♪ shery: coming up on "bloomberg best," the stories that shaped the week in business around the world. a new year brings a new assessment of global risks from eurasia group. distinguished guests delve into the details. >> the number one risk ceo's see out there is geopolitical. >> this transition from the u.s. is not going to china. china is creating an alternative. >> the unpredictability of key leaders, the lack of a north star with the united states stepping back in so many ways. shery: so what else is new? mifid ii rules go into effect, and the u.s. releases the old year's file jobs report.

>> wage growth at .3% -- that is just not good enough. shery: it's all straight ahead on "bloomberg best." ♪ shery: hello and welcome. i'm shery ahn. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews around the world. on tuesday, eurasia group released its top 10 global risks for 2018. in a bloomberg "surveillance" special, a distinguished panel of guests discussed it in detail. tom keene began the conversation

by asking why the prevailing talent is so gloomy. >> because when the global economy feels the way geopolitics do today, people respond. they see it is a crisis. they know they need to do something. they've got to bail things out, do infrastructure projects, get the banks ready. we had that back in 2008, and everyone knew -- we talked about this -- we all knew it was a crisis and we had to respond. geopolitics are easily as bad today as the economics were in 2008. they might be worse, and yet, there is no crisis, no sense of we have to respond. in fact, if you look at the americas, the one superpower in the world, the one country that could conceivably help to respond and dig us out of this crisis, it's actively doubling down. we are saying we have no intention of providing the kind of certainty to our allies or

supporting institutions, so as a consequence, anyone who looks at geopolitics today has to understand this is not sustainable and the crises are coming. tom: your mckinsey global institute is just a miracle, what you do there. i don't care about that. i want to know what businesses are going to do this year. dr. bremmer talks about accidents. you cannot do three or five-year planning amid a milieu of accidents. what do you see in the behavior of c-class officers this year? >> it is the yin and the yang. we should recall there is growth and over the past couple of years, we have seen that improve. the challenge is you have to go after that growth but at the same time, be prepared for these risks. the number one risk ceo's see out there is geopolitical. that is the number one risk. the problem with those risks is they are not probability curves. they are one or zero. if something goes pear-shaped, it is bad.

there's issues about resilience. while you are growing, what are you doing for resilience? what does your supply chain look like? how will it withstand some of the shocks that ian is talking about? how do you think about agility in your organization to be able to move resources very quickly -- how do you think about agility in your organization? also we are on the brink of a massive technology transformation. tom: francine, please, jump in from london. francine: is 2018 the year protectionism strikes back? >> 2018 is certainly the year we see much bigger fragmentation because governments are becoming more interventionist. part of that is because the chinese have an alternative model for their investments, and they will be seen as increasingly the most important driver of other economies around the world who will align themselves more with beijing than with washington. part of it is that president trump here in the united states, who in 2017 talked a lot about protectionism, talked about beating up on trade deals, but aside from leaving the transpacific partnership, did

who in 2017 talked a lot about not do very much. in 2018, the u.s.-china economic relationship gets worse. in 2018, nafta has to get renegotiated in the midst of a mexican presidential election. that is not likely to go well. clearly, this is the year we will talk a lot about not only traditional tariff barriers but also nontariff barriers and government support/protectionism for their own industries. francine: what does this mean for globalization? depending on your outlook, what would you advise ceo's to do? >> we are also worried about this trade issue. nafta is the big one on the table right now, as to how that goes. that will be a bellwether, i think, as to how that moves because once we start going against trade, it is a race to the bottom. i hope that will not happen, but it is a big risk that is there.

what ceo's and organizations have to think about is you have to think about being localized. the idea of being a multinational, you have your supply chain around the world. you have to be localized. what are you doing for the local economy? how resilient are you? how do you move people? there are shortages of talent. how do you deal with all of a sudden a shutdown a trade? -- a shutdown in trade? tom: you lead this year with china and the vacuum of china. how powerful is their leadership? how assertive can they be this year? >> the most important speech i have heard in my life on the global stage since gorbachev declared the end of the soviet union in 1991 was when xi jinping stood up at the end of the 19th party congress and said china is ready to play a global role. "we are prepared to become a

global superpower." they had never said that before. tom: what was the distinctive feature for eurasia? >> it was that china is no longer small, no longer modest, they will no longer be underneath them. they see that not only are they bigger than they have ever been before, not only does china will have consolidated leadership under the strongest leader they have had since mao -- may be greater than that -- but also that is happening in the context of nobody else. it is happening in the context of trump. if trump has had one major impact on the global order -- and he has -- it has been the road that he has created for xi jinping. the opportunity for the chinese to just really occupy some of that vacuum. but the last time we had a big transformation of global order was the u.k. to the u.s. special relationship, great allies, fought in the war together.

now, this transition from the united states -- not going to china. china is creating an alternative. francine: where do you see the relationship between australia and china going, and will that hurt trade and investment in australia? >> obviously, there are political tensions between the governments at present. prime minister turnbull has made a series of statements about chinese activities in australia. this has caused reaction from beijing. we will see how this stabilizes in the period ahead or if it does not, and furthermore, we will see if economic consequences flow from the current political instabilities, but i get back to my earlier point. the relationship between china and australia is one of a much broader equation involving all regional governments where the rise of china is a palpable phenomenon.

shery: coming up, more discussion of eurasia group's top risks for 2018. wall street must change the way it deals with women. >> it is not just sexual harassment. it is a lack of diversity. shery: and former treasury secretary jack lew does not think the new u.s. tax legislation will have a positive impact. >> leaving us broke so we cannot deal with these fundamental problems so we are further behind than making progress. shery: this is bloomberg. ♪

♪ shery: welcome back to "bloomberg best." we're examining eurasia group's report on top global risks for 2018. high on the list is a global tech cold war. microsoft's president and chief legal officer brad smith

described the international landscape for technology. brown: -- brad: at one level, i.t., information technology, has become more global. the industry has become more global. this is another area where ian has been saying we are seeing the rise of china. we are seeing chinese tech leaders emerge as global tech leaders, but at the same time, we are seeing fragmentation in the sector. there no longer in some respects is quite as global and internet -- global an internet as there was a decade ago and five years from now, we may see more of that fragmentation -- there is no longer in some respects is quite as global and internet. tom: how afraid should google and apple be of washington? brad: there is an increasing tension between the west coast and east coast. i think we have seen this unfold over the last decade. you certainly see political commentators and washington, d.c. identify the tech sector as a piñata, as you mentioned. it is not just those on the left. it's those on the right, those

on the center. i do not know that people have yet transferred that concern about technology into a defined course of potential political regulation, but that could come, and i think it really behooves all of us in the tech sector to be listening to that and be out addressing the concerns and even just acknowledging the concerns, which silicon valley has sometimes been a little bit slow to do. tom: let's go to the commonwealth of massachusetts and talk to ian bremmer about the tech commons. what a great phrase within your study of technology for this year. what is it and what does it mean for us? >> you have the president of microsoft saying that what we thought was going to be a global tech commons increasingly looks like you are going to see

fragmentation. you see that in the internet space. as we move from the information revolution to a data revolution, it is much more top-down, right. you can the space that is being created, the way people are engaging and the filters people see to engage in commerce or surveillance are increasingly coming from a bunch of fragmented companies that are competing with each other very sophisticated in the u.s. or through the chinese government. those are two completely different models. that is not the u.s.-led globalization we have been thinking about for the past 40 years. i think you could make an argument that the facebooks and googles and microsofts are easily as strategically important for the united states for our economy and national security as lockheed and raytheon ever were during the cold war, but i do not think the u.s. government is prepared to align with these companies that way. i don't think they have the technological sophistication to

understand how to do it, and i also think that some of the silicon valley libertarianism is part of the problem. in china, you want to talk about patriotic corporations, it is all kind of the same thing. i think that is an incredibly important space for brad to be a leader on. shery: among the biggest risks for global wall street in 2018 -- institutional inequality. sallie krawcheck says business and government are failing women and a culture change is necessary. >> somehow, as a country, we are calling mantocracies that are 95% men meritocracy's and believing it. silicon valley, wall street, which have been these epicenters of harassment actually are not providing particularly good returns for their investors. venture capital funds, mostly you could just invest in the public markets. it is not just the sexual harassment. it is a lack of diversity, which has led to poor results, which has made all of us poorer. francine: are you going to see a shift in 2018? was 2017 and inflection point? >> i think there's no doubt.

we had in 2017 what i believe is the largest march in history, with over 3 million people, 5 million people, etc. people were asking where is this generation's gloria steinem. she did not show, so women started naming names and something happened that was very different than what happened before. we supported each other and rallied around each other. tom: we are behind on this policy, this policy for families and on and on and on and on, and we see that with the tone of this present administration. i would not editorialize, but say it is the observance at the end of the year. what would you say to the leader of our big banks, the leaders of our investment banking, the leader of our brokerage firms? >> i will never forget being on your show last year, a couple of

years ago, where leo was a portfolio manager, and he turned to me and we were talking about women in business and he said, "we just love having women. we just find it hard to keep them." tom: i remember this. >> i turned to him. i was like "your mom says to be polite." and i said, "have you thought about promoting them?" and he just went, "oh, what a novel idea." promote them, promote them, promote them. the very first new story of 2018 is #timesup, which is women in hollywood coming together to put money behind the issue. tom: take this into top risk. >> we have talked about developed country institutions, and the number one risk is that trump provides space for the chinese to actually do a lot more. you cannot look at the #metoo movement in the absence of

president trump. it is probably the single biggest domestic impact he has had in the united states. >> yes. >> it is precisely the fact that women around the country and around the world are looking at democratic institutions and saying these do not feel legitimate for me. they don't feel legitimate for us, and we don't think the governments are going to fix them. shery: still ahead, former u.s. treasury secretary jack lew joins a conversation on global risk in 2018. he sees significant risk in the gop's recent tax overhaul. >> i fear the next shoe to drop will be an attack on the most vulnerable in our society. shery: this is bloomberg.

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♪ shery: you are watching "bloomberg best." i'm shery ahn. former u.s. treasury secretary jack lew joined this week's "surveillance" special, analyzing eurasia's report on -- analyzing eurasia group's report on the top risks of 2018. he noted a common thread in the report. >> the thing that underlies so much of it is chaos. it is the unpredictability of key leaders, the lack of a north are with the united states stepping back in so many ways, and it is this kind of destructive policy without anything constructive to take its place, and that is true on issue after issue here in the united states. you look at markets over the last year, the calmness of the markets, enthusiasm of markets almost suggest we should look

past this uncertainty because what can we do about it, but the moment comes when something happens that is a surprise or should not be a surprise, i worry about binary changes. tom: i want to go back to the beginning of your career with joe moakley of massachusetts, who was the most basic of politicians from another time. what does your democratic party need to do to provide leadership within this chaos? what do you wish from mr. schumer, ms. pelosi, and many others? >> fundamentally, democrats are not in charge right now, so i don't think it is fair or realistic to look to democrats lead the way out of this. you have an administration chose to make policy in a very one-party way, did not include democrats in any of the conversations and now cannot rally their own troops to do the

basic business of running the government, making sure we do not default on the debt, making sure children do not get thrown off health insurance. i think the challenge will be to truly work together, and that does not mean coming with a fait accompli and saying "we need your vote." it means doing things you otherwise would not have done to reach a consensus around reasonable compromise. reasonable compromise is the basis around working together. we are not seeing any of that. >> you called this tax bill dangerous. why? >> if you look at the tax bill, what it does is almost the exact opposite of what anxious and angry voters were calling for in an election just a year ago. you have people who were worried about where they fit in an economy where technology and trade and globalization seem to be changing all the rules they grew up with. what we need is training, education, infrastructure. we need to invest in the kind of workforce of the future that gives people confidence.

what we have seen as a tax cut that spends money we don't have to have very concentrated benefits for global corporations and the top 1%, and it's leaving us broke so that we cannot deal with these fundamental problems, so we are farther behind in actually making progress, and i fear the next shoe to drop will be an attack on the most vulnerable in our society. how are we going to pay for the deficit caused by the tax cut? you will see legislation to take basic food support away from poor people, to attack medicare and social security. one could not have made up a more cynical strategy. >> people are going to reject things that otherwise are good when they do not work for them. free trade -- good thing for global growth, but people reject it if they think it does not work for them. technology -- obviously a good thing, but they reject it when they see it does not work for them. what jack is saying now is on the back of this extraordinary tax bill, if you do not see cuts

for the average american people, the response is going to be vast rejection of the establishment and political polarization. democrats and republicans both have to deal with that. >> this did not arrive with the election of donald trump. the united states has been spending money it has not had for a long time. my question is, why is this any different to what we have seen before? >> i have been in office in several different periods. i spent three years running the office of management and budget in the clinton administration, we ran a surplus. we fixed the problem. when i can into the office of management and budget in the obama administration, we went from a deficit of almost 10% of

gdp to 3% of gdp. we have now intentionally as a government made the decision to add substantial amounts of debt at a time when the economy does not need fiscal stimulus. when it needs is targeted investment. the risk of the tax bill is both further disenchantment with institutions, and if you look at -- and the report gets to this, the kind of rejection of institutions. how are people going to respect institutions more when they realize what the tax bill does? tom: ian bremmer, you grew up tough in chelsea. when you are living fat and large in weston or wellesley hills, you know where chelsea is. how would your mother do it today in this environment? could you have gotten to tulane in this milieu today? >> let's be clear, i did not grow up tough. i grew up getting my ass kicked. [laughter] slightly different. if you look at me, you understand why. but i am good for radio. today, my mother would have voted for trump or maybe for bernie sanders. there is no way she would have voted for a mainstream democrat. -- mainstream democrat or republican. my brother voted for trump. there ain't nobody else from my neighborhood that got out of the chelsea projects that is now talking on bloomberg, and i think it is precisely that

environment, environments like it all over the country that are saying this is not working. tom: what does your party need to do to get dominance in chelseas of wisconsin or minnesota where you lost the election? >> that is a good question and what you're talking about used to be the base of the democratic party, and we need to find a way to communicate with people talking about the things that i am talking about. ian is right. you cannot win by saying trade is the whole problem when that is not the whole problem. you have to talk to people respectfully and explain what it is you're going to do so they can have a piece of the economic pie going forward. shery: you can find more interviews from "surveillance" at bloomberg.com. up next, top news stories including the last jobs report of 2017 and the first phase of financial regulations known as mifid ii. >> today, if you talk to anyone in the market, it's like being on a customer service helpline. everyone has got their complaints. shery: this is bloomberg. ♪

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♪ shery: this is "bloomberg best." i'm shery ahn. let's take a day by day look back at the top headlines from the first weeks of 2018. markets were closed on monday, but the dominant story is the -- as the week began involved the resumption of nuclear gamesmanship from north korea. >> kim jong-un has warned the u.s. the the nuclear capability is a reality, not a threat and was reviving his grandfathers tradition of this message. -- of a new year's message. how significant is the new year's overture to south korea? >> this is significant. it's a tactical shift for the north korean leader. he has been being provocative all last year in his comments,

and particularly those directed towards the united states and president trump. this is kind of an olive branch, saying he would be willing to have talks with south korea. he wants the olympics to go well. this really is a change. we will see how significant it is, in terms of what kind of talks they are willing to have. but as part of the new year's message, this was a definite shift. >> president donald trump has responded to kim jong-un's latest threats, saying the u.s. has a more bigger and more powerful nuclear button. the one-upsmanship continues. north korea opened communication lies with the south the first time in two years. is trump's pressure having an -- having as big an impact as he is claiming? >> geopolitics are very quickly

back to center stage in 2018. there are too top -- they are two sides to the story. on one side, we have kim come out and saying he wanted to have better relations with south korea, and this morning, they were testing ended technical checks on the phone to communicate between the two sides. this is in advance of the two sides meeting next week. that's all very positive. the flipside is that front -- is that trump continues to take a very hard stance, and the u.s. is concerned that this could be a ploy that north korea is seeking to drive a wedge between south korea and the u.s. on the nuclear issue. >> the biggest shakeup to europe -- to european regulation a decade is finally here, mifid ii takes effect and the question remains, is everybody ready? >> i hope so. a lot of work has gone on at the firm level to make sure the systems and processes are now in place. but certainly, i would be surprised if every single firm

was ready as of today. i there's some assumption by regulators that process and system changes will take some time. and the actions won't be pursued on day one of things are ready. >> is their probability of a -- is there probability of a research price war starting to take place? >> i think that's an happening over the past three months, going back to september and august. we saw very high prices being posted by the sell side for research coverage and with all those price quotations come down quite significantly in recent months. that is evidence really that price competition is having ultimately a positive impact from the research consumer perspective and the end client of asset managers. >> is it way too early to say mifid ii is better? it's a better sequel back to films of its predecessor? >> today, if you talk to anyone in the market, it's like being on a customer service helpline. everyone has got their complaint and thier story about how

annoying it is and what headache it is to employee mifid ii. it's too early, but there are plenty of delays and reprieves and grace periods in this relation that hasn't been fully implemented yet. >> president trump baking away -- breaking away from steve bannon. he says he has quote lost his mind. give us the backstory. >> there's a new book coming out that is going to be explosive and some of the excerpts have come out today. steve bannon's interviews among them. they certainly are explosive and are a formal splitting of this relationship that has been strained since bannon was forced out of the white house for months ago. but it still existed. this seems like a real turning point. >> what has happened over the past year is that trump and bannon believe they are responsible for trump's election, that they are the

leaders of the nationalist movement that elected trump. i think the near-term effect is it is going to weaken bannon's movements. this insurgent splinter faction of right-wing republicans. the other thing that hasn't got a lot of attention and is worth focusing on, bannon's main benefactor is robert and rebekah mercer, who's hedge fund fortune has supported a lot of the organizations the bannon has been in charge of, like "breitbart news." mercer came out yesterday and indicated she is going to withdraw that support. i think that is going to make bannon much weaker and will be good news for moderate republicans. >> commodities on a 15 day winning streak on the bloomberg commodity index, a record run. crude at levels we haven't seen in three years. what is driving it? >> you have a combination of

things. opec production cuts, saudi arabia and russia getting together, for more than a year, reducing production significantly, more than anyone had expected. what is new is how strong the global economy is doing, look at the pmi and the manufacturing index. the highest in seven years. manufacturing activity requires diesel the power machines at a -- machines and a lot of petrochemicals to produce plastic. a good example, german unemployment falling to an all-time low. that's adding to crude oil and other commodities and that's where we see the prices are the highest we've seen in three years time. >> about 25,000 for the first time ever in the dow industrials. record highs once again. >> it's only three days in. is there anything we can say about this is the best three days since x? >> the fascinating thing is this massive commodities rally.

you have seen the dollar increasing and the futures commodity index isn't quite keeping up with the spot. the dollar's on everyone's mind right now, along with the flattening yield curve in the linkage between the two. for now, it's very much a commodities driven story in the stock market and commodities market. >> expectation for jobs, 190,000 private jobs estimate to be added and 4.1% is the unemployment we are looking for it. >> 148,000 jobs, short of that 190,000 estimate. 4.1% was the jobless rate unchanged. in terms of average hourly earnings, up 0.3%

year-over-year, up 2.5%. both of those figures in line with estimates, still showing relatively anemic earnings growth. >> the important thing is wages. i came in with the jobs creation to find if wages was .3 with the revision back down to .1, so up .2 per month. if you can get wages going, you can get inflation going, which is what the fed wants to get going. >> i've been telling you that the one disappointing number we see month after month after month is we saw wage growth up 2.5% against cti of 2.2%. you see a real wage growth here at .3%. that's not good enough, and we are committed to get real wage growth in this country, and we do believe you will see it over the course of the next year or two. shery: coming up on "bloomberg best," more of the stories that shaped the week in business and finance. the band is over for steve cohen and he can manage outside capital again, but his new shop looks very different from his old one. >> he has hired a compliance team with 50 members.

shery: this is bloomberg. ♪

♪ shery: welcome back to "bloomberg best." i'm shery ahn. let's continue our global tour of the weeks top business stories in washington, where the fomc released the minutes of the december meeting. >> the federal reserve out with december minutes and they expect tax cuts to boost consumer and business spending, though they remain unsure of the impact of the new tax law overall. they show strong support for further gradual rate hikes from setting the stage for another

.25 point hike in march. >> will was the discussion on inflation and how is it going to change from the meeting in november to the meeting in december. there was not a lot of difference in the substantive discussion, but the one difference was that, in terms of the risk assessment around inflation, what this chart shows you is fewer people on the fomc saw risks to their inflation outlook as tilted to the downside. the number went down from four in september to two in december. the committee is seeing the risk ss balanced both on the upside on the downside. on the margin, slightly less worry about low inflation than before. >> let's turn back to iran. the death toll from the antigovernment protests have climbed. 20 have died in the unrest after more violence overnight. rouhani is defending the iranian people's right to demonstrate peacefully.

>> the situation is calm and we have a senior official saying the protests will die down in a few days. these were comments from secretary-general of iran's supreme security council. interestingly, perhaps predictably, blamed the u.s., britain, and saudi arabia for seeking to take advantage of the unrest. he said 27% of hashtags on social media after the protests were created by saudi arabia. francine: china has entered 2018 with robust momentum. the pmi surged 51.5 to 50.8. that beat estimates. property tax may be delayed until 2020, what are the three main concerns that the chinese authorities will have in 2018? >> it seems as it is going to be an important year for china. they are trying to take on risk in the financial system. they want to curb overall debt, and to do that, they want to really tackle off-balance-sheet lending and shadow banking, wealth management products and the like. that's one area they are going to look at. on the other hand, they want to

clean up the environment. there's been a lot of degradation after decades of rapidfire growth. the deleveraging campaign will be the one to watch. do they go hard, a big company that rely on state debt of the risks of putting thousands out of work, or do they turn a blind eye to those companies and focus on cleaning up the banking system specifically? all indications are they are getting the balance right, but the campaign is in the early days and if they want to convince the world they have their debt problem under control, they have many months of hard work ahead of them. >> steve cohen is back and he has big brother with him. his new firm is set to manage $3 billion to $4 billion of clients money. after running into legal issues with his former company, he is taking no chances.

what's different about the new firm? >> he just served a two-year ban for managing outside money and then with that, he's hired quite a compliance team. 50 members. >> 5-0. >> 50 members. they are following their traders very closely. the new general counsel was hired a few years ago. they are following folks -- listening to audio and look and the emails, they are getting involved in the hiring process of money managers, and ss part of the settlement from a couple of years ago, he has outside monitor separate from general counsel who is actually filing reports directly to the fcc to make sure they are following securities laws. shery: amazon's shakeup of the retail landscape may not be over, according to one well-known technology analyst. gene munster saying they could acquire target, noting both companies focus on mothers and families.

>> amazon views the future as the combination of mostly online, but some off-line. i think getting 1500 stores target would bring it would be very valuable. >> it's a bold prediction, but i think what it really highlights is the main weakness that amazon has now in its fight against its biggest rival, walmart. amazon doesn't have the physical store presence. it purchased whole foods, a got 400 to 500 stores, but that is still just 1/10 of the store presence of walmart. if it wants to give shoppers the choice of being able to go somewhere, to return things, to buy things, to pick things up, it has a lot of catching up to do. >> alibaba doing the merger with money gram after they failed to win regulatory approval in the u.s. and it offered $18 a share, valuing any deal at $1.2 billion.

what happened and how big of a blow is this? >> it is a pretty significant blow to ant international expansion, especially in the u.s. there was an expectation of synergies generated between monogram and financials asia business. the company was really confident all the way up to this last moment, but as of now, you can see that the company has said they just see no way that the trump administration is going to approve this deal, and has already agreed to pay $30 million as part of the termination agreement with money gram. shery: dominion energy will buy scanf are nearly $8 billion after a failed project made them a target for acquisition. shares soaring about 20% today, but this was after they were cut. this is a good way out. >> it's a good way out, if you look at where this company has been, it has had a horrible year.

longer than that, there's this issue trying to build a nuclear power plant and it was quite far along the road in doing that and then they decided they are not going to do it. this is a good way out. for dominion, the potential liabilities they are taking on are enormous and quite unknown. they will not be in to recoup these construction costs. they are also settled with a half built nuclear power plant. whether or not they finish it, who knows? >> brazil's petrobras agreed to pay nearly $3 billion to u.s. investors who lost money following the massive corruption scandal that became known as car wash. tell us what this means for the future of petrobras? >> the settlement is actually good news for them. almost $3 billion sounds like a large amount, but investors were expecting something around $10 billion.

investors at morgan stanley, for example. the settlement came in at a lower cost and earlier than anticipated. people weren't expecting it to be this early this year. shares reacted positively, and it sent out a very positive sign to the market. jp morgan said it removed the uncertainty around the company right now. it was a large overhang. >> tesla is again pushed back production targets for its all-important model three after shipping fewer cars than expected in the last quarter. tesla delivered 1550 model threes in the final three months of the year, trailing the analyst estimates for over 2900 units. >> tesla has kicked the can down the road by another quarter. originally, they said they would be hitting this 5000 unit in week run rate by the end of december, then it was the end of march and now they are saying you won't be until the end of june. and yet people still seem willing to wait on this car and on this company.

i think investors are heartened by the fact that the model less -- model s and x sales were up. francine: shares in intel fell over 3% on a report that a flaw in its processor chips could make its operating system vulnerable to hacking. the company confirmed the chips contain such a feature, but they other firms in semiconductors are also's double and disputed its products contain a bug. how big a deal is this? >> it's a pretty big deal. it's affecting pretty much every intel processor made in the last 10 years, intel makes over 90% of the processors made in the world. this is a pretty huge deal. at the moment, there been no known exploits of this, no one has been attacked. it basically has not been taken advantage of yet. they are working to fix it. >> yesterday, we reported on the chip vulnerability that could

give hackers access to information, like what is stored in the icloud. now, apple said the flaw raises issues with all of the macs and iphones and ipads being used all around the world. what is the problem? >> all of the chips that are used all of these devices have those fundamental vulnerabilities that would allow an attacker to steal almost anything that ship has in -- that chip has in memory. all of the vendors and companies that produce computer hardware are in the process of trying to update and patch their systems. apple was very quiet about this earlier in the week and just came out yesterday and said yes, this affects all of our hardware as well, with the exception of the apple watch, which is based on a different kind of chip technology and operating system. everything else is affected and will have to be patched.

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♪ >> we have a great chart that shows the growth of the last several years in the bloomberg intelligence function for streaming growth under netflix. we see that, since 2012, take a look at this. they are just growing, growing, growing. not a dent in the uptrend. shery: there are about 30,000 functions on the bloomberg, and we always enjoy showing you are

-- showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function. quic go. you get fast insight into a timely topics. here is a quick take from this week. >> 2016 was the hottest year on record. in the previous 17 years of -- have seen our 16 most scorching. scientists overwhelmingly agree that global warming is the culprit. and it's just getting started. icecaps, extreme weather, wildfires, drought, and the hits keep coming. what are we doing about it? in 2015, the world took the boldest step yet to stem climate change with a historic accord in paris. but now comes the hard part. nations must change energy policies and invest huge amounts of money.

they will likely do it without the united states. president donald trump announced on june 1 that the u.s. will withdraw from the accord. president trump: withdrawing is in america's economic interest and won't matter much to the climate. >> here's the situation. decades in the making, the agreement united the u.s., china, and more than 190 other nations in a push to limit fossil will pollution. the u.n. sponsored plan secured pledges to cut greenhouse gases, emissions that trap heat in the earth's atmosphere in an effort to avoid the rising seas and other environmental disasters that climate models predict. even if all pledges are met, the globe is expected to warm by as much as 3.4 degrees celsius this century, more than the un target of well below two degrees. it means the government caps off or more incentives for clean energy, scale back support for fossil fuels, make emissions more costly and reduce deforestation. it's estimated the deal will require $13.5 trillion of spending through 2030. here's the argument. unlike past climate pacts such as the kyoto protocol, each country set its own target and then promised to revisit and improve them.

the u.s. was primed to play a lead role in climate change, but trump's energy independence executive order reverses obama era releases to combat, change -- to combat climate change and expands production of coal, the dirtiest fossil fuel. the resulting policies threaten the global fight against climate change. without the u.s. commitment, other countries may join it and -- in abandoning the paris agreement. this could make it almost impossible and even more expensive down the line to stop climate change. optimists argue the shift to a lower carbon future is already underway. businesses, cities, u.s. states such as california are already investing in wind and alert and -- wind and solar and taking other steps to make it work. >> i've been called an environmentalist. ♪ shery: 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 the latest business news and analysis, 24 hours a day.

that's all for "bloomberg best." thanks for watching. i'm shery ahn. this is bloomberg. ♪ carol: welcome to "bloomberg

businessweek." i'm carol massar. julia: and i'm julia chatterley. we are here inside the magazine's headquarters in new york. carol: a graphic look at slaughterhouses. those workers at risk. a guy hit -- guide who will keep you traveling all year long. julia: all that ahead on bloomberg businessweek. ♪ carol: we are here with bloomberg