i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. ♪ coming up on "bloomberg best," the stories that shaped the week in business around the world. trade closing politics and all causing commotion in the global market. >> there seems to be a three-dimensional chess game going on here. >> we just don't know who's going to be premier. what's important when you are trying to form a government. julia: meeting officials discuss the path forward. >> i would take it as a bearish signal for the u.s. economy. >> we generally can see that markets have been reading out reaction function quite well. >> we will look through these

transitory movements and look at where inflation is going. >> we will give probably additional guidance. julia: another whirlwind week of corporate news in earnings season. >> what we said is that we would pay out 50% of our profits and dividends. >> it looks like tencent is not going to let go. they are going to spend more. >> is anyone surprised by these results -- they haven't been reading the news or paying attention. julia: it's all straight ahead ." "bloomberg best ♪ hello and welcome, i'm julia chatterley and this is "bloomberg best" your weekly review of the most important business news and interviews from bloomberg television around the world. trade was on the agenda this week with talks between the u.s. .nd china settled in washington

before face to face meetings began, a tweet provided an unexpected twist. ♪ donald trump has ordered the u.s. commerce department to get zte back in business week after cutting off the telecom company from its american suppliers. in a major reversal, the president tweeted that he and fishin worked look thing together. >> we certainly know that cte was proven to be a considerable source of contention with china. it essentially meant that company -- suggest they are negotiating framework now and that it is a marketing chip on the table. >> the chinese followed suit saying they will take another look at qualcomm's semiconductors. >> the chinese did resume examining that qualcomm takeover

yesterday.'s tweet there seems to be a three-dimensional chess game going on here and trumps tweet was just moving a night in that game or something. , tariffs, thete larger trade and economic dispute with china, it has all become interrelated and is all one story. ♪ >> they're releasing a list of two under 34 chinese a share to be added. next month, the three biggest additions to the emerging markets index will be china construction bank, petrochina, and i cbc. what does that mean for these companies are included? >> the stocks are large cap. they are huge. flights ofat even these companies will be added to

the msci. initially not much impact. it has been well flagged. that's what they want. that is what investors want. you don't want a big bank move where suddenly all of these shares that nobody has owned before our in all these index tracking portfolios. $2 trillion worth of index tracking money and the emerging markets index. they will own it but it won't be a huge shift from the status quo right now. ♪ >> china has dispatched a ,elegation led by president xi the vice permit for the next round of trade talks. u.s. businesses have lined up to oppose the trump policy,ration's tariff including the ceo of the world's most valuable company. in an interview for the david rubenstein show, apple ceo tim cook shared what he told

president trump at the white house meeting. >> i talked about trade and the importance of a trade and how i felt that two countries trading together make the pie larger. true --, it's undoubtably true that not everyone has been advantaged from that in either country. we've got to work on that. tariffs were not the right approach there. ♪ >> the bond rout getting worse. the 10 year yield hitting its highest level since 2011 and the your 30 year yield knocking on the door of 3.25%. >> i think there was an underlying bearish sentiment and they were looking for a reason to sell off. a combination of a bunch of rings and it seems like the market was ready to sell. you couldn't break through

toward a rally, and you have all the shorts in the market. it just seemed like it was time. ♪ >> north korea has canceled wednesday's high-level talks with the south. that put next months summit with president trump in doubt. calling the exercises a deliberate provocation. has the him thinks he upper hand more. each side is trying to get the upper hand heading into negotiations. byin a statement published, the foreign minister, if the u.s. is trying to drive us into a corner to forsake unilateral nuclear abandonment, we will no longer be interested in such dialogue. as awould characterize it second round in a boxing match. north korea is coming back after being cornered and punched basically for the last few weeks by the u.s. and by trump. all indications are today that

they are saying, we got skin in this game. it is high stakes. we have leverage as well. >> the risk for the u.s. is whether to engage in this discussion publicly with north korea or just try to keep the waters as calm as possible and get to june 12. it to singapore and see what president trump, who frequently markets himself as the master of dealmaking is able to do. in italy, another round of negotiations. two populous countries think they expect to have a agreement by this evening but they haven't yet decided on a private minister. what has been agreed by these two parties and what hasn't been agreed and more importantly, what has been left out? >> the main thing is the partnership -- we just don't know who is going to be the premier. we do know a lot. it was a draft program that had a ton of points. cuts, some kind of

control on immigration. pension reform. nobody really thinks it's reasonable to her and do all this, they would have to exit the eu and exit many international accords. a very populist program. markets might worry if they do all this. >> in italy, the leader of the party announced he reach an agreement with his partner. italian bonds sold off even more on the news. what in what was announced would have triggered this reaction in the bond market? >> the main concern about the impact on state finances and parallel to that of course is the relationship with the eu and the budget rules there. what is concerning the markets, including pledges like what the program calls a flat tax, the citizens impact come -- the citizens income for the poor

. here says ittution is more than double that. there are also pledges to review or try to review treaties with the fiscal compact. hopes were raised last night when a trump administration said the china offered to credits trade deficit like $200 billion. said, through the foreign ministry, question is about u.s. officials who said china will cut the deficit. this rumor is not true. i can confirm this. can't consultations are constructive. >> president trump telling of office that china has become " regards tod" with their trade policy with the united states. let's start with the good news. china has scrapped a probe into the nearly $1 billion u.s. sorghum imports.

they say their investigation is not in line with the public interest, but now we have to take a look at the bad. kept out of on the $200 billion trade deficit. they say china will never negotiate under the conditions set by the u.s. and that they are dashing hopes for the deal. the international property on this. in addition, the energy sector and labor are other contentious points between the u.s. and china. >> u.s. trade representative robert lighthizer says the u.s. canada and mexico are nowhere near a deal to renegotiate nafta. >> the hope was they could get a win, something that would appear to improve u.s. prospects and heard canada and mexico prospects, and get that through congress this year because it would look good to the american people. it would make outcome look at her.

it doesn't -- it would make donald trump look better. paul ryan put a deadline on it and they have always had more wiggle room than he gave it. even another two or three weeks is probably not going to get them there. julia: still ahead, as we reviewed the week on bloomberg best, exclusive conversations with central bankers about the next steps for the ecb and the federal reserve. plus, steve iceman, the man behind the big short has advised on what stocks to short today. >> deutsche bank is a problem bank. julia: up next, the more of the weeks top business headlines. nominees take questions on capitol hill. >> this is the flag and apple pie type hearing. you don't want to take controversial stance. julia: this is bloomberg. ♪

♪ julia: this is "bloomberg best" and i'm julia chatterley. in israel, where the u.s. opened its new embassy in jerusalem with ceremony and controversy. >> we believe that it is possible for both the sides to gain more than they give, so that all people can live in peace, safe from danger, free from fear, and able to pursue their dreams. >> meantime, israeli forces have shot dead at least 41 palestinians. tens of thousands converging on gaza's border. it is more than symbolics, isn't it? >> it's been a fantastic week for israeli prime minister him on the one hand you have the iran deal getting ripped up after he's finally try to spike it think they lied about their nuclear program. secondly, you have the israelis

with unprecedented violence, , against irani and a forces across the area. responding to rockets they sent into the gallant heights. kushner, a ivanka trump there in jerusalem marking the opening of the u.s. embassy, something all israelis are enormously happy to see. they have wanted it for a long time. as is the best wiki has had in office. he is delighted. >> the 55 people have been between the israeli army and palestinian protesters on the gaza order. the terror t's -- the territories deadliest day since the war. >> people themselves may wants to go to the order because it is a reflection of an unresolved issue for 70 years now. is whetherrm concern

this will destabilize the region even further. >> the situation in turkey, getting really interesting. the president of the country wanting to tighten the economy. an exclusive interview saying he wants to take more response ability for monetary policy. lira makeshe turkish record lows against the american dollar. >> first of all, you're are the head of the state. when people fall into the is -- fall into difficulties who will they hold accountable? they will hold the president accountable. since they will ask the president about it, we have to give off the image of a president who is influential on monetary policies. >> today again, the lira hit a record low against the dollar, but after that the turkish central bank him up with a statement saying it was monitoring market reaction and steps.d take necessary

the lira recovered a little after this, but investors say that the central bank is going to be forced to raise rates and they are expecting eight significant rate hike. at least 200 basis points in order to curb inflation and the widening current account deficit. it needs to restore investor confidence. latestn releasing its eco-numbers for its first time in at least two years. the economy has shrunk. this is a set of bad numbers. what can we make of them? ? >> there are a lot of things you can point out. blame seems to be pointed toward the weather which was extremely cold during the period in question. it seems to have pushed down consumer spending. increase in vegetable rice's seems to be one of the things the government is planning as well as people buying fewer

smartphones. people in cautious. they might want something more permanent. the opinion is that is will be a temporary thing. dig into some data from the eurozone. economic growth slowed at the start of the year with germany seeing a piece of extension -- pace of expansion cut in half. what if the data telling you? >> i think it is temporary. not just the gdp themselves, but other information about whether it is temporary or not. the place i am looking is the labor market. the labor market recoveries continued apace even though growth is slow. if growth is going to be bad, it won't be permanently slower. that hasn't happened. with a late market baits are selling you is that gdp weakness is going to be temporary. today, betting on sporting events was illegal throw the united states except in nevada. in murphy versus ncaa, the

supreme court struck down the federal statute freeing individual states to authorize gatling unsporting as they see fit. >> everything changes. if you're an operator, a state, a league, this will be a seismic shift that will upend the entire sports market and gaining market. >> where will we see it first? >> new jersey and delaware. they will be immediate and the next week or two. then you will see other states, west virginia, mississippi, new york, pennsylvania, those that already have laws on the books will have pretty quickly afterwards. >> wall street has been waiting for congress to cut back on the volcker rule and now it looks like regulators are looking to take the first step. doing away with the presumption that things health less than 60 days are speculative. >> so, they have long held this view at the volcker that --nsactions violate the van

the ban on prop trading. wall street making trades for themselves rather than their clients. unless you could get authorization from regulators that a short-term trade was to hedge a position or to make a market for a client, the presumption was that those traits were banned. that is now being flipped. the presumption is most short term trades are in compliance with volcker and the only way you get in trouble if you are a bank is if a regulator comes and challenges you rate later on. >> confirmation hearing underway for richard carrin, vice chairman before the senate banking committee. michele bowman is also fielding russians from lawmakers. this is the flag and apple pie kind of hearings are a you don't want to take a controversial stance third on the fed agrees their balance sheets should be mostly made up of treasuries.

they have mortgage funds because of the financial crisis so they had to restart the mortgage market. all agree they want to get out of that business. the testimonyat has consisted on his looking at what he said about the fed as the past. they can could center -- should consider policy. make unemployment as low as it can without raising inflation per they've a duty to remain apolitical. a thing you would expect out of any fed nominee. >> oil rising to $80 per barrel in london for the first time since 2014 as crude industries -- as u.s. crude inventories fell. how big a deal of it -- does it directly have an impact on the amount of oil consumed? >> that's what the ia said yesterday when they released their monthly report. prices at these levels as we get above 870 and into the 80's will have some impact on supply

growth this year. they downgraded just a little bit their estimate of how much prices will grow this year. it does seem they were warning producers that these ranges, you will see supply and demand come into action and crimp growth as people worry about how much gasoline is costing and eliciting more supply from oil fields including shale fields in the u.s.. the eu summit is underway in sofia, bulgaria. a united front against president trump. there have been quite punchy quotes coming out from donald toosk in particular. supposed toit was be about the western balkans. a low level discussion as far as the eu is concerned. as turned into a talk about how the eu confronts donald trump two issues that they don't like. first, the u.s. pulling out of the iran nuclear deal and second, the trade actions against the european union. , but has been no decision

there has been an attempt to promote this united front in europe where we know that leaders squabble a lot. that says a lot. ♪

♪ welcome back to "bloomberg best" i'm bloomberg chatterley. steve eiseman made a big-time that before the 28 -- 2008 crisis. he's now recommending that investors short deutsche bank. he explains why an exclusive conversation. -- deutschek has bank has real profitability issues. they haven't spent money on technology in a long time. they're probably

undercapitalized. they are a problem bank. it has to shrink are medically. >> do you see more consolidation in these european banks? >> i can't speak to whether there will be consolidation or not, it will definitely be consolidation in the united states. that is driven like how much companies like jp morgan is spending on technology, which is like 10 to $11 billion per year. the will have to merge to bulk up. >> i know you don't look too much into china now, but what do you think is -- if you're talking about excessive leverage, is that where we will subaru of it now in this time of the cycle? pretty think china is on the final? >> i'm not going to talk about china paradigm and studied them in a long time and i don't like it would be appropriate for me to talk about it. >> talk about the biggest long opportunities right now. you are very positive about the banks, tech is one of your big sectors as well. what is the biggest opportunity for you in 2018?

>> i think the biggest opportunity is long short is making a comeback. there are more ways to make money's on the long and short side brick the past it was surely on the long side. more volatility. i think volatility is here to stay. running a hedge portfolio makes more sense. up -- i knowu make you are saying you're not looking anywhere in the fixed income space, is it because you are seeing pricing on how much higher yields and go? over.is rates are going up. i don't see too many opportunities and the bond market. i really don't. call me in two years and we can talk. coming up, we will dive deeper into the weeks company news and run through another a right of earnings reports. more exclusive interviews are just ahead with policy thoughts from prominent central bankers. >> i would be concerned that we

not march into an inversion without our eyes being wide open. julia: this is bloomberg. ♪

♪ this is "bloomberg best." policyrs know that movement will be coming from the european central bank. that the ecb has not yet signaled when it will wind down the purchase program, let alone hike rates. this week, bloomberg spoke is visibly with two members of the governing council about the policy path. we begin with francine lacqua's interview with friends all the l to go home. >> first, we will have to decide about the end of the net asset personages, as soon as happy, sustained, adjusted inflation is

achieved. as i have already said, whether it will end in september or december is not a deep existential question. we were very clear about the second thing, that the first rate hike would come well past the end of the net asset purchase. what i explained is that we will give, probably, additional guidance before the end of the year about the timing of this first rate hike and about its contingency. let me explain about the timing. leastassed, meeting at some quarters, and about the contingency, it will be contingent also on the inflation. and there istable, a clear virtue of our gradual

normalization path. we look at data and the economic situation. quarters,u say some could you assume that is six months from the asset purchase, or could it be nine months? >> english is not my native language, but i understand the concern. >> so it could be up to three or four. >> i will not comment more. >> when you look at the main concerns or challenges for the ecb right now, is it communication to the market? >> i don't think we have specific concerns. we have a clear mandate of price stability, and coming back to a 2% inflation, close to but below 2%. so we are making progress to this target, despite some transient effects, inflation is

present with 1.2% for the first. but we think inflation will resume its progress in the coming months, as it has clearly temporary effects. we are clearly focused on our mandate on price stability. and we have been efficient, because two years ago there were still deflation risks. and year we were at 1.5%, we expect inflation in 2020 to be 1.7%. >> are you still comfortable with market expectations, which qe, than ay four aend rate hike in 2019? does that sound reasonable? >> well, i won't comment on that. it is difficult, of course, to anticipate what might happen. all central banks are to a degree data dependent, so we

monitor what is happening, but that we can tell you is can generally see that market have been reading our reaction function quite well. >> the euro softened quite a bit. you do get the sense that there's not a great deal of concern at the moment about the strength of the euro, which wasn't true a few months ago. the direction, i should say. is that true? >> we were concerned always with excessive volatility and exchange rates, but we don't have a target for the exchange rate, as you know, and the volatility in the foreign exchange markets, particularly among the advanced economies, has been more to what has happened to the dollar than other parts of the world. that is still the story. >> the federal reserve also had a lot to consider this week as

bond yields rose along with inflation expectations. these issues were top of mind for two fed officials who spoke with bloomberg television. let's start with the st. louis fed president, who shared his concern about a flattening yield curve in an exclusive conversation with kathleen hays. >> if the fed goes up three times for the rest of this year, that is 75 basis points, and you have to ask yourself, will the 10-year go up that much or in that timeframe? if it doesn't, we will have a yield curve later in 2019. so i do think it is crunch time. those that are more sanguine on this issue feel like the 10-year will rise, and we have seen yield going up in the last day or two, but the question is how will that proceed over the remainder of this year and in the 2019. i don't think we are in any danger right now, sitting here today.

the yield curve has a nice upward slope, and it is fine. it is not too far off the average slope for the last 30 years or something. but i would be concerned that we not march into an inversion without eyes wide open. >> the risk is recession? >> if the yield curve doesn't hurt -- we are not there yet -- if it does invert, it means the market as a different view of the future than what the fed has. >> so is that your big concern, that the yield curve inverts and we get a recession? >> the yield curve invert would send a signal, you could argue about how good it is. a study that came out recently said that it has been a pretty good signal of problems ahead for the u.s. economy. i don't think you want to get into that situation without thinking it through.

2%inflation has been shy of for quite a while. we have seen in acceleration. weouldn't be surprised if see the near-term inflation go higher. we also see commodity prices going up. but when the fed is thinking about our dual mandate goal and inflation at 2%, of course we are thinking about it on a sustained basis, that we will look through these transitory movements. my own forecast is that we will see inflation be at 2% on a sustained basis over the next one to two years. >> when i we going to get back to measuring topline inflation? that is the largest amount of mail i get from people in every fed district. they don't get the idea of core inflation. you led on this with the cleveland fed cpi. when do we get back to actually measuring the inflation?

our viewers and listeners live with it every day. >> we do have a goal in terms of topline inflation headline inflation. we in the able to -- but have to look at a variety of different measures of inflation, and some of the core measures, the ones that drop out, food and energy prices, cpi, the measure you mentioned earlier, true mean measures of inflation. theyok at those because give us a better sense of the underlying trend in inflation, but nonetheless, it is a headline inflation number that we are targeting, and that is how we framed our goal. ♪

♪ >> you are watching "bloomberg best." let's resume our roundup with the week's top business headlines, with the focus on company news. chinese internet giant tension took one of many high-profile earnings reports. >> tencent is silencing skeptics after posting record quarterly profit and better-than-expected margins. investors were bracing from squeeze -- were bracing for squeeze. what solidified these numbers? >> it is the theme of the day. tencent recorded a beat across borders, and across margins. speaking of margins, that's an interesting question, because if you look at their operating margin, it was an increase, even beating estimates. but if you stripped of the other one-off items, their core

margins dropped, and it looks like tencent isn't going to let go. they are going to spend more, very committed to their online revenue, online streaming projects, online entertainment project. they are going to's in into new reit -- they are going to spin into new retail. ♪ >> we are right in the middle of macy's report, walmart reporting comparable sales that fell short of estimate, and jcpenney reporting, widely missing estimates. >> is anyone surprised by these results? they haven't been reading the news are paying attention. the reality is online is winning. if you have a winning digital platform, you have good numbers in that area. if you look at walmart, their floor space in the united states is what they need to be dealing with now. they need to start addressing their brick-and-mortar operations, shutting down stores, make sure they are turning around what they are

doing in those same stores, because it will be a drag on their online offering. i think the flip card deal is evidence of that. they are buying into a market where amazon is already doing well to turn that around and another market while they still have problems at home. they have a lot of work to do in the u.s. >> progress announcing a partnership with british online grocery :00 to. become the exclusive user of its automated distribution technology. krogeral, does it give as much scale as amazon? >> well, what this deal should do is give kroger that competitive scale. it's not just about where they can reach customers, it's about how quickly they can and how efficiently they can sort orders and get them to people. group dutch banking

reported first-quarter net income of 595 million euros, beating analyst estimates. you promised to provide more information on whether you will increase the dividend. what are the factors you are weighing up in deciding, getting closer to decisions on whether to increase the dividend? >> we gave an update on capital in february this year. what we said was that we would pay up 50% of our profits in dividends, which we declared for last year, but would also consider additional distribution, whether that is special dividend or buyback. if we remain within our capital target. we reflect on that later in the year. it is quite early to do that now, but all the normal sorts of things we consider would reflect on whether businesses, how capitalized we are, where we see the opportunity. >> let's talk about what's happening with credit agricole, trading revenue slumping,

missing analyst estimates. there's also some weakness. the company says it is well on track to reach its 2019. what happens in trading? can you run us through the numbers and where you saw the weakness? >> we have to take into account the tensions. which accounted for 17 million in profits. second, obviously there has been that wenton of rates, down by more than 40% during the first quarter compared with the first quarter. lastly, we are mainly a jet house, which means we are strong in specialized in fixed income, which has been sluggish. that is mainly the explanation,

a weak market and a bank which is not trying to compensate by taking more risk. allianz has reported operating profits for the first quarter above the average analyst estimate. the insurer's profits are boosted by president trump's changes to the u.s. corporate taxes and lower restructuring charges. >> i think there was 7% in the operating profit, but if you adjust for the effect in the one-off we had last year, it was probably out 4%, and this reflects the underlying operating program that we are coordinating across the board. if you look at the property casualty, it improved by 80 basis points, this despite higher natural catastrophes. we have an increasing business

post, and we were able to 21 billion. package, itk at the is really strong across all business lines. said thehas profitability will probably fall as much as 15% this year, bad as the german company's ailing liquid crystals business troubles to defend its market share. in terms of liquid crystals, is this as bad as it gets? good things get worse from here? -- could things get worse from here? >> not yet. we announced in the middle of last year that we lost market share is an asian, and that this process is continuing until the end of 2018. inask that a tough year

terms of our most important -- so 2019 will be the year. fourth-quarter earnings estimates short of wall street expectations, slipping this morning after touching their highest price of more than 17 years last week. >> we had increasing momentum in our top line revenue, record eps, record capital return. overall, it was a really solid quarter from our perspective. the fact that our security business grew 11%, i think that is the second big piece that gives us confidence. the third is the business model transition we laid out. our deferred revenue grew 29% to 5.6 billion. our product revenue was up over 30% year-over-year. our guide was very much in line. next quarter we are guiding for

continued momentum on the top line and record earnings per share. we are very pleased with where we are and with the quarter. >> a major victory for carl rox has called off a $6 billion takeover by fujifilm. the company also parted ways with the ceo. great news for these guys. >> >> it is. if you remember, they settled with icahn and were going to settle with the big chunk of the board, then they backtracked and said never mind. this seems like it will stick. they are backing away from the fujifilm deal. >> this turned out best for the shareholders. they made a landmark decision with this and said if you don't play by the rules, it doesn't matter how self-righteous the board is, you have to play by the rules. this turned out to be really good for the shareholders. that is and why we entered this,

of course, we try to get the best deal for our stock. it turned out to be a pretty good decision that will help shareholders all over the country. teslas board coming under more criticism. againstd the second proxy adviser is calling on the automaker to appoint an independent chairman, separating the roles that elon musk has held for the last decade. the question is, is elon musk listening? >> i think that's a very legitimate question, and honestly, i'm dubious as to how much of this criticism is going to amount to anything in a couple weeks, when we have tesla's annual shareholder meeting. there's a long history of tesla facing real criticism over its board and the lack of independence on its board, primarily comprised of people who have long ties to elon musk and personal and professional relationships with him.

there is some question about how much they can hold elon musk to account, given the role he plays in the company, and how much the value of tesla is enmeshed with how much people think highly of musk. >> the cbs drama has taken another twist, the board moving to dilute the voting interests of the redstone family and its joint shareholders. so basically sherry redstone has been diluted by a tremendous amount. >> she has. her voting power has been howeverfrom 18% to 17%, she doesn't think the vote count, because yesterday she came out with the nuclear option of changing the bylaws, so instead of a simple majority of directors to vote for this, you need 90% of the directors. wonon that basis, she has the vote because it was 11-3. >> for investors, it means further uncertainty. these companies have been out

this -- have been asked this for two years now, and they need to get their act together if they are able to ca compete against the netflixes and googles and amazons of the world. ♪

♪ >> i mentioned the euro. it actually hit a session low after we got the german gdp data coming in weaker than expected. then it extended the losses to go below 1.19, and i suspect a lot of that is to do with the stronger dollar than anything else. >> there are around 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites, too. here's a function you could find useful. quic go leaves you to our quick

takes, where you can get important context, fast insights into timely topics. here's a quick take from this week. ♪ debuted, the 4g wireless allowed people for the first time to hit the road and explore unknown places with only a smart phone for direction. when 5g arise, it could enable driverless car to take us there. it stands for fifth-generation. it is insanely fast and can accommodate a lot more. but the reason it is being called revolutionary is because it will allow connected devices to speak to each other. >> right now we are living in a world where it's a one-way experience. >> that's ian king. >> you talk to your phone, you get the data, you send something back to the network. in five years, for the first time, we will 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 reaching 20 gigabits per second. in plain english, that means downloading a full-length hd movie in seconds. 5g will also increase total bandwidth, which we will need to accommodate the internet of things. the classic devices like it and i connected refrigerators, thermostat, and all colors, but this will enable many more. >> factories where machines just sat there, not connected at all, suddenly they will be connected with real-time monitoring on things like utility poles. >> but the biggest advance will be a huge reduction in latency. a network of driverless cars will need this speed to the each other multiple times per second to avoid collision. near instantaneous data transfers could allow doctors to perform surgery remotely with a

robotic scalpel. first, you need to improve network density. >> that's a fancy way of rating more towers. what we are being told is that's not the case. >> the idea is five g will not only use the existing mobile spectrum, of tap into higher frequencies called millimeterwave's, which carry more data but only travel short distances. you could see a lot more stations around town. new towers could have as many as 100 and 10 reports, compared to a dozen on 4g towers. so when will we get 5g? tong 5g ready is expected cost providers $275 million over seven years. to pop uphe first fiv sometime in 2019. ♪ >> 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." thank you for watching.

this is bloomberg. ♪

♪ >> this is "bloomberg technology." we are showcasing the diversity and power of the tech economy. coming up, we find out how the start of help over 1000 businesses get off the ground. plus, one of the most procedures universities in the world weighs in on the benefits of online curriculum.