is doubtful on successful tax reform legislation in the short term? christine: we've actually marked

up the u.s. economy compared with our july numbers, and then we've marked up a few other countries, including advanced economies. what we hope to see is implementation of the reforms that we have called for for many years. a good, solid tax reform that will be simpler, where rates, particularly corporate rates, will be lower, with a base that is much more solid and clear. that's what we hope to see. and you know, the sooner it goes through, the better. michael: still to come on "bloomberg best," more headlines from a busy week in business, including the latest bad news for uber, and fighting words on trade from a british m.p. and straight ahead, another dive into the week's top interviews. the g.o.p. tax plan doesn't have much detail yet, but some highly respected economists weigh in on its all important assumption. paul: there's very little risk -- a very little reason to think

that tax cuts matter much one way or the other for underlying growth. michael: this is bloomberg. ♪ who knew that phones would start doing everything?

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♪ >> i think what is good for the market is that you don't limit participants to the marketplace. i think liquidity is critically important and when you limit participation in times of stress, when things are like , but when you now are in stress you want to make sure everybody is in the marketplace. it would go to the volcker act. i think the way it was written was ill-advised at best. i think the banks should be allowed to prop trade. there is nothing wrong with it if they are regulated like everybody else. ♪

michael: that was cme group chairman and ceo terry duffy discussing market participation in financial regulation with our editor-in-chief. we had another exclusive conversation on markets this week with ubs chief executive sergio ermotti. julia chatterley and joel webber asked him where investors are focusing their interest and whether he is worried about complacency. ♪ sergio: across all asset classes, to be honest. is i would say across the board, but also in credits and junk or investment grade. i see a lot of complacency in the level of risk premium debt investors are getting for the effective risks they are taking. julia: enough to cause alarm? sergio: not alarm, because to be honest, trends seem to

last longer than we expect and therefore, it is too early to say that this is alarming or not. of course we have to pay attention to that. >> what are you hearing from clients right now? what are they coming to you and asking for? sergio: i guess, we see a little bit more of a willingness to deploy cash, but that hasn't really changed from the beginning of the year. we measure a little bit our indicator is cash balance with the bank. we have been running the last four or five years in the high 20's, now we are going down to the mid-20's. that is good news. you know, a little bit more willingness to deploy money and invest money in equities than in bonds or any other asset classes. still looking for diversification, the conviction level is not very high to be honest. ♪ michael: the trump administration's tax reform plan

was another topic of conversation throughout the week. will the proposed cuts lead to huge deficits or generate sustainable growth to pay for themselves? three eminent economists addressed those questions on bloomberg television. >> cuts in the corporate rate will increase investment and productivity and wages. the tax cut won't pay for itself, though. there has to be base broadening, as well. growth will pay for part of it, but not all of it. the two sides are talking past each other a bit, but the center of the debate needs to be growth and wages. lower corporate tax, higher wages. >> so if, in fact, productivity is key and that is driven by capital investment, how can it be the case that corporations are waiting for tax cuts to make that investment? the cost for companies has been approaching zero for a long time. people don't even worry about rates anymore. if they wanted to invest, they would be investing right now. >> i think a lot of companies

are concerned about the state of growth in the economy. when people ask me about interest rates or productivity, tell me about growth and i can tell you everything. basically, businesses are afraid the economy is in a slow growth mode. tax reform is one of the few things that can change that expectation and change the climate for business investment. as well as the location of that investment inside the united states instead of abroad. >> their message in d.c. is that we can get up to 2.9% over 10 years. that's how they think it will pay for itself. now you said it won't pay for itself, but where do you think gdp can get to sustainably over 10 years, given the difficulty forecasting the next six months? >> i think it is quite possible the gdp growth could get to that level, but it would require more than tax reform. you said the demography was destiny. i don't agree with that. the bureau of labor statistics forecast in 2006 only a modest

decline in labor force participation in the next decade. they knew what demography was. we have seen a collapse in labor force participation. better public policy can fix that, but that is about more than the tax bill. ♪ >> the underlying growth rate seems to be lower than it was before the crisis and we don't understand exactly why, but we are not going to get 3% growth anytime soon. >> the idea that we can't get back to 3%, specifically around gdp. we have an administration that would like tax puts -- cuts to pay for themselves by generating 2.9% growth over 10 years. you are basically saying that is not possible, even with what you see in the tax plan? >> nearly anything is always possible. is it likely? no, it is not likely. the big issue in the u.s. and elsewhere in europe is that underlying productivity growth

is low, so you add aging to this and this gives you growth rates which are far below free. there are miracles, sometimes on -- sometimes productivity growth picks up and for reasons we don't understand, it could happen. it could happen. i don't believe that tax reform on the table would generate this, but it could happen for other reasons. but it is very unlikely. ♪ >> there is very little reason to think tax cuts would matter much one way or another for underlying growth. if the base cut taxes, you cut tax collection. that is basically what happens. >> if you are arguing the financing will be provided by higher growth as a result of the tax cut -- >> you might as well assume unicorns will come and deliver packages of money. there is no reason to believe this. >> on the corporate tax side, are there ways you think taxes could be reformed in a productive way that would be more efficient and logical? >> it is funny, the reform paul ryan originally floated this

year, that destination-based cash flow tax, which included the border tax adjustment, was a not stupid idea. in fact, it was one of the few things i have seen from paul ryan -- >> this is a big moment where paul krugman is praising something that paul ryan -- that is a pretty high compliment. >> it has bipartisan support among tax experts. people were saying this is a good idea. and of course, it being the one thing i have seen from paul ryan that was not a terrible idea, it died instantly in the political arena and without that, without the border tax adjustment that is the piece of that, there is no way to make a significant cut in corporate tax rates that doesn't explode the deficit. ♪ >> the minutes of the fomc september meeting answered some questions about the monetary policy, but further insight came from the one-on-one interviews we did with fed officials. let's start with manus cranny's

syrup ve conversation in -- zurich with chicago fed president charles evans. >> i'm thinking it is going to take longer to get to 2% then many people. we might need a continued accommodative stance. we are accommodative now. from here on out, every rate increase will get closer to that line where we are not sure if it will lead to inflation moving up. and so, those are judgments we have to come to before the next rate increase. manus: from the data you have seen so far, where do you stand on a december hike? charles: it is too early to say. i think the inflation data has been disappointing. i understand, i have read the arguments, i have heard them, that it is likely due to transitory factors. there certainly have been a number of those in the u.s. i would say that low inflation is a global environment and the

whole world is dealing with transitory effects. ok, yeah, i'm sure that some of that is true, too. i'm really nervous that inflation expectations are low. they have been low for quite some time. our fomc statement going back to october 2014, we have been calling out market measures, they are moving down and they continued to be low even though they bounce back a little bit after the election. i think survey measures are also weaker than we talk about. ♪ >> is it like waiting for godot currently? you say it is going to be next year. where is it going to come from? >> what we have seen in the last couple of months is a lot of tightening of labor markets the pressure onupward wages. once that is done, we will see

prices move across the board. we have done a bunch of research and our analysis suggests labor force participation rates have really started to pick up and we are at the end of any sign of slack in the marketplace. >> when you get inflation a few months after the things that cause it take place -- that is what you are suggesting. >> exactly. >> with that in mind, will the fed go in december? >> i don't know. one of the things we try to do and i try to do in advising my colleagues, is let the data tell me what the marketplace is doing. for us right now, because the storms have racked a lot of my district, there is a lot of noise in the data coming out and i'm going to try to go into the field and talk to my business contacts across my district and get a sense of how disruptive it has been and from there, draw a conclusion about what i think we should do in terms of monetary policy. ♪ >> a year ago, eric rosengren

to bloomberg news said we will be close to our 2% inflation target by the end of 2017. i'm picking on you, but that is the kind of forecast that has drawn some questions on global wall street. >> right. if you look back to march, we were still expecting 2% inflation and one of the temporary things that occurred at that time was wireless pricing change, that actually had a big impact on the current numbers. we are trying to get the underlying trend on prices. there can be relative prices that change a lot. that is one reason we focus on core inflation rather than total inflation. sometimes we get spikes in oil that are not predicted, sometimes oil goes way down. that is not predicted, as well. we are not trying to address the relative price changes in the economy. we are trying to get the underlying rate. the reported inflation is quite so for right now -- quite low

for right now, it is a reflection of temporary factors. we are about to have more temporary factors. the hurricane is likely to have had effects on inflation as well. that is not something we should react to either. we can have periods where we have relative price going up and down. we want to get the underlying inflation rate. my expectation is that we will get underlying inflation rate closer to 2% over the course of next year. ♪

♪ michael: you are watching bloomberg best, i'm michael mckee. let's return to our roundup of the week's top business stories with a pledge from saudi arabia to significantly cut back its output of oil. ♪ >> saudi aramco is planning to make the deepest cut in oil supplies in november to reduce global inventories.

they are cutting upwards of 516,000 barrels a day despite the fact demand is holding up pretty strong. i found this interesting at a time when exports from iran and iraq are increasing and they are getting market shares. >> i think they are trying to keep the rhetoric stable. really what opec has always tried to do is help predictability for the demand side of it. they can control supply, but not demand. what is the best they can do? they do this kind of action. it is really now about consolidating the trust they think they have built up with a market over the last year or so. they are showing the price we see today is justified. ♪ >> tensions between the u.s. and turkey are rising, both sides suspending visa services for citizens looking to visit the other country. this comes after turkish president erdogan's government arrested a person who works at a u.s. consulate.

it is taking a toll on the lira and turkish stocks and bonds. >> late sunday evening, the u.s. announced it was suspending nonimmigrant visa services across turkey effective immediately. turkey a few hours later released a similar statement saying it was doing the same for american citizens. the reason behind the move is because last week, turkey arrested a turkish national who worked for the u.s. consul here in istanbul. turkey says he is allegedly involved in the failed coup attempt last year. >> erdogan gave brief remarks in kiev and the most interesting part of those remarks is that he squarely lays the blame on the u.s. ambassador and not the administration, which is perhaps his way of leaving the door open for some sort of reconciliation, direct president to president. ♪ hedge fund cofounder planning

to start two new funds according to bloomberg sources. why now? >> well, investors are leaving hedge funds, but some of the traders who invest for the master fund, they have good track record. if they market their performance, maybe there is a high probability some of those investors can invest with them and this can arrest the decline. they have lost -- they manage less than $12 billion, down from $40 billion four years ago. mark: what gives him the confidence to offer more products of their main fund if they are not doing well? >> macro is making a comeback, maybe a small come back. it seems things are turning positive for these macro managers. ♪ >> billionaire activist investor

bill ackman spoke with number of -- spoke with bloomberg about a wide range of topics. it is his ongoing proxy battle with payroll firm adp that is front and center. he says there will be no compromise with adp because he wants a mandate for change. >> not at this point. what he said is the board would have a serious change of heart to make a settlement. he said if they are willing to implement his plan and push through the changes he wants and maybe one would be enough, that -- enough, but generally, as it stands, he sees no room for compromise. ♪ >> general electric has a new ceo and now a new director. boardden joined the ge yesterday. nelson peltz has been pushing ge to get its profits up since acquiring its stake in 2015. mr. garten said he is disappointed about the recent performance of ge stock, but believes it represents an attractive long-term investment opportunity with significant

upside. is this basically conceding? you were right all along? >> yes, at first, they said they have a good plan and we will leave you alone. then the stock went down. maybe we won't leave you alone and now they are forcing their hand. also another board member was leaving. the timing worked. but the stock has been terrible. there was first euphoria, change of guard, then they realized, this is a $115 billion company, you can't turn it around like that. it will be multiple years to get this thing restructured. restructured, but to turn cash flow and other things around. ♪ >> the continuing saga of uber's legal troubles, the company facing two additional criminal investigations. five ongoing probes of the world's most valuable start up. >> very quickly, we have we have bribery, fcpa -- >> fancy acronyms. >> the rest are not.

the one rooted in the waymo fight with the self driving car, and whether they obtained trade secrets there. we have pricing, hell and a grayball, which are software programs. the fact pricing is under a criminal probe, as well. ♪ francine: aside from brexit, prime minister theresa may is grappling with fallout over trade disputes across the atlantic. this as tensions escalate. how will this end? this has turned ugly. the row threatens jobs at the belfast plant. what is next? >> boeing are the king of corporate welfare in america. they are subsidy junkies and this is the most egregious hypocrisy i have seen in international trade in many years and they need to understand the way in which they are playing does not sit well

with u.k. parliamentarians. the way in which they had sold and leased back the planes to monarch airlines is something i will be referring to the eu commission to look at whether there is an anti-dumping case there. francine: here is boeing's response. the case in the u.s. is about compliance with trade law. they say despite the recent rhetoric regarding these proceedings, this case remains focusing on preserving a level playing field in the aerospace market. ♪ ecb could be close to making a change. while learning from exclusive bloomberg reporting, the central bank considering cutting the monthly bond buying by at least half. starting in january. policymakers could reach an agreement on how much debt the central banks will buy at the ecb's october 26 meeting. is there a need to stipulate that it will end in september? is that causing some division

within the ecb? >> it is quite clear that a decision will be reached in october and it is also quite clear that no matter what the doves, what their perception may become a -- perception may be, they want to exit the program gradually and carefully. whatever reporting has shown is that this compromise might lead to extend the program for nine months at the pace of 30 billion euros per month, half of what has been happening so far. ♪

♪ >> this is the splc function supply chain. you can see shinzo corporation at the top, mitsubishi, toyota, general motors, ford, nissan, honda, clearly this is something that has extended to vehicles on the road. michael: there are about 30,000 functions on the bloomberg and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you will find useful. quic go. it will lead you to our quick takes, where you can get important context and fast insight into timely topics. here is a quick take from this week. ♪ protection from

polio, three and occupations, the second given not less than two weeks after the first. >> a minority of parents believe the most life-saving advance in history does more harm than good. this group seeks to undermine progress against disease in europe and the u.s. and health officials worry about future setbacks. >> two years old, two and a half years old, a child went to have the vaccine and came back and a week later, got a tremendous fever, got very sick, now is autistic. >> >> here is the situation. the vaccine backlash took off in 1998 when the medical journal lancet turned out what turned out to be a fraudulent study linking vaccines to autism. the journal retracted the study in 2010 and u.k. authorities stripped its author of his medical license, but the idea still took hold. preventable diseases are on the rise again in the u.s. and europe. the u.s. was measles free in 2000.

the number of cases spiked to 616 in 2014, worse in europe. there were 14,000 measles cases in 2016, whooping cough has remained at elevated levels since 2012 in both places. the choice not to vaccinate doesn't just affect individual children, since unvaccinated kids live in clusters, groups can lose herd immunity. the pathogen dies out in that area. if communities lose herd immunity, those who can't be vaccinated for medical reasons or are too young, become susceptible to infection. so to those who are immunized, because no vaccine is 100% effective. here is the argument. in the u.s., states set vaccine requirements for school. exemptions -- many states allow exemptions. some public health specialists are limiting these waivers and a court has agreed. in a striking down a religious

exemption, mississippi cited compelling public interest in keeping children healthy. others worry that making vaccinations more compulsory for school attendance will harden the opposition. ♪ michael: 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. thanks for watching. i'm michael mckee. this is bloomberg. ♪ are you on medicare?

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don't wait, call unitedhealthcare or go online to enroll in aarp medicarecomplete. sfx: mnemonic ♪ >> central bankers signal further tightening is still coming as it janet yellen says inflation will start to accelerate. >> the pboc governor has praise and a warning. they say china is chaining the corporate debt is increasing worry. >> upbeat about australia. good times are reportedly on the way. overseas in units are involved and 500 customers are potentially affected. >>