♪ julia: coming up on "bloomberg best," the stories that shaped the week in business around the world. it has been five days full of flashpoints, trade, diplomacy, and politics all causing commotion for global markets. >> there seems to be a three-dimensional chess game. >> the second round of a boxing match. >> we just do not know which is really important when trying to form a government. julia: big decisions await the fed as the e.c.b. officials discuss the path forward. >> i would take that as a bearish signal to the u.s. economy. >> we are going to look through

these transitory movements and look at where inflation is going. >> we will give additional guidance. julia: plus, another week of corporate news and earnings season. >> what we said was we would pay out 50% of our profits in dividends. >> it looks like tencent is not going to let go. they are going to spend more. >> is anyone surprised by these results? they have not been reading the news or paying attention. julia: it is all straight ahead on "bloomberg best." ♪ ♪ julia: hello and welcome. i am julia chatterley, and this is "bloomberg best," your weekly review of this week's important business analysis and interviews from bloomberg television. trade was on the agenda this week with talks between the united states and china scheduled in washington. but before face-to-face meetings

began, a tweet provided an unexpected twist. >> donald trump has ordered the u.s. commerce department to get back into business this week, just weeks after cutting off the chinese government out of their suppliers. in a major reversal, the president tweeted that he and xi were now working together. >> this is a surprising development indeed. we certainly know that it has proven to be a considerable source of tension for china because there are 75,000 jobs. those jobs are at stake. u.s. action would have meant that company would head out of business and perhaps suggested that it is part of the negotiating framework and a bargaining chip on the table, but we don't know quite yet what china has put on the table. >> they said they will take another look at semiconductors. >> the chinese did resume

examining the qualcomm takeover after trump's tweet. there seems to be a three-dimensional chess game and trump's tweet moving a knight in that game. north korea, tariffs the larger , trade and economic dispute with china, it has all become interrelated. it is all one story. >> releasing the list of chinese added to the market for the next month. the three biggest additions to the emerging markets index will be petrochina and icbc. what does it mean for these companies to be included? >> these stocks are large caps. they are huge. which means even a slice of these companies is going to be added to the indices.

initially, we should not see much impact. this has been well flagged. it is not a huge move, and that is exactly what the index provider wants, what investors want. because you do not want a big bank move where shares nobody owned before are on these tracking portfolios. but it willit not be a huge shift from the status quo. >> china has dispatched a delegation to washington about trade talks. as the nations ramp up their efforts to reach a deal, u.s. businesses have lined up to oppose the trump administration's tariff policy, including the c.e.o. the world's most valuable company. on bloomberg television, apple tim cook shared what he

told president trump at their white house meeting. tim: i talked about trade and the importance of trade and how i felt that two countries trading together make the pie larger. and i think it is undoubtedly true that not everyone has been advantaged from that in either country, and we have got to work on that. but i felt 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 30-year yield knocking on the door of 3.25%. >> there was a feeling, an underlying bearish sentiment in the market and they were looking for a reason to sell off. it was sort of a combination of a bunch of things, and it seemed like the market was ready to sell.

we saw that you could not breakthrough towards a rally, and you have all of the shorts in the market, and it seemed like it was time. >> north korea has canceled wednesday's high-level talks with the south. that puts next month's planned summit with president trump in doubt. l's militaryou exercises with the u.s., calling it a deliberate provocation. >> kim could be saying, ok, if the u.s. backs down on the military drills, maybe i have the upper hand more. each side is trying to get the upper hand heading into the negotiations. >> in a statement published in the news agency, a north korean foreign minister warned that if the u.s. is trying to drive us into a corner to force unilateral nuclear abandonment, we would no longer be interested in such dialogue. >> i would characterize this as a second round in a boxing match after north korea is coming back after being cornered and punched the last few weeks by the u.s., particularly by trump. all indications are today is they are saying, hey, we have

got skin in this game, it is high-stakes, and we have leverage here as well. >> i think the risk for the u.s. is whether to really engage in this discussion publicly with north korea or try to keep the waters as calm as possible and get to june 12, get to singapore, and see what president, who frequently markets himself as the master of dealmaking, is able to do. >> in italy, another round of negotiations between leaders of the countries' two populist parties. he says he has a plan on the government this evening. what has been agreed to by these two parties and what has not been agreed? more importantly, what has been left out? >> the main thing is we just do not know who is going to be premier, which is really important when you are trying to form a government. we know a lot. there was a draft program that had tons of points. you have tax cuts. you have some control on

immigration. you have pension reform. is all in the program in some form or other. nobody really thinks it is feasible. to really do all of this, they would have to exit the e.u. and many international accords. a very populist program. markets might worry if they do all of this. >> in italy, the leader of the five star party announced today that he reached a final agreement with his counterpart, head of the league. and italian bonds sold off even more on the news. what would have triggered this reaction in the bond market? >> basically, the main concerns are about the impact on state finances and the parallel to that of course is the relationship with the e.u. and the budget rules there. what is concerning the markets, including pledges like what the program called a flat tax, a citizens' income for the poor, which five-star evaluates at a

cost of 17 billion euros while the pension institution says it is more than double that. also, there are pledges to try treaties between fiscal contract and various constraints. raised last were night when a trump administration official said that china had offered to cut its trade deficit to the united states by $2 billion. overnight, chinese officials denied the report. they said through the foreign ministry "the question is about , some u.s. officials who said china will cut the deficit. this rumor is not true. this i can confirm. the consultations are still underway. i am not getting ahead of that. the consultations themselves are constructive." >> president trump yesterday telling reporters that china has become "very spoiled with regards to their trade policy with the united states." but let's start with the good news. china has scrapped a probe into the nearly $100 billion worth of

sorghum imports. they say that their investigation is not in line with the public interest, but now we have got a take a look at the bad because china has cast deficithat trade report. they say china will never negotiate under the conditions set by the united states. and they are dashing hopes of the nafta deal. the intellectual property part of this. very much on the radar in hopes of lawmakers that are negotiating on nafta. in addition to that, the energy sector and labor are other contentious points between the u.s. and china. >> the u.s. trade representative says that the u.s., canada, and mexico, are "nowhere near a deal to renegotiate nafta." >> with nafta, the hope was that if they could get a win, they could get something that would appear to improve u.s. prospects and hurt canada and mexico prospects and get that through congress the year because it would look good to

the american people and make donald trump look at her. it does not look like they are going to get anything done. -- make donald trump look better. it does not look like they are going to get anything done. paul ryan had put a deadline on it yesterday that is based on the calendar and the legal steps you have to take to get this approved. they have always had more wiggle room than he gave it but even , another two or three weeks is probably not going to get them there. julia: still ahead as we review the week on "bloomberg best," exclusive conversations with central bankers about the next steps for the e.c.b. and the federal reserve. , the manve eiseman behind "the big short," has advice on what stocks to short today. >> deutsche bank is a problem bank. i think it has to shrink dramatically. julia: and up next, more of the business headlines. >> this is the flag and apple high kind of hearing. you do not want to take a controversial stance. julia: this is bloomberg. ♪

♪ julia: this is "bloomberg best"" i am julia chatterley, and let's continue our global tour of top business stories in israel where the u.s. opened its new embassy in jerusalem with ceremony and controversy. >> we believe that it is possible for both 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. >> the u.s. embassy opening in jerusalem today. meantime, israeli forces have shot dead at least four s, tens of thousands converging on gaza's border. it is more than symbolic, isn't it? >> it has been a fantastic week for prime minister netanyahu. on the one hand, you have the iran deal getting ripped up after trump tried to spike it saying the iranians lied about

it before it hit. you have the israelis with unprecedented violence, more 1974.e have seen since finally, jared kushner and a ivanka trump are in jerusalem marking the opening of the american embassy. something that all israelis are it issomething that all israelis are enormously happy to see. they have wanted it for a very long time. it is the best week he has had in office, and he is delighted to see all of this happen. >> at least 55 people have been killed in clashes between the israeli army and palestinian protesters on the gaza border. it is the territory's deadliest day since 2014. >> are they going to send more people to the border? people themselves may want to go to the border because this is a reflection of an unresolved issue for 70 years now. you know, the long-term concern is whether this will destabilize

the region even further. >> the situation in turkey getting really interesting. the president of the country making a vow to tighten his grip on the economy. in an exclusive interview, president erdogan says he plans to take more responsibility for monetary policy. that is sending the turkish lira to record lows against the u.s. dollar. >> first of all, you are the head of the state. when the people fall into difficulties because of monetary policies, who are they going to 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 came out with the statement and said it was

mounting market reaction and it would take necessary steps. and 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 a significant rate hike, at least 200 basis points, in order to curb inflation. and the widening current account deficit, and it needs to restore investor confidence. >> japan releasing its latest eco-numbers for the first time in two years, it's economy has shrunk. if you take a look across the board, this is a set of pretty bad numbers. what can we make of them? >> there are a lot of things you can point out. business spending and private consumption were both down. a lot of the blame seems to be pointed at the weather, which was extremely cold during the period in question, unseasonably cold. it seems to have pushed down consumer spending. vegetable prices, the increase is something the government is blaming, as well as people buying fewer smartphones. people are being a little

cautious. it might point to something more permanent, but the opinion is that this is going to be temporary. >> let's dig into some data from the eurozone. economic growth slowed across europe at the start of the year. germany seeing its pace of expansion cut in half amid weaker trade. what is the data telling you? is this a temporary blip? >> i think it is. you have to look at other information that can tell you whether it is temporary or not. the place i am looking at is the labor market. we have seen labor market continue even though growth is slow. if growth is going to be bad for permanently slower, you start sacking people, and that is not happening. what the labor market data is telling you is that the gdp weakness is going to be temporary. david: until today, betting on sporting events was illegal throughout the united states,

except in nevada. but the supreme court this morning struck down the federal statute, freeing individual states to authorize gambling on sporting events as they see fit. what changes? >> yeah. everything. if you are an operator, a state, a league, this is going to be a seismic shift that really upends the entire sports market and the entire gaming market. david: where are we going to see it first? >> new jersey and delaware. those will be the first two out of the gate. then you will see others, those that already have laws on the books like west virginia and pennsylvania. those will happen quickly. >> wall street has been waiting for congress to cut back on the volcker rule and now it seems regulators are getting ready to take at least the first set. explain exactly what the regulators are going to propose. >> yeah, they long-held this view that transactions violate

the ban on private prop trading. this is wall street making trades for themselves, rather than the clients. unless you can get authorization from regulators that a short-term trade was to hedge a position or make a market for a client, the presumption was that those trades were banned. now, that is being flipped, and 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 later on. >> the confirmation hearing underway for president trump's pick for fed. a nominee for fed governor also fielding questions from lawmakers. >> this is the flag and apple high kind of hearing. you do not want to take a controversial stance. pretty much everyone on the fed agrees that their balance sheets should be made up of treasuries.

they do have mortgage bonds because of the financial crisis. they had to restart the mortgage market and they all agree they want to get out of that business. the rest of richard clare's testimony has consisted of is looking at what he has said about the fed in the past. they should try to push unemployment as low as they can without raising inflation, and that the fed has a duty to remain apolitical. all kind of a thing you would expect from any fed nominee. >> oil rising to $80 a barrel in london for the first time since 2014 as u.s. crude inventories fell, traders brace for the impact on iran. does it directly have an impact on the amount of oil consumed? >> that is what the ia said yesterday when they released their monthly report. they said the prices at these levels into the 80's will start to have some impact on supply

growth this year. and they downgraded just a little bit on estimates of how much prices will grow this year, but it does seem they were warning producers that these ranges you will see supply and , demand come into action, crimping growth as people worry about how much gasoline is costing. and it was sitting more supplies -- and eliciting more supplies. >> the e.u. summit is underway in bulgaria. leaders announcing a united front against president trump's tough talk on tariffs and iran. there have been punchy quotes coming out. >> that's right. the summit was supposed to be , a lowhe western balkans level discussion as far as the european union is concerned. is what has turned into talking shop about how the e.u. confronts donald trump mainly on two issues they don't like. one, the u.s. pulling out of the iran nuclear deal, and two, the trade sanctions against the european union.

there have been no decisions, but i think there has been an attempt to promote this united front in europe, where we know that leaders squabble a lot, that says a lot. ♪

♪ julia: welcome back to "bloomberg best." i'm julia chatterley. --ve iceman -- steve iceman steve eisman made a famous bet against some prime mortgages before the 2008 financial crisis. it was immortalized in the book and film, "the big short." he's recommending investors short deutsche bank. he explained why in an exclusive conversation with yvonne man. >> deutsche bank has real profitability issues in money and technology and has not spent money in a long time.

they are probably undercapitalized. next year. deutsche bank is a problem bank and has to shrink dramatically. >> do you see more consolidation in european banks? >> i cannot speak to europe on whether there will be consolidation or not. i think there will definitely be consolidation in the united states, which is driven by how much companies are spending on technology versus much smaller amounts for regional banks. the regionals will have to merge to bulk up. yvonne: when you talk about excessive leverage, is that where we are going to see the root of it now in this time of the cycle? where do you think china is in the cycle at the moment? >> i am not going to comment on china. i have not studied china in a long time, i do not think it would be appropriate for me to talk about it. yvonne: talk more about the biggest, long opportunities right now. you are very positive about the banks. technology is one of the biggest sectors. what do you think is the biggest opportunity for you in 2018?

>> i think the biggest opportunity is i think long-short is making a come back. there are more ways to make money on the long side and the short side. in the past, it is really on the long side. there is more volatility and i think the volatility is here to stay. and so, running a hedge portfolio makes a lot more sense. yvonne: what do you make of just -- i know you are saying you're not looking in the fixed income space right now. is it because you are seeing how much higher yields can go? >> i think, look, qe is over. rates are going up. i just do not see many opportunities in the bond market. call me in two years and we can talk. [laughter] julia: coming up, we will dive deeper into the week's company news and run through another array of earnings reports, and more exclusive interviews just ahead with policy thoughts from prominent central bankers. >> that would be a concern that

we not march into an inversion without our eyes being wide open. julia: this is bloomberg. ♪ mom, dad, can we talk?

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julia: this is "bloomberg best." i'm julia chatterley. investors know that policy movement will be coming from the european central bank. yet signaledas not when it will wind down its purchase program, let alone begin to hike rates. this week, bloomberg spoke with two members of the banks governing council about the policy path. let's begin with francine lacqua interview with the bank of france governor. >> first, we will have to decide about the end of the net asset

purchases as soon as the path of inflation is fulfilled. i already said whether it will end in september or in december, it is not a deep question. and then we were very clear about the sequencing. we said the first rate hike would come well past the end of this net asset purchases. and 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 well past, meaning at least some quarters, and about the contingency, it will be contingent on the inflation outcome. then we will see exactly how we formulate it. we are predictable but we are, it is a clear virtual of our

gradual normalization path. we look at data and the economic situation as it is and will be. >> when you say some quarters, could we assume six months from that asset purchase to normalization, or could it be nine months? >> english is not my native language, but i understand that some could be several triggers. >> 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, is it communication to the markets? >> i do not think we have specific concerns. we have clearly a mandate. and coming back in midterm perspective to a 2% inflation below the or inflation target, so we are making progress towards this target despite some transient

effect. inflation is rather low in the for april.th 1.2% we think inflation will resume in progress in the eurozone the coming months and this is a temporary effect. we are focused on delivering our mandate on price stability, and we have been efficient, because two years ago, there was 2.5%, risks.eflation last year we were at 1.5%, we expect inflation in 2020 to be at 1.7%. >> are you still comfortable with market expectations which were roughly for an end to qe this year, to net asset purchases this year, and a rate hike in the middle of 2019, does that sound reasonable? >> i want to comment on that. it is difficult to anticipate what may happen. all central banks to a degree

our data dependent, so we monitor what is happening. but what i can tell you is that we generally consider that markets have been reading our reaction function well. >> the euro softened quite a bit in recent weeks. in fact, you do get the sense from policy makers that there is not a great deal of concern about the strength of the euro, or the direction i should say of the euro. is that true? we are always concerned with excessive volatility and exchange rates. but we do not have a target for change rates, as you know. the volatility and foreign-exchange markets, particularly among the advanced economies, has been more to what has happened to the dollar than what is linked with other parts of the world. that is still the story. julia: the federal reserve had a lot to consider this week as

bond yields rose along with inflation expectations. these issues were top of minds for two fed officials who spoke with bloomberg television. let's start with st. louis fed president james bullard, who shared his concerns 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, you and you have to ask yourself if the 10 year is really going to go up that much in that kind of timeframe. if it does not, we are going to have an inverted yield curve later this year or in early 2019, so i do think it is crunch time for this. i think that those that are sanguine on this issue feel that the 10 year will rise. and we have seen the yield going up here in the last day or two, but the question is how is that going to proceed over the remainder of this year and into 2019? i do not think we are in any

danger right now sitting here today. the yield curve has an upward slope. that is fine. it is not too far off the average slope over the last 30 years or something. but i would be concerned that we not march into an inversion without our eyes being wide open. >> the risk is recession? >> if the yield curve does not thered we are yet, but if the yield curve does invert, i would take that as a bearish signal for the economy. because it means the market has a different view of the future than what the fed has. >> is that your big concern, that the yield curve inverts? that we get a recession next year? >> no, the yield curve would invert. that would send a signal. you could argue it has been a pretty good signal of problems ahead for the u.s. economy. so i don't think you want to get into that situation without thinking it through.

>> inflation has been shy of 2% for quite a while. we have seen an acceleration. i wouldn't be surprised if we the near-term inflation readings go higher. we also see commodity prices going up. but when the fed is thinking about our dual mandate the goal goal and inflation 2%, of course we are thinking about it on a sustained basis. we are going to look through these transitory movements and where inflation is going. my own forecast is that we would see inflation of 2% on a sustained basis over the next one to two years. >> when are we going to get back to measuring top line 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 lead on this with the cleveland's cpi. when do we get back to actually

measuring the inflation our viewers and listeners live with every day? >> so we do have our goal for top line inflation, but in order to be able to forecast inflation, we have to look at a variety of different measures of inflation. and the some of the core measures, as you say, the ones that drop out food and energy prices, the feds on median cpi measure that you mentioned earlier, the true mean measures, we look at those because they give us perhaps a better sense of the underlying trend in inflation. but nonetheless, it is the headline inflation number that we are targeting and that is how we framed our goal. we look at the other ones because it helps us forecast inflation. ♪

julia: you're watching "bloomberg best." i am julia chatterley. let's resume our roundup now of the week's top business headlines with a focus on company news. chinese internet giant tencent was one of many high-profile firms releasing earnings reports. >> tencent is silencing the skeptics after delivering a record quarterly profit and better than expected margins. investors were bracing for a squeeze from increased spending and investment. what exactly solidified these fair strong numbers? it is definitely the theme of hasy, because tencent recorded a beat for net income revenue. if you look at their operating margin, it was an increase, and even beat estimates for growth margin. if you strip out the other one

off items, their core margins actually dropped. and it looks like tencent is not going to let go. they are going to spend more and , very committed to their online revenue, online streaming , online entertainment projects. they are going to expand into new retail. the spending spree looks like it will continue for the longer term. >> we are right in the middle of retail week with macy's reporting stronger earnings yesterday. walmart reporting that which fell short of estimates, and j.c. penney this morning missing estimates. >> is anyone surprised by these results, they haven't been paying attention. the reality, online is winning. if you have a winning digital platform, you are having good numbers in that area. walmart, their floor space is what they need to be dealing with now. so they need to start addressing their brick and mortar operations, shutting down stores. they need to make sure they are turning around what they are

doing in those same-store areas, because it will be a drag on the online offerings longer-term. i think the flipkart deal is evidence of that. they are buying into a market where amazon is already doing well. to turn that around in another market while they still have problems at home, they have a lot of work to do in the u.s. >> kroger announcing a partnership with a british online grocery. kroger will take a stake. it will become the exclusive user of its automated distribution technology. for this deal, does this give kroger as much scale when it comes to delivery as amazon? >> well, what this deal should do is give kroger that competitive scale. it is not just about where they can reach customers, it is about how quickly they can and how efficiently they can fill orders and get them to people.

>> the dutch banking group abm amro reported first quarter income of 5 million euros, beating estimates. 595 million euros, beating analyst estimates. what are the factors that you are weighing up in deciding and getting closer to decisions on whether to increase dividends? >> we gave an update on capital in february and what we said was we would pay out 50% of our profits and dividends which we declared for the last year. but that we would also consider additional distributions, whether that is dividends or buybacks. if we remain within our capital target, we would reflect on that later in the year. it is really quite early to do that now. but all the normal sorts of things that we would consider would reflect on where the business is, how well capitalized we are, where we see the opportunities. >> let's talk about what is happening with credit agricole. trading revenues slumping in the

first three months of the year, an missing estimates and squeezing earnings at the investment bank. the company says it is well on track to meet its 2019 targets. what happens in trading? can you just run us through the numbers of where you saw the weakness? >> first of all you have to take we haveount that participation that accounted for 17 billion euros and profit. second, there has been an evolution of action rates which were unfavorable wind down by more than 40% during the fourth .uarter are a debt house.e a

the dollar went down during the first quarter compared to the first quarter of 2017. we are mainly strong and specialize in fixed income. activity has been sluggish. a weak market and a bank which is not trying to compensate by taking more risk, the sluggishness of overall activity in the markets. >> allianz has reported 1.8% of above the average analyst estimate. profit is said to have been boosted by president trump's changes to the u.s. corporate tax and lower restructure charges. >> when you look at the net income that was up 7%, and the operating profit was down 6% but the tax effector and a one-off that we had last year, it was up 4% and this reflects the underlying operating improvement across the board. if you look at the combination of property and casualty, it improved.

in life we have an increasing revenue business of 8% and we were able to post 21 billion in net inflows and the cost went down. the package is very strong across all business lines. >> merck, the german merck, german mark said the probability will probably fall as much as 15% this year. that as the german company's a liquid crystal business. two things get worse from here? do things get worse from here? is this the low point? >> not yet. we have announced that we have have lost some market shares in asia and that this process is actually continuing until end of 2018. in terms oftually

ebitda pree in 2019. 2019 will be a tough year. >> fiscal sales and fourth-quarter earnings estimates fallen short of expectations. shares flipping this morning. they touched their highest price in more than 17 years last week. >> we had increasing topline revenue. we had record eps, capital so its to shareholders, was a really solid quarter from an overall perspective. the fact that our security business grew 11%, our application business grew 19%, that is the second big piece here that gives us confidence. and the third is the business model transition we laid out. our deferred revenue from software and subscriptions it grew from 29%. our product revenue from current offers was up over 30% year-over-year. our guide was very much in line

with what the street was looking for. next quarter, we are guiding for continued momentum on the top line as well as record earnings per share, so we are pleased with where we are and we are pleased with the quarter. julie: it is a major victory for activist investor. xerox has called off a $6 billion takeover by japan's fujifilm. the company also parted ways with the ceo jeff jacobson, so great news for these guys. >> it is. they had settled and were going to replace a big chunk of the board, the ceo was going to step down, and then xerox backtracked said, we are not going to settle. this one seems like it will stick. they are backing away from the fuji deal. >> this turned out best for the shareholders. the judge kind of made a landmark decision. he is basically saying 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. so this turned out to be really, really good for the shareholders. that isn't why we entered this.

we entered this to try to get the best deal for our stock and it has turned out we got a pretty good decision that is going to help shareholders all over the country. julie: tesla's board coming under more criticism. the world second proxy advisor is calling on the board to appoint an independent chairman and separate the ceo roles that elon has held for the last decade. the question is, is elon musk listening? >> yeah, i think that is a very legitimate question, and honestly, i am sort of dubious as to just how much this criticism is going to amount to anything in a couple of weeks and we have tesla's annual shareholder meeting. there is a long history of tesla facing some real criticism over its board and the sort of lack of independence on its board is . it is primarily comprised of people who have long ties to elon musk and personal and professional relationships with him. and there are some real

questions about how much they can hold elon musk to account given the role he plays in the company. and just how much the value of tesla is sort of in mesh with how much people think highly of elon musk. >> the cbs drama has taken another twist. the network's board moving today do the voting interest of the redstone families and its controlling shareholder, national amusements. so basically shari redstone has been diluted by a tremendous amount, right? >> she has. so her voting power has been diluted from 80% to about 17%. >> wow. >> however, she doesn't think it should count, because she came out with the nuclear option of actually changing the bylaws. you need instead of a majority of directors to vote for this, you need 90% of the directors to vote for this. on that basis, she has won the vote because it was 11-3 against her. for investors, it means further uncertainty. remember, these companies have

been at this for two years. many companies need to get their act together if they are going to be able to compete against the netflix and the googles of this world. it is very tricky. it is an uncertain time to be at cbs or a viacom shareholder. ♪

>> i mentioned the euro, it hit a session low after we got the german gdp data coming in weaker than expected. it has even extended those losses to go below 119. i suspect a lot of that is to do with a stronger dollar than anything else. julia: 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 o.vorites to

here is a function you can find useful, quic . it leads you to our quick takes where you can get insight into, importing contacts, fast insight into timely 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 places with only a smartphone for directions. when 5g arrives, it could enable wireless cards to take us there as well. 5g stands for fifth-generation mobile networks. it is insanely fast and can accommodate a lot more connections. the reason it is being called revolutionary is because 5g will allow connected devices to speak to each other as well as people. >> right now, we are living in a world where really it is a one-way experience. >> that is a bloomberg tech reporter ian king. >> the network talks year phone. you look at your phone. we are being told about 5g is 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 that could reach 20 gigabits per second. in plain language, that means it downloading a full-length hd movie in seconds. 5g will also increase bandwidth, tochery will need in order accommodate the growing internet of things like internet refrigerators, thermostats, dog collars, but it will enable many more. networks, factories, where machines are not connected at all, suddenly, we are looking to be connected in real-time monitoring and things like cars, utility poles, light poles. >> but perhaps the biggest advance would be huge reduction in communication like time, lag time, known as latency. a network of driverless car's will need the speed to avoid

collisions. near instantaneous data transfers could allow doctors to perform surgery with a robotic scalpel. how will this work? first, you need to improve network density. sendat's a fancy word for you need to put more towers out there. >> 5g will not only use the existing mobile spectrum, but tap into higher frequencies called millimeter waves. they can carry data that travels, they can carry data, but chapel short distances. the new towers may have as many 100 antenna ports. compared to about a dozen on 4g towers. getting 5g ready is expected to cost providers billions of dollars over the next five years, seven years in the u.s. alone. look for the first service to pop up in big cities sometime in 2019. julia: that was one of the many quick takes you can find on the bloomberg. you can also find them at the bloomberg.com along with all of the latest business news and analysis 24 hours a day. and that will be all for

"bloomberg best this week. thank you for watching. i am julia chatterley and this is bloomberg. ♪

♪ david: did you always know you that you wanted to run fidelity? abigail: i never felt any pressure to. david: did your father say if you work hard, in 20 or 30 years, you will be the ceo? abigail: he was not the guy who made promises to anybody. david: what do you think investors mostly want? abigail: everything. david: was it complicated growing up with your father and family being so famous? abigail: we were not famous at all. i mean, this this was the equity market in the 1970's, david. david: as you look at what your future is going to be? abigail: i think this is the moment that i've been waiting for. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. all right. ♪