leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ >> coming up on "bloomberg best," stories that shaped the weekend business around the world. volatility in geopolitics, investors weigh the risks as leaders way action. >> all on the table. >> ryan's the larger is expected. >> dangerous game of one-upsmanship. there is a heavy risk of escalation. juliette: deutsche bank and volkswagen make changes while mark zuckerberg gets grilled on capitol hill. >> an easier time than he was expecting to have. juliette: march minutes open a window onto jay powell's first fed meeting. an exclusive conversation with

robert kaplan. >> my own view is, we ought to be raising rates. juliette: and a week of twist, shocks and surprises, top interviews, in-depth. >> there is a momentum of said-counter fed. think the united states government has any understanding of china. >> too early to give up on the global growth story. oniette: all straight ahead "bloomberg best." ♪ juliette: hello and welcome, i'm juliette saly, this is "bloomberg best," your weekly review of the most important business news, analysis and interviews from around the world. let's start with a day by day of the top headlines. on monday, the embattled tenure

of the ceo deutsche bank came to an end. >> deutsche bank advisory board has named a new ceo, as part of a sweeping overhaul of management. has spent his entire career at europe's largest investment bank and is head of the private and commercial arms. losses fore had three years in a row. that is one of the main reasons. digging deeper into this feud that started between john and paul, john and the board, you see that the bonuses he paid to investment bankers last year did not go down well. that did not go down well across germany. far and away the biggest story in finance for the last couple of weeks. it comes to a head today with the replacement by an insider,

christian saving, a german who will have to continue the job of shrinking this bank. they have to focus on bread-and-butter -- to be a german savings bank. tension between the u.s. and china. xi jinping has made a speech calling for harmony within the global economy and defending globalization. embracing openness. >> he took the high road and the mantle of being a protector of globalization and free and fair trade. he did not name trump and the united states by name -- he still went through a litany of issues. saying globalization is a shared future for all mankind -- he talked of open and prosperous approaches to asia economic development. he hailed 40 years of china's opening up. he said the world is facing a

round of changes and adjustments. cold war and zero some mentalities are out of place. >> on a headline basis, xi jinping put olive branches on the table. he told about the need to protect ip. openoke about measures to up financial services and make it easier for foreign carmakers and importers to operate. the problem is -- the detail. we have heard these announcements before, especially on financial services, imports. on the one hand, it is a win for mr. trump. he can claim a win for tariffs on cars. bigger picture? it is hard to see how this speech diffused wider trade tensions. ♪ >> we did not take a broad enough view of our responsibility. that was a big mistake. it was my mistake. i'm sorry. >> what a day.

talk about the performance of mr. zuckerberg? he had an he did, easier time than he was expecting. senators,ongressmen, asked him questions that he could simply say -- this is not true. there were some people that had a fundamental misunderstanding of how facebook's business works. >> stock went up as he talked. no matter what the senators were thinking. >> that is a lot to do with the impression he gave. when he sat down he seemed like a schoolboy but he was very confident in the way he addressed questions. yes, senator, every answer. bey kept asking, will you imposing regulation? it will be interesting to see what facebook comes up with. >> risk off sentiment intensifying. on the hill, a tweet from donald

trump warning russia to get ready because missiles would soon be sent to syria in response to a suspected chemical weapons attack. >> it appears president trump has wide bipartisan consensus on capitol hill for a military strike. >> russia is saying, any strike against our assets, our troops, will be retaliated against. >> it is a dangerous game of one-upsmanship. there is a heavy risk of escalation. we do not have any other evidence or reporting suggesting something is imminent but the president's tweet has shot across the bow to russia and syria. >> it is interesting the markets did not go into panic mode, even though such a strike would create a real dangerous situation. >> i think the market is treating this like tariffs. my own personal theory is he has aputin knows

line into donald trump that he may pick up the phone and try to work something out short of military action by trump. >> through the goblet. mark zuckerberg made it through but did he come out unscathed? >> he solved more problems than he created. he certainly addressed problems and made progress. he did on job on balance. he showed he had stamina. unflappableally faced with hostile questions, especially today. his willingness to accept regulation, which he repeated, at one point promise to provide a list of regulations he was willing to abide by, that will come back, haunting him or affecting him -- i don't know. that will change the terms under which facebook operates in american society. >> the fed more hawkish on it rate hikes. minutes from the march meeting

being read by analysts, more aggressive policy tightening may be in the works. >> if not the most important sentence. "a number of participants indicated stronger activity with increased confidence inflation would return to 2% over the median turn, would likely be slightly steeper than they had previously expected." hawkish tilt. >> the fed has been predicting more inflation for a long time. they have had this sentence in the minutes for quite a sum -- for quite a long time, that we expect inflation to approach target of 2%. it has not happened. now it looks more likely it will happen soon. so i think, the expectation that we will have a steeper set of rate hikes is not surprising.

there was not much news here. >> major policy change from the president. three days after his inauguration, president trump abandon president obama's signature trade deal, the tpp. he is telling senators he is looking to reenter. >> he is confronting the political reality of tariffs. when he slaps tariffs on other country they tariff our farmers and farmers put this guy in office. he made these remarks at a meeting with farm state republicans. guys who are anti-tariff. very upset with trump's tariffs plan against china and steel makers as well. that is why he is walking back. his voters will be hurt by tariffs. >> with their the willingness for renegotiation, even if the

u.s. was serious about going back in? >> no country wants to renegotiate. nafta,een with korea and parties are willing to do so if demand can be accommodated. if they can be reasonable. the big bank kicking off earnings season, providing fuel for futures, returning volatility, lifting jpmorgan to a record quarter. >> the story of 2018 and big banks are benefiting. topting out with jpmorgan, and bottom line, the highlight is the strength of the company's equity trading business hitting a record high, more than $2 million in trading equity -- 26% gain beating estimates. they also beat fixed income estimates, nine out of 11 businesses beat revenue estimates. lots of strength for jpmorgan. for citigroup, benefiting from volatility. a slightly different story. all about equities.

equities trading revenue business, hitting highest level since 2010. more than $1 billion. ll on fixed-income, investors looking past. fargo, another uptick in litigation charges this quarter. weaker loan growth, a pullback in deposits but the bank is growing core deposits instead of losing deposits they want to lose instead of focusing the balance sheet in the more important areas. i think it is the legal issues, getting those behind them -- we will probably not learn more about that until investor day. ahead, as we review the week on "bloomberg best," dallas fed president robert kaplan says

trade wars are not the most pressing risk to the u.s. economy. imf head christine lagarde said they are an obstacle to global growth. more of the week's top headlines. the congressional budget office sizes up the trump tax cuts and faces a deficit coming bigger and faster than first expected. >> they come up with a $1 trillion deficit, in 2020. >> this is bloomberg. ♪

♪ juliette: this is "bloomberg best," i'm juliette saly. economic sanctions and brett a confrontation in syria putting intense pressure on the russian -- economic sanctions and a confrontation in syria putting intense pressure on russia. >> u.s. dollar moving through

$62. fiscal weakening. yesterday a selloff for russian stocks sweeping across equities, other asset classes as well. russian traded stocks biggest fall in four years. >> are we in a new era? >> yes. announced by the u.s. treasury are a game changer. they apply to equities and other securities. old sanctions banned lending. anyone in the world dealing with bections, is liable to sanctioned by the united states. all links with conditions or events have been removed. sanctions are on anchored from any cause or conditionality. investors have to assume, they are looking over the precipice. >> canceling a share swap, with

the biggest commodities traders, 8.75% stake for a position. the move marks a loosening of ties with the russian tycoon whose business empire is the subject of harsh u.s. sanctions. when was this meant to happen? the share swap? >> the coming months. glencore wasr, --ng to do for dell alaska to do in favor for this holding company and now it cannot happen. glencore would have to examine its relationships, so this is on hold. ivan announced he is ru resigning. in essence, sanctions have barred them from the u.s. dollar economy worldwide. the key will be, what the

kremlin does to underpin this important russian company which employs 100,000 people? china new governor says will implement a range of new financial reforms this year. forum, a panel at the financial sectors will be opened up and domestic and foreign capital will be treated equally. yi added that ownership restrictions on foreign banks would be removed in november and outside investments would also be encouraged. >> it was interesting to hear him say that the london-shanghai would be implemented this year because that was on the back burner. in terms of quotas for mainland, hong kong stock, those quotas would be quadrupled as well. he said caps on foreign ownership of chinese banks would be removed. >> congressional budget office,

the cbo releasing latest projection for deficit. the deficit will balloon to $1 trillion by 2020. >> this is something wall street is expecting. private forecasters said we would be seeing this because of the president's tax reform bill. now the congressional budget office has confirmed. they put out their forecast. they had delayed that, during the impact of the budget deficit. they look at revenues and outlays and come up with a $1 trillion deficit, crossing in 2020. get $981 billion. a rounding error right? -- 2017 ended, now we had that $1 trillion mark in 2020 and keep going until you by 2028..5 trillion

a lot of red ink ahead. >> late yesterday we learned the fbi raided the office, home and hotel room of michael cohen. as part of an investigation into financial crimes. >> frankly, a disgrace. an attack on our country in a true sense. an attack on what we stand for. >> that was president trump talking last night. this morning he took it up again and tweeted saying that attorney-client privilege is dead. what do we know? >> we don't know exactly what they were seeking or what kind of information led prosecutors to go after them. we have a lot of things directing recently involving michael cohen including the payment to stormy daniels. we know this is a very unusual step, to go after a lawyer.

there is a privilege which does not hold in every case. to theuld have gone highest reaches of the justice department for approval. >> i'm announcing this year will be my last as a member of the house. >> paul ryan will not seek reelection, raising serious questions about the future of the republican majority before the midterm elections. >> the departure is what i would call, unexpected shock. you are shocked because the day it was announced but it was completely expected. believednow anyone who he would be serving in the next congress. most people thought he would retire after election day -- after he was elected. there are pluses and minuses to doing it now. some say it is a signal to those outside congress that ryan himself does not expect republicans to retain the majority. who can say? ecb, account for march policy meeting, central-bank

voicing caution across the board from euro moves to trade to global downside risk. what was your take away from the minutes? >> the most interesting thing is probably debt. maybe one of the usual suspects, on the council, has proposed the ecb would say it had almost accomplished its mission on inflation. the condition the ecb has laid out to stop asset purchases. the majority of the council rejected. they want to see more evidence that inflation is on the right track and inflation remains low in euro area, there are pressures and the latest movement in trade, geopolitical noise, makes them think it may feed confidence -- mario draghi signaling this risk yesterday. that may be in the works for the expansion of the euro area. ♪

♪ welcome back to "bloomberg best," i'm juliette saly. geopolitical shocks have markets on edge this week with investors wondering, whether they will change the forecast for monetary policy. robert kaplan spoke exclusively with bloomberg television saying he is not making major adjustments to his outlook. >> for my base case, three rate increases this year. two more from where we are. -- of the things i focus on on the short-term, the cyclical developments -- i still believe 2018 will be a relatively solid year for gdp growth. 2.5% or more. you have also heard me say -- i think the big structural drivers of the economy, aging

demographics, slowing workforce growth, sluggish productivity due to skills of our workforce and weaker education levels, the third issue -- i'm working about -- i am worried about high levels of gdp which may provide a headwind for economic growth. short-term growth may look solid. i think we will make progress on unemployment and labor slack, this year but i will also say 2019 and 2020, you will see growth moderating. for me the path of rate increases is likely flatter. i think we should be raising rates but i think we should be doing it gradually and patiently. the underlying drivers of the economy are very challenging even though the short-term look solid. fed risk hiking rates into what right now is an uncertain situation that is only

at the beginning stages? >> what are things that could slow gdp growth? trade. we've talked about that. it is not the only one that could slow gdp growth. aging workforce, slowing workforce. sluggish productivity. those will have an effect. my own view -- we ought to be raising rates and why? we are at or near full employment. we don't want to risk overheating or over tightening of the labor market. i think we are making progress and we will move toward our 2.5% objective. that is in the context that in the out years, growth will moderate. the challenge for us in the trade-off i'm working on his we want to remove accommodations but we need to do it gradually because we still have fundamental headwinds for economic growth.

we can address those. trade is just one. maybe not even the most significant. we have to find ways to grow the workforce in the united states. find ways to get more people into the workforce, improve skills. those issues are as or more important than the short-term trade issues. i am relatively hopeful because it is so clearly in the interest of the united states as well as china, that we have trade. it is so critical to our respective growth stories that i am hopeful that those issues will get resolved. those are not the only issues i am worrying about. >> coming up on "bloomberg best," more insight into the global economy from imf managing director christine lagarde and other distinguished guests including exclusive conversations from the forum in china. >> that xi jinping is prepared

to give guidance within the context of market economy is great company. >> this is bloomberg. ♪

♪ >> this is "bloomberg best," i'm juliette saly. time to revisit the most interesting interviews of the week on bloomberg television, starting with haslinda amin's exclusive conversation with imf managing director christine lagarde at the asia global institute in hong kong. they discussed whether challenges to free trade have dampened optimism about growth. >> what is clear is that there is a momentum of threat-counter threat, dialogue opening, and that is what we should all be encouraging. we have a view to increase trade, removing barriers, encouraging a level playing

field, to wish everyone should -- to which everyone should contribute. it has to be done collectively, not by exceptional measures. it cannot be by unilateral threats. it has to be collective. the world has been functioning in a much more efficient way when countries operate together. the big ones, the small ones. >> the imf was founded 70 years ago to prevent precisely another trade war. are you concerned that we are headed in that direction, on that path? >> i very much hope that we are not heading in that direction, because, number one, nobody wins a trade war. everybody has to lose. some more than others. those who have most to lose are the poorer consumers, those who are at risk of not seeing the benefits of cheaper products, more choices, alternative options. all those who are coming to the markets, who would like to see

the benefits of the sharing of technology, will not see as much of that if trade slows down. >> china, of course, is wonderful for upsetting business out of the u.k., because china has become a beacon of stability in a very troubled world at the moment. the fact that xi is prepared to give such strong, authoritarian guidance within the context of a market economy is great for companies such as mine. >> do you see this tit-for-tat right now as more than just rhetoric? how damaging is it to global recovery? >> i think it is potentially very damaging. trump as the president of america, it's very easy to disregard trump. i always separate out people's personal feelings from trump from what he is doing and achieving. he has the democratic legitimacy that being the president of the united states, and when trump speaks, although it may

sometimes sound to people outside, he is speaking for a lot of americans. i think it is very important not to disregard what he says, one may have to discount it, but one should never disregard it. i think this u.s.-china trade war thing, it could be a real thing. >> so it is a trade war. >> it could potentially be a trade war. >> economic globalization is an irreversible historic trend, and we have been actively working with energy companies in the global market. as you know, we signed an agreement with cheniere energy during president trump's state visit to china last year. after months of negotiation, we have ended the deal on importing 1.4 million tons of lng per year. this is real progress. even though china and the u.s. have certain disagreements over trade issues, i am still very confident about china-u.s.

energy cooperation as china is opening up policy. at the moment, cnpc has great cooperation with many american companies, including exxon mobil, chevron, and conoco phillips. i hope our ties won't be negatively affected by the trade disputes between the two countries. >> china has just launched oil futures trading in shanghai. what does it mean for a company like petrochina? >> [speaking mandarin] >> cnpc fully supports the renminbi in global oil trade. this is also part of china's continued and enlarged opening up policies. we hope to get more warm reactions from our partners in the growing participation in the future trading platform. >> you are one of the first financial institutions to reduce your work with companies. what is next? >> well, i think we have to continue our exposure. we have reduced our portfolio

about 80%, and we will continue on that road. but i think what is next is to then put the money and effort into renewables. we do multiples in terms of renewables versus fossil fuels versus new deals, so i think the more we see, the more it works, the more it is reliable, that is where we are going. >> from an immediate perspective, the war on coal, i feel like it is gone. where does bank of america stand on lending to gun manufacturers? >> let's start with -- we want to contribute in any way we can to reduce mass shootings. that is such a tragedy. that is number one. we do have a few manufacturers, of military style firearms -- we are in discussions with them. we will let them know that we are going -- it is not our intent to underwrite or finance military style firearms.

>> does that mean you will get out of lending to companies that manufacture of military style weapons? >> yes. >> 100%? >> yes. >> could we see any slower path of hikes from the fed if these trade tensions escalate? >> will, i think the keyword you said is "if" they escalate. i think the fed is based on what they see in the economic growth picture and the inflation picture, and they recognize trade tensions could eventually have a real economic impact, but right now they are data dependent. we lean toward the four side of the debate. >> at the same time, you would acknowledge in your latest outlook, the risks from these trade tensions, in particular between the u.s. and china. you're still risk on, though. >> we are.

there is 20%-30% chance of a serious escalation from here. but it is too early to give up on the global growth story, and it is too early to predict that this will evolve into a trade war. what we have seen is that the u.s. actions have generated a chinese response. now they are going to come together, none of these tariffs have been implemented. we expect they will negotiate and come to a solution. then, as you say, there is the fed policy and other central bank policy overlay on top of what happens on the political and fiscal side. it's a little too early to see how trade tensions themselves breakout. >> what they are doing are things that they believe are in their own economic developmental

interest, so they believe opening up their financial markets at this stage is in their interest. it wasn't in their interest 15 years ago. they have a very dynamic view of development, and what is good at one stage becomes not good at another. they believe that these openings up are precisely the kind of thing they need in the next stage. >> is the u.s. doing the right thing in terms of approaching china and understanding where it is coming from, understanding the landscape? >> i think the united states government doesn't have a deep understanding of china. and that is really quite sad. i don't think they have anybody who has been engaged with china, not china bashing -- they have someone engaged in --

>> you are referring to peter navarro. >> exactly. i mean someone who is been -- who has been talking to china over the 30, 40 years of its development process, seeing how they have been evolving, both economically and politically. >> that's pretty dangerous, given that everything the u.s. does with regards to global trade seems to be focused on china specifically, even if it doesn't start off that way. even if it doesn't say so initially, it zooms in on china. >> i don't think that's completely true. nafta is a very big issue. what you have to understand from the political point of view is that trump has tried to blame all of america's problems on outsiders. on immigrants, on mexico, on china. it's just a failure to take responsibility. for instance, globalization. i think we have not managed it well.

and it has hurt american workers. but it's not globalization itself, it's the fact that we haven't managed it well. ♪

♪ >> you are watching "bloomberg best," i'm juliette saly. let's resume our global tour of the week's top business storiess, with m&a action involving one of europe's biggest drugmakers. >> one of our lead corporate stories this morning is on novartis. ceo has barely been back two months and managed a blockbuster deal. they have agreed to by the u.s. gene therapy company avexis, $8.7 billion for novartis. this is making your mark, isn't it? >> this is the new ceo making a big splash. it's not that much money.

what you have to remember is they have a lot of money now because they just sold an asset, it was bought out of a corporation, they have that money to play with, they set up a time to weeks ago to review those funds and reallocate them for promising new cancer research. experimental research. that is what we are seeing here now. by a company that is not that well known, small, working in areas of gene therapy. if it works out well it would be a blockbuster. if not, they will look for a next target. >> big changes came today at the top of the world's largest automaker. volkswagen announced a new management team to take control of the future of electric and autonomous vehicles. tell us what we learned. i don't understand why they made the change, i thought they were doing a pretty good job. >> he was doing a stellar job,

as far as the financials were concerned, and as far as the organization of the company was concerned. he boosted margins to enviable levels, but he was seen as a provincial, brash manager from stuttgart, and made some fairly gruff statements that occasionally got the company in legal trouble and occasionally got the company into cultural trouble. not a lot of sensitivity as far as his pay package was concerned. that led to i think the porsche family and the government of lower saxony to drop their stake in the carmaker, to look for a new ceo. he seemed to be the perfect one. he is in the auto industry known as a superstar when it comes to controlling costs. he did an incredible job at bmw. his takeover has been embraced by the company and the stock has done quite well. >> saudi arabia wants oil at $80 per barrel to balance their budget, rent getting a boost on the news. -- brent getting a boost on the

news. what happens if opec doesn't target price, just supply and demand? >> saudi arabia has been talking to a number of opec delegates and market participants over the last month. not indicating a fixed price target, but the counterpart indicates that the aim of opec is to push prices to around $80 per barrel. >> opec says the oil will fall to the lowest of the year last month asked to reduced supplies of venezuela and saudi arabia, and they say most of the global glut has been eliminated. >> there is a global consensus -- a growing consensus that the declaration of corporations should continue beyond the immediate target, to come back to balance. we're working with our partners in the non-opec, led by the

russian federation to design this partnership and insure its longevity. >> inside saudi aramco, accounts show the energy giant is the world's most profitable company, $38 billion in the first half of 2018 and bloomberg has also learned that the company is virtually debt-free, low production costs, and has no tax regime. we reviewed these accounts and figures. walk us through the biggest take away for investors. >> it proves what people have always known. when you pump 10 million barrels per day of oil, you make many, many, many billions of profit. and as you point out, there is a lot that's impressive in these numbers. the fact that they carry no debt, that they produce oil at 1/5 of the cost of people like exxon and shell. it also demonstrates how vital it is to finance in the saudi space.

among the most important things is just how heavy this new tax regime is that saudi arabia has imposed. on aramco and the run-up to the ipo. i think investors who are contemplating buying this company will look at how much it will share with the saudi government. >> one of the biggest shareholders of cbs has written to the company's board to say they should only proceed with a deal with viacom if certain terms can be agreed on. tell us more about what is near -- what is up in the air here. >> it is a fairly scathing letter that showed a laundry list of things they think are problematic to a potential deal, and they really call out redstone. even though shareholders do not have huge voting power, this shareholder is saying you need to recognize that there are a lot of interested economic

shareholders, and they should be given some say in any transaction. >> iag, the owner of british airways, has bought a stake in norwegian airways as they are considering a full offer, sending shares of the region soaring. why now? >> looking at this business, which is struggling financially, looking at the model in place -- a big part of that is the low cost, long-haul model. norwegian is also struggling -- >> how much? >> a lot, they are been credibly -- they are finding it incredibly tough at the moment. then you have to look at the other groups around the world. >> living in the era of big data, where businesses make advertising and marketing decisions based on complex information about consumer preferences and the need to collect and analyze the data has created big opportunities for some companies. this data management platform

has tripled its customer base in the last four years. the ceo describes the journey from small to big. ♪ >> it stands for locate, target, announce. it helps advertisers collect and organize their consumer data. you can imagine that customers engage on the phone, on the web, in the store, through a coupon. we help collect all that and attach it to a profile. it is the big data story. when i started the company in 2006, i saw this unbelievable opportunity around user generated content. it changed the paradigm for all advertisers. there had to be a platform to protect the brand and get it to find results. a sale. that is in genesis. my first year in business, we landed nine customers on a proof

of concept. i then went to venture capitalists and told them the story, and over time i was able to raise $60 million. i woke up one day in 2011. i had a board meeting. i called them together and told them the trends in the data points i was seeing, and we made a decision to cut the company in half and walked away from a $30 million revenue line. we made a huge pivot. we went from 100 employees, down to 50. there was some overlap of customers, but most of them were net new. we went from a media business that was charging on campaign business to a software business charging a monthly fee. one of the key things that happened during the process was, what once was a desktop experience, in your computer, suddenly became a mobile device, a television, an ipad.

that is where we bought ad mobius in 2012. we focused on the device problem. cross device. in a privacy compliant way, we were able to stitch together profiles and audiences, no matter how they were engaging with the brand. we've had about 500% growth in customers since 2014. we have 10xed our employees. developing profitability in a technology company is something i'm super proud of. over the next five years, i would like to be a very large public enterprise. almost every device in everything we are doing is connected to the internet. microwaves, refrigerators, automobiles. there's information that is thrown off from that device connected to that consumer. i think there's an opportunity for a public company, whose only focus on data, data solution, and activating customer data. in a world where data is everywhere, we help our

customers figure out what it all means. that's the future. ♪

♪ >> this is the bloomberg world bank index. we don't talk about it every day. it's a wonderful gauge. members and this tells you the predicament that mr. sewing finds himself in. deutsche bank is the worst performing global lender, down by 28% year to date. out of the 146 members on the bloomberg world bank's index. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you are -- showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful -- tv .

it will lead you to quick takes, where you can get important context of fast insight into timely topics. here's one from this week. ♪ >> when it debuted, the 4g wireless we have today let people for the first time hit the road and explore unknown places with only a smart phone for direction. when 5g arrives, it could enable driverless cars to take us there. 5g stands for fifth-generation mobile networks. it is insanely fast and can accommodate a lot more. but the reason it is being called revolutionary is because 5g will allow connected devices to speak to each other. >> right now we are living in a world where it is a one-way experience. >> that is ian king. >> the network talk to your phone, you look at your phone, you send something. what we are being told about 5g is that for the first time we will see machines communicating with each other over mobile networks. >> 5g could end up being 100

times faster than what we have now, with speeds that could reach 20 gigabit per second. in plain english, that means downloading a full hd movie in seconds. it will also increase total bandwidth, which we will need to accommodate the growing internet of things. we are talking about a class of devices like internet connected refrigerators, thermostats, dog collars. 5g will enable many more. >> things like utility, factories, machines that are not connected, suddenly they are all connected and have real-time monitoring. other things like cars and utilities, lights. >> but perhaps the biggest advance will be a huge reduction in communication like time, known as latency. the network of driverless cars will need 5g for speed to ping each other multiple times per second to avoid collision. near instantaneous data transfer could allow doctors to perform surgery remotely with robotics elbow.

so how will this work? first we need to improve network density. >> we don't just need more towers. >> the idea is 5g will not only be using the mobile spectrum, but cap in two higher frequencies. millimeter waves can carry more data, but only travel a short distance. this could mean a lot more of these way stations. new towers could have as many as 100 antenna, compared to about a dozen on 4g sensors. so when will we get 5g? getting it ready is expected to cost providers $275 billion over seven years in the u.s. alone. the first should pop up in big cities around 2019. juliette: 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. i'm juliette saly. this is bloomberg.

♪

>> we're inside the headquarters in new york. carol in this weeks's issue we : talk about the wall between instagram and facebook. taylor: and walls between the u.s. and mexico. carol: and we changing of the and deutscheain bank has a new ceo but the same , old problems. taylor: all this on "bloomberg businessweek." ♪ taylor: