wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. >> xi jinping puts it on the table. >> ryan's departure is what i would like to call an expected shock. >> it is a dangerous game of one-upsmanship. there is also a heavy risk of escalation. juliette: deutsche bank and volkswagen make changes at the top while mark zuckerberg gets grilled on capitol hill. >> i think he had an easier time and he was expecting to have. juliette: the march minutes open a window onto jay powell's first fed meeting. and an exclusive conversation with robert kaplan shares more light on the path of policy.

>> 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: it is 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 look at the top headlines. on monday john cryan's embattled

tenure at deutsche bank came to an end. >> deutsche bank supervisory board has named a new ceo to replace john cryan as part of a sweeping overhaul of senior management. the code deputy ceo christian has spent his entire career at europe's largest investment bank and is currently head of its 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. but if you dig a little deeper into this kind of feud that started up between john cryan and paul up lightner and really between john and the board, you

see that the bonuses he paid to investment bankers last year really did not go down well. it didn't go down well across germany. so this has been you know far and away the biggest story in finance for the last couple of weeks. and it comes to a head today with the replacement of john cryan by an insider, christian saving, who comes from bielefeld, a german who will have to continue the job of shrinking this investment bank. they have got to focus on bread and butter, which is to be a german savings bank. >> high tension between the u.s. and china over trade. president xi jinping has actually made a speech calling for harmony within the global economy and defending globalization. xi embracing openness. >> he took the high road, and he also took the mantle of being a protector of globalization and freer and fair trade. he did not name trump and the united states by name. and he still went through a litany of issues. saying globalization is a shared future for all mankind. he talked of open and a prosperous approach to asia economic development. he hailed 40 years of course of china's opening up.

he also said the world is facing a new round of big changes and adjustments. he said cold war and zero sum mentalities are out of place. >> i guess on a headline basis, xi jinping put some olive branches on the table. he spoke about the need to buy more imports. he spoke 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 of foreign cars to operate. the problem with it is in the detail. we have heard these announcements before, especially on financial services, especially on foreign 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. but in terms of the bigger picture, it is hard to see how this speech really diffused the wider trade tensions we have seen growing over the last few months. >> we did not take a broad enough view of our responsibility, and that was a big mistake. and it was my mistake. and i'm sorry. betty: what a day it has been. talk more about the performance

of mr. zuckerberg. how did he do? >> i think he did -- i think he had an easier time than he was expecting. a lot of the congressmen, i should say 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. >> the stock actually went up on facebook as mark zuckerberg talked no matter what the senators were thinking. >> i think that has a lot to do with the impression he gave. when he sat down he seemed a little bit like a schoolboy sitting in front of a headmaster, but he was very confident in the way he addressed questions. despite the yes, senator, every answer. they kept asking, will you be

intending to propose regulation yourself, it will be interesting to see what facebook comes up with. mark: risk off sentiment intensifying this morning on the heels 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 that president trump has wide bipartisan consensus here on capitol hill from both republicans and democrats for a military strike. >> russia is saying, you know, any, any strike against our's assets, against our troops, will be retaliated against. >> it is a dangerous game of one-upsmanship. it is also there is a heavy risk of escalation. we don't have any, any other evidence or reporting to suggest something is imminent, but the president's tweet has shot across the bow to russia and to 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 that the market is basically treating this like tariffs. my own personal theory is vladimir putin knows that 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. >> today through the gauntlet.

mark zuckerberg made it through his testimony to congress, but did he come out unscathed? >> i think he solved more problems than he created. i don't think he solved any -- but he certainly did address problems and make progress on problems. he did do an excellent job on balance. he showed he had stamina. he was generally unflappable he was generally unflappable face with some extremely hostile questions, especially today. i mean certainly his willingness to accept regulation, which he repeated over and over again, and even yesterday at one point promised to provide a list of regulations that he was willing to have facebook abide by, that is going to come back and whether you call it haunting 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 the stronger activity for economic activity with increased confidence inflation

would return to 2% over the medium-term imply that the appropriate path for the next few years would likely be slightly steeper than they had previously expected." so people said, oh, hawkish tilt. >> the fed of course has been predicting more inflation for a very 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 quite soon. and so i think, the expectation that we will have a steeper set of rate hikes is not surprising. but there wasn't really much news here. >> major policy change it seems from the president. just three days after his inauguration, president trump abandoned president obama's signature trade deal, the transpacific trade deal. 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. that when he, when he slaps tariffs on other country, they tariff our farmers, and farmers put this guy in office. so today he made these remarks at a meeting with farm state republicans, guys who are anti-tariff, who are very upset like ben sasse, 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. because he is voters are going to be hurt by his tariffs. >> will there be any willingness for renegotiation, even if the u.s. was serious about getting back in? >> no country wants to go back

and renegotiate. but as we have seen the korea in the context of nafta, parties are willing to do so if demands can be accommodated. if they can be reasonable. jonathan: we get the big banks kicking off earnings season, providing fuel for futures as the return of volatility lifts jpmorgan to a record quarter. >> and that has been the story of 2018, and the big banks are benefiting from it. starting out with jpmorgan, top the bottom line. the highlight is the strength of the company's equities trading business hitting a record high, more than $2 billion in the kicking off earnings season, trading equities business, a 26% gain, beating estimates. they also beat fixed income estimates, nine out of 11 businesses in fact beat revenue estimates. so lots of strength there for jpmorgan. now for citigroup, strength there too, 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 there. a bit of a misell on fixed income, slumping by 7%. investors looking past that with the strength for equities. >> i would say for wells fargo, this quarter's results, we did see another uptick in litigation charges. we are seeing weaker loan growth. we are seeing a pullback in deposits, although the bank is pointing out they are growing core deposits and sort of losing some of the deposits they want to lose in order to sort of you know focus their balance sheet in more important areas. i do think it is really the legal issues and getting those steps behind them. we are probably not going to

learn more about that until the investor day. juliette: 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. and up next, more of the week's top business headlines. the congressional budget office sizes up the trump tax cuts and sees deficits coming bigger and faster than first expected. >> they look at revenues and outlays, and come up with a $1 trillion deficit, just crossing $1 trillion in 2020. juliette: this is bloomberg. ♪

♪ juliette: this is "bloomberg best," i'm juliette saly. economic sanctions and the threat of confrontation in syria put intense pressure on the russian economy this week, beginning with a steep slide for the ruble. >> we are just getting another move on the russian ruble this morning. this is versus the u.s. dollar, it is moving through $62. another significant weakening. yesterday we did see 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 and its investors? >> i think to an extent, yes. the sanctions announced by the u.s. treasury last friday are a game changer. they apply to equities and other securities. the the old sanctions were just bans on -- there are secondary sanctions. anyone in the world dealing with sanctions is liable to be sanctioned by the united states. but i think the third reason which is really the key to what you are discussing, and that is all links with some conditions or events have been removed. the sanctions are unanchored from any cause or conditionality. so 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. they had planned and 8.75% stake for a position. the move marks a loosening of ties with the russian aluminum tycoon whose business empire is the subject of harsh u.s. sanctions. when was this meant to happen, will, the share swap? >> it was meant to happen in the coming months. it was basically a favor that glencore was going to do in favor for this holding company to underpin this ipo in london, and now it cannot happen. it is not in truth a huge supply. it was clear on friday glencore would have to examine his relationship with glare of pascoe, so this is on hold. ivan announced he is resigning. the future is looking pretty

bleak. in essence these sanctions have barred them from the u.s. dollar economy worldwide. the key will be what the kremlin does to try and underpin this very important russian company which employs as many as 100,000 people. >> the new pboc governor says china will implement a range of new financial reforms this year. he told a panel at the forum that 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 to shanghai stock connect would be implemented this year because that was something that seems to have been put 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. and as you said, he said that the caps on foreign ownership of chinese banks would be removed. >> the congressional budget office, the cbo, just released its latest projections for the u.s. budget deficit. the headline here, 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. the republican tax reform bill on capitol hill, and now the congressional budget office has basically confirmed it. they delayed 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, just crossing $1 trillion in 2020. although in 2019, you get $981 billion. it is a rounding error, right? >> yeah. >> we are here now. 2017 ended at $665 billion.

and we go down and hit that $1 trillion mark in 2020 and keep going until you get almost $1.5 trillion by 2028. so 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 to criticize the search. president trump: it is frankly a real disgrace. it's an attack on our country in a true sense. it's an attack on what we stand for. david: 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 want to get ahead of ourselves. >> it is easy. we don't know exactly what they were seeking or what kind of information led prosecutors to go after this. we do have an awful lot of things that have errupted recently involving michael cohen including the payment to stormy daniels. we also know this is a very unusual step, to go after a lawyer. yes there is attorney-client privilege which does not hold in every case. this could have gone to the highest reaches of the justice department for approval. >> i am announcing that this year will be my last as a member of the house. >> house speaker paul ryan says he will not seek reelection, raising serious questions about the future of the republican majority before the midterm elections. >> ryan's departure is what i would like to call an unexpected shock. that is because you are shocked because the day it was announced, but it was completely expected. i don't know anybody who actually believed he would be serving in the next congress.

most people thought he would retire after he was elected. look, there are pluses and minuses to doing it now. some say that it is a signal to many people outside of 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. so the central bank voicing some caution across the board from euro moves to trade to global downside risk based on march. what was your away from the minutes? >> in the minutes, the most interesting thing is probably debt. someone in the governing council, maybe one of the usual suspects, has proposed that the ecb would say it had almost accomplished its mission on inflation which is the condition the ecb has laid out to stop these asset purchases. but the majority of the governing council rejected. they still need to see more evidence inflation is on the right track. in fact inflation remains slow in euro area, there are little wage pressures, and the latest movement in trade, the latest geopolitical noise, makes them think that it may defeat confidence and signal risk. 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 had 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 and said he is not making major adjustments to his outlook. robert: for my base case, three rate increases this year. two more from where we are. and so one of the things i focus on, on the short-term, the cyclical developments, i think, i still believe 2018 will be a relatively solid year for gdp growth, 2.5% or a little more. but 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 is i am increasingly worried about is high levels of government debt to gdp, which may provide a headwind for economic growth. i think the short-term growth may look solid. and i think we will make progress on unemployment, labor slack, i think you will see some firming and inflation.

but i will also say 2019 and 2020, you will see growth moderating. and so i think for me the path of rate increases is likely a little bit flatter. and i think we should be raising rates, but i think we should be doing it gradually and patiently. because the underlying drivers of the economy i think are still very challenging even though the short-term a look solid. betty: does the fed risk though fighting rates into what right now is an uncertain situation that is only at the beginning stages?

robert: one of the 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 are going to have an effect also. and so my own view is we ought to be raising rates, and why? because we are at near or full employment. we don't want to risk overheating or over tightening of the labor market. and i do think we are making progress, and we will move toward our 2.5% inflation objective. but i think that is all in the context that in the out years i think growth is going to

moderate. and so the challenge for us and the trade-off i'm working on is we want to remove accommodations, but we need to do it gradually because we still got a lot of fundamental headwinds for economic growth. we can address those. but trade by the way is just one of them. it is maybe not even the most significant of them. i would say we have to find ways to grow the workforce in the united states. juliette: this is bloomberg. ♪

♪ juliette: this is "bloomberg best." i am juliette saly. time to revisit some of the most interesting interviews of the week. haslinda amin had an exclusive conversation with managing director christine lagarde at the asia global institute in hong kong. they discussed whether challenges of free trade have dampened optimism about growth. christine: what is clear is that there is momentum of threat-counter threat dialogue opening, and that is really what we should all be encouraging. whether you do as i said

increasing trade, removing barriers, encouraging this level playing field to which everybody should contribute, it has to be done collectively. it cannot be done by exceptional measures, and cannot be a unilateral threat. it has to be collective. the world has been functioning in a more cohesive, efficient way when countries actually operate together, the big ones, the small ones. haslinda: the imf was founded to prevent precisely another trade war. are you concerned we are going in that direction on that path? christine: i very much hope that we are not heading in that direction. because number one, nobody wins a trade war. everybody has to lose out of it, some more than others. and those who have the most to lose are the poorer consumers. those that are at risk of not seeing the benefits of cheaper products, more choices, alternative options. and you know, all of those that are coming to the markets, who would like to see the benefits of the sharing of technology not see as death will not see as much of that if trade slows down. >> china of course is wonderful for us in business out of the u.k.

because china has become a beacon of stability in a very troubled world at the moment. and 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. david: do you see this tit-for-tat now as more than just rhetoric? how damaging is it to the global recovery from your perspective? >> i think it is potentially very damaging. look, trump is the president of america. it is very easy to disregard trump. i always separate out people's personal feelings from trump and what he is doing or what he is achieving. he has the democratic legitimacy of 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. and so i think it is very important not to disregard what he says. one may have to slightly discount what he says, but never -- one should never disregard it.

and i think this u.s.-china trade war thing is a real thing on the horizon. david: so it is a trade war? >> it could potentially be a trade war. >> economic globalization is in and irreversible historic trend. we have been actively working with energy companies in the global market. as you know, we signed an agreement with energy during president trump's state visit to china last year. after months of negotiations, we have officially inked a deal

with an engineer on 1.4 million tons of lng a 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 corporation as china's opening up policy continues. at the moment, cnpc has great cooperation with many american companies including exxon mobil, chevron, and conoco phillips. i hope our ties will not 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 china? what does it mean for a company like petro-china? >> cnpc fully support the establishing and expanding of renminbi 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 and growing participation in the future trading platform. >> you guys are one of the first financial institutions to reduce your work with coal companies. what is next?

>> well, i think we have to continue to reduce our exposure. we have reduced our portfolio by about 80%, and we will continue on that road. but i think what is next is to then put the money and the effort into renewables. we do multiple, in terms of renewables versus fossil fuels. in terms of new deals. so i think the more we see of that, the more it works and is reliable, that is where we are going. >> i feel like from an immediate perspective, it was coal for a while, the war on coal. and then it is guns. what happens to american companies if they manufacture certain weapons? >> well, let's just start with we want to contribute in any way we can to reduce these mass shootings. i mean, that is such a tragedy in the united states. so that is number one. we do have a few manufacturers of military-style firearms. we are in discussions with them. we have let them know that we are going to -- it is not our intent to underwrite or finance military style firearms on a go

forward basis. >> does that mean you are going to get out of lending to companies that manufacture these types of weapons for civilians? full stop, 100%? >> yes. >> could we see any slower path of hikes from the fed if these trade tensions escalate? >> i think the keyword you just said is if they escalate from here. i think the fed path is based on what they see in the economic growth picture and in the inflation picture, and they recognize that trade tensions could eventually or that other political tensions, could have a real economic impact. but right now they are data dependent. we lean towards the four side of the three-four debate. i don't think this changes that. >> at the same time, you acknowledge your latest outlook on the risks of the trade tension between the u.s. and china.

you are still risk on? >> we are. i think we recognize there is a 20% to 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 this will evolve into a trade war. what we have, what we have seen is that the u.s. actions have generated a chinese response. now they are going to come together. you know, none of these tariffs

have really been implemented yet. we expect they will negotiate and come to a solution. and then, as you say, then there is the fed policy and other central bank policy overlay on top of what happens on the political and fiscal side. so it is, it is a little too early to see how the trade tensions themselves break out. >> 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. and what is good at -- not good at one stage becomes good at another stage. so they have come to the view, i believe, that these openings up

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 where it is coming from and understanding the landscape? >> no, i don't think the united states government has any deep understanding of china. that is really quite sad.

i don't think they have any person, anybody who has been engaged with china. not china-bashing. i mean, they have somebody who is engaged in china bashing. >> you are referring to 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 involving both economically and politically. ♪

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

what you have to remember is they have a lot of money because they just sold assets. klaxon bought them out of a corporation. we reviewed those funds to reallocate those funds into promising new camps of research or experimental research. and that is what we are seeing now. so a company that is not that well known, fairly small and working in areas of gene therapy. and if it works out well, it will be a blockbuster for them. if not they will look for a next target. david: big changes for the world's largest automaker.

volkswagen officially announced a management change into the future of electronic and autonomous vehicles. tell us what we learned from this newscast? i don't understand why they made the change because i thought the machismo was doing a good job. >> he was doing a stellar job as far as financial concerns and the organization of the company. he boosted margins to really enviable levels, but he was seen as more of a provincial, kind of a branch manager from stuttgart. and made some fairly gruff statement that occasionally got the company into legal trouble and occasionally got the company into cultural trouble.

not a lot of sensitivity as far as the pay package was concerned. that led to i think the porsche family and the government of lower saxony which owns a 20% stake in the carmaker to look for a new ceo. diess seemed to be the perfect want to bring it forward. in the auto industry he is known to be a superstar when it comes to controlling costs. he did a good job at bmw. his takeover really has been embraced by the company, and the stock has done quite well. >> saudi arabia wants oil at $80

a barrel to balance their budget and the breadth getting a boost on the news flirting with $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 over the last months. it is not indicating a fixed price target, but all of the plans, all the views indicate that the aim of all of saudi arabia, the leader of opec, is

to try to put prices to around $80 a barrel. >> opec said the sellout was the lowest of the year last month due to reduced supplies from venezuela and saudi arabia, and they do say most of the global glut has been eliminated. >> there is a growing consensus the declaration of consensus should continue beyond the immediate target of us assisting the market to come back to balance. we are working with our partners in the non-opec led by the russian federation to design this partnership and ensure its longevity. >> one of the biggest shareholders of cbs has written to the company's board saying they should only proceed with a deal with viacom if certain terms can be agreed on. tell us a little more about what is up in the air here. >> it is a fairly scathing letter where they have a laundry list of things they think are problematic with this potential cbs/viacom merger. and specifically they say he will be a dictator here at your peril, even though the shareholders do not have huge voting power. they have 80% across the two companies. the shareholder is saying really

you need to recognize there are a lot of very interested economic shareholders here who should be given some say in any transaction. >> ieg, the owner of british airways, has bought a stake in norwegian airways and is considering a full offer, sending shares into the region. why now? >> looking at his business which is struggling financially and looking at the model they tried to put into play, i think one of that is a low-cost model, i can do something with that. norwegian is also struggling. >> how much are they struggling? >> they are really struggling. they are finding it incredibly tough at the moment. i think it also raises questions of the other scandinavian carriers as well, then you have the other groups around the world. they will consider making a bid here soon. >> living in the era of big data, where businesses make marketing and advertising

decisions based on complex information about consumer preferences. the need to collect and analyze big data has created big opportunities for companies like lotame. this data management platform has tripled its customer base and the last four years. the ceo describes the journey from small to big. ♪ >> the company stands for locate, target and manage. lotame helps advertisers collect and organize consumer data. so if you can imagine that customers engage on the phone, on the web, in the store, on a coupon, we help collect all of that and attach it to a profile and activate it. 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 a defined result which is a sale. that is the genesis of lotame. 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 over time. i woke up in 2011. i had a board meeting. i called our board to 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 took the company and made a huge pivot. we went from about 100 employees down to 50. there was some overlap of customers, but most of the customers were net-new customers that we had to go win over a business. we went from a media business that was 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. a television, an ipad. and that is why we bought a company in 2012 to simply focus on what was called the device problem, cross device. microwaves, refrigerators, automobiles, there is information that is thrown off from that device connected to that consumer. i think there is an opportunity for a public company who 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.

and that is the future of lotame. ♪

♪ mark: this is the bloomberg world bank index. we don't talk about it every day. but it is wonderful. it has got 146 members. this tells you the predicaments that mr. saving lines himself in because deutsche bank is the worst performing global lender, look at that, down by 28% year to date. out of the 146 members on the bloomberg world bank's index. juliette: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites.

here's another function you'll find useful. q uic go. it will lead you to our quick takes where you can get fast insight into topics. here is a quick take from this week. >> when it debuted, the 4g wireless we have today allowed people for the first time to hit the road and explore unknown places with only a smartphone for directions. when 5g arrived, it would allow driverless cars to take us there as well. 5g stands for fifth generation mobile and wireless. it is extremely fast and can accommodate a lot more connections. but the reason it is being called revolutionary is because 5g will allow connected devices to speak to each other as well

as people. ian: right now we are living in a world where really it is a one-way experience. >> that is bloomberg tech reporter ian king. ian: you look at the phone -- to the network. what we are being told about 5g is that really for the first time, we are going to see machines 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. in plain english that means downloading a full hd movie in seconds. 5g will also increase total bandwidth, which we will need to accommodate the growing internet of things. we are talking about the class of devices like internet connected refrigerators, microwaves, dog collars. 5g will enable many, many more. ian: your utility networks, factories, machines that sat there, not connected at all, suddenly they are all going to be connected and able to have real-time monitoring. things like cars, utility poles to your lights. >> but perhaps the biggest advance will be a huge reduction in communication lag time, known as latency. the network of driverless cars

will need the speed of 5g to ping each other multiple times per second to avoid collisions. people can perform surgery robotically with a scalpel. how will this work? first you need to improve network density. ian: that is a fancy way of saying put more towers out there. but we are being told that is not the case. >> the idea is 5g will not only use the existing mobile spectrum but tap into higher frequencies called millimeter waves. they can carry more data but not travel as far. compared to about dozen antenna ports on 4g cell towers. so when will be get 5g? getting 5g ready is expected to cost providers $275 billion over seven years in the u.s. alone. look for the first 5g service to pop up in big cities sometime in 2019. juliette: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching, i am juliette saly. this is bloomberg. ♪

welcome to bloomberg businessweek. >> we are inside the magazine's headquarters in new york. >> we talk about a wall between instagram and facebook. >> and walls between u.s. and mexico. >> and the changing of the guard once again. same old problems. >> on this head on bloomberg businessweek. ♪ taylor: we're with joe lever, and a couple of big european companies,