♪ >> coming up on bloomberg best, the week and conversation from the world economic forum in davos leaders in business, economics, politics and finance and outlookinsight on critical global issues. >> you have market in global high but we know that these things are not go in a straight line. >> it feels stupid to own cash in this kind of environment. >> i think it is one of the big crimes that we do not talk about. >> high-profile guests address topics of high importance.

>> it is important for the future of the city of london. >> we have to face our social and environmental challenges. >> lives are being saved for very small amounts of money. >> it is all straight ahead on "bloomberg best". ♪ haslinda: hello, i am haslinda amin. from the world's economic forum in doubles, switzerland, welcome to us to show edition of "bloomberg best". we have met with the most influential people in the world discussing what they think are some of the most challenging things facing business and society. we have also been keeping our eye on the stories shaping business around the world. starting with yesterday with the agreement to reopen the u.s.

government. >> sanders, duly chosen and sworn, the motion is agreed to. reporter: the senate moving to end of the u.s. government shutdown after three days with a temporary spending bill funding the government through february 8. reporter: president trump has signed a bill to end the government shut down which leaves the dreamers fate still unresolved for another three weeks. reporter: are another -- there are a lot of good people in congress and the senate but the system is broken. this bipartisanship is a dirty word and it gets you hurt in your primary, if that is the case, then we are doomed as a country. reporter: president trump has long talked tough on trade. putting tariffs on solar panels and washing machines. thebama had tariffs on

back. it is not a new thing. i thought it was wrong when obama dated and i think it is wrong when trump doesn't particularly, when it is a company that protects this rhetoric. it is bad for the american economy, that for jobs in the united states. >> does the president's decision to slap a tariff on solar imports change anything for you. reporter: for us, it is not going to change our approach. it will not change our direction on develop solar projects. >> were you planning on making investments on that? guest: we still have lands in the united states to riyadh what we bought into in december was about 40%, in the united kingdom. one of the largest solar -- in the in the you new york area. and india. so, i do not know how exactly this will change our direction. secretary of -- u.s.

treasury rick perry steven mnuchin says -- a weaker dollar is good for us as it relates to trade in opportunities. >> he said a weak u.s. dollar is good for america. do you agree? guest: i think it all depends why. if you think about the dollar today, it has weakened and it has baffled some people. there are two likely scenarios out there. one is what we talked about at the of that, in terms of the surprisingly stronger europe, the stronger rest of the world has now moved central banks into a position where they can start to normalize and raise rates. like we saw in the u.s. in 2014, it was a pretty robust move in the dollar as the fed started that. if that is what it is about, some adjustment, that is fine. the other side of the potential is fear is that there

and it is a precursor to a protectionism and potential trade wars and causing people to shy away from the dollar. if that is what is causing the dollar underperformance, it is more concerning? host: the ecb holds steady. very little seeing chance of a rate hike this year. the 10 year level in its highest level since 2015? host: how can you be so sure that inflation will come to europe? guest: because we see it in the last two years. if you remember two years ago, deflation.nger of it is now over there we had the first success of our monetary policy, and it was a message that we expressed deflation. it is now yesterday, a message of confidence and patience. that in thedent

past of gradual normalization of our monetary policy, this gradual normalization is progressing in an efficient way to word -- toward our inflation targets, but patients, because we are not yet? host: their? host: in a tumultuous week for the dollar, on wednesday, steve mnuchin laying a weaker dollar is good for us as it relates to trade in opportunities. the currencies short-term value is not of concern at all. yesterday though, president trump said that mnuchin may have been misunderstood, saying -- our country is becoming strong in other ways and the dollar is going to get stronger and stronger in riyadh ultimately, i want to see a strong dollar." host: there is so much talk about whether we are entering currency and trade wars. if we are, how much will that complicate things? guest: it is the last thing that

the global economy needs today. things in a world where -- interest rates should not be targeted for competitive purposes. .et us stick to that we have seen lots of activity come and i think it is not statements. recent >> i am here to deliver a simple message, it has never in a debtor time to higher, build, invest and grow in the united states. america is open for business, and we are competitive once again? host: he sold america first as america for everyone, and did a very good job i think, of speaking to his audience. he almost appeared to be a globalist in some ways. reformre also working to the international trading system so that it promotes broadly-shared prosperity and

rewards to those who play by the rules. there and the people people around donald trump will think it was a great decision to go to davos and i think they will invited back next year. uber'sa: still ahead, new ceo discusses the company's cultural turnaround. >> there are no excuses for not doing the right hang. haslinda: and, the biggest names how they seell us the global economy, up next. >> we have seen the numbers up with with growth, but trade even higher. ♪

haslinda: from the world's economic forum in davos, switzerland, this is bloomberg best. i am haslinda amin.

getting there read on the global economic climate from the world's financial leaders, what are they excited about and what worries them? we start with the imf managing director, christine lagarde. we upgraded our forecast for 2018 and 2019. the characteristic of that upgrade is that it is significant. 3.9% for both years. a wide rangevers of countries, not just of the emerging markets leading the charge, not just the advanced economies. that pretty much across the board but for some countries which are not seeing a capital basis income growing, that is primarily that sub-saharan african countries. japan, theok at u.s., turkey, some of the big emerging market economies, we have upgraded very much a cross our range of countries. the only one that did not get an

upgrade is the united kingdom. we left it where it was? host: if we see more protection, does it hurt the forecast, going forward? growthwhat we see is going up but trade even higher than growth. trade is a significant engine of growth, of reducing inequality in countries and clearly, trade has to be fair and in accordance with the rules and the respect --raded -- receiver crated reciprocated. trade is athat is the area where will rally around some of the use of president trump. beingnot an issue of protectionist, because protectionist measures generally do not help trade or growth. looking at the rules, resetting some of the rules eventually, and we have seen that happen in the last 10 years, whether it is

through automation or financing, that needs to be looked at at a regular basis3 it does look like the immediate future is pretty good. put geopolitics aside, there is nothing like leveraging in the system that we had in 26 and 27. -- 2006 and 2007. had prime funds, lbo's overleveraged, hedge funds were much more leveraged than we are today. it was wild. respects, it anticipates when next question. hadis there any reason to belie the cycle,art of 2018-2019, are going to be the next 2006, 2007? the euphoria before the crash? guest: i do not think so. you need to have the expensive

leverage. we are going to have a recession one day, and when that happens, stock prices will go down. hopefully it will be a normal thing, not that i am wishing for it, but it is going to happen. this point, i am less worried about monetary hollis the end the real alignment for a more natural stands starting in the u.s. and europe and eventually moving to jump in, then i am -- moving to japan. we have markets at record highs, and we know that these things do not come in a straight line? host: you run a big equity shop. the think equities are part of -- that the prices are very high ? imagine that i was one of your client? guest: i think that markets are expensive but they are not ridiculous. if you look at some of the so-called bank docs, they are trading at very high models, but

they have extraordinary growth. the way that you value equities is by looking at the net present and your future earnings and you look at whatever market model there is today. futures are growing and that growth. economic growth, earnings growth, made earnings growth, you will see the s&p reaching new highs? host: because of volatility levels in the market, it has been a tough year in general for investment banks is 2018 expected to be better? you refer to my comment of taxes come i think it was a huge positive for the u.s. economy and the world economy. if the u.s. economy is doing well, it is important. there will be a lot of investment in the u.s. economy. wante u.s. policymakers

more investment to come in, they will have to be pragmatic. over all, it makes me optimistic. since the beginning of the year, we have had a rare combination of markets going up, volatility going up. this is a verysince the beginni, we have had a good conjunction of volatility increasing a little bit and market going up. but you cannot draw too many conclusions from 2017? host: you've had a few weeks now to evaluate the tax bill. how it affects your business, how it affects the competitive environment. what conclusions have you drawn? the place ofve to american business in the world, our competitive business has improved. i think we have caught up to the rest of the world, and i think it is what we need to do to make american businesses competitive

with other businesses in the developed markets? host: does it change the -- environment industry? guest: industry? guest: our industry was a relatively high tax-paying industry, and now we have converged with other countries. they did a good job of widening out the base, and there is a common rate for everybody. the have equalized the consequences of keeping money overseas versus heaping money home. it has made the system more sensible. so to that extent, we like operating in a sensible them? host: do you believe the united kingdom regulators are looking at the u.s. and ready to relax the rules themselves? after all, the budget is happening? post the financial crisis i think there was a consensus around the major economies of the world that we needed to deregulate the financial markets that do it in a way that maintained parity while speaking across those markets.

so that no institution could arbitrage one regulator against another. i think a lot of important new regulation was brought into the financial system over the last 10 years, and we consistently or i consistently supported a more regulatory environment. but now, there is a new equation to it and its teams like the u.s. is willing to be very much on the front foot in terms of making the u.s. market competitive. barclays is a transatlantic tanks, so 40% of our revenue is generated in the united states in riyadh so now, the u.s. has become one of the lowest tax regions that we operate in. that has been very good? host: there is a lot of cash on the sidelines. on thers have cash sidelines, banks, consumers, and they feel that they are being left out. they feel stupid to own cash in

this environment. i think it will be great for earnings and great for the stimulation of growth. we have to look beyond that to say, what is monetary policy going to be? how difficult is monetary policy? so, let us take a look at that. we could look at step one, the blowup stage of everything? host: before we get to monetary policy, how long do you think we are going to enjoy this perfect environment? when i say we, i do not mean just the financial community, clearly it is good for risk assets and earnings, and talk prices -- but companies are raising wages, doing hiring and investing. some of it is trickling down to the real economy -- how long will people be able to enjoy that? guest: if you look at it, it will be a 12-18 months growth

when that isen happening, the central bank will have to tighten monetary policy. >> here we are, financial markets are up three times since the financial crisis. three times. the pool of money sitting in cash worldwide has never been greater. it is a problem. china, 40% of this it -- disposable incomes sitting in a bank account. greater. frenchspeak to the financial minister, 72% of all french savings are in a bank account. germany, no interest. can you imagine the type of inclusion we would have worldwide, if we had better financial literacy, more investing over the long run? that type of financial gains that people would have in their 401(k)? i think that is one of the bigger crimes that we do not

talk about, and the reason why i believe we have more momentum because of the money that is sitting around. >> there could be an alliance states andhoritarian these large data-rich i.t. monopolies that would bring together a nascent system of withinte surveillance already developed systems of state-sponsored surveillance. in web ofven result totalitarian control. not even of which aldus huxley or george orwell could have imagined. in which such unholy marriages are likely to occur, first, or in russia and

china. the chinese i.t. companies in particular, are fully equal to the american ones. supporto enjoy the full and protection of the president xi jinping regime. the government of china is strong enough to protect its national champions at least within its borders. ♪

♪ haslinda: welcome back to number is, i am haslinda amin at the world economic forum in davos.

uber has been under a global microscope, mired in controversy as well as burning cash. aside -- setas set his sights on changing the culture and tearing the company towards profitability. he discussed his goals with bloomberg editor in chief john micklethwaitmicklethwait? host: i think you lost $4 billion last year. is profit one of the things you would like to get? guest: at some point, we have to become profitable. that is one of the plans? host: do you thought have a goal -- you have a goal to be profitable by 2022? guest: i think we will be laughable by then? host: would you like to go down a bit maybe 2020? i do not want to name a specific year, but this is a

business -- the ridesharing business can be profitable within three years in riyadh we will continue to make very aggressive invest in an building out our economy. we think that is a terrific economy, building out new technologies such as uber elevate, where near-term profitability is not a goal, but long-term growth is. a will look at that but as company, we will always be a company that makes things go fast and take risk? about this culture change, you talked about making money, but not at all costs. do those two things? i do not think profitability and culture are the issue. the company in the past was willing to make trade-offs as it related to how we did is this. of i think we are guilty

hubris. we were guilty of thinking that we knew better than others, and i think what we know now nearly, is that -- clearly is that hideneck growth can cultural issues that there are no excuses for not doing the right thing. we arenagement team, typically talking about the trade-offs that you have to make and we have to be patient sometimes, because working with government regulators sometimes takes longer. but in the and, you build a more lasting business. haslinda: coming up on bloomberg best, much more from the world economic forum in davos. leaders in government speak frankly about the most pressing challenges. >> with brexit, we would lose the most important voice in terms of the liberal economy. haslinda: and bill gates shares his perspective on the role of the u.s. in addressing mobile

problems. >> i am in there saying, come on, let us keep up the good work. haslinda: this is bloomberg. ♪

♪ you are watching "bloomberg best." review of the week income conversation at the world economic forum. haslinda amin. many of them spoke one-on-one with bloomberg television. let's start with you cape prime minister theresa may who sat down with an exclusive conversation with john mickelthwait. >> obviously, the news is brexit. he said he could imagine a deal where financial services could be somehow elongated. only if you went back on things human injustice and things

like that. your red lines. will you be prepared to trade at all on that in order to get more access to business, especially finance, the biggest industry we have? >> the city of london is hugely important in the u.k.. it is also important to the global financial center for the european union and around the rest of the world. the future of the city of london, i think london is an attractive place. sometimes use the word ecosystem of support around the financial services interest-rate in the united kingdom. prepared to try to keep that access, which you be prepared to do it macron said which withdraw some of the red lines, in order to get more access? theresa may: when i am working reach in december, we

successful negotiation on the first phase of our brexit talks with the eu. what i am now working for is looking at the implementation period. in that time, which will enable to adjust to our new relationship after we have left the european union. i'm clear that we want to develop a deep and special partnership, and company has a free trade agreement. that we cannsure continue to see this financial services, ensuring the city of london retains its role. i've been talking to financial services, as i have done previously. they are positive about the advantages the u.k. has. i want to build on those. to make the u.k. even more of an attractive place. ask in returnyou for access to financial services? >> i would like to see the united kingdom remain in the single market. i respect that.

rocks we can negotiate something that is not very different to that? >> what kind of agreement do you think we will get? a canada plus? >> it is difficult to speculate. i think it will be a new agreement. an agreement between the united kingdom, so it is difficult to compare it to norway which is a relatively strong -- small country. i think it will be a specific agreement for the united kingdom. as ireland, we want that to be as close as possible. plus, butave a norway i think we need to get into the detail of what that means. there has been sometime since the referendum happened. we need to get down and dirty with the details. to give me two priorities for the eu, what would they be? withhow to elect brexit or brexit and the u.k. leaving, we will lose the most important voice in terms of the liberal

economy. free trade agreements. i have always found theresa may and david were fighting with me and others to do that. we are four times smaller than the u.k. we are the biggest one in terms of completely supporting the agendas. we are working with other countries in the eu to maintain that voice of liberalism. it's crucial. it has an impact on the u.k., on their economy. it will also be an impact on the eu. do we maintain the necessity of reforms within the eu and the eurozone? with low interest rates, there is not enough incentive to do that. then we get talk about all sorts of new structures. the most important thing now is everybody is doing what they, as a country, needs to do in terms of fiscal sides, the stimulus in

terms of making sure their economy gets back on course. >> how worried should people be about that? are they someone who could take it out of the eu? i think the risk -- not only for it early -- four italy, who to derail thee mechanism. in the last years, it brought us -- to the dynamic of growth. the issue in italy is we are on the right track. we have to continue in fiscal decreasing of, in our public debt, and we have to face our social and

environmental challenges. commitmentssion and tothe government is to try continue to have the confidence of the voters and to continue this reform process after the elections. process, --top the because if we stop the process, the results we reached in the last years, and we reached them with sacrifices of the community, the workers, the enterprises, these results would be at risk. interest to gol on with this right track. >> talk to me about what would make you change your mind about your membership? thef europe is part of solution. this is the question i need to get answered. i'm not so sure the euro is over

with their issue. i myself was an expert in optimum currency areas. >> i remember. i interviewed you. >> good memory. peter cannon and so on, and the optimum idea between two different geographies is to getly important together and the format of one currency. we are not yet there in terms of convergence between poland and the rest of the eurozone. >> which is fair. what would need to happen for there to be conversions and for you backing poland adopting the euro? years of strong economy growth. poland on income in the level of 80% to 90% of the

richest nations, like the dutch and germans, and so on. and the convergence between the structure of the economy, like in different sectors, and one more important thing, where poland is pushing toward more unity, is freedom to provide services. so much of our --ional economy >> they want to be overexposed. agree? decreasingve we are in oil activity. we are looking at more areas. norway,-term policy of the long-term prospect is that we will not get the same type of income from oil sector as we used to have. -- we haven't decided yet.

i can't say we agree or not before we have continued to do this work. danger that it makes norway more complacent? i don't think so. we have been through a shock. be 130, 1 hundred $40 per barrel. we have had a slimming of the whole surprised sector. but also the oil companies in norway. get more that we projects done, because of cost cuts. because they are building long-term prices. i don't think we look at the same type of complicity as we have had for some years because so much of our agenda is directed towards trying to get the benefits of what the economy has done. for example, tourism. we have nice places in norway if you want to go skiing. >> how worried are you about the

rating agencies cutting your debt? >> i am much more confident that we now have a better story to put before the rating agencies. many of us were involved in having a dialogue with them. some of the things they were worried about, we are putting right now. we are correcting issues of political instability, where more stable now, we are correcting issues of regulatory uncertainty. we are attending to that. we are also addressing issues of where growth of our economy will come from, and we are also addressing issues of state owned enterprise reform process. i think we now have a much more positive story to put to them. it is not like last year, or a year ago, when we were all over.

now, we have a clear path to the future of south africa. and we have a game plan. we now know where we are going. we are ridding our country of all the bad things that have been holding us back. ♪

♪ haslinda: this is "bloomberg best." i'm haslinda amin. we continue looking back at the world economic forum in davos. from big picture issues such as gender equality and finance, to specific topics like china's infrastructure program. our conversations covered a lot of territory. one story we delved into was the progress of negotiations under

north american free trade agreement. >> the mexican economy, they have much better -- done much better in 2018. the growth rate was higher than expected, around 2%. you, although we are still not done, we believe we can find solutions for these negotiations that will accommodate the three countries involved. >> so you are sounding a note of optimism? >> i always say i am not an optimist. i am a positivist. which i believe working on something, you can get it done. a negotiator cannot be an optimist. never. you look at negotiations, what is the percentage that nafta gets ripped apart or it is renegotiated to a point that president trump says yes, we are still in? will approve is we

nafta. i think the way we get to that as being the outcome that should be expected of is we say, nafta provides 9 million jobs in the united states. it obviously has been very positive for mexico. it's positive in canada. our supply chains are interrelated. the current agreement is working. what we all recognize is it was done 24 years ago. there are places we can improve. in davos saying a weak u.s. dollar is good for the u.s. economy. are you worried we are seeing currency wars research? >> i hope not. is right that the softness of the dollar is helping u.s. exports, u.s. manufacturers reassert their position. to the extent that helps to answer some of the questions in the u.s. about the global trading system, make americans feel the system is fairer to them and ease the pressure around the trade system.

i think that is a good thing for all of us. >> the pound has been depreciating. would a weaker pound help u.k. exports? >> the u.k. is a very open economy. has two effects, it helps our exports by raises the costs of our imports. one of the challenges we have has been a weaker pound has led to higher inflation and a stagnant real wages. that is driving some of the challenges that we face a home. getting that inflation rate down and a rising pound will help to do that. inhelps to drive increases real wages. that is good for our economy and good for us. somethinge committed like $20 billion in china's growth. why has china become a strategic market for you? >> we have committed to about $20 billion from here up to 2020.

the road i believe is a formidable issue coming from china. we are talking about threats to globalization. it is good to see things that are happening in the east, the commitment to have the tradeacific alliance on delivered in a few months. a lot of good things are coming from china. the single most important positive driver for globalization in this century, if well executed. says the economy will grow 1.9%. the government says it will grow 3%. are you more bullish than that? >> i think 3% is a good number. i think this number is being revised up by a good number. including the finance ministry.

the economy is getting better and better and better. actually, the numbers increase by the second half of last year stronger,e market was they economy was giving signals that it would perform better. everything now, 2% is a solid number. >> any chance of the boj tapering this year? cautious.bit toyou know, we are going ,ave the presidential election next year, the end of september. also, the administration has to increase. which means we would like to the japanese economy, which

-- itthat he wants to depends on the bank of japan. the bank of japan and the is now appropriately communicating quite closely. having said that, it will last for a couple of years. demonization take place. we saw them implement it. those came at a cost of growth. what does he need to do right to get to 10%? >> you have to look at the things he did as perhaps laying the ground for dramatic growth. this -- to be honest, it is a view widely shared. a lot of people snipe that it has slowed down the economy. how about that old adage of taking one step back for two

steps forward? to get thelized was resources we need for reform and high-growth, you need more people paying taxes. you need more people coming into the tax, a miserable faction -- fraction of people pay income taxes. what he was doing was demonetization more than technical exercise, he was signaling we need a clean way of life. we need to move people into the organized economy. pay your taxes and we will grow. the second one, even the goods and services tax brings a large number of smaller businesses into the tax night. india's economy is in or miss when you come into the sector. if they can tap into those resources, you look at the money to invest for the growth you are talking about. >> can you actually, within the whole industry, make money in bonds? is a challenge. it's a real challenge. the key is flexibility.

>> what does that mean? that is ceo talk if i have ever heard. >> when you have a bond fund, all he can do is on treasury. is maket can do treasury. it can go along, short. it has the flexibility to move by geography. it has all of those tools. it has multiple levers to add value. you can see that coming through. the bond funds which make money in this environment are the ones with the flexibility. >> i would go into emerging market bonds. it is political currency, but india is booming. now the chinese market is just about to open up. there is real opportunity. >> you are a leader among women in the american banking industry. what needs to be done for there to be more people like you?

finally, a woman running a large american financial institution. >> the more women in senior management, the more likelihood we will get somebody to be the ceo. you have to have succession that includes women. i do think we have had a lot of change. ryan, -- brian, when he became ceo, he put in place a management team, 40% of our executive management team are women. 30% of the board is women. that makes a difference. if each one of us can mentor and sponsor somebody, we are bringing along a whole other group of women, and i think that is how you do it. >> have you equalized pay among went -- among men and women at bank of america? >> i think we have. >> 100%? >> we think we are at at least 99%. pretty close to 100%. you can never stop. ♪

♪ welcome back to "bloomberg best." i am haslinda amin. let's wrap up the coverage of davos with the second richest individual, bill gates. he spoke with john mickelthwait about his foundation's work, and how president donald trump's

budget priorities could complicate those humanitarian efforts. of it, the u.s. has a ratio emphasizing hard power. i would hate to see it shift further. it is part of these budget discussions, the question of do you grow the state department at the same time you are growing the defense budget? secretary of defense has been eloquent in not wanting to give up your soft power tools. it is all being debated. is is arguably the first case of a global hedge fund willingly giving away that hegemonic power by not investing in software our? usually it gets pushed out and the soft power goes. pullingcase, america is back from helping the rest of the world. i wouldn't say it is unique. the u.s. has often had this

debate. our relationship with the united nations has had its up and downs during different administrations. keeping pressure on the u.n., to be efficient and reasonable, is not a crazy thing. how far do you go? of that, in the case the lives are being saved for small amounts of money. you can aim to both lifted the country up so i -- to get rid of the disease. it is not a commitment you are stuck with forever. i think these ones, even in this atmosphere, make the cut. >> president trump, he has described these and a not a not terribly nice phrase. do you think he could -- should constrict more on the form of the world? >> i think you should. that is the area where i have -- throughake

microsoft, that warren buffett been so generous in providing, so i understand that money can be very, very well spent. i am in there saying, come on, let's keep up the good work. it has been a fascinating week in demos. you can find more conversations and panel discussions from the world economic forum at bloomberg.com, along with all the latest is this news and analysis 24 hours a day. that is all for "bloomberg best." . thank you for watching. in demos, i'm haslinda amin. this is bloomberg. ♪

alisa: i am alisa parenti in washington and you are watching "bloomberg technology." president trump is en route to the u.s. he left davos, switzerland after a speech in the swiss outs. he declared the u.s. open for business as he pitched his america first agenda as being beneficial to the world. democrats rejected the white house's new immigration framework. chuck schumer called it the wishlist hardliners have been demanding for years. it offers 1.8 million immigrants a path to citizenship but demands drastic reductions in migration and $25 billion for increased border security. more fallout from the larry nassarex