>> coming up on "bloomberg best ," the stories that shaped the weeping business around the world. -- the week in business around the world. >> there is no doubt he is rethinking the policy path. >> he is basically saying we can absorb what you are throwing at us. >> there is a back-and-forth on brexit negotiations. out a new rolls galaxy to compete with the apple 10. >> that raises the question of, does disney have to recut the deal? a lot of movement parts.

>> investors are coping with the same question. >> should we be concerned about inflation? because it is too low, or because it is too high? >> i didn't expect this. i find it really scary. host: plus, numbers don't lie when it comes to the latest round of earning support. was once theny biggest commodity trader. it has fallen a hell of a long way. host: is australia had on -- it is all straight ahead on "bloomberg best." ♪ welcome.lo and ," your "bloomberg best weekly review of the most important business news, analysis, and interviews from bloomberg television around the

world. let's start with a day by day look at the top headlines. deutsche bank on the latest phase of its turnaround plan. has formallyank announced its intention to sell shares of it and said management. the ipo will take place at the earliest available window. a four-week run into an ipo. existing shares held indirectly by deutsche bank. it doesn't plan to issue new work. how critical is this new ipo? >> it is not critical for the capital buffer, however it is critical to show to investors and banks and the management board that he can pull up the strategy he announced a year ago. he wanted growth and strategy. that hasn't worked out as planned. this ipo management unit ahead

of schedule. it is now happening in 12 months . will be a big show he will be able to lead the bank. >> paypal made it a video on capital -- made its deb willut n thetol hill, signaling central bank may reconsider the rate cut. each member of the fomc will be writing down new monetary policy as we go into the march meeting three weeks from today. inpowell was fairly strong saying the economy will expand at a faster the pace, which wil drive up inflation. he made no promises about rates. the implication was the fed could easily change its forecast at the march meeting. down more will -- dow

powell'spoints after testimony in front of congress. >>-he was quite careful in his remarks. in terms of being hawkish, the bond market had a point early on upbeate painted an picture of the economy. there is no doubt he is rethinking the policy path, thr ee or four. the european union published a draft legal text that will form the basis of the brexit treaty. theresa may pushed back on that: eu proposal. no u.k. prime minister could ever agree to it. v one of the things underpinning everything in a forward-looking sort of way is the desirability for a transition period, and the

necessity of it. what was said today puts doubt on the agreement. pushback not only from theresa may, but her supporters, the dup, the northern ireland party that's got market participants thinking maybe we are not as close to this transition agreement as before. >> it that's has put the talkino stalemate once again. the eu is forcing the issue into black and white. they are forcing the u.k. to stir into the abyss of what a deal outside the customs union looks like. >> federal reserve chairman dave powell wrapping up his second round of testimony on capitol hill, speaking before the senate banking committee. he said nothing suggested to him that wage inflation would accelerate, and no evidence that the economy is overheating.

do you think powell walked back what the market said today? >> you know the old joke, i think you understand what i think i said? she started fairly early on, saying the economy is going to grow faster, but there is a lot of slack in the labor market. we don't think we will see a big acceleration in wages, i.e. inflation. it may come down the road, but right now we are ok. it may be that investors overread the fed raising the terminal rate. absorballye said we can ust you are throwing at right now. if you look at the yield curve, it is down across the board. rosalind: president trump announced to steel and aluminum executives in the white us right now.

if you look house he would announce a 25% tariff on steel and 2% tariff on -- and 10% tariff on aluminum. >> it is important to take action now because cheating continues unabated. it is getting worse. >> the steelmakers went out. the obvious losers -- carmakers not having a good day. who else could get hit in the fallout? >> anyone biting something as important as an iphone, up to big construction projects. this is really what everyone had been worried about during the past year. now it is at our doorstep. rosalind: u.s. stocks falling 43rd straight day. you could call it a plunge. >> a country that runs a trade deficit year after year is not in a good position to start potential trade war. >> there is a lot of backlash.

people are not happy about this. >> the big losers in asia have been u.s. allies. south korea sought clarity. japan said they are not a threat to u.s. national security. statement, urging the u.s. to play by three goals. >> let me show you the president's tweet. " trade wars are good and easy to win." >> i didn't expect this. i find it real scary. >> i think it is ill thought out. china will let washington be the centerpiece of this nightmare. some have tariffs against 35 countries right now for violations of one product or

another they have put forward. we routinely are imposing tariffs on our allies. it is inevitable. it is not just china that dumps, do manymps product, so of our allies elsewhere in the world. these aren't meant to hurt other countries, so much as they are meant to bring jobs back to the u.s., and to level the playing field. rosalind: still ahead as we review the week on "bloomberg best," a challenge coming for central banks. larry summers thinks investors ene for their own good. and the highlight of corporate and the highlight of corporate earnings reports. warren buffett and jamie dimon reach out and communicate with shareholders. >> if they have a message, it is we are jp morgan, hear us roar.

bloomberg.his is ♪

rosalind: this is "bloomberg best." let's continue our global tour of the week's top business stories in beijing. the chinese communist party took steps to consolidate xi jinping's political power, which will have significant economic implications. >> the chinese community party repealing term limits, in a move that would allow xi jinping to rule beyond 2023. the timing is quite crucial ahead of the mpc. appetiteesident xi's for continuing his leadership beyond his second term. we got a signal of them at the party congress -- of that at the party congress in october.

very likely tos be signed off to end his term limits. what it does is move this shift away from collective leadership toward centralized leadership. this is about getting president xi extended,. the s9.ng has launched is this a game changer? >> it is a similar form factor to the s8. there is more performance under the hood, a much better camera. they have augmented reality emojis, stereo speakers. the question, is it a game changer? perhaps not. need to roll out was

something need to roll out was something after apple came out with the 10. the thing simpson has -- thing s it is it isoing for cheaper. they have to move on beyond the it is it is17, and the more scandal with lee's recent release from lee's recent release from jail. >> alibaba is ramping up competition with it is about but food delivery network. an acquisition would give alibaba instant access to nearly 50% of the market.

this also benefits their new retail strategy. is promising to deliver groceries within 30 minutes within a three kilometer radius. they also have their own kobe business which operates similar neighborhood services. the acquisition would really streamline the resources. threw a wrnench in disney's plan to take over 21st century fox businesses. ceo bob iger called it the crown jewel of the package he is seeking to buy from fox. >> how does he play this? he bought fox, thinking at least 39% with the option to require the remainder of sky. two things can happen -- one, th

owningd effectively and 39%, which would not be good if the remaining percent is owned by comcast. disney could launch a bid for the remaining piece of sky, and see if it can win over shareholders. can offer comcast a higher number. that raises the question of, does disney have to recut the deal? there are a lot of moving parts. >> warren buffettpercent is strg patients to investors wondering when he will strike the next big deal. the berkshire hathaway ceo commenting on the all-time high of businesses, adding that berkshire currently holds $116 billion in cash in treasury

and his extraordinary liquidity earns only a pittance. what is he going to do with the cash, and when will he make a move? >> everything is expensive right now, and that is why he has been holding off. there are not a lot of growth opportunities. of food companies, consumer products, manufacturing spaces where he would be the of foodpreferable buyer, they p aying higher prices. for buffett, if prices are going hasome down this year, he strike. he wants to do one last deal and solidify his legacy. >> jp morgan held it annual investor day yesterday. some highlights strike. he wants to do one last deal discussed berkshire and amazon, and the blockchain impact on its business in the battle on mobile. >> if they had any message, it hear usare jp morgan,

roar. jamie dimon as ceo said, we will defend our turf. if there is an upstart or competitor that wants to compete, we will spend $5 billion, we will spend whatever it takes. i think the reason is because they can afford to do so. jp morgan is benefiting from scale more than ever before. is similar to many thanks in the u.s. banking industry. president trump: i think it is time that a president stepped up. i'm talking democrat and republican presidents. >> president trump wrapping up a bipartisan congressional meeting. a wide-ranging discussion about what to do in the united states over greater gun control. >> congressman and senators here say they need to get 60 votes in the senate. it has to be focused. you see the president saying, i

want it to be comprehensive. it's going to be really hard to put that together in a way that can pass the senate and the house. >> walmart is raising the age restriction for buying firearms to 21 years, and will remove items from its website resembling rifles. >> impact from sales? should we see any meaningful change for these companies? >> with dick's, this wasn't a huge part of their market to begin with. mega-retailer, a something like this is mega-ret, something like this is not necessarily going to hurt them on its own. it might spur backlash among the gun rights community, but i annk it is hard to have

impact on such a large company. >> spotify planning to go public on the new york stock exchange, the planning to visit shares directly on the exchange rather than relying on underwriters. it will allow investors to buy existing shares of the company that have been privately held, rather than issuing new shares. what is your approach to this new ipo for spotify? >> this is unique to the company. the listing needs to take place given the structure of the capital. over time i think you will see some secondary shares come to the market. it is very unique to the company. i don't think it tells you anything about the overall health of the tech ipo market. >> theresa may warning no one involved in brexit will come away completely destroyed. -- completely satisfied. p.m. may: this is a negotiation. no one can have exactly what we want. >> can she appease both sides of

the tory party? >> it was about trying to unite her very fractured party on this issue. treadeded that -- she that very fine line, let's get the job done, but reminding everyone you will not get what you want. telling everyone to gettelling . it will be a bit of give and take in this negotiation. repeated that we will be leaving the customs union. that has been such a hot topic after jeremy corbyn's speech saying that labour would keep us in a customs union. she againshe talked about gettil of our borders and our money. said, i willlly not be pushed into walking out. >> a delicate balancing act. >> she is trying to put something in for everyone.

rosalind: welcome back to "bloomberg best." bridgewater associates founder made headlines recently with his hedge fund bet against european stocks. he sat down for an exclusive interview with bloomberg invasion. sound so pessimistic about the economy. he's worried about inflation. >> i think it is so funny when i hear your question, should we be concerned about inflation? i ask you, what? is it because it is too low or too high? there is a lot of concern that it was too low. should we be concerned it is too high? i don't think we should be. if you get 2.5% inflation, is

that a problem? i don't think we are going to hit 2.5% inflation for a core inflation rate. in europe, is that a problem there is too much or too little inflation? i am particularly concerned. what i am concerned is as we go into later parts of cycles, the challenge of central banks will be to get it perfectly, right? >> where are we in the cycle now? we: in the united states, are in the later part of the cycle. we are in the goldilocks part of the cycle, when it is too hot and it is not too cold. when we have growth and we don't have an inflation problem, that is the beautiful part of the cycle. as we are moving from that beautiful part of the cycle to a little bit later in the cycle,

there is that hard in which the brakes are put in in different phases. in united states, we are faster ahead. we will let the balance sheets go off. in europe, we are a little bit behind that. a result, you will have a winding down of quantitative easing and not as much movement on interest rates. europe.where we are in that is where we are in the united states. i don't think the issues are particularly pressing now. if we rolled the camera forward to two years from now, having more particularly stimulation in the united states because of the tax bill. we will be in a part where the central banks have a problem getting it right, i think a year or two from now. >> the fed signaled three rate

hikes this year. goldman signaled four. where do you think of the number is? i don't know. it depends on how things transpires. when nothing is precise, and as we pick up we will figure out if it is two or three or four. it has to be careful that it is much faster than is discounted in the curve. it is between three and four. if they stick to that kind of pace, i don't think it will be problematic. rosalind: coming up, more of the week's compelling conversations. treasury secretary larry summers shares his thoughts on the fence's new leader. david rubenstein says the american economy in pretty good shape, but investors should not get too comfortable.

david: my biggest concern is when things seem great, that is when something bad happens. ♪ retail.

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>> you said in your speech that --coin has largely for yield largely failed as a currency. what did you mean? reliable and hold a stable value? bitcoin is 10 of times more volatile than sterling. the most important thing is that working as a medium of exchange, how well can you use it to buy goods? it is not that efficient. is about two points on

a transaction basis. it is not that good at doing it what it is supposed to do. it does point the way in many respects to the future of money, and that is what is interesting. worried about it displacing sterling or the u.s. dollar, the conventional currencies, but it does throw a challenge to central banks and those overseas payments and markets. rosalind: you are watching "bloomberg best." i'm rosalind chin. jay powell gave an upbeat view of the u.s. economy in his address to congress this week, giving investors a fear that he might increase the pace of rate hikes. let's start with the conversation in abu dhabi with larry summers.

learned a lesson in january about underpriced risk when it came to volatility. is risk underpriced? calamitous of a decline -- >> i see more people who seem to serene, then i encounter who seem to be excessively alarmed. to that extent, this does not be a proficient is time for investors. >> how difficult a situation is this for the fed chairman? >> it is a difficult balance the legitimate desire to stimulate the economy and to get as much employment and growth as

to thee, and certainly that inflation gets back to 2% and maybe even the average 2%.ation rate gets back to you have to worry about the financial foundation for recovery if you are the fed chair. there is a balance to be struck. s he in a dammed if he does, dammed if he doesn't situation? >> that trace thinks more decoratively #negatively than i would. -- that portrays things more negatively than i would. he is a public servant and real professional. had thee u.s., we just best consumer confidence reading in 17 years.

a lot of people are putting that to the tax reform bill. do you think this congress and this administration is stepping up the economy to continue to do better? d: i think the tax reform bill will help the economy. at some point, we have to pay debt off, but right now people are feeling good about the economy. matt: speaking of borrowing and rates, treasury rates, what do you think about the talk of going over 3%? i'm starting to hear doomsday scenarios from people. do you think rates are going to start going up? david: i don't think they will go up dramatically. i lived at the white house when we had rates at 40%, 15%. -- at 14%, 15%. right now, interest rates are going up modestly.

by traditional standards, even , i thinko up 2% or 3% we will have low interest rates. if the fed increases by 25 basis points, even three times more this year, it will still be relatively low by historic standards. still manageable for firms like us. matt: you sound optimistic, and you did in your speech. what are your biggest concerns? would are the biggest risks? david: we have a lot of debt in the united states. at some point we have to realize it has to be paid. i worry about geopolitical risk. we never know what is going to happen in north korea, iran, the middle east. the situation is pretty good right now. my biggest concern is when things often seem great, that is when something bad happens. i don't know when that will happen, but i feel pretty good about the economy. the u.s. is in reasonably good

shape. i worry at some point we will end this cycle. i don't think it will go on forever. in europe, our top conversation centered on brexit uncertainty in the future of quantitative easing. told the parliament this week that while economic positions are improving, he does not think the bank should pair back its stimulus yet. up with thecaught bank's president. >> this could probably be on part of our discussion, whether to complement any decision on the program and communication regarding the asset purchase program with more specificity with respect to the interest rate guidance. nejra: what kind of specificity? it could be about specifying

what the paths mean. nejra: what time frame are we talking about, three months, six months? could erase right come before march 2019 -- could a rate rise come before march 2019? about our speculating future. i can just tell you that the market indication, given the communications we are observing, expect interest rate moves mid-2019, and given this environment, it is not completely unrealistic. there are some who have talked about a short taper, could that tapering be extended?

this is a discussion we will have to have been the governing council, what the end of the net asset purchases mean. we have a quick end or a prolonged aided tapering? as you might know my position is a rather skeptical one. you can guess my preferences from that, but i am not second-guessing future decisions of the governing council. what are your biggest concerns as far as the regulatory environment, as it affects private equity investors? >> brexit is the top issue. work withne a lot of members and helping them understand what the possible if thetions might be u.k. be the e.u.. the challenge they have got is we don't have much more clarity in 2018 then we had in 2017.

a little bit of progress was one at the end of last year the divorce settlement, but we still don't know for sure what kind of transition arrangements will be put in place, how long they will last, how comprehensive they will be. we have an even less idea what the longer-term relationship might be. right now, members are spending a lot of time that they could have been spending on other things on trying to navigate a range of different brexit scenarios. we are hopeful over the next couple months we might get real progress that will enable people to make concrete decisions about how they will develop brexit contingency planning. ♪

♪ rosalind: you are watching "bloomberg best." i'm rosalind chin. opening news has centered on quarterly earnings reports. the resort -- the results from the british bank standard charter. are trading higher this morning. the company restored its dividends after two year suspension. when you look at your targets, you need to double revenue. how will you do that? >> we said today we need to get the revenue growth between 5% and 7% going forward. last year, we were at 3%. it was a year where we were down by 4% because of the financial

markets performance. excluding net, business is at that level. we have markets that will operate in mid-single digits anyway. kong, it india, hong where there is natural growth. the bank of ireland will pay a dividend for the first time since 2008. this --raw a line under under the financial woes of bank of ireland? is this the end of crisis management? it's the first time in 10 years that we are conserving our intentions to pay shareholders. we consider that a pivotal moment. the second point is we are concerned the bank is the largest under for the irish economy. that is the fourth year in a row. that reflects strong support of the irish business sector. lending growth is over 40%. we have seen an increase of new

mortgage lending. more than 9000 mortgages sold and half of those are an important first time buyer segment. we are announcing our intentions to reenter the broker market. manus: let's talk about the federal bank now. how much will you growth in 2018? >> i believe that after a number of years now, finally, 28 team could be a year where our commission income will grow. at the same time, we could see cost coming down. we are looking positively into 2018. continued, very strong come along growth, and we

believe that the region of willal and eastern europe again outperform the economic performance of the e.u. in 2018. bader says it is closing its deal with monsanto. it should be expected to completed in the first quarter. the company says it needs more time. >> we are confident we are going -- an quarter to. it is slightly delayed because there is more analysis going on. constructive discussions with the most important regulators. in terms of the scope of divestitures, we have announced in october last year that we are , and we havest

--unced the devasting the divesting of -- there might be other things discussed in scope of the divestitures. ♪ a boom. has been signaled and basic chemicals earnings have now passed. the sense seems to be that specialty chemicals was an area of weakness. can you give us your sense of the quality of these earnings you just delivered? >> in 2017 we had excellent earnings, tremendous growth, and earnings growth. mostly in the chemicals field where we had better margins and good operating rate, these

higher costs translate into higher raw material costs. they suffered under margin pressure. we saw that in q4. into 2018, we are determined to improve these earnings considerably. sas has reported a pretax loss for the first quarter. it has said it needs 50 extra aircraft and is in talks with airbus. 33, halfe an order of of them have been delivered so far. the remaining will be delivered between now and 2019. as we look ahead and into 2020 and beyond, we know if we do nothing, our fleet. to shrink. we have a number of aircraft at the aging limit that will

actually leave our fleet and we need to replace those. we need further capacity to cope with the growing demand in european aviation industry. we are in talks with airbus about a complement in order of an additional 50 aircraft. fromwill improve business 2020 to 2025 to ensure we can maintain and have folks ability to grow. -- and have flexibility to grow. watching is we are macy's. h-shares are surging as the company posted a surprise sales game last quarter. 1.4%, number was about and concerning it is the first quarter and 12 quarters, that is good. the fourth quarter over the last two years, i think they have

been down 8%. a very weak first quarter comp, too. from a psychological point of view, if i was working for macy's, i would feel better. is this the answer to the problem of department store retail? not at all. out with their latest earnings today. stocks are trading higher. best buy may be one of the few bright spots, seeing best holiday sales since 2003. do you feel be holiday season with a blip or can it continue? >> the holiday season was extremely strong. you have -- you saw 4% growth in consumer spending. it will give you a reprieve and breathing room to take the changes that need to take place in these retailers in the new environment. it doesn't mean you're out of the was.

the fundamental issues of retail, the changing consumer them of the switch to digital them of those are still occurring. indicate that the major players are responding, the consumer is responding positively, yet they have to make lots of changes in their business model. already seeing the financial impact of the ongoing gun debate that has gripped the united states since the deadly school shooting in parkland, florida. a company cut their forecast for the year. >> in the old days, there was this pattern where we saw, after a mass shooting, there would be a big surge in gun sales. those didn't happen. it seems like there has been a flip and that people don't worry about that may be because trump's president. it is weighing on the business. >> for the last five quarters,

we haven't seen that be the case. some people have called this the trump slump. some are saying maybe people are maxed out. that definitely impacts this. the other thing we should be looking at is just over saturation of inventory. some retailers may have had a lot of inventory before the election and are just a moving through it. it takes time to move that inventory. that hurts manufacturers. goal is one to watch, tumbling again. survival hangs by a thread. are we near a crunch point for this company? >> i think we are. earnings, almost $5 billion of losses for 2017. the chairman said the the --turing deal with

deal is the only hope of survival for the company. he says there is no magic pill for investors, who face heavy losses on the restructuring deal, which will cut be dead by half. there is no deal with a strategic investor. insolvencytive is a process, which would be damaging. he is trying to get all of the stakeholders over the line, as he puts it. he admits there will be discomfort for some of them. this company was once asia's biggest commodity trader. was less than 200 million market cap. it has fallen a long way. ♪

♪ >> boeing is on a tear, and it

has to do with a return to revenue growth. the two google at the financial -- we took a look at the financial analysis function. ofthe end of 2016 and much 2017, we stagnated, and we are now looking at growth again for boeing. about 30,000re are functions on the bloomberg, and we always enjoy showing you are favorites. maybe they will become your favorites. another function you will find useful, quic will take you to our quick takes. here is a quick take from this week. these are the five most valuable companies in america. notice anything? they are tech companies. their dominance is attracting attention from watchdog groups commode say their power is harming the economy. is it time to break up big tech? you have to understand how tech

has exploded. let's imagine the top five tech giants as pac-man, except in this game, there are no ghosts to avoid. those ghosts are u.s. regulators. for the past decade, the u.s. has been mostly hands-off with tech companies, allowing them to become bigger. bloomberg data shows in the last 10 years, the big five have a close to 500 acquisitions. consumers like the company's products, amazon, apple, facebook, and google have developed huge market shares. of all userves 93% sales. google pulls and 70% of internet search ad spending. apple is dominant in high end smart phones, and social media traffic. being a monopoly isn't illegal in the u.s. regulators started -- stop equating big with bad.

the less high-profile case was filed in 1998 when the justice department successfully challenged microsoft dominant of an -- of computer operating systems. it has led watchdogs to say enforcement in the u.s. has become too timid. they say big tech is hurting innovation, jobs, and wages. some blame the companies for a decline in successful startups. in europe, america's big tech meets have faced resistance. the e.u. has fined two google for using market dominance, and germany is investigate in facebook for privacy practices. the big tech players don't think they need to be broken up. the argue their dominance isn't newanteed, because competitors can jump in. google points out competition is one click away. ♪ that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis before hours a day. "hat is all for "bloomberg best

this week. i'm rosalind chin. this is bloomberg. ♪ mom you called?

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>> you are watching "bloomberg technology." justin trudeau is calling president trump's plan to impose u.s. tariffs on steel and aluminum absolutely unacceptable your -- absolutely unacceptable. he says it makes no sense to highlight canada or canadian steel or aluminum is a potential security threat. also condemned the move. the families of the 58 people killed are getting $275,000 from a $31 million fund that started as a gofundme effort. the las vegas victims fund said today that 10 other