♪ juliette: coming up on "bloomberg best," stories that shaped the week in business around the world. volatility in geopolitics. investors weigh the risks as global leaders weigh action. >> all on the table. >> ryan's departure is expected. >> dangerous game of one-upsmanship. it is also a heavy risk of escalation. juliette: deutsche bank and volkswagen make changes while mark zuckerberg gets grilled on capitol hill. >> has he had an easier time than he was expecting to have. juliette: march minutes open a window onto jay powell's first fed meeting. and an exclusive conversation with robert kaplan.

>> my own view is we ought to be raising rates. juliette: and a week of twist, turns shocks and surprises, top , interviews at depth and perspective. >> there is a momentum of threat, counter threat. >> i don't think the united states government has any deep understanding of china. >> it is too early to give up on the global growth story. juliette: all straight ahead on "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 bloomberg television around the world. let's start with a day by day of -- look at 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 senior management. become deputy ceo has spent his entire career at europe's largest investment bank and is currently head of the private and commercial arms. the change. fill us in on why him. >> they have had losses for three years in a row. that is one of the main reasons. if you dig a little deeper into this kind of feud that started paul, and john and really john and the board you , see that the bonuses he paid to investment bankers last year really did not go down well. did not go down well across germany. this has been 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 investment bank. they have to focus on bread and butter, to be a german savings bank. >> high tension between the u.s. and china over trade. president xi jinping has made a speech calling for harmony within the global economy and defending globalization. xi 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 also said the world is facing a round of changes and adjustments.

he said cold war and zero some -- zero sum 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. he spoke about measures to open up financial services industry and make it easier for foreign carmakers and importers to operate. the problem is in 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. that is one of his specific claims. in terms of the bigger picture it is hard to see how this , speech diffused wider trade tensions we have seen growing over the last few months. ♪ >> we did not take a broad enough view of our responsibility. that was a big mistake. it was my mistake. and i'm sorry. >> what a day.

talk about the performance of mr. zuckerberg. how did he do? >> i think he did -- he had an easier time than he was expecting. a lot of congressmen, senators, 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. this -- >> the 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 scoble -- schoolboy but he was very confident in the way he addressed questions. despite the yes, senator, every answer. they kept asking, will you be proposing regulation? it will be interesting to see what facebook comes up with. >> risk off sentiment intensifying this morning on the hill from a single 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 from both republicans and democrats 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's president. >> 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 vladimir putin knows he has a

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 gauntlet. mark zuckerberg made it through but did he come out unscathed? >> i think you solve more problems than he created. i don't be solved any but certainly address problems and make progress on problems. he did do an excellent job on balance. he showed he had stamina. he was generally unflappable face with extremely hostile questions, especially today. certainly his willingness to accept regulation, which he repeated over and over again, and at one point promised to provide a list of regulations he was willing to have facebook abide by, that will come back, whether you color taunting hopping him or simply affecting him, i don't know, but that will change the terms under which facebook operates in american society. >> the fed more hawkish on it have to rate hikes. minutes from the march meeting being read by analysts, more

aggressive policy tightening may be in the works. here is one of the most -- if not the most important sentence. "a number of participants indicated stronger activity with increased confidence inflation would return to 2% over the medium term, would imply it would likely be slightly steeper than they had previously expected." people said hawkish tilt. >> the fed has been predicting more inflation for a long time. they have had this sentence in the fomc minutes for quite a long time that we expect inflation to approach our 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.

but there was not much news here. >> major policy change from the president. just three days after his inauguration, president trump abandon president obama's signature trade deal, the tpp. now the president is telling senators he is looking to reenter the trade deal. >> i think what happened is trump 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. today he made these remarks at a meeting with farm state republicans. guys who are anti-tariff. who are very upset with trump's tariffs plan against china and against steel makers too. i think that is why he is walking back. his voters will be hurt by his tariffs. >> will there be any willingness

for renegotiation even if the , u.s. was serious about going back in? >> no country wants to renegotiate. as we have seen the korea and nafta, parties are willing to do so if demands can be accommodated. if they can be reasonable. >> the big bank kicking off earnings season, providing fuel for futures as the return of volatility lifts jpmorgan to a record quarter. >> the story of 2018 and big banks are benefiting. starting out with jpmorgan, top and bottom line, the highlight is the strength of the company's equities trading business hitting a record high, more than billion in the trading business. a 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. it was all about equities.

equities trading revenue business came at the highest level since 2010. more than $1 billion. a bit of a misell on fixed income, slumping my 7%. investors looking past that. >> i would say for wells fargo, we saw another uptick in litigation charges this quarter. we are seeing weaker loan growth, a pullback in deposits , although the bank is pointing out they are growing core deposits and sort of losing deposits they want to lose in order to focus their balance sheet and the more important areas. i do think it is the legal issues and getting those steps behind them. we will probably not learn more about that until investor day. juliet: still 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. but imf head christine lagarde said they are an obstacle to global growth. up next more of the week's top , headlines. the congressional budget office sizes up the trump tax cuts and sees deficits becoming bigger and faster than first expected. >> they look at revenues and outlays and come up with a $1 trillion deficit in 2020. >> this is bloomberg. ♪

♪ juliette: this is "bloomberg best," i'm juliette saly. economic sanctions and the threat of confrontation in syria putting intense pressure on the russian economy this week, including an intense slide for the ruble. >> another move on the russian ruble this morning. u.s. dollar moving through $62.

another significant weakening. yesterday we saw a huge 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? is this a new paradigm for russia? >> to an extent, yes. the sanctions announced by the u.s. treasury are a game changer. they apply to equities and other securities. yields sanctions were just bans on lending. there are secondary sanctions. anyone in the world dealing with sanctions, is liable to be sanctioned by the united states. i think the third reason which is key to what you are discussing, all links with some 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. >> glencore says it's canceling a share swap with the world's

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? >> it was meant to happen in the coming months. it was basically a favor that glencore was going to do for day lob pass got -- to do in favor for this holding company and now it cannot happen. it was clear glencore would have to examine its relationships, so this is on hold. ivan announced he is 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? >> the new cbo governor says china will implement a range of new financial reforms this year. yi telling a panel at the forum, 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 stock connect would be implemented this year because that was on the back burner. he also said in terms of quotas for the mainland to hong kong stock, those quotas would be quadrupled as well. he said caps on foreign ownership of chinese banks would be removed.

>> the congressional budget office, the cbo releasing latest projections for the u.s. budget deficit. the deficit will balloon to $1 trillion by 2020. >> this is something wall street has been expecting. private forecasters said we would be seeing trillion dollar deficits because of the president's tax reform bill. now the congressional budget office is basically confirmed it. they put out their forecast for the coming years. 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. although in 2019, you get $981 billion. it is a rounding error, right? we are here now. at $665 billion. now we had that $1 trillion mark in 2020 and keep going until you get to $1.5 trillion by 2028. a lot of red ink ahead.

>> late yesterday we learned the fbi raided the office, home and hotel room of michael cohen. he is the president's longtime personal lawyer. reportedly as part of an investigation into financial crimes. president trump was quick this criticize the search. president trump frankly, a : disgrace. it's an attack on our country in a true sense. it's an attack on what we stand for. >> that was president trump talking about white house last night. this morning he took it up again and tweeted saying that attorney-client privilege is dead. what do we know? what don't 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. this could have gone to the

highest reaches of the justice department for approval. >> i'm announcing this year will be my last as a member of the house. >> house speaker paul ryan will not seek reelection, raising serious questions about the future of the republican majority before the midterm elections. >> ryan stoa porcher is what i would call an unexpected shock. you are shocked because the day it was announced but it was completely expected. i don't know anyone who believed he would actually be serving in the next congress. most people thought he would he was elected. there are pluses and minuses to doing it now. some say it is a signal to those many people outside congress that ryan himself does not expect republicans to retain the majority. but who can say? the ecb was out with an account for its 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. someone in the governing council 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 still need to see more evidence inflation is on the right track. inflation remains slow in euro area, there are pressures and the latest movement in trade, the latest geopolitical noise, makes them think it may feed -- hit confidence. mario draghi signaling this risk yesterday. that may be in the works for the expansion of the euro area. ♪

♪ juliette: 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 near-term forecast for monetary policy. dallas fed president 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. one 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 that i think the big structural drivers of the economy, aging demographics, slowing workforce

growth, sluggish productivity mainly due to skills of our workforce and weaker education levels, and the third issue which i am increasingly worried about his high levels of government debt to gdp which may , provide a headwind for economic growth. i think the short-term growth may look solid. i think we will make progress on unemployment and labor slack, and i think you will see some firming and inflation. but i will also say 2019 and 2020, you will see growth moderating. i think 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 i think are still very challenging even though the short-term look solid. >> does the 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? one of them is trade. we've talked about that. but it is not the only one that could slow gdp growth. again aging workforce, slowing , workforce growth. sluggish productivity. those will have an effect. my own view is we ought to be raising rates, and why? we are at near or 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% inflation 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 -- is 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.

but trade is just one. maybe not even the most significant of them. we have to find ways to grow the workforce in the united states. we have got to find ways to get more people into the workforce, improve their skills. i think those two issues are as or more important than the short-term trade issues. i am relatively hopeful because againi 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. but those are not the only issues i am worrying about. juliette: coming up on "bloomberg best," more insight into the global economy from imf managing director christine director christineistinguishedg lagarde and other distinguished guests, including exclusive conversations from the forum in china. >> president xi is prepared to give strong, authoritarian

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>> this is bloomberg best. time to revisit some of the most entered -- most interesting interviews. we have -- conversation with christine lagarde at the 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 be encouraging. increasing trade, removing

barriers, encouraging this leveled playing wheeled to which -- level playing field to which everyone must contribution -- must contribute. it has to be collective. the world has been functioning in a more cohesive, efficient way when countries operate together. big ones or small ones. >> the imf was founded to another tradeely war. are you concerned we are going in that direction? >> i hope we are not heading in that direction. nobody wins a trade war. everybody has to lose out of it, some more than others. those who have the most to lose are the poor consumers. those that are at risk of not cheaperhe benefit of products, more choices, alternative options. all of those that are coming to

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

speaks, though it may sound to people -- he is speaking for a lot of americans. it is important not to disregard what he says. we may have to slightly discount what he says, but never disregarded. i think the u.s.-china trade war a real thing on the horizon. it could potentially be a trade war. >> economic globalization is in a reversible historic trend. we have been actively working with energy companies in the global market. we signed an agreement with -- during president trump's state visit to china last year. after months of negotiations, we importinge deal on lng per year. the u.s. haveand certain disagreements over trade issues, i'm still confident

about china-u.s. energy corporation as china's opening policy continues. at the moment, cnpc has great cooperation with many american companies. i hope our ties will not be negatively affected by the trade disputes between the two countries. >> china has launched oil futures trading in shanghai. what does it mean for a company like petro-china? >> we fully support the expanding of -- as a currency in global oil trade. this is part of china's continued and enlarged opening up policies. we hope to get more warm reactions from our partners. >> you guys are one of the first financial institutions to risk -- to reduce your work with -- companies. what is next? to reduce to continue

our exposure. we've reduced the portfolio by -- and we will continue on that road. i think what is next is to put the money and effort into renewables. we do multiple, in terms of renewables versus fossil fuels. the more we see of that, the more it works and is reliable, that is where we are going. from an immediate perspective, it was cold for a while. the war on coal. and then it is done. what happens to american companies if they manufacture certain weapons? >> we want to contribute in any way we can to reduce these mass shootings. that is such a tragedy in the united states. we do have a few manufacturers of military-style firearms. we are in discussions with them. we let them know it is not our intent to underwrite or finance

military-style firearms. >> does that mean you are going to get out of lending to companies that manufacture these types of weapons for civilians? . , 100%? >> yes. >> could we see any slowing of hikes -- if these escalate? >> i think the keyword is if they escalate from here. i think the fed path is based on what they see in the economic growth and inflation picture, and recognize the trade tensions could -- or other political tensions, could have a real economic impact. four side ofd the the 3-4 debate. at the same time, you acknowledge your latest outlook on the risks of -- between the

u.s. and china. you are still risk on? we recognize there is a 20%-30 percent chance of a serious escalation from here, but it is too early to give up growth story, and too early to predict this will evolve into a trade war. what we've seen is that the u.s. actions have generated a chinese response. have beenese tariffs implemented yet. we expect they will negotiate and come to a solution. as you say, then there is the fed policy and other central bank policy overlaid on top of what happens on the political and fiscal side. it is too early to see how the trade tensions themselves breakout. >> what they are doing are things that they believe are in

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

yes, but somebody who has been engaged in talking to china over the 30-40 years of its development process and seeing how they have been evolving economically and politically. scarlet: that is pretty dangerous given that everything the u.s. does with regard to global trade seems to be focused on china specifically, even if it does not say so initially. >> i don't think that is completely true. nafta is a 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. mexico, china. failure to take responsibility.

for instance, globalization. we have not managed it well. and it has hurt american workers. but it is not globalization itself, it is the fact that we have not managed it well. ♪

>> you are watching bloomberg best. let's resume our global tour of the weeks top business stories with action involving one of europe's biggest drugmakers. >> one of our lead corporate stories is on -- the ceo has been there for two months and they have agreed to by the u.s. gene therapy company for novartis. this is making the mark. big splash.aking a

it is not that much money for everyone else. what you have to remember is they have a lot of money because sold a lot of assets to -- who sold them out. they set up a time of two weeks ago, to reallocate those funds into promising new camps of research or experimental research. that is what we are seeing now. a company that is not well-known , fairly small, working in areas of gene therapy. if it works out well, it will be a blockbuster for them. if not, there will be next target. >> volkswagen officially announced a management change into the future of electronic and autonomous vehicles. saying, i don't understand why they made the change. i thought mueller was doing a good job.

job asas doing a stellar far as financial concerns and the organization of the company. he boosted margins to enviable levels, but he was seen as more , branch manager from stuttgart. he occasionally got the company into legal trouble and cultural trouble. not a lot of sensitivity as far as the pay package. -- family ande the government of lower saxony to look for a new ceo. toseems to be the new one lead it forward. in the auto industry, he seems to be a superstar when it comes to controlling costs. he did a good job at bmw. his takeover has been embraced and the stock is doing well. saudi arabia wants oil at $80 a barrel to balance their

budget, and -- $70 a barrel. what happened to opec doesn't target price, they just target supply and demand? >> saudi arabia has been talking to a number of open delegates and market participants and the last months. it is not indicating a fixed price target, but -- all of the plans and views indicate that ,he aim of all of saudi arabia the leader of opec, is the put prices to around $80 per barrel. >> opec said -- lowest of the year last month due to reduced supplies from venezuela and saudi arabia, and say most of the global glut has been eliminated. concern thatrowing the declaration of corporation should continue the odd the immediate target of us assisting the market to come back to balance. we are working with our partners -- the russian federation to

partnership and ensure its longevity. , theside saudi aramco energy giant is the most profitable company with a net income of $33.8 billion in the first half of 2017. the company is virtually debt-free, has low production costs, and has been hit by a tougher tax regime by saudi arabia. that thehrough some of biggest take away for investors. wouldproves what people have always known. if you pump 10 millions of barrels of oil, you make profit. there is a lot that is impressive in these numbers. no debt. they produce oil at what we estimate is 1/5 of the cost of people like eggs on and shall. l. also -- like exxon and shel

among the most important things, just how heavy the new tax regime is that saudi arabia had imposed on aramco. investors who were contemplating buying this company will look at how much they have to share this money with the saudi government. of the biggest shareholders of cbs has written to the companies saying they should only proceed for a deal with viacom if certain terms can be agreed on. help us with what is in the air. , thatis a scathing letter really gets this laundry list of things that are problematic with this potential cbs/viacom merger. at your peril, even though shareholders do not have huge voting power. have voting power across the

two companies. shareholders are saying there are lots of interested economic shareholders who should be given some say in any transaction. owner of british airways, has bought a stake in -- and is considering a full offer. at his business which is struggling financially and looking at the model they put in place, a big part of it is the low cost -- model. norwegian is also struggling. >> how much? >> they are finding it incredibly tough at the moment. i think it also raises questions of the other scandinavian carriers and other groups around the world. they will consider making a bid here soon. >> living in the era of big data. will businesses make marketing and advertising decisions based on complicated information about consumer present -- consumer preferences.

companies.nities for this data management platform has tripled its customer base and the last four years. the ceo discusses the journey from small to big. >> it stands for locate, target, -- it helps advertisers collect and organize consumer data. you can imagine customers engaged on the phone, on the web , in the store, on a coupon. we attach it to a profile and activated. it is a big data story. inn i started the company 2006, i saw this unbelievable opportunity around user generated content to change the paradigm for advertisers. there had to be a platform to protect the brand and get a defined result. that is the genesis of lotame.

we landed nine customers on a proof of concept. i then went to venture capitalists and told them a story and i was able to raise $60 million over time. i woke up in 2011. i had a board meeting. i told them the trends and data points i was seeing and we made a decision to cut the company in half and walk away from a $30 million revenue line of business. we made a huge pivot. we went from about 100 employees to about 50. there was some overlap of customers, but most of the customers were net-new. we went from a media business charging on a campaign basis to a software as a service business that was charging a monthly fee to manage data. one of the key things that happened during the process was, what was once just a desktop experience, meaning your computer, suddenly became a

mobile device. the television, and ipad. 2012 bought a company in to simply focus on what was called the device problem. privacy-compliant way, we were able to stitch together profiles and audiences no matter how they were engaging with the brand. we have had about 500% growth in customers since 2014. we've -- our employee base. developing profitability in a technology company is something i am 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. information is thrown off from that device connected to that consumer. i think there is an opportunity for a public company that is only focused on data, data solutions, and activating customer data. in a world where data is

everywhere, we help our customers figure out what it all means. ♪

worlds is the bloomberg bank's index. we don't talk about it every day. it has got 146 members. this tells you the predicaments that -- 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 our favorites on bloomberg television. maybe they will become yours. here's another function you'll find useful. -- will lead you to our quick

takes. here is a quick take from this week. when it debuted, the 4g wireless we have today would allow people for the first time to hit the road and explore unknown places with only a smartphone. when 5g arrived, it would allow driverless cars to take us there as well. it stands for fifth generation mobile and wireless. being called is revolutionary is because 5g will allow connected devices to speak to each other as well as -- >> we are living in a world where it is a one-way experience. >> that is ian king. -- to look at the phone the network. what we are being told about 5g is that for the first time, we are communicating with each

other over mobile networks in a meaningful way. >> 5g could end up being 100 times faster than what we have now with speeds that could reach 20 gigabits per second. 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. the class of devices called internet connected refrigerators, microwaves, dog collars. factories,networks, there, notat sat connected at all, will suddenly be connected with real-time monitoring. but perhaps the biggest advance will be a huge reduction in communication like time, known as latency. the network of driverless cars will need the speed of 5g to paying each other multiple times per second to avoid collisions. -- perform surgery robotically with a scalpel.

first you need to improve network density. >> put more towers out there -- we are being told that is not the case. taphe idea is that 5g will to higher frequencies called millimeterwave's, which can -- notore data but only travel as far. compared to about dozen antenna ports on 4g cell towers. where do we get 5g? it is expected to cost providers 275 billion dollars over seven years in the u.s. alone. look for the first 5g service to pop up in big cities sometime in 2019. ♪ >> 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 the latest business news and analysis 24 hours a day. that will be all for bloomberg

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>> what was the strategy that you used? >> i was determined to recapture my parents' money, but i was lost. it was first come first serve. >> you have the image of being a person who strikes fear in ceos. some people are probably afraid they will get a call from paul singer. >> it doesn't bother me anymore. >> if someone had invested in you in the beginning, what rate of return with a have? become $160. would people would recognize me if my tie was fixed. let's leave it this way. all right.