♪ clear on the furniture of the markets. >> if you want to use that phrase. >> the first product is blowing up. >> leaders in monetary policy. there are certainly people looking for buying opportunities. >> i would say it is small potatoes. >> is a last-minute compromise starts over. the bank of england say they

made have an old fighter print >> the did not say one and done. companies around the globe unleashing a tsunami of earning reports. confident we are going to stay very disappointed. cooks it is about being the most positive. >> it is also the head on bloomberg bus. ♪ >> hello and welcome. this is bloomberg bus. mosteekly review of the important business news, interviews from bloomberg television around the world. onestors entered the week edge. after the dow jones dropped. monday the plunge

continued. jones was in a 1100 points in one day. it is now down for the year. last week we have the monotonous rise in treasury yields. to the yield comes off a little bit. for the first time it was about risk management. the cta trend followers. >> it has been for the entire last week. they are looking and say in may be tax reform is not entirely a great story for all companies. it started to dissect after you that is what has them spooked. we have some price discovery right now. off kind of disorganized so

this is only going to go on for so long. get worse. those people were wrong as we went into this morning. overall global equities from this time yesterday have lost $2 trillion in market cap. >> we are on the verge of markets getting a little disorderly. and you get central banks interested and regulators interested as well. >> the equities selloff extended to asia and europe after stocks in the united states recorded their biggest one-day drop in more than six years. credit suisse buying back one of its exchange traded funds, triggering losses on muted market swings. >> pretty interesting story. it has ironic element to it here -- all investment banks have been waiting for in recent months and years is the return of volatility. now volatility is back and the first product is blowing up. this was a credit suisse exchange traded note.

we had reports earlier they were considering buying it back because of the rise in volatility, so this was a bet against volatility. now the bank is confirming we will fight back this note in the next two weeks. the implication of that is that investors will lose money. >> the stoxx 600 worst day since june 2016. down about 2.4%. big drop, far cry from the drops in asia and the u.s. >> it is a global contagion. we have gotten ourselves into a momentum market, all it takes is a little prick and the air comes back out. >> an about-face for volatility today. the vix tumbling after its biggest spike ever, but the spike already did its damage. >> right now we have not had a normalization in the vix curve.

if you look at the second to first month futures spread versus the s&p 500 index active contracts, that is what it is tracking today. we are trying to get this normalization and volatility. it hasn't worked yet. we are still working on normalizing and we are not there yet. >> what a difference 24 hours makes. the dow jones industrial average recovered from yesterday's drop. it was not a straight up move, it went down, up, down, little changed, but then we closed to near our highs. >> the market selloff -- sorry, we rebounded. at what point do market selloffs translate into real economic ramifications? where would it have to go to see it show up in consumer behavior? >> i think there is a sigh of relief at the federal reserve. the market is finding out stocks don't only go up.

we just eliminated a significant amount of shortselling, which was a proxy for picking up yields, which was a reflection of interest rates being low for quite some time. the short answer is i still think it is early and the implications are not significant. >> nomura has apologized to customers that bought those exchange traded notes, writing, "we sincerely apologize for causing significant difficulties to investors. this is a list of products we believe can be bought that individuals and institutional investors." if you look at some of these products advertised in the vix, where they were a few weeks ago is a tremendous shift. is this shakeout done? >> we will see. half the assets are gone because of the inverse side. you still have the long side doing fine. these are popular products.

that nomura statement was interesting because it is basically apologizing and saying we think it is ok for individuals. i think these should be labeled or made clear these are power tools, or you could call them exotic, but there are a couple that made the news this week. there are about 300 etf's that are leveraged and track volatility. i even put oil futures in this category of products that use derivatives and are hard to understand. i think they are trading tools, where as the large majority of etf's are investment products. that's the distinction you will find with the issuers trying to make right now. >> bank of england holding rates unchanged. sterling surging as the boe turned more hawkish, suggesting it may need to raise rates faster than previously indicated. >> i would say the market is interpreting this as a hawkish hold. very different to the dovish hike back in november. what was interesting about the

market reaction was in november, you saw sterling drop by more than 1%, gilt yields drop. today, you are seeing the exact reverse of that in other direction. markets have started pricing in a rate hike in august and -- the probability of a rate hike in may was just over 50%. now it is round about 75%. >> is may likely? >> we have been looking at that for a while. so, they did not say one in done. more like two and through, so the central bank has given us fair warning another rate hike is coming. that seems to be the stamp that is on its now. >> u.s. markets entered a technical correction yesterday as the dow jones industrial average and s&p 500 fell 10% from the closing highs in january. stocks were hit hard in asian trading. the buzzword of the day is still that this is a healthy

correction. >> we are somewhat in alignment with 1987. we did decline a little additional, then we rallied. that is what we are looking for. we have a good chance today could mark the low. ideally we close down the day and start up next monday. >> to even bring up 1987 is farcical. that was down 23% in one day. the s&p is still up 70% over the last five years, and unchanged over the last three months. >> the motion is adopted without objection. >> the u.s. house of representatives voting to pass a two-year budget deal, ending a government shutdown that started at midnight. the bill raising federal spending by almost $300 billion and extending the debt ceiling for one year. president trump is set to release his $1.5 trillion infrastructure plan on monday. plus, the blueprint for the 2019 budget.

>> no one is showing any fiscal restraint whatsoever. it is basically congress giving the government a home equity line with no upward limit. i would not discount the bipartisan nature of this. 72 democrats went along in the house, and this will pave the way and we look for to the daca -- forward to the daca debate that will dominate the conversation next week. ramy: still ahead as we review the week on bloomberg best, banks, oil producers, and automakers among the companies reporting earnings. plus, we dig deeper into the turmoil that shook markets with three officials from the federal reserve and some of the most respected voices in finance. up next, more of this week's top business headlines. a south korean court throws a curveball here and jay y. lee goes free. >> if you can be stunned and not surprised. that is the reaction here. ramy: this is bloomberg. ♪

♪ ramy: this is "bloomberg best." i am ramy inocencio. let's return to our global tour of this week's top business stories. starting with the formal transition of leadership at the federal reserve. >> jerome powell has taken over. he inherits a u.s. economy in its third longest expansion on record, with unemployment and inflation both near historically low levels. >> powell inherits the fed at a great time, but there will be a lot of challenges. the main one is how the fed will manage the next crisis. because powell will most likely preside over the next downturn in the economy.

in the previous extension, the fed raised rates by 3.5% and 4.25%, then they lowered rates to combat the downturn by 5.5% and 5.25%, so big moves. they don't have a buffer this time around. they will probably have to play with unconventional monetary policy tools and this will be up to the new fed chair to manage. >> yellen's final act, the federal reserve slapped wells fargo and their board with a cease and desist letter after the close of trading on friday. the vendor had its rating cut by three analysts and fell by the most in two years after the fed banned the bank from growing until it convinced authorities it is addressing shortcomings. this is a harsh order and unique. >> the fed itself called it unprecedented. typically you see the fed talk good about board oversight, but the asset cap is what was unique

here, saying wells fargo can't grow its assets until it shows it has made progress on this, and that could have some longer-term effects. it also seemed to indicate it was not happy with the pace of wells fargo cleaning up its act. they have had some time to clean it up, and i think the fed is looking for them to speed that up. >> a south korean court has suspended the prison sentence of the samsung electronics vice-chairman jay y. lee after he appealed the jail term. the sentence was cut by half, to two and a half years, although he is now free to go on four years of probation. >> if you can both be stunned and not surprised, that is the reaction today. we are stunned the high court which was reviewing the appellate court process in the seoul central district court behind me, they have not exonerated jay y. lee. he still has a sentence, but

they have allowed him to walk free. he has already left the courthouse by a bus to the detention center, where i suspect he will collect his belongings. he has been there for nearly a year. yonhap news agency is saying the man who was convicted in the same courthouse in august to a five-year prison sentence for various corruption charges, he will be able to go home this evening. it is a stunning reversal, because this of all the different options the appellate court could have come up with, this was the one that legal experts said was the least likely, second to only being completely exonerated. >> the bitcoin slide continues, the currency declined for a fifth day and led cryptocurrencies lower as the selloff deepened and investors migrated towards havens. what is the biggest concern right now?

is it just more regulations coming? is this why we continue to see the selloff? >> there have been a couple of big regulatory questions coming up. all over the world you have regulators, including in the united states, starting to send subpoenas and ask some tough questions about some of the big problems we have seen in bitcoin recently. on top of that, you have big banks and credit card issuers putting freezes on buying cryptocurrency. >> it appears there is a general feeling it could be too risky to allow credit card users to buy on credit, cryptocurrencies, especially some that are more suspect or less well known. >> bitcoin is marching towards its second day of gains and comes as u.s. securities regulators spoke at the senate banking committee yesterday, and calling for greater oversight of cryptocurrencies without proposing industry-killing measures. >> the message was, we have this

under control and they understand these technologies pretty darn well. there are a lot of interesting areas on the margins where legal clarity could benefit innovation, but the hearing was really quite a success. >> broadcom is trying to force qualcomm to come to the bargaining table for what would be the biggest technology deal ever. the chipmaker raised its takeover bid to $121 billion from $105 billion. >> they call this the best and final and are not willing to negotiate up a higher offer. the question is, is it enough to get qualcomm to the table? the short answer seems to be no. >> qualcomm turning down what broadcom called its best and final offer at $121 billion and leaves the future of the proposal to be decided by shareholders next month. how do you say we don't like the deal when the deal is $82 a share and your stock is trading at $62 and is not going higher?

>> qualcomm is saying broadcom is not appreciating the value of the acquisition, the potential resolution of its licensing dispute with apple, and the opportunities to expand as 5g technology becomes a thing. >> the founder of wynn resorts has stepped down as ceo and chairman amid allegations of sexual harassment. the board said it appointed the current president to the role of ceo and remains to committed to upholding the highest standards. help us to understand the events leading up to this moment. >> these sexual misconduct allegations have been circulating and investors are watching closely. regulators have voiced their concern about the issue, and they have reached out to wynn, wynn macau executives, and key directors to make sure they are fit for their roles.

macau is an important market for wynn and where the company nets most of its earnings. it's announced big expansion plans. i'm sure the gaming regulators in macau are watching this closely as well. >> even as the company has let go steve wynn, massachusetts regulators are aggressively continuing their probe into wynn. >> this is significant news. both nevada and massachusetts said they are probing allegations of sexual harassment. massachusetts said it will be taking a look at steve wynn's personal stock holdings in the resorts. if massachusetts regulators find some systemic blame or reason why he should not continue to be a shareholder, he would have to sell it and that would further put the company in a position where it would be vulnerable to takeover. >> in germany, the political stalemate that has lasted since

september appears to be over. chancellor angela merkel reached an agreement on a coalition government with the social democratic party. among the positions being divided, the finance ministry, which has gone to the spd. how much of a concession is that from angela merkel? might there be some grumblings within her own party? >> it is a big concession. it was seen in her party the cdu should keep the finance ministry, considering they were ahead in the polls in the election. but the spd made a strong case they want to have this powerhouse so they can make their mark in european policy as well. >> the currency weakening as much as 1.2% in shanghai, the biggest move since the 2015 devaluation after data showed china's trade surplus was cut by half.

we have a two-way trade finally? >> that is exactly what is happening. as shakespeare said, even the >> that is exactly what is path of true love is not smooth. nothing goes in a straight line. this was going in a straight line and is a reversal. for a given event like the bank of england, new zealand, you are getting bigger moves in the currency than we would ordinarily see. two important numbers from china did not look pretty at all. the pboc are talking about current account liberalization, particularly in the bond market as well. so we are getting some two-way moves. ♪

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ramy: welcome back to "bloomberg best." this week bloomberg television spoke exclusively with the presidents of federal reserve regional banks. first, bill dudley has been outspoken in his view the recent fluctuations in equities will have no impact on monetary policy. kathleen hays caught up with him on thursday. >> the little decline we have had a inditex we market today has no implications for the economic outlook. it proceeded a very large rise, so it stops here, the implications for the economic outlook are very marginal. so probably not change our thinking about the economic outlook. if it were to go on further and be much more persistent, then it could start to affect household and business spending behavior. that could influence the economic outlook. so far, i think it is small potatoes. >> i want to put on the table that as i was thinking about this today i was thinking about

2015, when we came into the year and the fed was going to hike rates in march and then there was brexit and a big selloff in the chinese stock market. the fed passed in summer and in september, only one that year, so clearly there is a point where markets and market volatility have an impact on the fed's path. >> it depends about why the market is doing what they are doing. in the first quarter of 2016, it was not just the markets. commodity prices were falling very sharply. this was putting pressure on emerging market economies that were dependent on commodity exports. china was going through a pretty difficult adjustment, so it was not a market event per say. it was the things happening in the global economy. the global economy is doing fine. >> on friday in the jobs report wages finally started to accelerate.

more inflation, not just three rate hikes, four in 2018 now possible. what do you see? >> i think it would depend on how the economy evolves. i think it is premature to make predictions about if there will be 1, 2, 3, 4. three rate hikes in 2018 seems like a reasonable projection. if the economy looks stronger, could three turn out to be more? perhaps. on the other side if the economy looks softer or inflation does not materialize, then the fed could go slower. i think the jury is out. ramy: coming up, more conversations with fed presidents robert kaplan and neel kashkari. they shared their economic outlook in bloomberg exclusives. plus, more exclusive insight from the biggest players in global finance putting volatilities comeback into context. >> i think the markets are still a little bit vulnerable to a slowdown in growth momentum. ramy: this is bloomberg.

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♪ >> i am confident that we will achieve our objective to ensure price stability. all of the ingredients and requirements are on the table. we have a robust growth. broad-based growth in the euro area. we have a rising investment activity. we have a decrease in unemployment. we have very generous financing for private households and corporate. inflation will come in the medium-term and that is our goal. price stability will be there.

and that is why i think that, in this year, we can accept the net purchase of our program in order to balance and start coming back to a more normal monetary policy. ramy: that was ecb executive board member sabine loutenschlager speaking exclusively with matt miller about the progress of the bank towards inflation targets and its timeline for concluding qe. let us get back to the u.s. and fed policy. on monday, we sat down with neel kashkari. she asked him if rising bond yields and jitters in equity markets have raised the risk of recession. >> one of the recession risks i was looking for was the flattening of the yield curve.

it has now steepened which is a good news sign as opposed to stocks falling. and the fed pushing up the front end and the backend being anchored. that would be more concerning to me. the fact of the yield curve is steepening a little bit takes pressure off and says, ok, if the bond market is seeing inflation expectations creeping up, that may give the fed more room to tap the brakes. if necessary, if it actually materializes. >> what do you think is the biggest risk to the economy? >> it is hard to say. if oil prices take off that could be a big shock to economic growth. the dollar i think is going to put some inflationary pressures if it continues to trend down. at the same time we're seeing growth around the world. europe is doing better. japan is doing better. that's a pretty positive overall economic environment to be in. hopefully, we have slightly stronger inflation and wage

growth. those would be good problems to have for the federal reserve. >> i know you tweeted out some nice words to janet yellen. do think she deserved four more years at the fed? >> i thought she has done an outstanding job and is an a plus public servant. at the end of the day, it is the president's call and every president gets to make his own appointment. i think the president made an outstanding choice in jay powell. i've had the privilege of working with him for the past two years. he is not an ideologue. he's very pragmatic. he is a consensus builder. i think he will do a great job. >> we have gone for about 15 months without a 3% correction. that is historically unusual. that has been a very abnormal period. i think there is obviously some market mechanisms that probably need to be looked at in hindsight, but i think more volatility in the markets may be addressing some of the excesses and imbalances in the markets by having more volatility. that is probably a healthy thing. i will be watching carefully to make sure it does not transmit to tighter financial conditions

that spill over to the economy. at this point, i would be optimistic that it would not. >> this is one of the things we chatted about. where and how quickly might that manifest itself? many people come into the studio and they say financial conditions are loose. the fed has a loose backdrop and can afford to tighten a little bit. >> let me tell you what i am watching. what i watch, for example, credit spreads. investment-grade credit spreads. high-yield credit spreads. other financial products to see whether, for example, are credit spreads widening, is there other volatility in other markets? so far i do not see that. it is something i am watching for. the fact that we have not seen it is notable to me. >> we track fx volatility. it really has not shown anything

aggressive despite the four-year high in yields. >> that tells you something. >> what does it tell you? >> it tells me that this may well be a stock market event, it may have been accentuated by some structural issues in the market that probably need to be looked at. this is six days in and i have found that it pays to take a little more time and be vigilant. i will be watching for that in the days ahead. ramy: without question, the return of volatility to equity markets was the dominant business story and bloomberg was able to get exclusive perspective from some of the financial industry's most prominent figures. let us start with the top executives at goldman sachs. they were in hong kong. they were leading the company's global macro conference. tom mackenzie sat down with several. first, the president and co-coo, harvey schwartz. >> our clients sensing opportunity at this stage?

>> when i talk to clients around the world, they have struggled with the fact that have lots of liquidity and the have felt valuations were a bit stretched. not surprising when you see the s&p 500 was up more than 20% including dividends. there were certainly people looking for buying opportunities. when you see a big spike in volatility like that, it might make people more cautious. they may be looking for a second or third order effect. certainly people are looking at this as a buying opportunity. that's why saw the market reaction on tuesday. >> we expect to see more money put to play at this stage? >> i think it is possible. i think again you might not see a rush. but here at the conference that the mood is pretty high because the real economy in the world is moving at a pace, and everyone talks about synchronized gdp. synchronized gdp is good for companies. it is good for employees and wages. it is what we all root for. if that translates into earnings, yes, people will feel

confident and will be looking for buying opportunities. >> i think it was important for the volatility to reestablish itself because the markets were getting carried away with a very goldilocks environment in the last year. global growth was accelerating. expectations were being beat. in terms of growth. it was very synchronized. we had very low, and stable bond yields and extremely loose financial conditions. bear in mind, until this correction, u.s. conditions were looser than at any point since the financial crisis. that was really interesting with low volatility. having some volatility come back into the market and having valuations coming back to it at a more appropriate level is quite a healthy thing. i think the markets are still a little bit vulnerable to a

slowdown in growth momentum. and any further rise in the bond market. >> is the fed still going to be on track? are you changing your view at all? has it made you rethink your view of the fed? >> no, it hasn't. we still think the fed will hike four times this year. that is all baseline. of course, that could change but what we have seen to date has not really changed that picture. the basic reason is that even with the downturn in equity prices and the tightening in the financial conditions we have seen, that has only brought us back to where we were at the turn of the year in terms of overall financial conditions. i thought that was consistent with an expectation of good growth and gradually tighter monetary policy. about a hike per quarter. that is where we are at the moment. >> we are obviously not in a bear market at the moment.

it has been a correction. if we were to slip in to a more radical selloff in the market, that be something you have to re-factor into your forecast? >> it certainly could. if we had a much bigger decline in equity prices, widening of credit spreads, more evidence that the turmoil is spilling out of the equity markets into other financial markets, then that would mean broader tightening in financial conditions. more like what we saw in the early 2016 areas and it would call for a monetary response. we have not seen that to any significant degree. what was interesting, even with the rapid decline in equity prices, we still did not see a lot of spill over into other asset classes or other market functioning. so far, it has not happened but of course it could.

>> the market has shown an unprecedented amount of complacency. volatility was down to an all-time low six months this year. and so, a correction was waiting to happen. but i also said do not assume that volatility will creep back into the system. when it comes back, it will come back with a vengeance. i did not expect it to happen so soon but it did. many people were wrongfooted. if you had a strategy for you are selling low volatility, that came to haunt you. the market was very complacent. there is a big disconnect between sentiment and hard data. that is corrected by sentiment coming down somewhat. it has still been a very good year. >> it is the spillover effect we should be more concerned about. >> what i am watching is how with the new federal reserve president the 10-year treasury will reprice. i think that will be a bigger

i think that will be a bigger driver for what we are doing as a business, which is wealth management. we still strongly believe that the u.s. has some momentum to go. we think u.s. markets still have some momentum to go. this correction is a transitory correction. i am of the view it is a healthy correction and we should not take it too seriously. ♪

♪ ramy: you're watching "bloomberg best." i am ramy inocencio. it has been another busy week. our roundup of reports the image results of some of europe's largest banks. >> bnp paribas says its biggest lender is seeing an uptick for its 2020 targets despite the challenging market are last year. >> overall, if you look at the economic evolution, you see a pickup in demand for services. that is what you see. on top of that, we are

digitizing and adapting to accompany those changes. that is why we believe we are off to a good start. we still have a low interest rate environment. that weighs a bit on the top line. but it also means the cost of risk is lower than what you would expect. that is what the bottom line is up 5%. >> france's second largest lender has been estimates with a fourth-quarter net income of 69 million euros. it has been expected to post a loss for the period. the company also saw a surprise comeback for the equities trading business in the final three months of the year. >> fourth quarter we did better than our peers. it is a very modest decline. when i look at the full year compared to banks, we are doing better. our decrease is lower than the others. it means we are gaining market

share. it seems to me, at the beginning of the year, at least when i look at the markets, we are progressing out of the extraordinary monetary policies which probably also meant low volatility. a lot of money available. i am pretty confident with the capacity to deliver our business plan which is a sustainable and profitable growth. >> shares in commerzbank are trading to the upside this morning after the group reported fourth-quarter net income of 90 million euros. that is ahead of analyst estimates. the german lenders sent in a review payments for the first time in three years. >> indeed, we had a pretty successful 2017 as the first year on our way to rebuild commerzbank.

we have been pretty successful there. we have overachieved some of our targets which gives us confidence to resume dividend payments in 2018. >> by the end of the year, you will resume dividend payments? >> it is formally decided by our agm. they will decide finally spring of next year. >> three p has reported adjusted net profits of $2.11 billion in the fourth quarter, ahead of estimates. but with an increase in net debt. europe's third-largest oil company also tightened its capital spending targets this year. it continues to rise. how do you manage that? >> we have a framework that we work within. 20% and 30% gearing. we were up around 29% and now we are down to about 27%. it is heading in the right direction for us. to your point, we will stay very disciplined within the capital framework that we have.

we have generated a lot of cash this year. i think we are on the right track. >> rio tinto shares. positive territory today. the group reported annual profit is at a three-year high. buoyant commodity prices have helped that. the world's second-biggest miner raised dividend payments by 71%. total cash returns to investors in 2017 have raised $9.7 billion. >> we have a very disciplined capital allocation. we begin in the capital intensity -- it is about rewarding our shareholders. with a cast return and that is what we did today. and it is about investing in the long-term. when we say growth, it is about growth in cash flows. it is not about volume or market shares.

it is not about being the largest. it is about being the most profitable. >> disney reported first-quarter earnings, beating estimates. bob iger had his the parks to thank. where so accustomed to crediting star wars for the franchises good results. this time, it is not star wars, it is avatar. >> it is the avatar theme park. the theme park business, every single year continues to put out earnings. it's a very unsung hero. it is not unsung within disney. they just continue to invest a tremendous amount of capital. the returns are very solid. >> it is in a discussion with a stake sale with softbank. it is also planning to list a stake in its mobilephone unit. what do we know about softbank's

ipo plans? >> much of the news is already out. alibaba, sprint have reported its earnings by them. but they always give you something to talk about. this time it is about an ipo. not much is known other than the company seeks to list all of its domestic telecom assets which will also include broadband operations sometime within the year. we do not know the amount of stake they want to sell or how much debt it will take on but one interesting takeaway for softbank shareholders is that the ipo will be focused on the dividend payout. >> g.m. announced its earnings for the fourth quarter and for the full year of 2017. it beat estimates on both earnings per share and revenue. take us to your numbers. >> the fourth quarter was a great quarter. another strong quarter. record $3.1 billion of profitability over 8% margins. underpinned by strength in north america, earned a record -- and

an improvement in our international markets, primarily south america which was profitable for the second straight quarter. we are pleased with the resilience of the business model, the traction we are getting in our core business. we are pleased with the overall results. >> u.s. tax cut giving toyota a boost. its shares are rising after it forecast a record profit of $22 billion. tax cuts adding about $3 billion to the bottom line. what is the company doing right at the moment that is creating this good story? >> i think one of the reasons markets are loving the results so much is it is a sort of back to basic result in some way. just to look at a couple of aspects. one analyst pointed out that the quality assurance spending is looking like it is down quite a bit. it is a back to basic

improvement. japanese quality is back. and incentive spending. they are still spending a lot to try to move cars in north america in the tough market there but they are spending less than the competition. this sort of classic good operating income, good margin result, which people have been looking for for a while from toyota. >> tesla is jumping around in after-hours trade after reporting fourth-quarter earnings that have beat expectations. what a week for elon musk. let's tackle tesla and these results that show they are not burning as much cash as before. is this really good news? >> i think so. the most important thing is tesla reaffirmed that they plan to hit their latest production guidance which is 5000 cars by the end of june. there was some concern that it would be delayed once again but

they are sticking to their most recent guidance. if they can stick to that, in general i think people will be happy. the other thing that was positive for tesla is customer deposits are up. to spy these delays, there has not been a rush of people canceling their orders. ♪

♪ >> if you look at the bloomberg, emerging-market nations have lost more than $750 billion in the last week. for today, you can see that brazil for instance is much higher. the bright green indicates a sharp advance. sharper than what we are seeing in the united states which is a darker green. red indicates losses. russia declined quite a bit. the european markets have closed. the red is across continental europe. ramy: 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 is one that is useful, quic go. it will lead you to our quick takes. here is a quick take from this week. >> there will be one notable absentee from the nations at the winter olympics. team russia. the reason, they got caught doping, big-time. here is the situation. the world anti-doping agency started investigating the russians after the head of the moscow laboratory for olympic drug testing blew the whistle. the independent report concluded that between 2011 and 2015, russia ran a huge state-directed doping ring involving about 1000 athletes. peaking at the 2014 olympics in russia.

in december, the international olympic committee barred the olympic committee barred the russian team from competing in this year's olympics. even though performance enhancing drugs have been banned since the 1960's, the authorities are under a constant struggle to keep up with the latest advances. popular methods of doping include blood transfusions and injecting anabolic steroids and taking various stimulants. now, anti-doping officials have a relatively affective if belated way to catch cheats. retesting samples from previous olympics. some 98 athletes, including 40 medalists were snared after the beijing and 2012 london summer olympics were retested. the top dopers included weightlifters and no surprise russians. state-sponsored doping programs are nothing new. the east german athletes that dominated the olympics later

sued the government for feeding them anabolic steroids. here is the argument. critics say the crusade against doping has failed. the authorities completely missed the russian conspiracy until a whistleblower stepped forward, but anti-doping enforcers argue that some athletes will always seek an advantage via performance-enhancing drugs. they say what is really needed is greater authority and funding to investigate the cheats. but even that might not be enough. according to the former head of the world anti-doping agency, sports remain in a state of denial and too many people involved are happy to look the other way when it comes to doping. ramy: and that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com along with all of the latest business news and analysis. that is it for this week. thanks for watching. i am ramy inocencio and this is bloomberg. ♪

we use our phones and computers the same way these days.

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carol: welcome to "bloomberg businessweek." i'm carol massar. julia: and i'm julia chatterly, and we're inside the magazine's headquarters in new york. carol: in this week's issue, stocks take a bumpy ride and we take a look at why. julia: it is those turbulent markets that welcome the new federal reserve chair, jerome powell. carol: inside north korea's army of hackers. julia: all of that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor in chief, joel weber. we will start in t