♪ >> coming up on bloomberg best, the stories that shaped the week in business around the world. they can some big banks, it the bigwigs earning report. >> this is down 50%, now, that

business is over 40% of earnings, that should only increase from here. let's now, the shutdown showdown with washington. this is deadline bloom, it feels like they have the economy on president trump. apple prepares to bring home overseas cash and announces plans to spread it around. >> this is 20,000 jobs. , this is business from a political perspective. >> this is clean energy investment. >> china is far and away the world leader in terms of the most amount of capital been deployed and the most of the equipment. >> about 53% of new sales will be electric. conversations from the north american international auto show. >> there is more to come. >> our group is coming from a degree of buoyancy from the markets but this is market share growth. >> they can have the option of delegate intact to that vehicle that their grandfather never expected, including, never crashing. >> it is all i had on bloomberg best. -- ahead on bloomberg best. hello and welcome, i am juliette.

is bloomberg best, your weekly review of the most important business, news analysis and headlines from television around the world. u.s. markets were closed on monday but the week began with a startling corporate headline from the u.k.. u.k.e once mighty construction jobs has collapsed. carillion has collapsed. carillion has $2 billion in debt. share prices have collapsed in the last year. who is to blame? sideshink you have both deserving blame, the government for presiding over a very competitive, too fragmented contracting and procurement market where the bottom line is everything. not enough attention is given to the health of these companies and other blame will be

carillion itself for to aggressively bidding for -- and goingh the for aggressive growth. >> and should have the government awarded them further contracts one we saw -- when we saw the share price plunge? this is concerning because it suggests they did not know the -- ofealth of the carillion. problem ifre is a the government doesn't know the full health of one of the biggest contracts. citigroup is at its highest in nearly a decade after revealing plans to shower investors with profits. this will pay out at least $60 billion to shareholders.

this will adjust to the new u.s. tax structure. >> turning to tax reform, we believe it will greatly benefit city shareholders -- citi shareholders. this is as a result of a lower corporate tax rate, the implementation of a territorial tax system and the tax on repatriation. -- extent,ger sent this was a gift to citigroup. >> i think the key thing is with regards to the charge and capital return, they made this clear in early december, we will have a huge charge but it will not stop us from that 60 billion capital return which is the plan over three years so they did make that announcement before we got the final bill with the this wasl, repatriation but i think the key thing that we learned today or the one thing is that better than expected results in the

card unit. we do get a little better than expected so credit coming in line with expectations and growth, pre-strong. >> bank earnings may continue to roll out this one, bank of america reports bond and equity trading that beat analysts but goldman sachs saw its worst bond trading in a decade. this is down a massive 50%. what happened? >> they had a very strong year. strong with any other banks. i think the expectations were then and it was delayed his appointed member, is important for goldman because they are more from that business than other banks but on the bullish side of things, investment banking, kill you, gain shares in businesses that are growing and doing better and controlling costs so showing that there in businesses that are very transactional driven, equity training, to the extent that they can keep the cost variable,

that is hopeful to the bottom line. what's bank of america tends to not have a big swing that other banks might have, what they're trying to do is create quarters of desperate ability rather than swings from one order to another and that is what they're laying out now, the sequential quarters of steady earnings, the bottom line number looks good, the top line number was a small miss in terms of revenue, what was surprising is how strong the capital markets revenue were. they will probably have one of the best investment banking quarters of any of the big banks. china has had its first for your acceleration since 2010. gdp growth picked up 2.69% meanwhile, industrial production estimates but retail figures came in the bit softer than expected. >> no big surprise, it is noteworthy given that the economy has come at the

beginning of 2017 saying that they expect to see a moderate slowdown, that hasn't happened but these were noteworthy given the expansion in credits starting to slow in china and you have a very focused tackling in terms of the regulatory environment on financial risks. they have theke economy on cruise control and will not step back anytime soon. a big part of what is happening in china is they are global. if fungus economy and recovering your is driving demand for exports out of town and escorts are a net contributor growth last year. dot given the opportunity to this, things are looking good, inflation is relatively subdued. every thing is on track. >> morgan stanley topping estimates with brokerage profits sending a new high for a fourth straight quarter. >> this is the one area they miss with six income training, i would say if investors would go to dictate area for them to invest, that would be the one and still in life with her

annual target so morgan stanley is executing on plan, they're coming and within that night to the 11% range and that is the key ones i think investors are really going to focus on how much health we're getting from the market and where we go from here. >> we are seeing the morgan stanley is the power of their diversification and the strategic decision they made to whaty push forward in management and that business is over 40% of earnings and that should only increase from here. so you are seeing the diversification benefits and this is the corner where we can a fixed income trading backdrop is going to be difficult and they still and of having a good result because of management is a much bigger driver today. so i do think that there executing and it is the strategic push toward wealth management. >> congressional lawmakers space and midnight deadline to avoid a partial shutdown of the us government, this effort has passed the measure that would keep government up and running until the very 16th. senate democrats say they are

holding up for a position that would protect the status of young undocumented immigrants. >> there is tremendous pressure on chuck schumer to not give in on the docket deal. ,here are republicans republican senators are throwing up their hands and saying i will not vote for a short-term cr. have to stop running our government this way so there is no clear path for 60 votes in the senate at this point. >> we don't want this, we do not want to shut down but if mr. schumer insists on it, he is in a position to force this on the american people. >> i hope the president will join us. if he will, we can solve this problem. if he stands on the sidelines, we cannot. >> just as a spending bill passes and other battle, the senate will learn that chuck schumer is headed to the white house for a meeting at the president's request. quite all morning long i have been speaking with senior is to lawmakers in both parties who

suggest that this is going to come down to the wire and the idea of having a short-term deal, a mini deal if you will that would just give the government couple more days may not be the administration is ultimately hoping for. particular with the presence travel plans to dive as less than a week away. >> we had a long and detailed meeting, we discussed all the major outstanding issues, we made some progress but we still discussionsumber of that will continue. ahead as we reviewed the weight on bloomberg best, much more companies including a deal that will take nestle out of u.s. candidate is plus an exquisite conversation with bill mcnabb. >> the passive investing has provided the everyday investor better returns and riffs all the way. >> and more of the week's top business stories, bitcoin takes another dizzying get. >> even if you're one of the

most bullish bitcoin investors, you can look at the event of this week and not feel a chill. this is bloomberg. ♪

♪ juliette: this is bloomberg best. let's look at the top business headlines. in canada, with the decision from the nation's central bank. canada raising his overnight interest rate to 1.25%. it sees the need for accommodation to keep inflation on target here. growthe forecasting 2.2% in 2018, 1 .6% in 2019. slowing, obviously. there expect and that remain at 2%.

>> inflation is above our target. arguably, if you took that as a snapshot, it would be high. i think what we need to bear in mind is the experience that we have been through that has actually depressed potential output. in every expansion, we get to the stage and said now it is time to invest. it happens every time and we think this time it could be a bigger effect than usual. this is a long soul cycle. this is a higher level of gdp forever. if you are worried about inflation risks and so on, first of all, you have a tendency to that process in the bud.

i am concerned about sudden movements that don't reflect changes in fundamentals, look at fundamentals, inflation is declined slightly in december. this is one of several officials that say a stronger year may help efforts to get inflation to the goal of just shu shy of 2%. future, happen in the if we carry on these places, inflation doesn't show much signs of underlying strength in particular. there will be increased concerns on the dovish week of the governing council who are already nervous about unwinding serious potential too fast. bad news for bitcoin, falling as much as 20% today, that is the cryptic -- crypto crackdowns. this is a broader january sell

up with a digital asset down over 35% this month. why is that going down again? is it the jitters of more regulation? yes, it got to as high as 20,000 last year and it went as low as 11, south of 200 this morning. it is now back up again around 13,000. it is a big slump and the main driver has been regulatory, the latest is that south korea's finance minister says showing down of the currency exchanges is an option. there are reports of china that they are escalating the crackdown. that is weighing on the markets. the $10,000,mbled bringing his loss to almost 50% from the record set only a month ago. the latest plans brings more trauma to a digital coin market that has lost more than $300 billion in value since january 13, even if you are the most bullish of bitcoin investors,

you can look at the event of this week and not feel a chill about what is happening. i think what -- when you get into everything being ok, that is when you look at the blockchain story and how you continue to see a lot of adoption and research and development into the underlying database technology in bitcoin and you look at the fact that bitcoin is still up 11 x from where it was today. volatilitystory of like this, sure, the stakes are higher right now but there has to be a lot of fear out there and also a lot of deep breath about it being ok. >> trade tension between the u.s. and china. they service again with trump telling china's leader to tell them that the growing deficit is not sustainable. china is bracing for more trouble\on trade? >> they realize that the rhetoric is being ramped up again in washington. they know now that this is

coming out of the white house and the administration from officials there suggesting that they're going to be taking a tougher line and of course they are aware that president trump has failed to reduce the deficit with china and with 2016 , theysing u.s. dollars will have missed that the u.s. is taking a tougher line on these deals. all of those things are being weighed by officials here. the chinese are being very clear, they're saying it tariffs are imposed, they will retaliate and that holds the risk. >> indonesia and the stock exchange was evacuated. this after the floor of the building's level one and tower two collapsed. they said that several people had been hurt. the incident was not due to

attacks, this is the floor on top of the main but the reason for the incident -- >> trading was interrupted at that juncture, let's see the kind of impact. >> it happened during the lunch break so we do not see any disruptions in the trading is this. we plan to deliver this by an hour but we did not have a stuffed up so the trading has resumed. >> san francisco fed president john lands who plan to be planning vice-chairman. this puts him beside lord lindsay and the chief economic advisor, they are all three phd

economists. how alike are they and how different? >> they are very much alike in their monetary policy views except the political side of it. thinker,sly is a big comes from the wall street background, larry lindsey, a longtime republican would bring the supply side view of the economy, maybe it would be a bit more dovish, john lands is straight down the center and of the has been a member fed cincinnati 94, the detour to the council of economic advisers and has voted along with the chair of the time, he has been a member of the open market committee. williams might make a difference with long-term strategy because he has been arguing that the fed needs to take another look at the 2% inflation target and maybe inflation targeting instead. >> oil slipping as the international agency became the latest to see a jump in production in the united states,

the group said that u.s. oil output is looking for an explosive -- when you look at what they are saying, they are basically saying that u.s. oil output will increase, there is nothing really new. >> what is new is that people them to go much faster than they thought. all of this should be bearish for oil with a couple of other things to factor into the equation. is thing they pointed out the decline in venezuela production, it lost something like 300,000 barrels a day last year. so far, this has been very but if prices stay and climb, we will hear more and more voices saying that opec should use its policy stance. -- ease its policy stance. ♪

♪ >> welcome back to bloomberg best. bloomberg new energy finance says it released is twice mt and report on clean energy investment trends, this is based on his well-being database of projects and deals. the analysis tracks global investment in manila energy and energy smart technologies in the past year. as well as the outlook for the future. the world is going greener, energy was up from 2016 but it did not manage to top the 2016 p, that is according to a new report from bloomberg new energy finance team. what were the key drivers? >> the biggest driver and headline of course a beer was china where we saw an unbelievable volume of new solar builder that 53 gigawatts of new solar capacity added in all kinds of places, china is far

and away the world leader in terms of the most amount of capital been deployed in the most amount of new equipment being deployed as well. again, it was a year where china wasthe pack and it everybody else that came a distant second, including the united states. this is compared to about 130 in china. ask if we look at the key countries, you have pinpointed the u.k., germany, japan, to what extent do think united states could suffer as we push through into 2018 as a result of the president's decision over the paris accord? >> the paris accord in terms of the symbolism of the u.s. pulling out certainly sends a negative sign to the rest of the world about the u.s.'s commitment on these issues, however, if you look at where roadr meets the world -- in terms of tax credit and other things, the market was generally fine.

we had about $57 billion worth of investment, that is where have -- we have been. >> in 2017, bloomberg estimates that sales will be posted 1.59 in 2018 and china, leading the way. >> china is the most dynamic market and we think it will continue in 2018. it has a lot of government muscle behind it, they want to establish china as the main manufacturing base for electric vehicles and the batteries that go in them. we will be seeing the same thing happen where chinese policy is pushed -- has pushed the adoption there. they have subsidies in china that will continue for a while that will be scaled back later in 2018. at the moment, it is the biggest places like that are important and we are predicting

53% of new0, about car sales globally will be electric. >> straight ahead, we will revisit some of the week's most compelling conversations, bill shares his thoughts on opportunities in china. and carmakers gather at the north american international auto show. find out how they view the road ahead for the industry and for their companies. >> the coal industry was not around the notion of nafta and i think we have to be very careful with how much we take the risks. >> this is bloomberg. ♪ we use our phones and computers the same way these days.

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a new lg x charge. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com ♪ >> what does the u.k. have to do to retain access to the single market ? >> well, i think the whole situation, in a way, is dramatized excessively. >> you think over dramatization is hindering? >> oh, yes. we'd have to look at things as they are. what have we seen the last 18 months? lots of players in financial services based in london need to have a subsidiary, need to have substance of the u.k. single market, because they will lose automatic access. everybody realizes that now.

when i talked to a few 18 months ago, taht question was still open in many people's minds, that the u.k. could eventually have a cake and eat it. everyone now realizes it is not possible. juliette: that was you pierre gramegna. week, executives from automobile companies around the world gathered at the north american international auto show. david westin spoke with several of the industry's top leaders, starting with jim hackett. >> can you give any sort of timeline on when you will hit a tipping point? when will that come? three years, five years, longer? >> i spoke to bill gates who said you really overestimate the arrival and underestimate the impact. i really believe that. i think the impact is once-in-a-lifetime. when i took this job, it was the most important thing in the last

80 years. is the integration of this capability in the design of vehicles, coupled with a smarter world. its is what we said, that didn't seem like the thing that would come from an auto manufacturer, but the major edge computing or internet of things is evolving so fast that the vehicles have to couple with them in ways to do something like this. we waste more fuel in trying to find a parking spot then we do sitting in a traffic jam. there's no reason for that. if the vehicle is smart enough and the parking spot can ping it's available. in that world, there is no need for it, because the intelligence can meter out parking fees, and the vehicle campaign pay for it without the customer having to

do anything. >> for a child born this year, 2018, learning to drive in 2034? >> i think a child born today, 16 years later, i think they will have the perfect option. they can drive, because it would be a world where the passion for these vehicles never ends, but they can have the option of delegating tasks to that vehicle that their grandfather never expected, including never crashing. >> we have to talk about nafta. a big negotiation coming up later this month. have you talked to the president to get a sense of where we are with nafta? >> i haven't. >> do you have a sense whether there a real danger to pull out of nafta? >> well, to do something that drastic would not be something we would prefer. nafta could be modernized. we could get some currency into nafta. but nafta has been in place as a while and has served the industry well.

>> how badly would it hurt ford motor company? >> i mean, the whole industry. our industry was really built around nafta. too.pends what you mean, there is a continuum here, there's a complete blowout and then there is a modernization, something we would not be opposed to. but again, this whole industry was built around the notion of to be and i think we have very careful with how much we tinker with it. >> volkswagen has had some difficulty in recent years. how much do you think it was driven by the atlas coming back? >> we believe it was a key model for us. it is probably the most american car we have ever built, designed in the united states. growth.een tremendous the crown achievement so far is atlas.

we have had a strong opportunity, because the car really fits well on the streets of america. it is a car that is perfectly blending with the american culture and has all the ingredients that people love about volkswagen. they love the details, high technology, the beautiful execution, and the reaction of the customers is extremely positive. alice, i think -- atlas, i think, is just the first shot. >> how big could this get for cadillac? you are, what will hundred 25,000? >> we will probably do 200,000 this year. i think when we roll out our new product portfolio, which will drive a lot of growth domestically, we will continue to see an acceleration in sales. but we have performed well in other markets in china as well. export markets grew by over 10% particularly on

the financial side, 2017 was a bomb year for cadillac, the second highest in terms of sales. it sets us up well for 2018. >> so that pace of growth in china is quite remarkable, the projection of over 200,000. where is it coming from? do you have a larger market or are you taking it from other people? i think the buick has been your main brand in china. >> for general motors, buick is the big brand, one of the largest in the chinese market overall. but there's obviously a very clear stratification between cadillac in terms of distribution networks. it's a different customer, and our growth is coming from a degree of buoyancy from the market, but there is market share growth. another exclusive interview this week took place

in beijing, where bloomberg's tom mackenzie sat down with bill mcnabb. they began by discussing his company's prospects in china, as the nation open its financial system. opportunitya lot of for what i would call low-cost investing. there is still a lot of high-class product in the asian market, and whether it is passive or low cost active, you could make a case for both. likely you will see us doing both overtime. >> the likes of fidelity are starting to push back and lowering their fees, becoming more competitive. what changes are you seeing in the fund management industry? >> i think for the first time, there is widespread belief that price actually matters. there are couple things driving that. one is our success, blackrock success in the etf space. people aren't coming to us just because we are lower cost, they are coming because the net return to the investor is

better, and that is the whole driver. i think people have awakened to this, the data are overwhelming. -- if youan't charge are an active fund in charge with hundred basis points, you have very low probability of outperforming in the long run. money management has been a very lucrative profession for asset managers, and it is getting less lucrative. i don't know what to say about that except people have to reinvest themselves and get smarter. >> there are skeptics out there who say this huge embrace of passive investing poses a significant risk to the markets. how do you defend against that? >> the data just don't support it. what passive investing has provided the everyday investor is better returns of the risk controlled way. you have to think about it as a zero sum game at the end of the day. so the only difference in returns is cost. i think the cost differential is

really the only ring driving the growth of indexing, and that was not always the case, and is not the case in every market. there are markets where there is big retail presence, where the retail investor owns a huge part of the equity market overall. some of the asian markets. active managers will do really well in those markets, in particular if they are low-cost, because it is not a zero-sum game. the source will come from irrational retail investors. i would also say to the skeptics, because index providers are long-term in nature and long-term in outlook, it is much better for the economy and much better for corporate governance. it reduces the risk rather than increases it. ♪

juliette: you are watching "bloomberg best." i'm juliette saly. let's return to the roundup of the top business stories with a focus on company news. general electric entered the new year with a new ceo and new hope for a turnaround, but this week was rough for ge. >> shares of general electric are falling today after the company said it would take a $6.2 billion charge in the fourth quarter because of lingering insurance problems. in a statement, the ceo said, " at a time when we are moving forward as a company, a charge of this magnitude from a legacy portfolio is deeply disappointing." >> there has been increasing concern among analysts about ge capital, because even after they significantly reduced, this is still a behemoth. one analyst puts it as a top 20 u.s. bank, with over $140

billion in assets. this is huge, and very opaque. we don't totally know everything in here, as evidenced by the extent of the charge, and there could still be more to come with different people in terms of liability. this is not john flannery's fault, obviously, he has only been in this job since august, but we have had the bad news in october, the bad news in november, and if you are an investor you are saying, when is it going to end in terms of nasty surprises? >> apple will return hundreds of billions of dollars in overseas cash to the united states. in the statement out wednesday, the company says it will pay $38 billion in repatriation tax. they also claim that investing tens of billions in domestic jobs in data centers in the coming years and give employees a $2500 bonus. 20,000 jobs is quite good

news from a political perspective, but given they have 84,000 employees already, that's a big bump. if you really look at the numbers, the big number they want everybody to talk about is $350 billion in the u.s. over the next five years. they were going to spend most of that money already. the new money is for tax, 30 billion spent on the u.s.. if you subtract that from the $252 billion they have offshore, they still have a huge pile of cash, and that is what shareholders will be excited about in terms of buyback. apple'srs at one of largest chinese suppliers have made allegations of harsh factory condition. the main manufacturer of the iphone's distinctive brushed metal casings is now under fire over claims made to bloomberg news and the chinese labor watchdog. the company has now responded, saying it does meet apple's code for suppliers. tell me about some of the details of the allegations and

what we have learned. is makingocacy group allegations for 14 separate violations of either apples code of conduct or local law. they run the gamut from labor violations such as forcing workers to pay for their own uniforms are equipment to certain environmental type violations. although as you mentioned, apple is denying it violates any sort of code of conduct or requirement. the world's lover to maker of construction and mining equipment says sales in china nearly doubled last year. turnaround in chinese demand has helped drag stock to a record high. heard from the likes of caterpillar in the u.s., a lot has to do with china. >> absolutely, and it is not just komatsu, it is also he

types of construction. they are all benefiting from these twin engines of growth. one is the infrastructure investment in highways and bridges, china has just entered the last half of its latest five-year plan, so there's a lot of push to get the projects done. the full run of commodities with a big story last year and we expect it to continue this year. it has been a big driver of growth from the heavy equipment makers. >> let's talk a little bit more about asml. they have had their first quarter sales trailing estimates, europe's largest semiconductor equipment maker said its first-quarter revenue came in at 2.2 billion euros. they also have a new chief financial officer. >> we just finished an absolute record here. we did over $9 billion in

revenue, which is up from the prior year, and earnings topped 2 billion, which is 44% of the prior year. we have a very positive outlook going into 2018. we will see significant growth in revenue and in earnings. we have such strong demand that we hold over 400 million in the last quarter, therefore the revenue guidance for the first quarter is slightly lower, but if you take it combined, it is significantly better than what they expected. nestle will sell its u.s. confectionery business to an italian make your for -- italian maker. we have confirmation, what is the deal about? >> this is really about the shift away from unhealthy snacks. leslie wanted to get out of this

business, had been veering away from chocolate and sugary sweets. they are now the leader in mark's consumer unit. they want to take themselves away from that. ceo,elatively new nestle this is his biggest divestment to date as he repositions the company. o'shea -- nu they, much as i love it, needed to diversify. closed 2017 on a high. the european playmaker announced this morning it will have a record number of contracts for 1000 jet lines, 52% more than 2016. >> it is in many ways a record nine of the last 10 years we outsold our competitor in seattle. it is more a continuation of a trend, but it was a very good year, and it was back end

loaded. this industry is going through a very good time, 7% growth in the world airlines. you've got about $35 billion in profits being forecast, airport congestion. it means more airplanes and bigger airplanes. t $16 billiont ou worth of aircraft. do we have any idea of how much -- >> no way is he paying $16 billion, he had a massive discount. he wanted to get it done before he left. he's handing over the job next week. and b, they want to keep the program alive. tim clark is in the driver's seat. >> amazon announcing they have narrowed the field of is for the proposed new headquarters to 20. contenders include new york,

boston, chicago, miami, austin -- any surprises? >> one of the ones that was interesting was raleigh, north carolina. that research, triangle park area, sunbelt, surrounded by a lot of universities. have astion is do they big enough airport. that is one of the interesting ones that is outside the bigger markets. i think observers are looking for something of the east coast to balance the pacific northwest and seattle, but there is a lot cities,est in all the and we will see them put their best foot forward to make themselves standout. >> uber has completed its deal with softbank, triggering a series of governance reforms. the conglomerate is now over's top shareholder. tell us about the changes expected now and if the deal is done. >> the biggest impact will come

in the form of the board, which will be increased to 17 feeds. that is quite a lot of people by any company's standards. softbank will have two of those seats, strengthening the company's interests going forward. the big difference is that the deal eliminates this two-tier voting structure for shares that heavily favored early backers as well as early employees. it will also put an end to a lot of internal strife that has handicapped the company, specifically ending benchmark capital. ♪

juliette>> if you take a look ae bloomberg and the various is this lines of merck, vaccines in blue, animal health and orange, pharmaceuticals in weight. overall, what you are looking at is tepid if any growth for the various revenue lines, particularly when you put them all together. juliette: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorite on bloomberg television. maybe they will become your favorites. here's another function will find useful, to device ago. it will take you to takes, where

you can get fast insight into timely tal topics. here is one from this week. >> used to be when a colleague emailed you to say they are working from home, you might not have envisioned most productive day. maybe he was doing some personal chores. maybe he had too much to drink. maybe he was just slacking off. >> uh, what's your dad's job again? >> but telecommuting is legit. currently, over 60% of u.s. companies provide the option, often promoted as an extra perk to attract and retain talent, allowing companies to consider candidates in different cities or countries. but our remote workers productive workers? here's the situation. even as telecommuting rapidly expands as an option offered by u.s. businesses, a number of early adopters are beginning to second-guess the concept. when discussions on began, theng

focus was less on productivity than pollution. it was suggested that reducing the need to commute might curb the environmental damage caused by cars. in 1990, an amendment required companies with over 100 people in severely polluted areas to limit vehicular commuting. telecommuters didn't take off until the internet, especially when they noted important ancillary benefit,. dwindling real estate costs between 1995 and 2005, ibm reduced its physical space by 78 million square feet, which created at least $200 million in annual savings. but as more and more companies offered employees telecommuting benefits, some of the earliest pioneers have become skeptical. after 20 consecutive quarters of falling revenue, ibm calculated that remote workers performed better in close proximity to colleagues. in 2017, thousands of remote ibm employees received an ultimatum, move near ann office or lose

your job. -- scaled back in 2013, as did yahoo!. so why the change of heart? well, here's the argument. a survey conducted found that only 38% of companies in the world group employees by job type. the growing trend is to group employees with various functions into team. work argueremote this structure requires a level of collaboration that simply cannot be attained without face-to-face interaction. some bosses also suspect that workers abuse remote benefits. on the other hand, studies show employees who telecommute are happier. they're also more productive, though that might be true for only certain types of workers. the most widely cited study was call-center employees. some advocates argue that telecommuting could narrow the gender pay gap, allowing mothers to balance childcare with work duties. one study found that a spouse working from home is given more

chores. so while certain aspects of telecommuting can be attractive for workers and businesses, just like anything else in life, everything in moderation. the studies concluded the most successful arrangement leaves at least some face time in an office. juliette: 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 juliette saly. this is bloomberg. ♪

>> you are watching "bloomberg technology." let's start with a check of your first word news. president trump and chuck schumer one-on-one talk this afternoon at the white house. the meeting came in the run-up to the midnight deadline to keep the federal government operating. we will bring you the latest from capitol hill with a live report, straightahead. a panel of federal judges has approved re-drawn north carolina legislative districts. the court hired a stanford law professor to address concerns about continued racial bias with certain boundaries. the changes to two dozen house and senate districts would be used in this fall's elections.