♪ >> coming up on bloomberg best, the stories that shaped the business around the world. trade tensions escalate. the u.s. and china go tit for tat on tariffs. like they are in this for the long haul and they're playing hardball. this is not a trade war, there is no war here. >> the new york fed needs a new leader. his counterpart in atlanta offers exclusive. >> i think we're getting closer to the lower bound. at that point i think we need to wait and see and see how the market response. >> spotify goes public, amazon comes under fire from the white house.

it is a challenging time for tech and facebook's sheryl sandberg put it in perspective. >> the security is always an arms race, you go, they try to diffuse. >> it is all straight ahead on bloomberg best. >> welcome, i am erik. this is bloomberg best. this is around the world. flushed economies spend that much of last months circling the ring and the world's one true heavyweight battle. >> china hits back, the country's previously announced tariffs on 128 u.s. goods take effect today.

that is in response to the trump administration's tariffs on steel and aluminum. greater damage to relations and the white house just said that china should not target really traded u.s. goods. >> this is china's response to steel and aluminum tariffs. we are waiting on the u.s. publication of what the u.s. will single out for tariffs in terms of intellectual property. the chinese did, along with the tariffs that they put into effect today say that we would rather do this through negotiation that through confrontation. >> we certainly find ourselves in what seems to be the middle of a storm in a. we don't know they it will blow over or if it will pick up and get worse from here. i think what we have seen from the markets is that they are being jolted around by some of this news. i think they got a thick skin to some of the rhetoric from trust. little action on the trade front. never see a lot of action both from the u.s. side and the chinese had and we can see that reflected in the markets right now. >> there is the finish for the

first session of the second order. it has been a tough one. raising the gains that we have seen for the year as well. leader, bill dudley -- john williams has come. is beginning june 18. >> john williams is a widely respected monetary economist. he has been the president of the san francisco fed as a doctorate from stamford, he is an expert in monetary policy but the near fed announced that it was going to have a very wide, broad and diverse search for a different kind of leader and they ended up with another white male. that will be some question. also, the committee says when you put up a list of the things that you need in a president, john williams stood out far and above all the other candidates. that ms. rayed

concept which is key to monetary he has been looking at price of the targeting for example. the biggest rap against john williams is he is not a factor. expertise, his entire career at the fed or in academia and of course, this is an important position because they oversee these big banks. overnight, we had an exchange of trade sanctions during as if a child with the u.s. moving forward on tariffs on $59 in chinese imports including things like semi conductors, lithium batteries, tv components and china came find back and said we will $50 billion that we can put tariffs on and those tariffs did to be included on things like soybeans and aircrafts and automobiles and chemicals. >> let's give the chinese some credit, they've really done their research and knew exactly where to put these tariffs to cause the most pain for donald

trump's constituents. soybeans are of a in iowa and love the states that donald trump one in the last election. they are being very strategic, the chinese have a very long-term deal. they are in this for the long-haul and they're playing hardball. next they pulled out all the stops, peeled and expect them to a huge soybeans, such trade and one that is so important to china as well. it affects them if they don't have that access to u.s. soybeans at $14 billion per year. we aree rhetoric hearing, it seems to be a plenty of the u.s. to come and talk. >> one of the days were marked and politics are mixing big-time. it has been a rocky ride after a sharp drop at the open. doctors have been crawling back threat the day. >> the treasury market was common reaction to this, the credit market was common backs into this. even the dollar was. so what we really had was that that there was a bit of risk

reevaluation within the equity long-term, most of what we knew would happen has pretty much happened. >> oh boy with a volatile as 700 points for the dow. the bond market simply watched. >> the world's two biggest economies showing willingness to come to the negotiating table. the tariffs have more rhetoric than reality. >> right now i will act in a good traditional game of chicken. >> there is no trade war. there is no trade case. >> can call it a trade battle, a trade discussion as opposed to a natural work. quite a lot of people needed larry called the two state the obvious. the white house had remember, none of the tariffs have been put in place. israel proposals. >> it is a game of chicken for both sides because they wanted to have the other side believe that it is a credible threat. while at the same time not in scaring investors. we had the same sort of reaction

from the chinese investment to the u.s.. he said that negotiations would still be our preference but it takes two to tango. we will always stand for consultation and negotiation but if other things do things in the wrong direction, we will have to respond to. >> larry called the was on a mission to calm concerns surrounding tariffs and trade. >> here in the u.s., we will it up for comment for a couple of months. i don't want to pinpoint a deadline. that is bob's area. i would just say that nothing is around the quarter, there will be a big discussion of that. >> it is a bad cop good cop isuation where larry got low the good cop and bob is the bad cop? >> there is been intense pushback from republicans on capitol hill. hewent on to state that believes and the administration believes that the relationship between the mistakes and china has been so taken advantage of by the chinese that they feel that this type of back-and-forth

is just an opening bid. >> the message and china ramped up their trade rhetoric overnight with president trump calling for new tariffs and another $100 billion of imports from china. the chinese government says it will follow suit to the end the matter what the price. >> the thinking among analysts and economists is that china may move beyond the world of tariffs and into the will of nontariff barriers. existing u.s.t investment in china. there is a sense that we are now going to uncharted territory. >> this is a moderate, tempered approach that we are taking. it is moderate, temperate and proportional. this is not a trade war, there is no war here, blame china for not playing ball. don't blame the president. he is standing up for american companies and businesses. that is my take.

i'll see how i could communicate that more clearly. >> the economy adding 103,000 jobs in march, missing the economist estimate. the unemployment rate holding steady, average earnings rising by 2.7% and matching estimates. >> think this is a weakest report. i think this would make -- in light of the global trade situation that we see on an overnight basis, we're just going to have to see. i think that the fed would be cautious going forward, my forecast has always been for one .r two jerome powell speaking at economic hub of chicago. we had for the back end of the session. he reiterated that further gradual rate hikes best promote the fence goes here. >> this is where the has been and where it still is right now.

the one question about the future was about the tariffs. we can know what the impact is going to be. he mentioned that some business contacts are telling them that it could be a problem and that some of the uncertainty is weighing on them and that you can never tell why the stock market is anything but my guess is that the medicine people that all this talk in washington of upsetting the economy might be the fed to back off but he basically said we are steady and holding the line. review theead, as we week on bloomberg best, more on trade tensions from leaders and policy and finance, a bed with a trade were before the global economy. fed, rabbi a of the atlanta and fiscal chief operating officer sheryl sandberg. , were of the week's top business headlines. elon musk made any proposed up on twitter but there's nothing funny about tesla's production problems. notou know the problem is

in need of her, it is in need of process. >> this is bloomberg. ♪

♪ >> this is bloomberg best, i am erik schatzker. let's continue our global tour of the week's top business stories that e-commerce giant amazon. again, it is the target of a twitter fusillade from the white house. has up hist trump attacks on amazon and a first round of which this morning saying only. worse are saying our money-losing post office makes money with amazon. this will be changed, also, our fully taxpaying retailers are closing stores all over the country, not a living playing field. -- level playing field. newo rubio said it is a

economy monopolies will require close monitoring. could the justice department go after amazon? >> i think under the existing laws it would be very difficult. as laws and the body of law these are going through the court really set a high bar in difficult standards to meet that proves a company is a monopolist. that is why she some because by democrats for a change in the laws or a reassessment of the antitrust laws to better apply the way they would say to this kind of companies. after the wrist my for tesla and within seven years, elon musk adjust that is electric carmaker has gone bankrupt. the ceo tweeting despite intense efforts to raise money including it last-ditch sale of easter eggs we are sad to report that tesla has gone completely bankrupt. that is what he tweeted. a bunch ofnot

georgia for the tesla investor. there is a widespread expectation that the company will not meet their forecast for ending the first quarter making .bout 2500 model threes thatif they get close to number, there is a lot of skepticism about the production surge that method at the end of the quarter. >> tesla shares rebounding today, the stock rising as much as 8% before closing the day up nearly 6%. self-imposedof its reduction target for the model three but analysts say tesla's performance wasn't as bad as feared. is that good enough? not good enough, not as bad as feared was, a couple of dozen production units for the month as far as we know. this is a plant that if it was

in full production should be doing at least 10,000 units per month. not as bad as we thought it might be. but look, when muslims of is publicly indicating he is going to solve the problem by sleeping on the factory floor if that's what it takes, you know that the in need ofnot iraq's, it is in need of process. i think what has happened is production of model threes started to early and it is showing up in quality and low quantity and i think that will bite him because it will be very hard for them to come back from a poor start on this model. spotify made its public debut with an opening price on the new 165.90.ck exchange at stocks around the world had been rocked by uncertainty. the stock went as high as 169, it has come back down a little bit from those prices. look on of action that spot of i

see on the opening day? >> i rounded up my sources to get their benchmarks -- benchmarks over what a successful day one would mean. they said they didn't want a lot of volatility in the stocks. they wanted this to have not had a pop work fall from the open prize which kind of war after the day but as you can see, the stock did sell off their in the latter part of the day from that opening price, talking to my sources they say that supply would be a potential issue. about what --nly 5.69 shares changed hands throughout the day. the 20 million. that is a time, this is a stock than 100 million shares. 170 million shares that are treatable because there is no lockup. a small volume is setting this 26 billion dollars valuation here for spotify and if and when these shares -- shareholders decide to sell down the road to inject a bit more volatility

that they don't want to see in the stock. time for a bloomberg exclusive, apple is planning its own ships and mac computers starting as early as 2020. the move would take processes from intel. >> it is a significant move or apple, it is a defining moment for the company. it is them saying we have the need a partner to do the main engines in error most expensive and fastest computers, we will be able to do it ourselves. apple has never been a company that was to stick to other people's roadmaps. they want to do things their way. this will let without going forward. >> apple is pressing into the future, the company is working on bringing touchless control and curb screens to their iphones. curb screens? curved screens? it will look percent of the same as the amazon one.

each smartphone maker, but needs to try to push the boundaries a little bit, the issue that apple has is that the leader in the screen technology is samsung. samsung is the competitor so it is paying cash. apple said many times they don't always want to be first in the market for something but they tried to be best. beard from facebook's mark zuckerberg on a compass both reporters and we learned that the cambridge analytica problem may be worse than we thought. investors are already weighing in on the consequences with a substantial reduction in the market capital of the company. >> the stock is down 20% from its high. the issue has affected whole tech industry in general but the whole issue of regulatory risk for these companies, what we are seeing from them as we talk to investors, the expectation is that there will be an increase level of expenditures to do with

data security. this is certainly near an intermediate term and phase in the margin of pressure. his anyhave not seen real issue on the revenue line. advertisers are still with the company. envisioning the amazon of wall street, the jp morgan ceo said in his annual letter that they could go almost anywhere. incomes, consumer banking, investment banking, you name it. it was is how big through have a bit want to be. >> he has some pretty assertive plans for most every division. investment banking, he saw growth around the world. he was to double his workforce or double his market share in certain areas. he actually ironically named amazon twice in the letter. to be painting this as the amazon and financial services. across the board.

he's only outlines risks to the financial system. he said he could grow that income, that had issues in the past couple of years. hitligarchs are among those in the latest round of u.s. sanctions against russia. sanctions were levied against seven tycoons, that them at two former trump campaign manager paul manafort, also sanctions 12 companies. out, the otherds names that lead to the forefront in the wake of the sanctions -- >> victor bechtel berger, the mental tycoon and several other names and then expect of players that do not seem to be as close to the kremlin as others. here think the big shift is that until now, the u.s. had not sanctioned businessman for being close to the kremlin as it

was written into the law last year. this is the first wave of targeting people close to the kremlin in the business year. ♪

♪ welcome back to bloomberg best. i'm erik schatzker. named the president of the federal reserve bank. he is a voting member of the f1 see this year. after that that's march meeting, he envisioned as few as two and as many as four rate hikes in 2018. he sat down this week for an exquisite conversation with michael mckee. >> i do think that there was an initial expectation about inflation at the beginning of this year that got priced in. we have backed off that a little

bit. i think some of it is priced in but also i think the markets are doing the same thing we are, trying to wait and see what the numbers come in at and the dynamics around it to see were inflation is. >> the headline was already at 1.8%. posted we get to or go over 2%? how will i would you be want to go over 2% and have fun russian mark >> i think as you said, the train is going in the right direction. i think we would hit 2% sometime in the next quarter or two, i am at the 2% to some amount 2.2 or 2.3. i do think that is a crisis of overheating necessarily. i think it is also important to say take a stance that everyone understands the 2% level is an average and not a feeling. weave some concerns that have been below for so long that if we go to 2% and give a hard stop to hold it at two, that

will send a signal that we really need to percent as a ceiling. i think that would be unfortunate and not helpful in terms of where we want inflation expectations to be. >> you said maybe two more rate increases to get us to neutral and then pause and see where we are. but what is neutral to you? betweenneutral's summit 2.25 and 2.75. a lot of the baseline analysis that we have done suggests that your risk-free rate is pretty low right now and it has dropped over time. i think we are getting close to the lower bounds of this. i think we wait and see how the market response. we have been in an accommodating position for a long time. i think getting us back to neutral is something that is a priority, it should be a priority.

i think we're kind of in a good place on the trajectory. unwinding of algae balance sheet to a more neutral position as well. i think that would be quite helpful. >> facing the neutral rate move up? >> it is possible. it is definitely something we will have to look at carefully to make sure that we understand how these dynamics play out. the economy as strengthens, as inflation gets higher, there is a possibility that free rates could increase. we will wait and see how that plays out. christ coming up on bloomberg best, more of the week's top business stories. including plenty of merger talk and a little action. plus, are the u.s. and china entering a trade war? we have expert insight from around the globe. an emily chang talks with sheryl sandberg. >> there are real mistakes that

we made and that i made. >> this is bloomberg. ♪

♪ you are watching erik: "bloomberg best --erik: you are watching "bloomberg best." trade dominated the discussion on bloomberg. let's revisit some of the most provocative conversations, starting with henry mcveigh. he gave me his view of the u.s.-china situation. clear the market thinks the trade war is bad. what do you think? henry: it is friction and economy -- in an economy where

we wanted borders to come down. that is what china integrating into the global economy, going all the way back to wto in 2001. i don't believe we will have an all-out trade war. my view is that global trade actually peaked in 2007. 2007nt up from 1984 two and since the great financial crisis it has been shrinking. i think this is about the u.s. was comfortable when china was the exporter to the world and the low-end manufacturing. since they announced their china 2025 plan, they have been moving up to the value-added goods. that is a threat to u.s. intellectual property and it means they in source more. that is what they are trying to do to create a larger domestic economy. some of this to me is not ask -- not unexpected.

president trump was saying when you look at the u.s. trade deficit, about 80% comes from two countries, mexico and china. hina, it is two things, technology and apparel. within technology, they are on personaltariffs computers, which is the low-end, but they have gone after things like semi conductors at the high end. i think it's about the high end. an openings is salvo. i think we have opened a new era between china and the u.s., but i'm not expecting this to be what you saw announced in the past 24 hours to be the endgame. i think it is opening of negotiations. is unfortunate trade tensions are rising at this moment were global recovery is being supported by trade. for the first time in a long time, trade is growing faster

than global gdp, and in that way it is spreading recovery around the world. the trade tensions, one has to understand, they arise because of people feel as though trade is unfair and trade adventures -- traded ventures being gained by other countries. -- trade advantages being gained by other countries. we have to understand the dissatisfaction that is leading to this. think thee time, we differences of view should be settled through a cooperation under dialogue, and that that is the way to make sure that trade continues to grow, that market fairs increases, but on a basis, and that way everyone can still gain. think the administration's approach to china has been a smart one so far on trade? >> what i know best is agriculture. agriculture have had, you have to go back to the 1950's when

agriculture did not have a surplus in trade to the united states. agriculture has been the backbone of trade the united states. you start a trade war with china, agriculture will lose. that is what i believe. they are an important market test. as far as i can comment, i think that could be hurtful to u.s. companies and the u.s. farmers. we have watched investors scratch their heads about the additional announcements both from the united states and china. think and what are clients thing to you? >> clients want to know the uncertainty that terrorists in the prospect of trade protection -- of trade protectionism posed to the outlook. is that something they should be counting as a downside risk that counteract the upside tailwind? of course, it's difficult to quantify exactly what kind of

economic output impact at this point, desktop about trade protectionism is having. if they follow through what impact that might have on gdp. there are effects that can impact the economic outlook, even if they don't follow through. all of this uncertainty, all of the market volatility, even if you don't have any skin in the game. say you are an average american who doesn't have stocks and bonds. you are looking at market, and that uncertainty, you have your finger on the pulse of the stock market each day saying, is my firm going to hire? is my job secure? what's going on with the u.s.? volatility can affect every american household. shery: should --francine: should european officials square with trump to try to get a better deal with china?

>> yes. i think they have to, because there have been several examples of chinese companies stealing intellectual property. machines have been tipped into china, but under a different brand, and this is illegal. been shipped to china, put under a different brand, and this is illegal. what will bring discipline to the president's message? ken lay recovered do it or does the dollar bring discipline to the message? do it orrry kudlow does the dollar bring discipline to the message? >> i'm not sure they will be able to convince them to change tact on protectionism in china. if anything, some of them are economic nationalists and

security hawks. i think the discipline will eventually come from the markets. we have seen how this rise of trade tension has led to a significant market correction, 10% from the peak in the last month or so. this were to if escalate, you will have more of a correction. at the end of the day, i think there will be more market discipline rather than his own advisors. this week, we learned if the privacy lapses of facebook or even worse than initially reported. the social media company said as 87 milliony users may have been improperly shared with cambridge analytica. emily chang discussed the biggest ever crisis to hit facebook with its chief operating officer, sheryl sandberg.

>> this is going to be a long process. we are systematically looking at all the ways facebook that is used. we are going to tell you about them. we will shut them down. this is a forever process. security is always an arms race. you build, they tried to misuse, you build. we are committed to this for the long run. emily: mark has taken responsibility. how much do you feel personally responsible? i feeli feel --sheryl: deeply personally responsible. there were mistakes we made and i made. when you take a step back and think about what has happened, for a long time, we were focused on building social experiences. a lot of good happen because of those. when we found problems, we would shut down that problem. the sharing case of that happened with cambridge analytica, that was shut down.

what we didn't do until recently and what we are doing now is just take a broader view, looking to be more restrictive in ways data could be misused. we also didn't build our operations fast enough. that is on me. we had 10,000 people working in security at the beginning of the year. at the end of this year, we will more than double to 20,000. we are massively investing in smart technology, and we are doing all of this to make sure we get to a place where we can proactively protect people data. emily: facebook has constructed a model that leverages personal data that users share with facebook, and you are the chief architect of that. assuming the business model will evolve as a result of the changes, how will that impact the bottom line and profitability? sheryl: we have never run this company for short-term gains, and we have never run this company to maximize profits. we have run it for the long term health of our community and business. we announced two quarters ago in

earnings that these investments are big and will impact profitability. that is ok with us. it's the right thing to do. we want to make these investments. we will update at the next quarter. emily: mark has been asked if he's the right person to lead. do you believe he is? he says he is, do you agree? sheryl: i believe deeply in mark. he had a vision for what social services and social sharing could be, and that vision remains important. us take, and all of full responsibility for what is happening, and we are making an important shift. we will keep building social products, because sharing is important to people all over the world. .e will be much more proactive i'm not going to sit here and say we won't find more problems. we will. we are going to continue to find problems. we will continue to shut down situations when we find them. this is a for everything. security is an arms race.

this is something we are signed up for not just now but on an ongoing basis. ♪

♪ erik: you are watching "bloomberg best." let's resume or roundup of the week's top business headlines with the big news on the big deals. rupert murdoch hopes you pay regulators will approve his company's acquisition of a satellite broadcaster, sky. he is enlisting disney's help in clearing that hurdle. disney, ready to help tony first century fox acquire sky. disney, which is planning on buying most of fox's assets, has offered to purchase sky's news business to soothe concerns over murdoch's control over british news media. will this appease regulators? >> i think it will.

we have various options on the table from fox. offered to give sky news an independent editorial board and effort a separate company within sky. the offer of disney blinds guy now. all of the options out there, and will -- and distal be a significant firewall between the murdochs and sky news. that thehis mean comcast bid is dead in the water? >> i don't think so. we are waiting for them to make their formal offer to sky. comcast is still in the game, but it does seem fox and disney, their bid is making progress. moveon needs to get the with its own offer. -- get the move on with its own offer. health insurance, humana, said to be exploring a wide range of offers, including a merger. >> it seems less likely that andart would out by humana

elect to strengthen their existing partnership. they have already work together on insurance products and maybe do something to bring people until the walmart stores and build on what they have. >> what is that mean there won't be multiple -- how does that work? >> to be clear come a we don't know what exactly these companies have planned. neither company has said anything public about what partnership might take. from what we are hearing from sources, you would more likely have a joint venture. we are not saying that is off the table completely, but it seems less like a. -- less likely. >> cbs has started negotiations on the future with viacom. made a belowas market bid and had ideas on management. either they are together, apart, or together again.

what is going on? >> right now, they are pretty for her part. -- they are pretty far apart. , who has done great things with the company, also sherry redstone, whose family business controls both companies, she didn't want it to become about the personality. she wanted this to be about a special committees of the two companies getting together to decide whether this was a merger worth its merit. now, it has become about that, because it has come down to christ -- two pricing management. >> a food delivery giant in agreement, to final acquired by a company. shareholders have approved this deal. ,ei willtuan acquire fully the

shares of mobike. also assuming $700 million of debt. the company after this will to have existing managers to stay on. the ceo will also stay on. >> police in california say woman shot injured three people at youtube's headquarters. before she killed herself. >> right now we know the alleged of act is deceased self-inflicted gunshot wound. the police chief revealed that in a press conference this afternoon. -- three victims are all alive, at san francisco general hospital, one in critical condition. we don't know what is behind this, but it has everyone shaken, because a lot of these

buildings in silicon valley aren't well protected. how can you protect against something with this? it to people by surprise. -- it took people by surprise. of a potential trade war eased a little but yesterday on news that the company ministry she is pushing a preliminary nafta deal next week. -- on news that the trump administration is pushing a preliminary nafta deal next week. after that, trump said he might pull out of the deal altogether. >> trying to push ahead to get an agreement in principle. but the president could announce at the summit of america's next week in peru. that is possible, but there is to work to be done. it isn't clear whether they can get there or not, but apparently the canadian and mexican negotiators are going to be meeting with robert lighthouses in washington this week, and we

do another round next week, trying to get this wrapped up. the u.k. is biggest country yet to try to address the gender pay gap. firms and britain have until today to report wage disparities and expect 9000 companies are legally required to report the differences paid to male and female employees. what do they have to disclose? >> it's around 9000 companies. graphic tracking all of this. it seems like most firms have complied. but they have to disclose is the mean and median hourly pay for men and women, there for the difference -- therefore the difference between the pay. they will have to report the proportion of men and women being paid a bonus and the women and men and each pay quarter.

it hasn't shown how much a man and woman are paid comparatively for the same job, but it showed women are generally paid less. there is a lack of women in the top paying roles. 19 doubt of 22 interest trees in the top a quartile, less than 50% women. deutsche bank once zame to sit on its supervisory board. what is the shakeup of the supervisory board mean for deutsche bank's direction? to digest,ad time and the feedback wasn't so great from german analysts. is a symbol ofe the old world of finance.

worry people had. that people might say deutsche bank is deepening the bench of finance knowledge on it supervisory board. tot could be a good thing get a better grip on the kind of business the bing does and the risk they will be doing and the changes coming for them. of business the bank does and the risk they will be doing and the changes coming for them. >> bunch of big investors are scouting for a new chief exec -- chief executive. today, we have learned investors talked to bank of america's christian meisner. we seem to beginning the same, everybody is thinking this is going to be a hard job to do. if you look at how deutsche bank has been trading, they have had this turnaround plan last year. they were talking about their

big capital increase, they wanted to ipo their asset management unit. they have done all of those things. it seems like they are lagging to their peers and competitors in some of their biggest businesses like stocks and bonds training. -- stocks and bonds trading. it is down. samsung reported higher than expected profit for the first quarter, thanks to strong demand for its memory chip. aerating income coming in at $14.7 billion. what contributed to that? >> we are seeing broad demand for memory chips, which are used in smartphones. as well as increasingly in of the cloudpower services we use. that was the main driver and continues to be for samsung. even after a lot of challenges over the past year-and-a-half or so. ♪\

♪ a new function allows you to see all of our charts on the bloomberg. you can catch up on all of the key analysis for future reference. erik: there are about 30,000 functions on the bloomberg. we always enjoying showing you are favorites. maybe they will become your favorites. here's a function you will find useful. lead you to our quick

takes. here is a quick take from this week. as the has functioned textbook cartel. the 14 members of the thenization produce 40% of oil used every day, giving strong influence over oil prices and the global economy. like a championship boxer who has dominated in the ring for decades. in its more than half a century of existence, opec has fought off challenges from new technology. the group is up against the ropes now, as the u.s. produces record supplies of shale oil and the planet begins to embrace renewable energy. to stave off the competition, opec has cut output. this strategy has succeeded in the past, but will it work now? and itson cuts by opec allies give prices a quick boost in november 2016. it didn't last. whether question is

opec and prop up prices when the u.s. continues to increase production. here is the argument. cut outputement to includes several nonmember countries, which should help it regain control over crude oil and prices. oil forecasts suggest consumption will continue to rise in the next 20 years, which would seem really benefit opec and its allies. it's unclear how the strategy will play out, even though we'll has risen since june 2017. analysts are divided over whether the cartel would succeed in eliminating be supplied what it has affected prices. plus, with increased innovation in her noble energy, oil consumption may peak sooner than expected. they could leave it with no chance of getting back up. erik: that was just men of the one he -- one of the many quick takes you can find on the bloomberg. on can also find them bloomberg.com. that will be all for bloomberg

best of this week. thanks for watching. i'm erik schatzker. this is bloomberg. ♪ this wi-fi is fast.

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mark: you're watching "bloomberg technology." let's begin with a check of first word news. a british health officials says a former russian spy who was left fighting for his life after exposure to a rare nerve agent is no longer in critical condition. the poisoning of sergei skripal and his daughter, whose condition is improving, triggered a crisis between moscow and the west. the eu says facebook told it up to 2.7 million people in the 28-nation bloc has been affected by the data privacy crisis. in e.u. spokesman says facebook confirmed that number in a letter. >> it is already clear that they -- that this