♪ >> coming up on bloomberg best from of the stories that shaped the week in business around the world. the federal reserve begins. >> this gradual process had been underway for more than two years. it should continue to serve the economy well. mark: acknowledgment of ticking -- take crucial steps forward. a battle begins over a media megamerger. washington faces yet another government shutdown. a global scandal leaves face book with fewer friends.

the u.s. gets even tougher on trade and tariffs. the rest of the world has plenty to say in response. >> we must absolutely avoid trade wars. >> i think it is a matter of keeping one's head on this. >> it's a question about the u.s. place in the world. mark: we include some of the conversation with the saudi prince. his attention captured the world's attention and now he is -- his detention captured the world's attention and now he is getting back to business. >> we are open. mark: it is all straight ahead on bloomberg best. ♪ mark: hello and welcome. i am mark barton. this is bloomberg best. your weekly review of the most important business news, analysis, and interviews from

bloomberg television around the world. the week began with turmoil in the tech sector as a facebook found itself at the center of a gathering storm. ♪ >> facebook under fire. government officials in the u.s. and europe are demanding answers from the social media giant after reports of cambridge analytica, the data from that helped a lack president trump, used -- that helped elect president trump, use the private information from facebook foe -- profiles of 50 million people without their consent. the news has consent facebook shares down more than 5%. >> it goes to the issue at facebook and other social media companies about data integrity. where's the data reside? who has access to it and who can repurpose that data? >> they are now starting to realize this thing is becoming a pattern. this is a regular problem facebook is having.

i would argue it is because of failures of systems design that are endemic to the way facebook has been allowed to evolve. if that is true, then the stock probably should drop because we are going to see more such problems in the future. >> facebook's latest black eye will touch off a regulatory avalanche. >> facebook is the epicenter of the selling. this is a big risk for them. it is hard to quantify at the moment. analysts are being cautious and not overreacting to this, but you have got to wonder what stock investors are seeing that they don't. the u.k. have agreed on a large part that will agree to the withdrawal of the united kingdom. brexit secretary says the deal on what the u.k. calls imitation was, "a decisive

step." >> a deal was struck today. it should give us confidence of a good deal for the united kingdom and the european union is closer than ever before. >> there are two main things here that have been agreed. the first is on this transition. that is the implementation. from brexit day, which is a years time to the end of 2020, nothing will change in terms of trade agreements. companies, people can move freely. the second thing is that they have mostly agreed for terms of the exit. for things like the bill, the settlement, citizens rights and the third issue is around the northern irish border. that is the one we still don't have a full answer. they have changed the wording to satisfy both camps. ♪ >> facebook is falling further. this amid reports that the ftc is investigating whether or not the company violated a 2011 personal consent decree. if found guilty, the ftc has the

power to find facebook -- fine facebook thousands of dollars a day per violation. >> in 2011 they said the ftc had to give users the opportunity to give express informed consent if they were going to share their information with third parties. the fcc came out with a statement not commenting or confirming whether they are investigating, but they said they do take data privacy issues very seriously. ♪ >> world financial leaders just wrapped up their annual summit in buenos aires. steve mnuchin addressed policy makers last hour saying the u.s. is not afraid of a trade war. tell us more about what he said and how much pushback from attendees? >> we know there was a lot of pushback because the attendees all told us that they did not sign on to the administration's trade agenda. the idea that turning inward

would hurt the global economy. in his closing press conference, the treasury secretary said the u.s. would go it alone because it is a trading nation that should be treated fairly. the administration is going to ensure that. that was the message they heard last year and they heard it again this year. if they have to act alone they will act alone. >> all eyes are on the new fed chair as jay powell makes his fomc debut. will the central bank open the door for rate hikes in 2018? >> eight point mood and the fed gets more hawkish. the real story is the dot plot, they are just one. move away from four rate hikes in this year, and 2019, the median moves up to 2.9%. 2020, two more.

today's decision to raise the federal funds rate is another step in the process of gradually scaling back monetary policy accommodation as the economic expansion continues. this gradual process has been underway for more than two years. it has served and should continue to serve the economy well. >> we should not make the mistake in saying this is a much more hawkish fed. this is the fed that is acknowledging the improvement in the economy and thereby signaling a slightly faster pace of hiking is warranted. it is not a change of temperament, just a change of acknowledgment of underlying economic conditions. ♪ >> facebook ceo mark zuckerberg breaking his silence over the cambridge analytica scandal. promising to audit the data.

as well as being more transparent with users. >> zuckerberg came out and said facebook will do more to examine how much information these third-party app developers have. they are going to do a broad audit to figure out if the largest platforms if there were other outliers or issues that they should be aware of. any app that violates them will be blocked. analysts saying this is a good first step. others are saying it is too little too late. , ♪ >> bank of england will stay on with markets looking for a hike in may. bank of england rates staying . there was some dissension. 7-2 to keep interest rates unchanged. they talk about protectionism being a risk and market reaction is what you would expect. big jump in sterling. >> it is bigger on to the table than it was before.

you can see it in the early reaction. it is the brexit comments that are interesting. we have moved over the last few days to a more stable footing. a small move, but talk of transition and it agreement being made just may be starts to reduce the brexit risk a little bit for the british economy. the bank signals this is one of the major factors it is watching easier for make it the bank to hike interest rates. that is what we're looking at and why we are seeing the reaction we have got. ♪ >> president trump is taking his boldest step get to level the economic playing field with china. ordering sweeping tariffs on chinese goods and moves that could escalate trade relations between the world's biggest economies. >> will be doing a section 301 trade action. it could be $60 billion. >> there are going to be chinesets -- tariffs on made goods. there are 1300 targets. they're giving industry time to

comment on which once they think should be applied. electronics, robotics, biofarma, goods are even rail in the mix. >> u.s. stocks tumbling the most in six weeks. 724 point deficit. >> markets hate uncertainty. what we have had from the administration so far, the ustr has issued a communique saying the tariffs will be 25%. on what, we don't know. there is an uncertainty about which industries will get shellacked with large tariffs. it is an issue of cell first, -- sell first, figure out the details later. >> what response are we expecting from the chinese? >> i expect there will be a response. it will be a measured response. these are very thoughtful and serious people. they know the president is being very thoughtful and very serious. i don't think anybody is just

going to have a knee-jerk reaction to any of this. ♪ >> china has hit back at president trump's term saying it it will not be pushed around. the administration saying it is imposing response. how measured do think this response is? theeijing has not taken gloves off yet, have they echo y? have the it is an attempt by china to push back. obviously they're trying to strike a balance between showing the u.s. they carry a big stick, but also not wanting to inflame tensions. >> we don't want to have a trade war with anybody. if a trade war is forced on us, we will have to fight back. ♪ >> european leaders responding to the news that they secured a temporary exemption from steel and aluminum tariffs. how have your leaders responded? >> some responded with fairly the o-matic -- diplomatic

language. welcoming the exemption. others, using more colorful language saying he doesn't want to negotiation with a gun to his head. the big question really is if , there was going to be a trade conversation between the u.s. and the eu, how is it not going forced out of the rules. >> a government shutdown is potentially back on the agenda for washington. the federal government runs out of money tonight. president trump is threatening to veto the spending bill passed by congress earlier this morning. citing immigration among other reasons. >> we thought that the drama has been taken care of over the last couple of days. they thought they have the president support, but as this president does he surprised everyone with a tweet saying he is considering a veto of the spending bill which would shut down the government. pres. trump: i said to congress i will never sign another bill like this again. i am not going to do this again. i'm calling on congress to give

me a line-item veto for all government spending bills. the senate must end the filibuster rule and get down to work. ♪ mark: still ahead as we review the week, an exclusive conversation with saudi prince who is back hunting for deals following the kingdom's corruption crackdown. plus, a chorus of world leaders respond to the threat of a trade war end up next, more of the weeks top business headlines. profits rolling in for china's tencent, but costs are piling up. >> they are paying for a lot of content. whether it is videos or music to challenge alibaba. mark: this is bloomberg. ♪

♪ mark: this is bloomberg. let's return to the global tour of the weeks top business stories. ♪ >> china has named its first new central bank governor in 15 years. the deputy governor will currently take over. this is a continuity choice. >> it is. he has been a deputy governor for a decade. he has seen what the central bank -- been with the central bank since 1997. an interesting time to take over because the pboc is in a stronger position as an institution. it has powers now to change and write regulations. in many ways, it has lost some of its clout because it will now have to report to the chief

economic advisor who speaks directly to the president. less autonomy than the central bank had previously. ♪ >> telecom titans, taking washington. ceos from at&t and time warner in a court defending their $109 billion deal. the doj has sued to block this merger. each side gave opening statements. tell us what we need to know. >> the doj started, what they claim is that as a result of this merger, the 90 million subscribers to pay-tv will all face an increase in cost. they say that time warner is among the most important content there is out there and in at&t's hands it will be a weapon to harm the incumbent cable and telecom satellite distributors. at&t also put on their opening statement. they had 45 minutes. they basically see the world very differently than the doj. they think the doj is looking at

things the way it might have been in the 1990's. they also take issue with the economic analysis done by the experts. they claim that the input is improper. if the correct inputs are used, what it actually shows is a $.50 decrease per month for subscribers. >> a driverless car from uber has killed a pedestrian. a woman was crossing the road in tempe, arizona yesterday evening and she died from her injuries at the hospital. uber has suspended all of its driverless cars. >> the vehicle was in autonomous mode. employminder, uber does

safety drivers in every vehicle. there were drivers heading there behind the wheel. not controlling the car when it is in self driving mode. sometimes it does engage and probably what happened is that the car did not see the pedestrian our software did not detect in time. this is the first known fatality. this will likely for a regulatory backlash. >> 5.2% of voting rights in barclays. why now? barclays of find itself at a real crossroads once again, can it create an investment bank which is capable of creating -- ?ompeting with wall street this is what is prompting the investment from the access today. >> the fact that they went up to 5.2% seems to get a clear

message to the market for the media at they want something changed. do you know what that is? >> i wouldn't say that. branson has been said that. we look forward to hearing his thoughts. any major organism that has a interested iny what the bank is doing, we will have to see what our shareholders think about it. we look forward to articulating our vision and seeing what shareholders have to say. ♪ >> it was another blowout from chinese tech company tencent. this time it came with a warning. that is not the whole story is it? >> no. it is not. it is the same story as mobile gaming and pc gaming revenue and profit. the problem is on the revenue and costs are starting to soar. they are paying for a lot of content.

whether it is videos or music, and they are also investing heavily in new areas to challenge alibaba. they want to challenge and they are getting revenue from advertising. they're going into traditional retail, artificial intelligence, and cloud computing. they are building up their payment system. it will be an interesting forward progress for this company, which has been one of the best performers on the stock exchange. stocks have doubled over the past year. ♪ >> president donald trump has taken a sharply hawkish foreign policy turn. he's creating an inner circle the champions some of the policies he derided on the campaign trail. >> there has been a muted response from some of the republicans. the republicans were very vocal about the john bolton being floated as secretary of state. they said john bolton would never make it through confirmation, but we are seeing democrats speak out and say he would be a danger to national policy because he is hawkish and

he has supported wars in the past. everyone is waiting and wishing to see whether or not he will bring that hawk-type background into the white house and bring the president toward a more aggressive foreign-policy going forward. >> he made some comments last night on fox news where he sort of tried to scale back his hawkish rhetoric and said, look, i am there to serve the president and help to execute his vision. bloomberg wrote a story last week that said it will be donald trump who will decide these things. it is clear he does believe he is going to be the best foreign-policy person in the government. ♪

♪ mark: welcome back to bloomberg best.

i am mark barton. this week, saudi arabia's prince spoke exclusively to bloomberg. in his first interview since being released from detention, after a crackdown on alleged corruption in the kingdom. the billionaire chairman of kingdom holdings is now in the hunt for new deals. he told erik schatzker about some of the plans his business is working on. ♪ >> the kingdom now is raising between $1 billion to of debt. $2 billion we do have some cash in holding, but we are now looking for the second piece. last year we did a few big deals. this year, 2018, although the , i will not now is say overvalued, but prices are not where we wish them to be. we would like to get some firepower ready for us. i think we are on the verge of

getting the one billion to two to billion financing facilities. >> so you are thinking about a deal of what size? >> we are willing to do any deal between $1 billion in $2 billion. >> in what industry? >> we are a holding company for we are open. we are open. >> i have heard that you are working with goldman sachs. >> yes. mr.nk -- i thank blankfein personally for his support in the previous deal. $1.6 billion to buy a stake in the saudi french bank. right now we are working through them and others also to find and locate others for the kingdom's holding. nationally or internationally. >> would you consider ever restructuring kingdom holding to make it easier for people outside saudi arabia to understand? in other words, taking domestic projects and domestic real

estate and turning it into a reach? >> you are not only an astute reporter but an astute businessman. that is what our ceo is doing. the ceo is divesting the local part of saudi kingdom holding. real estate, the tower, and all of our local holdings. it is ongoing. we have an ongoing discussion about that particular discussion. ♪ mark: you can find much more of that exclusive interview at bloomberg.com. coming up on bloomberg best, conversations on trade and tariffs. insights from leaders in policy and government. as well as ceo carlos bristow. >> we hope that doesn't take the energy out of what we see out there today.

mark: this is bloomberg. ♪

♪ >> we believe that at a certain point, the market will reach its balancing point and there are different assessments of the timing. the ultimate goal is achieved which is the balancing of the market, we will consider gradual withdrawal from this deal. most importantly, all of the party's this agreement are committed to achieving market rebalancing and further actions are to be considered and taken. >> wendy's to the market rebalancing -- when do you see the market rebalancing? >> we believe it might start to happen with a third or fourth quarter. it is hard to predict anything right now.

was russian energy administrator confirming his commitment with an exclusive interview. trade tensions, u.s. rhetoric and policy have stoked fears of an impending trade war. many leaders shared their views on trade with bloomberg this week. >> nobody wants to enter into any trade war. everybody is looking at the way to bridge the gap and to find common terms, common community on trade. we are in a very delicate moment. a possibleprepare

response to american measures and the eu's is preparing for that. we think it is best to avoid any kind of escalation. we must absolutely avoid trade wars. the climate here is a polite climate. we are trying to work -- >> are you finding common ground with the trump administration? >> that is not that easy if i look at the measures. -- that. agree with the commissioner of trade will be tomorrow and the day after in washington because we think it should not be applied to the eu. we hope to find solutions through dialogue which is the best way to deal with that. we also know it is a global case, that this should be

solved globally and not through those kinds of measures. the best way is to find a way to dialogue and have a global response to this problem of ies, which is not between the u.s. and eu. >> common understanding is that no one wins the trade war. when you to avoid trade frictions. europe, china,, the big players will look at the situation and will avoid taking steps that would undermine the global trade existence. >> secretary mnuchin has been trying to turn the conversation towards china but without success, correct? >> we have been discussing china, the recent u.s. measures,

we speak with one voice and we want to avoid trade friction. we want to find a solution both through issues with that -- the u.s. and china. >> is there a solution? thee is always solutions, question is which one generates the best outcome. there is a lot to gain in liberalization of services which is not open to global, titian. ♪ room oflephant in the the u.s. steel and aluminum tariffs, australia has gotten exemption. a awin-wina has arrangements with united states, we do have a free-trade arrangement with the united

states, so we have a reciprocal arrangement. that is a good outcome for australia. it is a product of how we do business. nation,n open trading though it is a matter of keeping to ensure on this that there are not spillover effects. when he to make sure that we keep cool heads. >> the u.s. is preparing to against chinas for intellectual property theft. where does that leave australia? again, maintaining dialogue with all players and being focused on what australia's interest are, ultimately. making sure australia does not become collateral damage in any canhese things and that we

continue to navigate a very good path for the australian economy. ♪ china has done many things rightfully as they are being pressured. this excess capacity is distorting global steel and aluminum. it is a mess is a need to hear from the u.s., europe, the other producing -- this is a message they need to hear from the u.s., europe, and other producing nations. driving theuld be world to discussion that leads to better outcomes. >> how do you cross tarriffs given the supply chain? the targeting action that is violating international law and agreement are entirely legitimate. measuresuntervailing is a legitimate response. putting a global tarriff

on steel and aluminum, we are seeing the exemptions start to build up. our european allies are asking the same thing. this is a bigger question about the u.s. place in the world. the world worry about saying, the united states may not be doing the same thing. we had a line system with europe and asia where our allies around the world could rely on us being the protectors. i worry that policies that we can our leadership in the world -- weaken our leadership in the world. ♪ that do business around the world are also concerned about protectionist trends. a bloomberg reporter sat down with an exclusive interview with executive of

ab. >> which i think always about our consumers. -- we try to think always about our consumers. if this are the approach is better, that is what we would like to see out there. when you put tariffs on aluminum, they'll increase the price for consumers. at the current price, that will represent 2% or 3% more pricing for the consumer. if you think that our business or any business out there as an essure on yourr cost structure, that is just on the aluminum piece. that will be a burden for consumers. we are trying to do what is best for our consumers. are not necessarily

good for them. in or do you model that you in a wait and see mode to see how this plays out? to see that the world continues to grow. the world, the stars are aligned. most major markets in the world are having good economic growth and people are optimistic or it we hope -- optimistic. tariffs do not take the energy out. ♪

♪ >> you're watching bloomberg best. let's return to our roundup of the top news stories and are incredibly busy week for global business. , russia'slide

president to one reelection -- won reelection. president putin has cruised to a landslide victory in russia. it extends his 18 year rule. what is the first item on his agenda? the spat spat -- it is . this really was a referendum on his rule and he clearly got the vote. the situation with the west, his campaign manager boosted the results. last night, we heard from putin himself talking about this dispute. he said is complete nonsense to imagine that russia would do this i had of a national election and the world cup. this will be the heightened tension with the west. the european commission and a

flat task of 3% on tech giants. is hoping to impose an interim tax, when does it become law and who is it going to hit? >> it is going to be interesting. this is a tax measure and therefore, eu members require unanimous decision. countries afraid of the impact that they could have including countries like ireland. they will be hit like this measure if it becomes law. we are at the halfway stage. they are trying to come up with a global solution on this. the you is coming up with interim measures. ♪ clearing a major hurdle for its six a $6 billion takeover -- $66 billion takeover.

the company still has to win approval from u.s. regulators. todayd buyer achieve this -- bayer achieve this today? >> it has to sell a package that is worth $7 billion which is quite sizable. the idea is to author a smaller player in these markets. in some ways, that answers regulator concerns about the deal that and competition -- in competition becomes lagged. ♪ is designing and producing its own screens for the first time. is the latest example of apple bringing the design of key components in-house. >> they are doing their own near-scale manufacturing

their campus, but ultimately in the long term, it is highly likely they will work with erother manufacturing partn to produce these and hundreds of millions of quantities per year. business model has depended on this network of suppliers, manufacturers. they rely on samsung and other companies like that. they also want to be able to distinguish their products from other smart phones on the market. display, oled that came from samsung. they would be able to this thing was are products even further. ♪ -- the saudi prince has been meeting with

president trump and before their meeting, they emphasize the strong relations between their two countries. how much of this meeting is about geopolitics like iran and how much is about commerce? when the president went over to react, he came back with a $350 billion order. >> regarding those financial private investments the saudis are looking to lure u.s. business, but it comes at a time in which lawmakers on capitol hill have concerns about the saudi's purchases of mission defense systems from russia. there is an urgency with united states and saudi to move forward with these kind of deals. the saudi prince is going to meet with business leaders including the like of folks in the tech industry. of sectors,ectrum

entertainment, infrastructure, technology and gas, and a lot of the investment banking and banking sectors are part of this. ♪ andarkets have been pricing a fed rate hike is indicated by a rise. the highest level since 2008 and the question is, is this a technical phenomenon, and what does it mean for the real economy? why?is the unlike 2008 when live board was really the coal mine for credit quality banks, this is more technical. the treasury department is issuing lot of trade bills right now and repatriation from the tax plan were dollars are just leaving london.

the price of money in london during the banking hours has gone up substantially. are we instion is, a world we have to look at this is a higher level overall or is this coming down? forwards are pricing to come down by your -- year's end. ♪ have approveds pay musk's $2.4 billion package. turn teslalan to into one of the world's biggest companies is successful, it could eventually end up with more than $50 billion. yard he has a significant amount of wealth tied up with tesla.

why do they think this'll incentivize him more? >> that was the question when this package was announced. shareholderso show that elon is going to be around for the next 10 years, he is not going anywhere. it also provides a roadmap for the company outlining very ambitious goals to become one of the biggest companies in the world. ♪ restructuringnks plan is well underway. around 1.4 billion euros from the initial public offering from its dws asset management divi sion. the acid value at -- are you satisfied with how things are going? i'm surprised you did not fall out of bed. >> it was a difficult pricing

exercise. the last week has been quite volatile, but given the outcome, i think we ditd it properly. good day and very happy with the outcome. very proud of the outcome with one year of hard work from all of the teams. very happy to be where we are today. ♪ >> the much anticipated still awaiting its first -- $21 apiece above its targeted range. >> where does the growth story go from here? it is a 10 year company, i just heard him addressed employees

saying they are looking for to the next 10 years. investors want to know, where does growth get revved up from here? like the recent volatility did not really play demand for the stock. i will be watching closely to see if this trades above $21. the higher he goes, the closer gets that $10 billion private valuation they would love to breakthrough. ♪ cofounder ofthe black spoon has died. he was well-known of his fight over the control of lehman brothers. >> he was one of the founding figures of wall street and went well beyond wall street. ceo at 37, secretary of commerce he goes tont nixon, lehman brothers and gets into this massive power struggle with ucksmon.man -- lou gl

they go out on their own and create arguably one of the most powerful and enduring names on wall street today. not to mention, he goes on from that and create an institute and becomes a voice scal policy. it is just amazing when you think about his career. ♪

♪ let's talk about german data investor confidence, it grew to and it could be hit by a global trade war.

the index of investor alling toons fo 5.1%. there are about 30,000 functions on the bloomberg burnet we always enjoy showing you our favorites on bloomberg television. here is another function you quickgo,d useful, to it lead you to our quick takes. ♪ it is impossible to ignore america's opioid epidemic anymore. the numbers are staggering. nearly half a million americans say they used heroin in the past 30 days. overdoses tripled in 2010 and 2014. and deaths from all opioids are now approaching the number of deaths from car crashes. how did we get here? in. here's situation, there is a

grim connection between opioid addiction and painkiller addiction. they remedy what is seen as widespread under treatment of chronic pain. the number of opioid prescriptions filled in 1992, 70 9 million. to 217, the number rose million. as those numbers skyrocketed, federal government force prescription make drugs harder to abuse. heroin became a readily more prescription pain reliever. here is the argument. president donald trump appointed a commission that in august, advised him to declare opioid addiction a national emergency. pres. trump: it is a national emergency. we are going to spend a lifetime, efforts, and money on

the opioid crisis. is focused onhe cutting off the supply of drugs rather than expanding treatment as his commission recommended. the health care bill that trump supported also dropped the requirement that drug treatment be covered by medicaid. this includes targeting doctors and pharmacists who overprescribe. naloxone is also more readily available. reversingited with more than 26,000 overdoses since 2013. rushing to solve the addiction crisis with needless suffering. >> 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 the latest business news, analysis, 24 hours a day.

that will be offer bloomberg best this week. i am mark barton. this is bloomberg. ♪

>> welcome to bloomberg business week. >> that's right. the environment al protection agency? how about the digital protection agency? all ahead on "bloomberg week."