♪ >> coming up on bloomberg best, the stories that shaped the week in business around the world. the white house dems of its hardline on trade. gary concepts down. >> the resident is focused on growth. that is our number one objective. >> having someone like gary cohn was market family. next try to hunt does economic congress. parties gain as italy goes to the polls. central banks send signals on the future of signals. >> we needed to remove the explicit reference to the in theood of an increase fees of purchases.

>> energy leaders come together and discuss how shale is changing the game. >> i think this is part of the new world market. the message is that this is a supply source that will be around a long time. issome of the global economy most prominent actors comment on the drama. x this continues and it gets worst. great on a tactical basis i can see the merits of argument where we continue our gradual increase of raids. >> it is all straight ahead on bloomberg best. and welcome, i am michael. michael: this is your weekly review of the most important business and interviews around the world. on sunday, italy held a general

election and the result suggested that populism in europe may still be a powerful force. >> the five-star movement seems to be the big winner of the italian election. it is expected to win around a third of the vote but not enough to rule atonement is. alliance including the anti-immigrant may win slightly more seats but again, it is not there. , outgoingt loser prime minister and the democratic left party. what happened here? >> is shows that the polls were not right. what we understand that is that the antiestablishment, anti-people who have been in power is my stronger than we have been expected. this is born from the north, and the five-star movement. if the latest figures are

correct, the five-star movement would have been to govern on their own but they would be the party with the highest majority. the biggest losers would be the democratic party. this is the party of the prime minister for the last 18 months. it is there that italians despite having a recovery are fed up. it might be immigration, it might be that they are fed up with old-school politics. >> president trump twitter that he wants strong dialogue before making a final decision on his proposed tariffs. he is getting just that, strong dialogue. he is opposed to on -- across-the-board tariffs. if the terms go through as described. >> bounce up and down the escalator in trump tower two years ago to run for president, he talked about tariffs.

he is getting a lot of pushback including some right down the did have a jacobs did report today that donald trump is telling associates that if he does impose the tariffs, events gary cohn will quit. resigning as white house economic adviser as the elementration prepares imports. according to two people familiar, the goldman sachs president quit after a competition with the president over the plan. >> gary cohn has been a run-up in the white house and now he is gone. i don't know whether find a replacement. i am sure they will buy one but i don't know where every >> you would imagine that there is less of a chance of a reasoned response out of the white house. this signals a potential move or some might view it as hardline. >> what we are seeing is this

battle we have been talking about this when the globalists and the nationalists. i think that when steve bannon let the white house that was a feeling that maybe it was the globalists but now it was different with navarro being elevated and gary cohn walking away. >> do you think there is a gary cohn premium in the market? >> absolutely. hethe extent that represented some form of stability and that was the markets interpretation of it. i think we have to break this thing down. 2017 was about tax reform. gary cohn is the right guy, very instrumental in doing that. 2018 is about trade and tariffs. gary, not offend the right guy for that because he does is -- having someone like gary cohn was market family, pro-business, pro-bank, pro-globalization, free trade was something the market was on the same page with. with him were moved, the question is who will fill that

role. who will be the centrist voice on economic policy and trade policy. we only have that right now. changing some key language today. here is mario draghi in his own words. thehat we need is to remove exclusive reference to the likelihood in the piece of purchases in the near future. >> this was removed but markets dovish way.ed in a how did he achieve that. >> you did see the euro jumped when the policy statement cap holdout. these the kind of wording that your adjuster then, the euro came off. you could see why. he really did play it down quite a bit. this pays is not going to go up, at least in the near

future. it could well be extended after september. that is feasible. there are still more purchases ahead. theyst some will they want on tariffs. we are waiting for president trump was sent to sell a proclamation at the white house. >> i am defending america's national security. i will place tariffs on foreign imports of steel and aluminum. likes this is a bit of a watering down of sorts from the original policy that president trump had initially wanted. >> there is a lot of wiggle room in these, the administration says that any trading partner u.s. can apply for an exemption. the yield,xpect that probably south korea and others will immediately be applying for those and remains to see whether they will be granted. there did seem to be some dialback of just how top these

sanctions will be area vice president from accepting the and that meeting will be happening by may. >> we are optimistic about continuing a diplomatic process for the possibility of resolution. >> what we have net is a situation where north korea has agreed to everything donald trump has asked for. he backed down from his refusal to tie talked to didn't's denuclearization. he greeted trump's condition missilesut a freeze on and nuclear testing while agreeing with united states that south korea can go ahead with their military exercises. it really does look like trump is in the driving seat. >> president trump could look like he gave something away by giving chem this credibility and not get anything. there is the risk that the

president goes to the border region and meets with kim and gets nothing out of it and military tensions escalate. we will have to see what happens in the coming weeks. since the goldilocks jobs report, payrolls delivering more. the economy adding 14,000 jobs. unemployment holding steady at 4.1%. average earnings rising less than economists expected. >> the focus of the trump administration in addition to lower taxes has been to increase ands for the working woman the working man. probably the case that the headlines of tremendous job reports will be tempered by the wages. >> this report will strengthen the argument on the fed but this is just one report and i think

in the context of the way it is going, it shouldn't get to much weight in the bigger picture of things when it comes to the next meeting in march. >> this is report limits to step down by the end of the year area that is according to the wall street journal. how successful has he been on getting goldman sachs a direction after the financial crisis? >> i think there is a mixed record. going through the financial crisis, they survived, they were among the ones that did not get hurt and hit that much. then the world changed. regulations came. appetite for risk change around the world. i was in goldman really adopted to those as their rivals were adopting. next they reported in the wall street journal that the ceo of goldman sachs maybe seven down as soon as the end of the year. he is responding into a form right now. i'm just looking at my phone. he says it -- it is the wall

street journal's announcement, not mine. i feel like huck finn, listen to his own eulogy. >> to let him bloomberg best, conversations with two architects of the trump trade policy. steve mnuchin. navarro. jamie dimon and daniel pinto weigh in on the economic themes. plus interviews with some of the world's most important figures in oil. and of next, more of the top business headlines. a governing coalition forms in germany. >> this is the leader of the social democrats. >> this is bloomberg. ♪

♪ >> this is bloomberg best. my michael mckee. continue our global tour of the top business stories. in china where the national people's congress opened with a

statement of the government economic objectives. >> china setting a 2018 growth target of about 6.5%. guess is he opens up but the kid mission was last year's which had a faster pace. if you dig with a promo is a nastier coming out of china. >> the top lines are really that growth target about 6.5%, dropping the line or higher. as with included in 2017. we got the deficit target as well coming in at 2.6%. below with bloomberg reported. we expected 2.9%. that's what our sources are saying. that would be below the 3% we saw in 2017 worried we also are there hoping to see retail sales growth at a clip about 10% in 2018. it is those moves that will potentially open up some sectors like health care, education, telecoms and new energy vehicles. we'll have to wait to see about

the details. the devils always in the details of these announcement worried but it is saying that these are sectors that need to see great participation. >> joe weisenthal democrat voted to join troxler angela merkel's next government. it was largest hurdle to her ports term and restores a real sense of political stability in europe's biggest economy. 66% agreed to join a coalition because that shows a really strong when. >> it shows a strong win for the designated leader of the social democrats andrea. this is by -- inspiring potential leader really rally around this same this is a how skeptical oligarchy to the coalition and very against it. now let's get out to the villages and the cities and rally. has off to chancellor merkel. >> we want to bring you to

mexico city where and ministers from the u.s., canada and mexico are holding a news conference at the economy ministry after concluding the latest from the seventh round of nafta talks. once we're done with a large number of difficult issues. there are technical issues. person ande the other negotiators. in spite of this hardware, we have not any progress that any had hoped. >> robert has been very insulting and previous press statements talking about how he was disappointed in what the other sides were offering and they were taking this seriously. he seems to recognize that there had been progress made and that there had been good faith on the other side worried obviously he had with her in the idea of the steel tariffs being a dealbreaker if they come true but we don't know what is your job with that yet. we will have to wait and see. it was robert who said they could do a lateral agreement

between mexico and canada at this point, they still want to finish this multilateral. this company has agreed to acquire expressways forces to $7 billion. this is the latest in a string of health-care deals. we were at his pain is something might happen with express, with the potential contenders and what happened? >> i think it could have been health insurers. when other jurors are looking for is to mimic the model of the united health, unitedhealth group in this game earlier, they got a pharmacy back in 2015. that diversification strategy has really paid off of the company not just as far as the revenue growth but as far as cost advantages, information advantages, convenience advantages that a filibuster the insurances. it could've been a number of insurers but if your member, cigna was the target. cigna had a limited extra cash

to play with, that is why they're making this. >> qualcomm delaying a key shareholder vote after the committee on foreign investor that -- they said that it is on course to win all succeeds and is seeking at the board. there has been a flurry of news on this huge deal of course. $117 billion. is moving ahead were very here? are betting it would happen, you have some really good news and some really bad news. that it looksas like the u.s. government is going to take a look at this, that they don't like the idea of them taking over qualcomm. on the positive side, the initial return that we were able theytain indicates that were going to win shareholder approval for the takeover of this. the prejudice or looks to

we've had of rivals in the united states. >> it has been two years since he took over as ceo and he seems to be bringing us back to a time back in the 1990's when they were doing these really big takeover deals. since then, they've not really done much. the best -- last illness and who thousand seven. the financing of it is very interesting. they are saying they're going to raise this money, 6 billion of it through an ipo that not done yet. investors are wondering if this is really the way to go, they're talking about the premium. clearlyooking at 33%, investors are thinking they're paying a huge amount to buy this company. is that that going to pay off? . the chance of northumberland back as much as 2% and sport of directors turned down an $8.4 billion deal by the founding family, they want to take this private. how much money can the board yet. >> that is the key question.

right now they're getting about $50 a share. the fact that it is rated above that for quite some time, the family saying that is the premium that is being baked in, we are giving you a 24% premium on the share prices before we announced we're looking into it. how hard could it go? >> this story in june of last year, there is a 24% premium baked into it. how much should i still want. >> they said i was $60. but this is a very difficult deal to get financed. there aren't a lot of example of retail that is highly leveraged. neiman marcus would be your obvious go to. of the department's were chained, those highly leveraged, they are struggling. off the third biggest corporate bond sale on record to fund its acquisition of aetna. test the market was off to his worst annual start in decades. there's funded given what is interesting is that cbs looked into selling their debt.

45 going dollars with but instead they went with 40 billion dollars. >> we saw orders of three times what cbs was offering so certainly the demand was there for a deal like this. but really it was important to get the pricing solid on such a massive deal, especially when investing great markets have been off to a horrible start this year. that henor kuroda said thinks the inflation target want trigger an immediate exit from policy stimulus, he also says he saw u.s. trade policy as a rift but he reiterated he could only say that fundamentals are good. >> he was very good at talking about exit. he was asked about saying it could happen in fiscal 2019. he said the reason he said that was because he thinks there is a high probability that inflation will hit the 2% level at that point and that is why they might

do the exit then, he said is not that we would just automatically start talking about an exit when we hit this goal 2019. the incumbent person on price moves and this is all based on his expectations of meeting his goals. ♪

♪ >> you are watching bloomberg best. i michael mckee. trade talk dominated economic conversation this week as the white house moves toward the imposition of tariffs proposed by president trump. administration's top economic officials laid out the thinking behind his policies in conversations with bloomberg television. let's start with steve mnuchin who spoke with our chief washington correspondent. wants to takent on the trade issue, it is a very

important economic issue. as you know, china's market is not open to our companies and our workers the way our markets are open for them, the president plays in free and fair trade but he wants reciprocal trade and recep will pair deals, that is why we go forward with the 232, there is a mechanism that will be held to do with these issues. >> the folks who said this could end up raising costs of people is a this might hurt economic growth and they cite that as a concern, what is your response to them who feel that these tariffs could ultimately offset some of the economic gains that have been made? >> we're sitting at 2% gdp. as of people lined up and said we would never get to 3% gdp. we said all along our goal is to have 3% sustained judy a. we've had two quarters of it. we are not there on a constant basis yet. the president is very focused on growth.

that is our number one objective. >> does menstruation feel that americans will actually his wares will rally behind this proposal? >> absolutely. i think americans understand that the president is for free trade. but free and fair trade. he wants to get good deals. he is the salesman in chief for american business. the tariffs like the ones on steel and aluminum, are those program for the economy overall? >> they are. able today's. last month of the solar tariffs, they were larger than the ones we were contemplating on aluminum and steel, 30% for solar, 50% for them. this is the genius of donald trump, we had a flood of new investment in those industries and it looks like we will have a soul industry back. that is good for america. that is making america great again. it is a good thing.

>> how concerned are you about whether they will be trade wars and what it would do to those progrowth agendas? >> the president has said this repeatedly mme echo what he said. we are the freest trader in the world. though tariffs, low nontender harriers and altogether for that is half $1 trillion year trade deficits that offshore is our jobs. my own do is that all the countries we trade with our getting the better part of a deal and they have no incentive at all to get into any conflict with us. i would hope that our allies in particular would understand that if they want america to come to their defense, we won't be able to do that without aluminum and steel industry. >> that is the word entree from inside the white house. under these policies look from the outside? we will have a range of reactions to tariffs and much more. from some of the biggest names

in global business and finance. >> this is bloomberg. ♪

just undermined competitiveness for the industry globally. it's a n industry issue. >> the world is already in chaos. a little bit more or less, it is regular chaos. you just have to see how it's moving in the world. >> we have all on globalization the past years and decades, and i believe we shouldn't abandon this good idea. we need a roundtable to see with the best solution is. >> that with a sampling of the opinion on the proposed u.s. steel and aluminum tariffs from international auto executives at the geneva motor show.

we also spoke with leaders in banking, investment, and policy during an intense week of debate and speculation on a wide range of economic issues. let's begin with francine lacqua's interview with jamie dimon. she asked with the prospects of a trade war good old back growth. >> if it continues and it gets worse, yes, it will hurt growth. offset what we have had from competitive tax reform. think he's a strong proponent of economic growth, and it is good to have him in the white house. he knows how an economy runs, how to make it healthy. it's important. see who they put in the job next. francine: what does he do next?

>> he did not tell me. francine: who would you put in charge? who do you think should be in charge? >> i don't know. i haven't thought about it very much. i hope it is someone knowledgeable, with good strategy. hopefully he will understand markets, global allies around the world the -- it is important we maintain good -- >> we are at an interesting time. markets are going to be nervous, nervous to anything. nervous about inflation, anything that relates. goes beyond what it has been announced, it is something that will concern the markets

about future growth. francine: but what happens at the end of the cycle? is there a correction, or will markets adjust? >> normally there is a correction in any cycle. there is never just one thing, it's a combination of factors. normally in this cycle, the market has a long way to go for it dependsear or two, on the valuation of the time. the most important thing is to be prepared. you, ients really need they need to reshuffle their horrible -- their whole portfolio. we know it would be a correction. -- if youthe things

look at australia's own history australia's1990's, growth was much more dynamic. in reverse, it makes us nervous. whether you can carve out elements and unfair trade practices, i think the big it's said tohat snowball. you already expressed some concerns in 2018. does this make you a bit more cautious? we gave up on those decades

ago, it is really hard to make any sense. have been pretty cautious about markets for the last couple years, and that is based on high valuations. i would say in the short run, we have had a virtually valued market. aroundupts people earnings and growth, and we will talk about that. >> with the jobs report like this, i'm getting more on board with the march rate hike then i was on december, or even in february. >> well i think the economy is doing very well. it is likely inflation will pick up, and that is a good thing. i can seecal basis,

the merits of arguments where we continue the gradual increase in rates. what the tips it for me as i am thinking about this is the long period of inflation below the inflation objective has been very difficult, associated with difficult times. the time we spent at the zero lower bound was painful. the funds rate was close to zero for so many years, and that was a sign that the economy wasn't performing as well as we wanted it to. in the future, at some point, years from now, the economy will have a difficult spell, and if we go into a recession, normally the fed has to lower the funds rate by 500 basis points. it is important we have as much monetary capacity to respond to possible.cult time as i think it is important to ratify 2% as a symmetric inflation objective, and then

markets have inflation expectations consistent with our objective. i am nervous that they are too low, and i believe in being more cautious, waiting to see if the march inflation data come out in a better way relative to a year ago. >> thursday was international woman's day. several of the world's most influential women in business and finance shared insight and analysis on bloomberg television. let's revisit some of the highlights. >> let's talk about trade. you do talk to ceos and other business leaders -- how concerned are you? >> very concerned. we are concerned about the trade war that could be set off. and it really follows on the heel of the u.s. tax reform, and what isn't really seen -- you have tax reform to get investment in the united states, kicking off another tax war around the world. every country looks at how do they adjust to keep their country competitive. when you combine the tax court

with what could be a trade war, that is a really combustible combination. i think business fears it could be a race to the bottom. cuts weretax justified by the president and his team is being progrowth, because it drives investment. how do train terrorists cut against that? >> it was fulfilling a campaign promise, a protectionist principle, that makes sense. that actually the tariffs would hurt u.s. workers, this deal and a worki -- the steel and aluminum workers, it is its affiliate campaign promise. >> is there any study out there at all that supports the president's approach? >> i think there's the issue that he has identified, which is fair. there have been unfair trading practices. if the approach. -- it is the approach. the approach of going in on our own rather than forming

--litions, that doesn't seem there's a lot of risks to that approach. i think the issue he has andtified is fair and real, certainly he has tapped into the voter angst over trade. but in terms of achieving the objective of leveling the playing field on trade, it is a very dangerous approach. >> could it work, though? it is dangerous, but could it make some of the trading allies rethink their policies? >> yes, i mean, it can work. playing hardball and using the care it and stick approach could achieve certain objectives in terms of leveling the playing field, but it could have unintended consequences along the way. respond to ahe fed possible trade war? on the one hand, this could lead to higher inflation, but also drag a global growth.

how does the fed square that? war, we got into a trade it would surely be bad for the economy, not for all parts of it, but for most of the economy it would likely slow growth. it would give a lot of uncertainty to the market, and the fed would have to deal with that. they have been worrying about possible overheating. a slowdown in growth would throw them in the other direction. >> if you were on the fed, are you inclining toward 2, 3, or four rate hikes? >> we don't know, and the fed isn't going to tell us. they have been dealing with a very good economy, low unemployment, tightening labor markets, very little inflation, and a generally positive outlook. this uncertainty about trade will give them pause. andfed is always cautious,

i read jay powell is a cautious person. they will not telegraph too far in advance what they expect to do, whether it is three or four or whenever, until some of this uncertainty comes down. ♪

>> are you concerned at all about the increase in production in the u.s.? >> not at all. it's a very welcome development. demand is very robust, very strong. the wall is looking up to us as producers -- the world is looking to assess producers to supply them with this resource,

which has been the result of choice. prosperity ind this world. >> that was opec secretary mohammed barkindo, speaking exclusively to hobby or glass -- hobby or glass. my colleague alix steel covered the event and sat down with key players in energy production and finance. >> what is the challenge for opec? 2013 they were told the u.s. would pass saudi arabia in production and got laughs off the stage. they are trying to understand what is happening. they have some of the feeling now, maybe it doesn't have the durability of the legs, and the message is this is a supply source that will be around

along time. it will not go away in five or 10 years. it is a significant source of supply. you were looking at an exit rate of onshore business to exceed 300,000 barrels of oil per day, which will be to your 22% annual growth rate. aren't you part of the problem? >> well you could argue that everyone is part of the problem today. that it is a well supplied world, the resource the technology,, the innovation has brought on a lot more resource, than the key is that is why you have to be prepared for volatility. >> nobody has that crystal ball holds, sot the future it is very interesting. >> is opec scared of you guys? >> know, i think they see the u.s. as a producer of the new world market, and recognize that

we are going to be there and be part of that market going forward. >> did you get the impression they will have to extend cuts? have they talked about that at all? -- opec has been very impressive on how they and performave continued to a their cutbacks, and have commitment to supplying down the line. what i also like is that they are talking about a soft landing and that is generally what gets people concerned. they wantthe vision, a soft landing and to continue to support prices. it's not so much about market share, but protecting market price. >> there has been a huge production increase in non-opec,

in shale but also in norway, result and canada,. norway was a surprise. why did production recover so quickly? >> well, we had that impressive cost reduction last year. operational costs, new development projects rose by 30%, 40%, 50%. last year we saw new plans for development and production on the norwegian continent made investment decisions for 16 billion dollars usd. that is the highest level of investment commitment of all offshore oil and gas drilling. it is quite impressive. >> aren't you undermining opec? >> no way. we are a large producer of oil and gas.

we are the seventh-largest in gas and fourth-largest of oil. but we still represent just 2% of the global market. it is not that much. as an oilng forward and gas exporter, and i think opportunities for oil and gas companies and suppliers is promising. >> we have such a low breakeven point. it isgo from 15 to 16 just increasing the margins. the goal is to keep the process of the organization moving forward. >> do the cuts go off with a 10% aluminum tariff? >> i am concerned about that, like everyone in the industry. so many goodhas things toward its focus on

energy and in particular for our business, it has been in the form of putting pipelines faster, opening new areas for drilling, and reducing some of the onus of environmental legislation. that said, this is, i hope, not what it appears, which is a step backward in that regard. the oil and gas industry has been the goose laying the golden egg. i don't know why we want to disincentivize that. all the pipelines are taking the product away, all of the tank batteries, they are all constructed with steel. i hope they will reconsider it. i think it is better to try to build bridges. was concerned because we are shareholders in the u.s. solar companies, but i one of themu.s. --

was held by chinese shareholders and he has put a message for u.s. companies because of companies which -- [indiscernible] the solar market will grow, and will organize,ns from mexico, canada, u.s.. they have optimized the supply change. >> the customer might be you if you are talking about a pipeline. >> i can weather the storm. voters,tion is, can the the people we elect? industry -- you create jobs because people store solar

panels on the roof. in the end, the question is will it create or destroy jobs? i am convinced [indiscernible] i am convinced it is not good for the u.s. economy. another important figure in the world of oil spoke with bloomberg on thursday. the saudi oil minister elaborated on the plans for saudi aramco's ipo. the only certain thing about saudi aramco is that it will onpen, and it will happen the exchange in saudi arabia, prepared to not only take aramco sharesm bu bring in more investment into

givingapital markets, them the center role that london plays and will continue to play toward brexit. we think the relationship between these two centers of capital is very important. in will be announced in due course, but the decision has not been made yet. >> so is the international listing 100% confirmed for this year? >> the international listing will be ready to be made this year. we have said that repeatedly. the company has prepared, the government has prepared. we have created a framework, fiscal and otherwise, for saudi aramco to be listed this year. will beal timing

announced when we feel the conditions for the success of place, anding are in those are not in our control. we have to make sure global capital markets are ready, and that we have made the decisions about the venues as well. ♪

>> let's look at the degree of outperformance. this is the grr on the s&p 500. we see most of the sectors are higher, but take a look at the materials sector, up 1.3%. next best is consumer discretionary, up .6%. >> there are about 30,000 functions on the bloomberg, and

we always enjoy showing you are favorites on bloomberg television. here's another function you will find useful, to your wife he go. -- q uic go. you can get important insight on timely topics. here's a take from this week. ♪

♪ >> that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis, 24 hours a day.

that will be all for "bloomberg best." thanks for watching. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ alisa: you are watching "bloomberg technology" and here is a check of first word news. the white house says there will be no summit meeting between the u.s. and north korea without concrete actions that match the promises made by pyongyang. sarah sanders also says washington made zero concessions in agreeing to the meeting. governor rick scott signed a school safety bill passed by the florida legislature in response to the apartment school shooting. it raises the minimum age to buy rifles from 18 to 21 and extends a three-day waiting. for hamptons to include long guns and bands devices for automatic fire. president trump's legate