♪ >> coming up on bloomberg best, the stories that shaped the week in business around the world cricket president xi tightens his grip on china's congress. a gamble pays off before shinzo abe. the ecb turns its focus to tapering. >> the decision today is for an open-ended program. david: some of the financial world's most important figures. >> there are places we can invest and improve our market share. >> i don't think one chilling

dollars is too big. >> we are in a whole different environment. david: earnings reports from banks in silicon valley in the spotlight. >> we are swimming upstream. >> market shares are hanging in there. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i'm david gura. this is bloomberg best, your weekly update of important analysis and interviews from around the world. let's begin with a look at the top headlines. on monday, the results of at snap election in japan delivered a boost to the ruling party. >> prime minister shinzo abe's

gamble on an election may have paid off. he comes out of this with a stronger mandate. what does that mean for abenomics? >> it was a victory based on one crumbling opposition. and a referendum on abenomics. we have on employment below 3%. the stock market this up in areas we have not seen since the 1990's. we will likely see a continuation of abenomics, as well as mr. abe's plans to hike consumption tax, but not until 2019. and also, slow moves to revise the constitution. >> what are the most significant ramifications of the win? >> it has to be ugly -- a green light for the stimulus program in japan. the abenomics. it would be a green light for the bank of japan to carry on with their massive asset purchasing program and a green light for abe to go ahead with the consumption tax. the point being, he wants to raise taxes to tackle the

deficit and improve education. we may also hear more calls for greater urgency in japan and pushing through structural reforms. those will be the key challenges for mr. abe going forward. >> china's communist party has approved a charter hearing under xi'guiding principles. s >> this is the clearest signal we have had up to this point that president xi is going to have a grip on the party, the government, and a china, well beyond 2022, possibly for decades beyond. this is an is a tarik, archaic form of wording that is put into the charter, but it is consequential.

they are saying president xi's characteristics are going to be enshrined in the constitution, putting him on the same level in terms of respect as mao zedong. it is significant. >> president xi has ms more ammassed moress power than any leader in a generation. that opens up the prospect that the president can stay in office beyond 2022. >> the politics of it are clear. it is not clear where he will go on the economy agenda. will he be involved into shaking up the state owned sector? will he go hard on the economy? if you look at the personality demoted today where similar

reformers promoted, it is -- >> ecb president mario draghi trying to head for the exit, but draghi emphasizing the central bank will proceed with caution. >> the decision today is for an open-ended program and it will not stop suddenly. it is not going to stop suddenly. matt: we got exactly what the market expected, 30 billion euros in bond purchases per

month from january through september. that is a cut of half of where we are now. also, the ecb maintaining figures where they are well past the end of qe is draghi chooses to end qe at that point. >> stuck by the technicals. he could have had an earlier stop to it if you give himself the flux ability to carry on for longer and possibly increase if needed. jonathan: those third-quarter results showing trade revenue found more than expected of the two institutions exceeding the incline. >> it is a difficult revenue environment. we are swimming upstream and a market that has seen shrinking revenues, particularly financial market revenues.

>> market shares held in their, given what other banks have done. we expect a return to normal levels of volatility and revenues in the investment banking space. >> you are putting more risk on a fairly unknown period in history. the barclays shareholder price is the cost delivery. barclays has given us new range. they have lowered their target. they are doing a good job on costs. ♪ >> the motion is adopted. >> the house has adopted the senate budget resolution. this unlocks a fast-track process to achieve republican goal to cut taxes by the end of the year. big news come up budget just passed! >> republicans in the house will unveil their official tax proposal on the vendor first, next week. five days later -- on november 1, next week. they are on pace for tax relief by the end of the year.

that is good news for investors, but how they will pay for it remains to be seen. >> is it realistic to think we will get done by december 31? >> we have a 1000 page bill coming. we have a ticking clock in the background. my sense here is that we are going to get a bill on november 1 and they will start a markup the following week, but the market will continue into markup will continue into december. at the earliest. then we could get actual passage at the end of the first quarter, beginning of second quarter next year. >> catalan lawmakers voted for an independent republic. >> the parliament, the results of the elections on the 27th of september, has taken a long-awaited and long fought for step.

the great majority of politicians fulfilled a mandate, which was validated by elections. >> the spanish senate voted to revoke catalonian autonomy. bonds dropped, pushing yields the whitest in a week. >> we know that he came under a lot of pressure to do this and they are going to get power over the region starting with the catalan government. the question market is with what the response we will get from catalonia. madrid says this has to stop. what are we going to get in backlash over article 155? >> the catalan government is claiming they don't have control over the administration.

they have not established the authority takes precedence over the spanish state. they want to make a gradual takeover of catalonia. the byword throughout the process is that we should be a promotional response. they want to avoid the violent scenes they saw in october. they need to restore their authority and quickly. david: still ahead as we review the week, david solomon explains how goldman sachs is building its business in your. plus, a conversation with ray dalio. up next, more of the top business headlines. carlyle group announces a secession plan and they put thought into it. >> having this inside outside balance is interesting. david: this is bloomberg. ♪ ♪

david: this is bloomberg best, i'm david gura. let's continue our mobile tour global tour in europe, where officials are

having trouble establishing common ground in brexit negotiations. >> u.k. chancellor philip hammond wrapping up testimony in the house of commons after council president revised the idea of the uk's staying in the eu. while speaking to matters of the parliament. the outcome was fully in the u k's hands. >> they think the cabinet is divided on what the u.k. once as a future trading relationship with the eu and the eu knows until they decide, they can't come to an agreement. when they talk about no brexit or no deal, does it mean everything will fall apart messily?

what does he mean that somehow things will get reversed and the you kate will stay after all? both of those would need -- u.k. will stay after all? both of those would need -- nobody knows how this is going to end. >> excess of nonperforming loans could derail the recovery in italy's financial system according to the country's finance minister. >> this is vital for our economies. my point is that we must be careful in getting the speed right, the timing right. if we do it too fast, we could derail the system. >> it is interesting to hear him talking about the speed of dispersal's. it occurs to me that that is not the and necessary issue.

the issue is that it is marked at a price way above it would trade in the market. an order for the banks to dispose of these loans, they have to accept a price, or they need to find a buyer will and to pay over the market price. the only buyer that would be able to do that is the state and unfortunately, that is in breach of the european union. >> struggling commodity trader agreed to sell its oil does this to this group. >> if we knew it use a medical analogy, is it off life-support? where is it, using medical analogies? >> i would say it is still on life support. we have had clarity on key things. the number one thing is the extension on the waiver. that is critical. they have sold of the oil unit, but there are so many conditions attached. so many if this scenario. how much is going to come out of

it in terms of cash? there is an interest in certain bits. it is not entirely clear what it is worth. it is not clear what the trading business is worth. there are a lot of question marks around it. it helps cement its edition as a world class oil trader. >> cisco's spree continues. it snapped up rod soft in a deal at $1.9 billion, expanding software and of the cloud, a huge priority for the company. talk us to the terms of the company. >> it is a reasonably large premium. if you look at its prospect in august, it is a fairly healthy premium for the sector. it is not a huge deal by cisco standards, but it is there 200 takeover in the history, a

phenomenal number. we usually see cisco do smaller numbers. from what we understand, it was a competitive process. there were other people interested in the asset and that is reflected in a decent premium cisco ended up paying. >> apples iphone x hit stores next week but a new report struggles is clouding the rollout according to japan's nikkei. initial shipments will only be around half of what was expected this year after it has been battling technical issues. >> there has been news, we heard about the display technology about a year ago, that we dug into the story about the 3-d sensor. that is the biggest bottleneck that can't get enough components. they are the people making the

modules that go into the phone. they admitted it would cause supply constraints. there is increasing concerns that they would be slightly worse than a lunch quarter. >> carlyle announced a secession plan. they will become co-ceos january 1. his partner bill conway will become co-executive chairman. what will this mean for carlyle? >> you have this pair of guys, one of whom has been at the firm his entire adult life. he joined in the mid-1990's and seen the growth of carlyle since it's inception in the late 1980's. to suddenly is a rare bird because he did most of his work at another firm. he joined carlyle a few years ago. having this inside, outside balance is interesting. >> india's state run banks, the government pledged to inject $32 billion into the lenders.

it is catching everybody by surprise but making a rare headline. >> they are increasing the efficient capital by 10 fold has cut everybody by surprise. they have already said it is a positive move. equity markets are -- this move. this will help tanks clear up bad loans -- help banks clear up the bad loans.

this will help them clear the balance sheet and add more loans to the economy, which will help reviving the economy and profitability in the next couple of years. >> the sec says firms can accept research payments from eu clients. 30 months reprieve to u.s. firms on the -- coming into effect on january. >> this is what wall street brokerages have been pushing for in washington. they got the sec, wall street's made regulator to step in and tell them they are able to accept research payments, as will be required under european rules, for the european clients, and it will not have to register as investment advisors. that would heap on a bunch of additional requirements and it could be costly. they did not want to do that. they are getting a reprieve today and the brokerages are happy. two and a half years from now, we don't know. we will see. >> president trump is leaning toward appointing jerome powell

to be the next chairman of the fed. this according to three people familiar with the matter. we will hear for definite before november 3 according to the president himself leaving for asia that day. what will he bring to the fed that janet yellen hasn't got? >> what would he bring that janet yellen hasn't brought? probably nothing. he is not an economist, so he will be following the policies that were set in place, and then be influenced by the staff or anybody who is appointed as vice chair or who would replace yellen if she decides to leave the board. probably, you would see it as yellen-light. she keeps wall street on the

same course. you don't like to deviate and maybe that is what trump is thinking. ♪ ♪

♪ david: welcome back to bloomberg best i'm david gura. goldman sachs president david solomon sees great potential in his firm to expand their business in europe. he discussed those opportunities with my colleague, alix steel. >> there are places we can add market share and one of the

things you know is that a portion of our growth initiative is focused on places receive market share opportunities in equities, or was he claimed gaps in places where by adding market resources, we can influence market share. we have strong market share across europe. we have good market share in sales and trading equity business and investment management business. but there are places we can invest and improve our market share and position. we are focused on making those investments and making sure we are creating growth opportunities. it is in banking, too. one of the things in banking we have looked at is that we have broad market share and abroad footprint, but there are places we can grow that footprint. as market cap expense, there are more that could be under the radar screen. we are looking at our footprint and our investment management business. we invest in that business and private wealth area -- wealth. >> you brought up lending. you unveiled this good plan and it seems you are focused on that area analysts are looking for how they judge it. if i am a market participant and i look at goldman and say, are you delivering on your promises,

what do i look at? >> there are different things you can look at. if you look at the lending business, it is a broad term and touches a lot of activities we engage in. on one hand, we have made a push to broaden our debt capital markets capability and we improved our market share. if you look at our performance, it is a record for the firm. that is a form of lending. we have corporate clients making acquisitions. we are looking to purchase companies in the market. we are lending into them to support the business. >> that means revenue. >> revenue is a metric. one of the things i know you are

aware of, a consumer platform. it is a new area of expansion for us. this is a business where customers who have credit card debt can manage that debt more effectively with a fixed rate, no fee loan. we are excited about the product. we have been rolling that product out in the early stage. we are on track to have $200 billion in loans, but that is a business that will be a nice conservation to the firm. there will be more as the business progresses. david: coming up on bloomberg best, you want earnings reports? we had earnings reports. a very busy week. plus conversations with a star-studded conference in saudi arabia. plenty just ahead. >> i look at the 2017, 2018 very differently at how we received

2007, 2008, 2009. david: this is bloomberg. ♪ retail.

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♪ >> i think the boj will be importing some reflation from the rest of the world in the next year and that will help them as they comfortably stay on hold with their yield control target as it is. >> how do you say boj policy adapting to what has been a growing economy? slight growth. but again, inflation is stubbornly low at .7%. >> that is the point. we can see there is a very difficult process and using growth as a tool to try and get out of the deflationary psychology japan has been in.

if we are right, we will be sitting here a year from now with core inflation below 1%. the boj is looking for it to get to 2% not long after that, and that will be a story that says the boj will have to stay here and hold its policy stands for a -- stance for a long time, even in the face of what we expect to be good growth. we don't know how far it will have to run before you can jumpstart the economy in terms of its reflationary dynamic, but it seems to us it is going to take more than a year even with good growth. >> that was jpmorgan chief global economist discussing the snap election. the epicenter had to be riyadh. several of those influential guests sat down with interviews with bloomberg television.

must recognize there are some european challenge us which require european responses, like migration, like security, like growth and jobs. there are national responses which are insufficient. we need to integrate them with a higher level of policy. >> so there is a lot more work that needs to be done to slow down the trend we are seeing and afford further autonomy? problemsare structural and there is a window of opportunity to deal with them because the european economy is building at a healthy rate and with lots of job creation. we must reform at our institutions and make them more flexible. talk about the tiny and, growth projections this year are 1.5%. -- the italian economy, growth projections this year are 1.5%. >> i think it could be a little stronger.

more do youow much think economy could grow if you give it a rough range? reforms were fully implemented and all the resources mobilized towards public investment or spent, we could go up to 2%. ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested debtthe rising amount of could trigger the next crisis and he was spot on. yet?e at that point with the accumulation of debt, particularly in markets that aren't as visible as they used to be to financial regulators? accumulation of debt is getting to the point of confronting another crisis? >> i look at 2017, 2018 very differently than how we perceived 2007, 2008, 2009.

the financial institutions were so much more levered and less transparent in the 2007-2008 period. i would argue financial institutions, at least in the u.s., have had an enormous improvement in balance sheets and we should take comfort. yes, people are using leverage and yes, there are individual investors and institutions that continue to buy long-term assets with short-term liabilities, yes you should scratch your head over that, but that is an institutional issue. i don't think that is a market ank as much as i think it is investor or institutional risk. >> blackstone has intentions, plans of doubling its assets in the next five years. two roughly $8 billion. blackstone has doubled its assets over the last five years. they are planning to continue on the same pace of growth even though they have become so much larger. where does carlyle find to be in five years? >> our firm is in very good

shape. we continue to grow. asset and management will row, and the quality of our investments will continue to be good, but i do not have a number. >> it was said blackstone could -- a trillion dollar firm. is it possible for an asset manager to be too big? >> i'm not sure. many people thought 20 million was too big. as the world changes, i don't think $1 trillion is too big. i don't know what blackstone or or 10e will be in five years from now, but i don't think it will be too big. blackrock is 6 trillion or something under management, who would have thought that when they started in 1989. it is hard to say. >> in principle? >> well, we are very ambitious we will done is and a good job for our investors, as blackstone will do a good job

for their investors. we don't have any limits. david: not every wall street superstar was in wall street -- in riyadh this week. this week. ray dalio paid a visit to bloomberg surveillance and share his insights on the market and economy. >> from 2008 until 2017, we were in a certain type of environment, and that environment was one in which there was a pushing of interest rates down to the point of creating negative interest rates with a positive carry by doing quantitative easing to push money into the system. 2017 is the transition of an ending of that around the world and we are entering a new era in which there is going to be, and there is, the raising of interest rates and dissing of -- and the reducing of quantitative easing. that action produced significantly bad real interest rates. i mean, real interest rates -- 10 year real interest rates are

about .5%. >> next to nothing. >> next to nothing. and the breakeven inflation rate for 10 years is about 1.8%. those numbers are low because of , let's call it, repression to get the economy to do that. we are in a transition. a whole different environment. that is the equivalent of the late stage of a cycle. that is when there is a tightening. tightening becomes progressively more concerning because as you move along, they are more difficult to get perfect. >> how much does personality matter in the federal reserve? what do you think he or she needs to focus on when it comes to the health of the economy? >> it can matter a lot. we have the pace of fed policy, since we are talking about it, the pace at which there is an unwinding of the balance sheet. i look at those numbers and i don't think they will continue that pace because it is the equivalent of 2.5% gdp.

if you have that happening at the same time of increased to deficits, we can have an -- deficit increase of 1.5% gdp, a big number in the supply demand of bonds. there will be that amount of effective selling and credit by the federal reserve -- tom: are you predicting with the tax reform proposed as douglas keegan talks about, going to to 7% deficit to gdp? >> we will almost certainly have a significant move in that direction. you can even see it had market action. in other words, on days where it looks like they are making it progress, --e there is going to be a larger deficit every that means more selling of bonds. at the same time as there is more selling of bonds by the federal reserve in the balance sheet change. i think they will be cautious in

this but in this part of the cycle, it is very delicate. ♪

♪ david: you are watching best" i'm bloomberg david gura. another week, another round of corporate earnings reports. >> a blowout earnings quarter for big tech. amazon, alphabet, intel, and microsoft beat wall street estimates. >> there was all this speculation on how the whole foods acquisition would fare for amazon. it looks favorable. there was a lot of anxiety about how that would go, mostly about how much amazon would spend on it. investors i spoke with were pleased amazon make money. -- made some money, even though they were kind of -- had integration plus one time and that was an indication it would

not be as costly out of the gate has some of them feared. >> walmart is stepping up the competition against amazon, too. is there any signs it is making a dent? >> that was another wildcard heading into earnings. the message to investors there is, walmart might be doing a lot and innovating a lot and grabbing a lot of headlines, but amazon's growth continues to roar along strong and they are projecting a very strong holiday quarter. >> 47% paid click growth is extraordinary for a company this gigantic and a company that feels like it has been omnipresent in our life for years now. going up against facebook and amazon, nearly 50% growth is extraordinary. >> it is. it is extraordinary, it is a global phenomenon. the search part of our daily usage of the internet remains extraordinarily robust, even though we are spending more time on amazon and facebook.

forth.nd so but the core search function, even in our daily mobile life is seeing 50% increase in clicks. the flipside is that the pricing on a per click basis is down double-digits. but when you put it all together, it turns out topline growth for alphabet is extraordinary. >> microsoft pushed into cloud-based software seems to be a push. what does this say about the rest of the earnings season? >> microsoft has its history in the pc-based computing, along with intel and some other companies. it has struggled to move beyond that in cases. some years have been rough. this was a strong quarter where they have shifted customers over to the cloud-based services they have got, that has been a profitable growth driver for them. what this signals more broadly is that investors are getting positive signs as there are concerns about evaluations of tech companies. they are getting data points to help reassure them there is

growth to go in these earnings. >> baidu shares under pressure in the extended session after sales forecasts phil shy of estimates. this comes at a time when they are attempting to alter course after a difficult for 16. -- difficult 2016. >> baidu hast to find a new place to earn money from. they have tried that with food or unsuccessfully, now they are putting all of its eggs into artificial intelligence being the future. tot is what it is trying convince shareholders, to stay the course, stay with the company and don't sell shares just yet. we can actually make this into something worth doing. >> ubs's capital both has rebounded in the third quarter while profit at the investment banking unit sword. >> do we get a buyback? >> it is one thing to talk about

our capital return policy, i mentioned that in the past, we reached capital levels needed to fulfill regulatory requirements for 2020. so capital buildup is done. we are looking to continue to implement our progressive policy -- dividend policy on our cash dividend and eventually complement it with capital returns through share buyback, but it is too early to talk about it. >> clearly, we are coming from a disappointment last quarter. i think investors were reassured to see what drove capital lower last quarter was not repeated. we have seen a reversal above expectations. so clearly at this point of the turnaround, that is what investors have been looking for for the model to now deliver the higher dividend, the higher dividends they are not getting from the banks. >> general motors released its

earnings for the third quarter just over 30 minutes ago and it beat estimates. you beat both on revenue and on earnings per share. that is a nice story. what is the real story here? there is some softness in the vehicle market. >> i would say the story from our perspective, the third quarter was on plan when you look at production downtime we had and production being down 26%. within that, we generated solid results at enterprise-level, $2.5 billion profit. 7.5% margins. in north america, $2.1 billion and 8.3% margins, which i think demonstrates the resilience of the business, even in a quarter where production was down 26%. importantly, we took a big step toward getting our dealer inventory in line as we go through fourth quarter and we now expect our dealer inventory at the end of 2017 will be lower than 2016, which will set us up for a good start in 2018.

>> ford announced its third-quarter earnings at the top of the hour, beating beating estimates on revenue and earnings per share. how much is topline growth and how much is cost control? >> well, the vast majority, david, is good cost management. cost control. we have had over $7 million of good news on a year-over-year basis in terms of cost, inclusive of $300 million in increased commodity costs. the team did a good job in terms of delivering strong cost performance. the thing that was encouraging was that across many aspect of severald also across very important parts of our business. really excited about that and see it as a down payment on our efforts to improve the fitness of the company. >> boeing, the big performing stock on the year. it delivers some solid results, as well. eps is a beat, the forecast is

better, what is driving it? >> the big concern with boeing is that as they put their legacy plane off the market and shifted to newer production, people were -- baker jets they were putting out, people were worried we would see a hit to cash. whenever you launch a new plan, that requires a significant amount of upfront investment and there are costs involved in that as you move through the investment cycle. that is not happening and boeing has shown significantly better cash flow than what investors were expecting. that is what is getting people optimism. they have also increased productions for their newest jet, the 787, and that is also making mark comfortable with the fact this strong aerospace cycle we have been in will continue to be strong. >> a big third quarter miss for chipotle. eps came in at $.69, well below of one point $60. hurricanes and a hacker attack took a toll on profits. >> we also had the virus in virginia.

that is a big part of what happened. they also guided down for the fourth quarter now based on their four-year guidance, they are saying it will drop 1%. part of it they are planning on the hurricanes in florida. that is below the 2% we were expecting. the virus is having an impact and that is what we thought, it would delay the recovery moving forward. >> one top investor getting burned by chipotle is billionaire bill ackman. >> he has been in the stock since december 2016 and we have seen a lot of turnover in management and directional changes. he has been a part of all that. he has been working with the board to implement those changes. i think he believes he is effecting change. some permanent structural changes that will improve the direction of the company. earningsis reported

per share for the third quarter that beat estimates. they reconfirmed its outlets since 2017. manus: profitability has risen for the first time in three years. it is not often we get to say this to the ceo, what went right in the quarter? >> i feel good about the quarter. it all contributed to growth. our medicines division, we have a couple of new drugs firing on all cylinders, generating good growth. our generics business, despite competitive and pricing pressures in the u.s., also grew on a constant currency basis. but i think the best part about the quarter was that our outcome business grew sales 7% and profit almost 20%. i feel good about where we are. we are positioned as a focused company. with a very strong pipeline for the future. >> eli lilly reported its third-quarter earnings this morning, beating estimates on earnings for the rest of the -- they also took up its

forecast of earnings for the rest of the year. >> the performance was very strong coming driven by new products. top line growth at 9%, driving 19% bottom line growth, because we kept productivity in place and only grew operating expenses 3%. this is the story of pipeline launching. products launched since 2014 are more than 20% of our revenue base and growing rapidly. that is giving us tremendous financial performance. we have seen that in q3. we are able to reinvest in the next wave of innovation and deliver value to the shareholders. >> big oil dealt with third-quarter earnings this morning. exxon mobil topping estimates and edging higher while chevron posted a miss and cut their guidance. >> most of the majors had a dark in september. ex, jettisoning their nonperforming assets and turning back towards giving shareholders value by delivering profitability and not delivering. one of those is exxon. they killed it on numbers but

they are also increasing capex, which is against the trend. says thence's total imbalance between crude supply and demand is dissipating as it posted the highest earnings from pumping oil and gas in two years. meanwhile, italy's any says production will rise to a seven-year high later this year. >> a beat by took how was a slight miss. nobody is excited about the numbers but there is an actual -- a much bigger story unfolding here, which is they are now reaping the rewards of several years of fairly conservative balance sheet, cutting back on spending, firing people, delaying projects and all of that is now feeding through to the bottom line. ♪

♪ >> we hopped back into the look at the relative value function. even after the huge move trading at 11% discount, also trading at 18% discount. some value investors like to look at that metric. stocksots suggest oh

moving on most metrics, trading toward historical lows. david: there are some 30,000 functions and we always like showing you our favorites. here is another function you will find useful. quic go. here is a quick take from this week. >> there is a global trend taking place, a lower percentage of people are smoking cigarettes. this has forced tobacco companies to create products to keep them profitable. their answer may come in the form of an increase in -- increasingly -- popular alternative to smoking, vapin g. does that come with its own issues? a chinese pharmacist and smoker developed the e-cigarette in 2003. the device uses no tobacco. a battery heats nicotine liquid, which the puffer inhales and exhales vapor. some do use tobacco, but it is

heated to a much lower temperature than a regular cigarette. they are said to have a taste and nicotine boost comparable to traditional cigarettes, a boost better than e-cigarettes. there is no burning tobacco in both devices and thus, no tar. -- smoke or tar. the u.s. fda embraced invading as a way for smokers to quit. tobacco companies are expected to increase investments in e-cigarettes, the market for which is estimated at $7 billion a year and growing rapidly. here is the argument. some help groups say vaping products may be a gateway for kids to smoke cigarettes. a government survey showed e-cigarette usage increasing since 2011. before a slight drop-off. however, the rise was countered by by the drop of use in conventional tobacco products. according to a 2014 study, they being might be as effective for smokers trying to quit.

it is too new to be a significant body of research on long-term health effects, but a 2015 independent review of evidence concluded raping -- vaping is about 95% less harmful than smoking. it is too early to say, but vaping may be the breath of fresh air smokers have been looking for. david: that was just one of the many quick takes you can find on bloomberg. you can also find them on bloomberg.com with the latest bloomberg business and analysis 24 hours a day. that will be all for bloomberg best" this week. thank you for watching. i'm david gura. this is bloomberg. ♪