>> coming up on "bloomberg best," the stories that shaped the week in business around the world. big news for some big banks, it it is a big week for earning report. >> this is down 50%, now, that business is over 40% of earnings, that should only increase from here. >> another shutdown showdown gripped washington as budget deadlines loom, 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.

new bloomberg reports shines on 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. >> by 2040, about 53% of new sales will be electric. >> buckle up, conversations from the north american international auto show. >> it is a milestone for our future plans, but 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 delegating tasks to that vehicle that their grandfather never expected, including never crashing. >> it is all ahead on "bloomberg best." ♪ hello and welcome.

i am juliette saly. this 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. mightyoncmarket: the once u.k. construction giant carillion has collapsed. carillion has $2 billion in debt. they failed to get a government bailout. share prices have collapsed in the last year. it is too late to play the blame game, but let's play at -- who is to blame? >> exactly right. the blame game is happening right now. i think you have both sides 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 contracts with the incentive to get the executive and the board on growth, and it should be for aggressive growth. mark: and should have the government awarded them further contracts in the wake of the year where we saw the share price plunge? what kind of message does that send? lionel: it is a concerning one because it suggests they did not know the full health of carillion. or they didn't know and did not put the right contingency plan in place. i think there is a problem if the government doesn't know the full health of one of the biggest contracts. vonnie: citigroup is at its highest in nearly a decade after revealing plans to shower investors with profits. to paythe bank is sticking withs

plan to 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 citi shareholders. the charge relates mostly to our diverse tax assess. this is as a result of a lower corporate tax rate, the implementation of a territorial tax system, and the tax on deemed repatriation. vonnie: to a larger extent, 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 return. which is the plan over three years so they did make

that announcement before we got the final bill with the final bill, this was 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, pretty strong. jonathan: 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? >> keep in mind that they had a very strong year. third quarter stronger than other banks. expectations were down. 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, 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. >> bank of america tends to not have a big swing that other banks might have. what they're trying to do is create quarters up for of predictability 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. francine: china has had its first full-year acceleration since 2010.

gdp growth picked up 2.69% meanwhile, industrial production estimates, but retail figures came in the bit softer than expected. tom: 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. >> it seems like they have the economy on cruise control and they are not willing to step back anytime soon. a big part of what is happening in china is they are global. -- is actually the global story. if the economy is recovering and is driving demand for exports out of town and escorts are a net contributor growth last year. that given the opportunity to do this, things are looking good, inflation is relatively subdued. every thing is on track. jonathan: 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 are 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 really push forward in what 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. 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. vonnie: congressional lawmakers

miss the midnight deadline to avoid a partial shutdown of the u.s. government. this effort has passed the measure that would keep government up and running until february 16. senate democrats say they are holding up for a position that would protect the status of young undocumented immigrants. marty: there is tremendous pressure on chuck schumer to not give in on the docket deal. there are republicans, republican senators are throwing up their hands and saying i will not vote for a short-term cr. we 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. sen. durbin: 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. kevin 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. sen. schumer: we had a long and detailed meeting, we discussed all the major outstanding issues, we made some progress but we still had a good number of discussions that will continue. juliette: still ahead as we reviewed the weight on bloomberg best, much more companies including a deal that will take nestlé out of the u.s. candy business. plus an exquisite conversation with bill mcnabb. bill: the passive investing has provided the everyday investor better returns and riffs all the way. juliette: 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. t julietete: this is bloomberg. ♪

juliette: this is "bloomberg best." i am juliette saly. let's look at the top business headlines. in canada, with the decision rate decision from the nation's central bank. julie: the bank of canada raising his overnight interest rate to 1.25%. it sees the need for accommodation to keep inflation on target here. banks in canada are forecasting 3% growth in 2017, 2.2% growth in 2018, 1 .6% in 2019. slowing, obviously. the bank of canada are expecting that remain at 2%. oure are operating about at

potential. 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 of cyclone and firms say now it is time to invest. but it goes faster than what we have in our model. it happens every time, and we think this time it could be a bigger effect than usual. this is a long, slow cycle. to the extent that it occurs 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 nip that process in the bud. and we are being very careful mark: -- doat you

that. mark: they are concerned. they write i am concerned about sudden movements that don't reflect changes in fundamentals, look at fundamentals, inflation is declined slightly in december. he is one of several officials that say a stronger euro may help efforts to get inflation to the goal of just shy of 2%. the concern is that it is rising to fast, it could happen in the future, 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 wing of the governing council who are already nervous about unwinding serious potentially too fast. shery: bad news for bitcoin, falling as much as 20% today, that is the crypto crackdowns.

this is a broader january sell up with a digital asset down over 35% this month. why is bitcoin going down again? is it the jitters of more regulation? >> yes, that is a main driver bitcoin slump. 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 . the latest is that south korea's finance minister says showing down cryptocurrency exchanges is an option. there are reports of china that they are escalating the crackdown. that is weighing on the markets. shery: bitcoin tumbled the below $10,000, bringing its loss to almost 50% from the record set only a month ago. the latest plans brings more drama 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 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 11x from where it was today. it has a history of volatility 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 surface again with trump telling china's leader to tell them that the growing deficit is not sustainable. china is bracing for more backlash on trade?

tom: 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 increasing u.s. dollars, they will have missed that the u.s. is taking a tougher line on these deals. the trade with beijing is being blocked as well. 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 therein lies the risk. >> indonesia and the stock exchange was evacuated. this after the floor of the building's level one in tower two collapsed. they said that several people had been hurt.

what is the latest there? confirmation that the incident was not due to any bombs or attacks, this is the floor on top of the main lobby but the reason for the incident is unknown until now. manus: obviously, trading was interrupted at that juncture, . give us a sense of the kind of impact. harry: 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. david: san francisco fed president john lands, who plan to be planning vice-chairman. this puts him beside lord lindsay and mohamed el-erian,

the chief economic advisor, they are all three phd economists. how alike are they and how different? michael: they are very much alike in their monetary policy views except the political side of it. he obviously is a big thinker, 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 williams is straight down the center and that he has been a member of the fed cincinnati since basically 1994, 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. francine: 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 because the price of oil is increasing. there is nothing really new. >> what is new is that people expect u.s. shale to accelerate much faster than they thought. all of this should be bearish for oil with a couple of other things to factor into the equation. one thing they pointed out is on the other side of the equation in this report is the precipitous decline in venezuela production, it lost something like 300,000 barrels a day last year. the other thing is -- will opec hold its line? so far, this has been very disciplined, but if prices stay and climb, we will hear more and more voices saying that opec should ease its policy stance. ♪

welcome back to "bloomberg best," i am juliette saly. bloomberg new energy finance says it released its report on 2017 clean energy investment trends. this is based on its 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, spending on green energy was up from 2016, but it did not manage to top the 2016 peak. 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 led the pack and it was everybody else that came a distant second, including the united states. this is compared to about 130 in china. julia 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? ethan: 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 rubber meets the road in terms of economic renewals, tax credit and other things, the market was generally fine.

we had logged about $57 billion worth of investment. that is more or less we have less where we have been for the last several years. >> in 2017, bloomberg estimates that sales will be posted 1.59 in 2018 and china, leading the way. >> china is the most dynamic market at the moment 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

market, but places like that are important, and we are predicting that by 2040, about 53% of new car sales globally will be electric. juliette: straight ahead, we will revisit some of the week's most compelling conversations, . hen god chairman bill -- vanguard chairman 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 tinker with it. juliette: this is bloomberg. ♪

♪ >> what does the u.k. have to do for its banks 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. it is never good. we have to de-dramatize and look at things as they are. what have we seen the last 18 months? lots of players in financial services that are only based in london that do need to have a subsidiary, they need to have substance in the u.k. single market, because they will lose automatic access. everybody realizes that now. when i talked to a few 18 months

ago here in china, that question was still open in many people's minds, that the u.k. could eventually have a cake and eat it. everybody realizes now it is not possible. juliette: that was pierre gramegna. in detroit this week, executives from automobile companies around the world gathered at the north american international auto show. bloomberg's david westin spoke with several of the industry's top leaders, starting with jim hackett. david: can you give any sort of timeline on when you will hit a ev?ing point for av and 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 history. bill and i talked -- when i took

this job, it was the most last 80t thing in the years that the ford motor company has to address, which is the integration of this capability in the design of vehicles, coupled with a smarter world. this is what we said at ces, that it didn't seem like the thing that would come from an auto manufacturer, but the major -- nature of 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. you know, you waste more fuel in trying to find a parking spot then you do sitting in a traffic jam. well, there is no reason for that. if the vehicle is smart enough campaig can pingpot it's available. in that world, there is no need for a city meter maid, because the intelligence can meter out parking fees, and the vehicle can pay for it without the customer having to do anything. >> for a child born this year,

2018, well they have to learn 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. we have a big negotiation coming up later this month. >> right. >> you have talked to the president in the past. have you talked to the president to get a sense of where we are with nafta? >> i haven't. >> to you have a sense whether there is a real danger to pull out of nafta? the canadian government -- >> 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, i think whole industry. -- the whole industry. our industry was really built around nafta. so it depends what you mean, too. there is a continuum here, there is a complete blowup and then there's a modernization, something we would not be opposed to. but again, this whole industry was built around the notion of nafta, and i think we have to be very careful with how much we tinker with it. >> volkswagen has had some difficulty in recent years. >> we are coming back. >> how much of that do you think was driven by the atlas suv? >> >> 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. month by month, it has seen tremendous growth and the attraction coming into the

showroom. we are proud of the achievements we have with atlas. we had a strong opportunity in 2016 because the car really fits well on the streets of america. it is a car that is perfectly blending with the american culture and actually has all the ingredients that people love about volkswagen. they love the details, high technology in the car, sort of beautiful execution, and the reaction of the customers is extremely positive. so atlas, i think, is just the milestone for our future plans, but there is more to come. this is just the first shot. >> how big could this get for cadillac in china. vehicles?at, 125,000 >> 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 in the u.s., 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% last year, and particularly on

financial side with transaction prices continuing to grow, bumpy 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? in particular view it, because i think buick has been your main brand in china, going back to the last emperor. >> 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 and differentiation between cadillac and buick in terms of distribution networks and pricing. it's a different customer, and our growth is coming from a degree of buoyancy from the market, but there is market share growth. we are taking it from other competitors. juliette: 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 opens its financial system. >> there is a lot of opportunity for what i would call low-cost investing. there is still a lot of very high-class product in the asian market, and whether it is passive or low cost active, you could make a case for both. so it is likely you will see us doing both over time. >> 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? >> so i think for the first time, there is widespread belief that price actually matters. there's a couple things driving that. one is our success, blackrock 's 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. you just can't charge -- if you are an active fund and you charge 100 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 about how they actually run money. >> there are skeptics out there that 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 -- in a risk controlled way. you think about it, it is a zero sum game at the end of the day. we have to end up -- add up to the market, so the only difference in returns is cost. i think the cost differential is

really the only thing that is 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 a big retail presence, where the retail investor owns a huge part of the equity market overall. some of the asian markets, certainly. managers will do really well in those markets, particularly if they are low-cost, because it is not a zero-sum game. the source of alpha, if you will, 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. i actually think it reduces the risk rather than increases it. ♪

♪ juliette: you are watching "bloomberg best." i'm juliette saly. let's return to our 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 problems with its insurance business. in a statement, the ge ceo said, "at a time when we are moving forward as a company, a charge of this magnitude from a legacy endurance portfolio in runoff for more than a decade 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 estimate from an analyst puts it as a top 20 u.s. bank, with over $140 billion in assets.

i mean, this is huge, and very opaque in nature. 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 pieces of ge capital in terms of liability. all of 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 have to be 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 a statement out wednesday, the company says it will pay $38 billion in repatriation tax. apple also claims that investing tens of billions in domestic and dataufacturing, 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 quite a big bump. what is interesting to me is 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. the odds are they were going to spend most of that money already. the new money is $38 million for the tax bill and $30 billion -- $38 billion spent on the tax bill and $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. >> workers at one of apple's largest chinese suppliers have made allegations of harsh factory conditions. the main manufacturer of the iphone's distinctive brushed metal casings is now under fire over claims made to bloomberg news and a chinese labor watchdog. the company has now responded, saying it does meet apple's code for suppliers. but tell me about some of the details of the allegations and what we have learned.

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

it is also companies like hitachi 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 in commodities has been a big story last year and we expect it to continue this year. it has been a big driver of growth for all of the heavy equipment makers. >> let's talk a little bit more about asml. they have had their first quarter sales that trailed 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 year. we did over $9 billion in

revenue, which is 33% up from the prior year, and earnings topped $2 billion, which is 44% of the prior year. we have a very, very positive outlook going into 2018. we will see significant growth in both revenue and in earnings. we have such strong demand that million inver $400 the last quarter, therefore the revenue guidance for the first quarter is slightly lower, but if you take the two quarters combined, it is significantly better than what they expected. >> nestle will sell its u.s. confectionery business to an makerlian nutella ferrero.

we have confirmation, what is the deal about? >> this is really about the shift away from unhealthy snacks. nestle wanted to get out of this business, had been veering away from chocolate and sugary sweets. they are now the leader in merc's consumer unit. they want to take themselves away from that. the relatively new nestle ceo, this is his biggest divestment to date as he repositions the company away from suite. , this is about buying into the u.s. market, but nutella, much as i love it, they it that huge in the u.s.. so they need to diversify it here. >> airbus closed 2017 on a high. the european playmaker announced this morning it booked a record number of contracts for 1000 jet lines, 52% more than 2016. >> it is in many ways a record for us, but in nine of the last 10 years we outsold our competitor in seattle. it is more a continuation of a trend, i would like to say, 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. profits being forecast, airport congestion, high load factors. it means more airplanes and bigger airplanes. airbus has ordered 36 airbus a380s. do we have any idea of how much -- >> no way is he paying $16 billion, he had a massive discount. john leahy a, wanted to get it done before he left. keep his legacy he's handing , over the job next week. and b, they want to keep the program alive. so tim clark is in the driver's seat. >> amazon announcing they have narrowed the field of cities for the proposed new headquarters to 20. contenders include new york, boston, chicago, miami, austin

, texas -- any surprises here? >> one of the ones that was interesting was raleigh, north carolina. in that research, triangle park area, sunbelt, surrounded by a lot of universities. , but the. state question is do they have a big enough airport? but that is one of the interesting ones that is outside the bigger markets. i think observers are looking for something on the east coast to balance the pacific northwest of seattle, but there is a lot of interest in all the cities, and we will see over the next several months those cities put their best foot forward to make themselves standout. >> uber has completed its deal with softbank, triggering a series of governance reforms. the japanese conglomerate is now uber's top shareholder. tell us about the changes expected now that the deal is

done. >> the biggest impact will come in the form of an expanded board, which will be increased to 17 seats. that is quite a lot of people by any company's standards. softbank will have two of those seats, strengthening the company's influence on decision-making 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 a loss by a benchmark capital, one of their biggest backers. ♪

>> if you take a look at the bloomberg and the various

business lines of merck, vaccines in blue, animal health in orange, and pharmaceuticals in white. overall, what you are looking at , 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 favorites on bloomberg television. maybe they will become your favorites. here's another function will go. useful, q uic it will take you to quick takes, where you can get fast insight into timely 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 the most productive day. maybe he was doing some personal chores. maybe he had a bit 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,

and it is often promoted as an extra perk to attract and retain talent, allowing companies to consider candidates in different cities or countries. but are 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 telecommuting began in the 1970's, the focus was less on productivity than it was on pollution. it was suggested that reducing the need to commute might curb the environmental damage caused by cars. in 1990, an amendment to the clean air act required companies with over 100 people in severely polluted areas to limit vehicular commuting. telecommuters didn't take off until the internet, especially if companies noticed unimportant ancillary benefit, dwindling real estate costs. between 1995 and 2005, ibm , an early adopter of telework,

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 bet it's remote workers -- that it's remote workers performed better in close proximity to colleagues. in 2017, thousands of remote ibm employees received an ultimatum -- move near an office or lose your job. best buy, once lauded for its innovative approach to scheduling, 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 teams. critics of remote work argue 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 looking at call-center employees, whose jobs require little teamwork. some advocates argue that telecommuting could narrow the p by 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. a review of studies concluded that the most successful arrangement requires 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. ♪

carol: welcome to "bloomberg businessweek." i'm carol massar. julia: i'm julia chatterley and we are inside the magazine tech headquarters in new york. carol: in this week's issue, self-driving technology gets paint makers revved up. julia: the fall and the fall of uber's travis kalanick . carol: and the flaws at intel that may chip away at the company. julia: all that is ahead on "bloomberg businessweek." ♪ carol: we are here with the assistant managing editor at