david: coming up on "bloomberg best," the stories that shaped around the world. uncertainty remains a constant for investors and drama continues to escalate on trade, diplomacy, and politics. >> looks like the trade cease-fire is no more. >> we may yet see a freefall of oil production from australia. >> we seem to be in the midst of a currency crisis right now. >> president trump is trying to keep the door open. david: deutsche bank is ready to see its shareholders at its annual meeting. mark zuckerberg answering questions from the european parliament. >> facebook's strategy seems to be, i will get back to you. i will get back to you. i will get back to you. david: world leaders at a global economic conference share weighty words with donald trump.

>> donald trump has expressed concerns about a new arms race. i concur with him. david: and a host of experts offer their perspective. >> the bank continues to raise rates and it will not be good for the economies. >> the u.s. is back in business and is moving forward. europe really has to watch it not to be left behind. >> you have got to be consistent in terms of how you manage credit, and you have to be you have to be looking for signals. >> central bank governors and general are good at their job. they should be left alone. >> growth in the workforce and growth in productivity, and i do not see us making policy steps to address either. david: it is all straight ahead on "bloomberg best." david: hello and welcome. i am david ingles, this is this is "bloomberg best," your weekly analysis of business news all around the world.

now this week began with some unexpected positive developments in this ongoing trade battle between china and united states. reporter: how washington says tariffs are on hold as beijing significantly decreases its purchases of american goods and services. haidi: it feels like a market change in town from both sides. >> both sides stepping back from the brink and putting out this joint statement delivered by the white house. as you say, china can merit -- committing apparently to increase its imports of particularly u.s. agricultural and energy products, but also services as well. both sides committing to strengthening their coordination on intellectual property, and also to increasing trade and manufactured goods. >> how positive is it that we don't have a trade war imminent, but at the same time, there is no resolution to anything? >> it is better than nothing. [laughter] i mean, i don't know what to think of these headlines.

i don't think the calm will last. maybe we are kind of in the eye of the hurricane, and i think negotiations will continue. i think you will see rhetoric heat up by both sides at some point. >> just a few weeks ago, president trump is casting doubts on his own summit with north korea. you during an oval office meeting with south korean president moon jae-in, trump told reporters that there is "a very substantial chance it won't work out, and take place as planned on june 12." >> the president went on to suggest that potentially in the long-term, the u.s. could advocate for having a one korea policy. now he also expressed some concerns about the ongoing trade war between the u.s. and china. the chinese obviously playing a crucial role on the korean peninsula, and in fact the senate, a republican-controlled banking committee, approving a measure on a 23-2 bipartisan vote on an amendment led by senator chris van hollen, a democrat from maryland. it would prohibit changing

penalties regarding the lifting of trade restrictions against telecommunications firms like zte. >> the chances for this meeting falling apart are increasing. i guess the question is, should i now expect it not to take place? >> it could go either way at this point. his statements recently have indicated that they are thinking hard, given that north korea has basically said, we are not just going to hand over our nuclear weapons for nothing. you know, it is going to be a phased approach. him phased approach. and him and it is going to be an tough negotiation. >> the trouble continues in the e.m.s as the turkish lira hit a fresh all-time low against the dollar. the euro and the yen turning from a currency crisis into a country crisis? >> not yet. we seem to be in the midst of a currency crisis right now. the lira this morning dropped more than 5%, about 5.5%, the biggest decline in a decade. bigger even than the aftermath

of the july 15 close down. >> turkey's central bank raised interest rates. this was to hold a slight in the lira that has posted a series of record lows. what is the late liquidity window and what is raising its basis points mean in practice? >> the late liquidity window was originally formed to be an emergency rate. the turkish central bank has been rather innovative in its rate policy and has been funding the market from that rate. what they did today was raise the main rate, the rate that really matters, by 300 basis points. the question i pose is whether that is going to be be enough? and the reaction from markets is unfortunately probably not. >> a trade cease-fire, the president threatening tariffs on imported cars and trucks, citing national security concerns. u.s. allies including mexico, canada, and japan, the largest importers from the united states, would be the hardest hit. >> looks like the trade cease-fire is no more.

president trump again, citing national security concerns and instructing commerce secretary wilbur ross to launch an investigation into international automakers. if you take a look around the world at the response, it has been critical. japan's trade minister saying that "imposing this could cause confusion and lead to the breakdown of multilateral trade systems based on world trade organization rules." south korea meanwhile has formed a task force and is considering countermeasures. meanwhile, the chinese also saying that they oppose what they are calling, "the abuse of national security investigations." >> president donald trump calling off his planned june 12 summit with north korean leader kim jong-un. he called the canceled summit with north korea's kim jong-un a "setback for the world" and threw the ball back into north korea's court. pres. trump: if and when kim jong-un chooses to engage in

constructive dialogue, i am waiting. >> i think the u.s., or president trump, is trying to keep some sort of a door open. now we have to see whether the relationship continues to deteriorate from here, or whether there really is hope that a new date can be scheduled. but i will say, i think, i think it will be very much harder to schedule a second planned meeting. i think the longer this drags out, we will have to see whether the u.n. sanctions regime, which remains in place, will be on china. >> what is interesting to me is what this says about china. the rhetoric was that he needed china to help make this happen. now that need is gone, and we have that trade issue. rishaad: north korea said it was surprised by donald trump's decision to cancel the much-anticipated meeting between himself and kim jong-un. the country remains willing apparently to meet the united and apparently to meet the

united states at any time. david: the chances of a summit happening, maybe not june 12 in singapore, but at some point, are probably just as likely today as they were yesterday. this is megaphone diplomacy coming from both sides, and this is an old tactic as well from the north koreans, and that is ramp up the tension just before then to get maximum concessions ahead of the summit. pres. trump: we will see what happens. it could even be the 12th. we are talking to them now. they very much want to do it. we want to do it. we will see what happens. >> you have been watching a session followed by a question-and-answer session with some of the world's most powerful leaders. it was a very serious discussion between french president emmanuel macron, russian president vladimir putin, japan's prime minister shinzo abe, china's vice premier, and the imf managing director. they took on issues as wide-ranging as iran, climate change, korea. >> do you have any advice for the world in terms of how to deal with president trump? because you were somebody that

was associated with the election of president trump, and yet you look and see what has happened and there are many people here who are under sanctions. he has just withdrawn from the iran deal. there are doubts about the north korean deal. what do you think you have got from the relationship with him? >> i was not connected to the trump electoral campaign. donald trump has expressed concern about a new arms race, and i concur with him fully. the measures that we are talking about, north korea, iran, they are not bringing us together, but that is another reason to talk about these matters. >> to me, the headline was trade. and the view, the consensus of the panel, without naming donald trump by name, raising real questions about his global trade policy.

david: still ahead on "bloomberg best," exclusive conversations with wells fargo ceo tim sloan, dallas fed president kaplan, and boris johnson. before that, more of the week's top business headlines. congress rolling back some dodd frank banking regulations. >> what this bill does is an entirely unnecessary gift to the larger bank. david: this is bloomberg. ♪ david: this is "bloomberg

best." i am david ingles. let's continue with the result of a controversial presidential election in south america. >> more of the same in venezuela. president nicolas maduro won reelection with 68% of the vote, boycotted by the opposition and condemned by the united states and other nations. it was widely expected, it was a

widely expected outcome, but mostly about voter turnout, and who came out to vote, will this legitimize the election? what happened? >> on the streets yesterday, we saw a very scant crowd. there was none of the ruckus, the masses we have seen in years past. the participation levels were the lowest we have seen in decades. it is just now further legitimizes his hold on power, more so to the opposition here, and the international community saying this vote is a sham essentially. and you know, moving forward, i do not think anyone expected this outcome to be different. >> president trump is stepping up pressure on president maduro, including the oil company. oil extending a three-year high with a new level of sanctions on venezuela concerned over its crude production. >> venezuela is producing 1.4 is million to 1.5 million barrels a day.

given this new wave of sanctions from the trump administration, the situation again, it is likely to get worse before it gets better. the floor could be somewhere even below one million barrels a day in the rate of 500,000 to 600,000 barrels a day. if we get to that point, you know, prices can go even higher than what we are forecasting, up into the $85 to even $95 barrel range. >> we may then see a freefall in oil production from venezuela. both in terms of the amount of oil and the quality of venezuelan oil may well mean that it is one of the major risks for the oil markets in the months to come. >> the italian president has asked a law professor to form a government, despite lack of political experience. conte is backed by an anti-establishment five-star movement and anti-immigrant league, whose euro-skeptic policies are around the markets. what happens next?

i am fascinated to know who is going to be the finance minister. >> he will speak to members of the political parties, then will put together his list of cabinet leaders, and they will speak to members of parliament leaders and then he puts together his cabinet list and takes it back to the president. he has expressed skepticism about the euro during sea the president plans to confront the e.u. on a lot of issues, so conte says he will talk about the completion of the banking union, asylum-seekers, and issues such as that. they will be starting very quickly to make their presence known in brussels. >> president trump today is expected to sign into law the comprehensive banking bill that dials back on the restrictions of dodd-frank. it includes of course increasing the threshold up to $250 billion, reducing the number of banks that are facing the tougher regulations, smaller banks get relief from volcker, and also there is some relief for custodial banks.

>> if you think about the negative effects of the regulation just in terms of cost, that has been a big one. it has been especially big for the smallest bank that don't have the big base to leverage the costs, so that relief is important. it does, you know, it does save them some of the compliance costs, but then the other aspect is, it makes it perhaps more beneficial for these banks to merge. >> it is a good thing, right, that some of the smaller banks, and we are talking about the smaller community banks, will get some relief under this bill, but that should not hide the fact that what this bill does it is an entirely, unnecessary gift to the larger banks. the smaller banks under $100 million in assets, you are talking about to relief up to $250 billion in assets. rishaad: china is cutting import duties on cars from 25% to 15%. auto stocks around the world are rallying on the news. which automakers are set to benefit the most from this reduction in import duty?

>> it will probably be like the makers of the high end, premium car manufacturers like porsche, for example, jaguar, land rover, basically the manufacturers that don't like have a large production facility in place in china, and therefore rely more on importing vehicles into the market. >> one of the highest profile glass ceilings in finance has been smashed. the new york stock exchange promoted stacy cunningham to president. she now becomes the first woman to be the sole head of the 226-year-old institution. it is a remarkable story given that she started as an intern at the big board. >> yeah, she was a floor trader as an intern, and she talked a few years ago to some interns to kind of tell her story. she said the first day on the floor, she knew it was for her. and she ended up staying as a floor trader for over a decade. she has been coo for a number of years, so she had

executive-level experience at the firm. tom farley is teaming up with dan lobe on a new venture, so they were able to move her up pretty quickly. betty: the federal reserve continued to signal a slow, cautious pace of rate hikes in order to keep the u.s. economy growing and inflation balanced. the message to the markets was there is no reason to rush to raise rates. the yield on 10 year treasuries that now dipped below 3%, the dollar giving back some of its gains, and all the major benchmarks cross back into the green. >> the federal open market committee, the fomc, basically makes it look like a slamdunk. it is a sealed deal. there will be a june rate hike. most participants, that means there was probably only jim bullard from the st. louis fed who does not think that the fed should be hiking rates at all, agreed or judged the current economic outlook, saying fiscal stimulus coming.

it will likely soon be appropriate for the committee to take another step in removing a policy accommodation. it was also noted that a temporary period of inflation modestly above 2% would be consistent with the committee's symmetric inflation objective, could be helpful in anchoring longer run expectations at a level consistent with that objective. sounds dovish, doesn't it? because they are actually going to say it is helpful having above targets. >> the u.s. government is dramatically ratcheting up him and dramatically ratcheting up scrutiny of the red hot digital currency market. according to people familiar with the matter, the justice department has opened a criminal investigation into whether traders are manipulating the price of bitcoin. authorities worry that virtual currencies are susceptible to fraud for a number of reasons. >> this is a significant moment, and i would point out that the agency involved in with working with the u.s. justice department is a commodities commission, so this is not coming from the securities exchange commission which is already offering

investigation for fraud's. now you have the two capital market agencies in the u.s., both investigating these processes. and when it comes to the cftc traditional justice probe, it looks like they are looking at the traditional frauds we have seen in the stock market. you are seeing spoofing, you are seeing wash trade, basically all of those manipulative tricks that stock proctors like to do to boost the price, and get out a of course at the expense of innocent investors. that is very interesting. mark: let's get to deutsche bank, the new chief executive wasting no time overhauling germany's biggest lender. earlier today christian addressed shareholders at the deutsche bank's annual general meeting in frankfurt. >> we are committed to our corporate and investment bank, and we are staying international. we are active in more than

the 60 countries. and that is the way it is going to stay. >> it is interesting that he led by saying they are going to be a global bank because it is also true they are cutting jobs globally. for the last couple of weeks, we have been talking a lot about where they would be cutting in the u.s. first it was 10%, then maybe 20%, and now globally. equities and also rates. and so, we are going to see what they are really going to be committed to. shareholders have had very mixed responses. some could say poor responses to the strategy thus far. >> spain's prime minister said this morning that he aims to complete his four-year term, but he is not calling for snap elections. so we have got the party suggesting there will be a no-confidence vote, but he is saying, look, i am determined to stay. what happens next? >> the whole political situation in spain was upended this week with a very dramatic corruption verdict, in which a whole host of former officials from his party were sentenced to more

than 300 years in total for essentially running a racket on -- under his watch. but he is holding his ground. he is essentially betting that the three opposition parties will not be a will to form and if he digs his heels in, he will be able to survive. ♪

david: welcome back to "bloomberg best." i am david ingles. this week, bloomberg's erik schatzker sat down with an exclusive interview with wells fargo ceo tim sloan. they talked about the public image of the lender and the challenges sloan sees and markets where wells fargo is -- does its business. tim: there are some markets that we are a little bit concerned about. auto, we have pulled back. i think we have pulled back net enough, and now we are going to

be growing that business again. erik: where else? tim: we are concerned about commercial real estate activity. again, we are the largest real estate lender in this country. we love that business. but there are some transactions being done today that same a little bit frothy. and again, i do not think anybody is smart enough -- i know i am not smart enough -- to pick the point that credit turns. but you have got to be consistent in terms of how you manage credit, and you have got to be looking for signals. erik: what are you keeping a close eye on to know when the cycle has turned? tim: well, first and foremost, what is the fundamental economic health of this country? most of our business is here in the u.s. so are we going from a gdp standpoint, are we creating jobs? but even in that environment, there is a lot of this location

that is occurring because of technology and other reasons. that can impact our customers. erik: to that point, there is a lot of concern out there that the yield curve may invert as will the yield curve may invert as the fed raises short-term interest rates. concern because in the past, it has perceived a recession. do you share that concern? tim: it certainly could invert. i do not think that is a -- that if it inverted in the short-term over a year or two would be a concern that we have a recession, i think it has more to do with the fact that if you look around the world, long-term rates in europe and japan in particular are much lower than they are here in the u.s. you could argue whether or not that makes sense from a returns standpoint, and i think that is what is keeping a ceiling on longer-term rates. so you see the yield curve flattening out a little bit. but if that happened -- erik: why do you think that is?

the 10-year, the 10 year treasury that 3.1% today. where do you figure it takes? tim: i am not smart enough to know, erik. erik: you are risk managing your balance sheet. tim: we have great people at this company that are thinking about that all the time. could i imagine us seeing a 10-year at 3.5% or 4% sometime in the next six to 12 months? absolutely. i mean, we have had a pretty significant backup of almost 50 basis points just in the last few months. and if you believe that economic activity, not only in the u.s. but around the world, is going to continue to increase, you can imagine rates getting in that range. david: coming up on this edition of "bloomberg best," more of this week's most compelling conversations. brexit. just one of those unresolved issues contributing to global vol which is why boris johnson says britain's policies must be decisive. boris: we have gotten on with it, and dynamism. david: this is bloomberg. ♪ retail.

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♪ david: this is "bloomberg best." i am david ingles. global trade tensions weighed on markets this week, and two political contributors who tend to start controversy shared their thoughts with bloomberg television, steve bannon and boris johnson. let's talk with bannon, who condemned the fragile trade truce between u.s. and china. listen in.

steve: what started as a defined process because we were taking a hard line as soon as we started to get soft is vague and general. i think, remember, what the chinese one to do is play for time. particularly what they want to play for time is they want to see the political capital donald trump has and what happens in november, what happens in 2020. they have never had to face, they have never had to face someone in a leadership position in the united states of america that actually fundamentally understands what is at stake here in this industrial relationship we have, and trump has really done more in 1.5 years than administrations over 30 years have done. he has put to live the fact we didn't have any tools or so, and so the chinese are playing for time. i have been a strong advocate as has peter navarro and bob lighthizer and others in the administration, the best thing to do with china is a competition. not a confrontation and not one or you try to go to war with them. they are already at trade war with us. a confrontation where we are

firm and our beliefs and we will not let you steal our innovation and not let you basically rape silicon valley. it is not going to happen. boris: the prime minister is the custodian of the plan, which is to come out of the single market and to get on with it, get on with that project with all ingredients speed, and that is what we are going to do. what people like argentina, peru, chile, outward looking free trading countries, what they want to hear from us is that we are getting on with it, that we have confidence and we will get on and take that control of our tariff schedules, and i think that is what they want to hear and what they are hearing. >> it has got to be quick, right? you cannot be in the external tariff for long. boris: i think it is important for people to have a sense of when it will happen to be able to do it as fast as reasonably possible. >> what is your redline, what is your bottom line? if the u.k. ends up shackled in

to some arrangement with the european union with tarrifs for a long time, would you be prepared to walk away from the cabinet? boris: the prime minister has made it absolutely clear we are coming out of the custodial and the single market. what is entailed by those promises is very precise. it means that we take back control of our tarrifs and we run our own tariffs, we run our own commercial policy. it means we are able to do things differently if we choose, when it comes to our regulatory framework. >> that is very important. otherwise, you are not taking back control of your laws or borders. and the prime minister has been absolutely emphatic about that. david: fiscal and monetary policy were also the subject of much discussion this week, both in the emerging and developed market space. let's go to a reporter who joined us exclusively to talk about these growing challenges in countries like turkey.

reporter: turkey really is quite worrying. do you see a negative connotation? is that possible? >> it definitely is, no question about it. if the general movement is down, you have the selling process going on. don't forget etf, exchange traded funds, are big now, and once machines stop selling, you get a knockoff effect so to speak. >> we have seen central banks come in and turn defensive. we had bank indonesia raising rates. last week we had brazil instead of cutting rates held rates, as well. should we expect more of that from emerging-market central banks to turn defensive? >> definitely. you are going to see more of that, and it will not be good for the markets, as you can imagine. if you have rising interest rates, people are less likely to put money into the markets and leave it in a bank and earn high interest rates. this is a very important development we have to watch carefully.

>> in the case of indonesia, this has already pumped in $7 billion, and it has done little. it has raise rates in three years, and what more can you do now and how many more rate increases can we seek to help prop up the currency? >> unfortunately, central banks continue to use this tool which usually does not work because when people lose confidence in the currency, they are going to sell it regardless because they have learned the hard way in the past that continuing to hold on is not going to be good. better to get out early. i think you are going to see this continuing. the banks will continue to raise rates, and it will not be good for the economies. what they should be doing is giving confidence to the market by reducing government spending, by cutting down on the bureaucracy, all the rest of it. >> in terms of monetary policy, it is always better for all political leaders to let the central bank governors to the job they have to do and to

preserve their independence. i think some of the comments made alerted the international community and strictly the investors to the fact that the central bank of turkey could be under directions, instructions, influence, and i think that has created a sense of uncertainty, lack of confidence, which have found its way into the markets. >> would your message to mr. erdogan will be, please stay away and let everybody else get on? >> i think everybody has to do their job where they are, and i think central bank governors general are good at their job and they should be left to it. monetary policy is, and particularly in relation to interest rates and currency determination, it is best to let it be handled by the experts. particularly, you know, if they have a good set of tools. they have some really strong

fundamentals. it would be much better to leave it to them. reporter: did anyone see turkey coming in this way? the imf, were you worried about turkey before this episode or is it a self-inflicted wound? christine: we did say back in our spring meetings in april actually, for anybody who doubts they were published, we did say that with dollar strengthening, with monetary policy tightening in the u.s., we would most likely see a flow back of capitals from emerging markets where they had said in the last couple of years and in the last part of 2017. and this is exactly what we are also seeing, strengthening of the dollar in the last couple of months, capital flows probably moving back, and the 10-year treasuries at 3%, so there is a flow back that we are seeing, which is going to answer to some of the emerging markets that have not taken the necessary

precautions or that are weak in their fundamentals. >> i think these underlying concerns about sort of a more eurosceptic government in the core countries of the eurozone has always been there. we are seeing now some debate that for europe is not good. i think europe needs to commit to take europe to the next level, and any discussion about moving back or changing the underlying agreement is really not productive. we are seeing that being immediately penalized in the markets. if those talks and rumors continue, you will see that pattern continue. it is in nobody's interest to question the fundamentals of the agreement that has brought europe together. >> all right, are we back at the european debt crisis? could we go back to the european debt crisis? >> no, this is more isolated. i think you see strong momentum out of germany and france to take europe forward, and we always knew in that debate,

italy is an important partner, and they are not yet on board for this debate. i think we are watching this play out. so far the caretaker government that has been in place, the caretaker government in italy, has really been standardizing the situation quite well. i think an anti-european movement in any country, be it france, we had the same question around japan, is really causing europe to go back and to be in the focus of markets. with brexit happening, there is already a lot of focus on europe. and what you see is the unique winner out of the discussion is the u.s. dollar, which is strengthening. monetary policy continues to normalize. the u.s. is back in business and is moving forward, and europe has to watch that it is not left behind. >> what are the biggest threats to the u.s. economy now? >> still the biggest threat are the things that are staring us in the face. our workforce is slowing because

it is aging. we are not yet making policy dishes and's to a dress that -- to address that. our skill levels in the united states are lagging in the world, we rank 25th out of oec countries, and the skill levels are not keeping up with the disruption, and the last thing is we are very highly leveraged, and we just leveraged up late in the economic cycle. i am worried that is going to create a headwind economic growth. it means in the next downturn, we may not have capacity for fiscal policy. those things are the things that ultimately matter the most and worry me the most. >> there is always the question of when people think recession might be coming. i assume you are of the view that recessions don't die of old age, but there is a feeling in the market -- >> expansions, right. >> that maybe we are seeing the yield curve start to tell us something. >> well, there is always some not immaterial probability of recession, as you know.

what i am worried about is sustainable economic growth. we are going to have recessions. my job is to make sure that in ups and down cycles we have maximum sustainable employment and price stability. and what i am worried about right now is not the short-term cyclical questions, but i am worried, are we doing the right things to grow gdp? gdp is made up of growth in the workforce and growth in productivity, and i do not see us making policy steps to address either. and i think both look like they are going to be sluggish in the out years. we just cannot notice it as much now because we have a large's fiscal stimulus, and up to now, the fed has been accommodating. ♪

david: this is "bloomberg best." i am david ingles. let's resume our roundup of this week's top business news. and another round of comcast's heavyweight battle with disney over fox's entertainment assets. >> tv titans take the ring as a battle for sky continues. regulators are clearing the way for comcast's $30 billion bid for britain's largest pay-tv company. the stage is cleared by matt hancock, who is the minister who oversees it, and seems there is a public interest when it comes to this massive offer. >> i think that makes sense because comcast is largely a u.s. cable television operator. they have got some international content. they have a substantial presence in the u.k. not many people know they produce downton abbey, so there could be a bit of overlap, but in terms of the real public interest issues, which is around control of news media with the fox media, i think this is the news i think people expected to

hear. >> comcast confirming they may make an all cash offer. fox has agreed to sell to disney. disney's old stock offer is valued at about $53 billion, and comcast saying its offer would be larger. that would include fox news, and fox other businesses. >> today comcast said today that the announced they are looking at it and they are preparing, they are in the advanced stages of preparing a bid. mind you, comcast did make an offer late last year and they were bidding at 16% higher, and that was over $60 billion at the time, and the murdoch family, the fox board at the time decided to reject that in favor of the disney offer, which was lower. the fox shareholder meeting to decide on the disney bid is coming up in the next few weeks, one of the reasons comcast decided to make this public today because they wanted shareholders to know they are a viable option before the vote goes ahead.

>> shares of ge rising the most in a month after ceo john flannery took the biggest step yet in his turnaround plan. ge will merge its century-old locomotive business with a tech valued at $11 billion. they are going to maintain a majority ownership in this tie up. >> that is right. it is a complicated deal. what they are doing is selling assets to wabtec and taking other pieces left over of the locomotives business and merging that with the wabtec and their sold assets, and then shareholders will own 51% but they will be largely passive. wabtec will keep the name. it will keep the wabtec management. >> ge shares are falling the most in six months. the ceo flannery is not finding it easy to sell turbines. >> that market continues to be very challenging for new gas turbines. >> what did he say that really rocked investors?

the last earnings report that came out actually seemed like he was getting things back on track. >> the comments people are pulling out of this is there is no quick fix in the power market. which to me, that's really not be news to anybody. ge has been clear they expect weak demand in the power market through the next couple of years. today, he said through 2020 they are not really looking for a big pickup there. the number that stood out for me was a 10% profit margin target in that power unit. that is down from a previous goal of low to mid-teens. and the reason why that is important is because moody's has highlighted a low to mid-teens profit margin in that power unit as an important goal. and failure to reach that could be cause for a downgrade. >> flannery said it is a timing issue but the question is, how much patience do the credit rating agencies have? >> sunday motor group has canceled plans for an $8.8 billion deal in with an unprecedented victory for activist shareholders.

the second-biggest family-run conglomerate has plan to restructure to pave the way for succession, but that is now on hold. what are shareholders winning with this decision? >> well, elliott management, the active shareholder that is leading the fight, is asking for $11 billion in cash return to shareholders. they also wanted increase in dividends, independent directors, and some other steps to improve corporate governance. there is a lot there. hyundai did not say they would implement those sites, but by rejecting this previous plan, the expectation is they will move more toward that, the kind of ideas that elliott was proposing. more broadly, this shows that the, the group is seeing that the future lies with shareholders, and going along with the shareholders' interest more than the founding family's interests. >> a divided supreme court today decided employees could give up their rights to file class-action lawsuits against

employers, taking mandatory arbitration clauses one step further. give us a sense of what the court decided and why they decided it that way. >> the court was dealing with a situation where an employee signs an agreement as a condition of employment that says any disputes i have with you, i will take this arbitration and pursue them individually. and millions of employees have signed agreements like this. the supreme court today said based on a 1925 statute, the employer can enforce that and effectively keep the employee from pressing suits over a small amount of disputed wages, from pressing those suits as a class-action. >> bloomberg new energy finance issued their latest report and come inside the bloomberg. this is one of the standouts, that china will continue to be the largest eb market through 2040. it is a busy chart, but it is the blue bar to pay attention to. that is china's market share of ev. and the other is europe and the

white is the u.s. is this a subsidy situation? >> the eb market, we talk about tesla, and it is 10% of the ev market. we have seen rebate as well as tax incentives for oem's to sell these ev's, and this is what characterizes it. we expect that the change in the next five to seven years. >> when will electric vehicles be able to pay for themselves? what will change that? batteries? >> at the heart of it is batteries. we have surveyed the market, seven years. prices have fallen 80% since 2010. they are about $200 a kilowatt hour. we expect that to fall another 50% to about $100. we think that is where the crossover parity is. 2025 is in the expect the upfront cost of electric vehicles to be compared to combustion engines. you are already seeing today on an operating basis, the total cost of ownership is making sense already.

>> facebook ceo mark zuckerberg facing another grilling over the user data scandal but left e.u. lawmakers frustrated by dodging questions. >> i asked you six yes and no questions and got not a single answer. and of course, [indiscernible] >> ok, i will make sure we follow up and get you answers to those. >> what were some unanswered questions? >> well, here is the thing. facebook at this hearing where all the questions were asked for about an hour, and then zuckerberg responded in bulk for about 26 minutes. so he just said, you know, you asked some questions about content. here is what i think about content. you asked some questions about data. here is what we are doing our data. it did not get to the heart of a

lot of specific questions that european lawmakers have prepared. all of these very sort of clear and concise questions, facebook -- zuckerberg was able to answer them with general steps the company has taken to try and do a better job in the last few weeks. >> it is a spectacle of nonanswers, and bizarrely, facebook's strategy seems to be go to testify, whether it is, you know, congress in the u.s., or the european parliament, or the british committee, and then saying, i will get back to you. i will get back to you. i will get back to you. that is a good question, i will get back to you. >> i think it is important for us to have three most important engagements. to apologize with european citizens. the second point is it will respect the new data protection rules in europe. third, it will work for a good election campaign for 2019.

>> the california jury has awarded apple more than half a billion dollars from samson in the retrial of a dispute. apple had sought about $4 billion and samsung argued it should only pay $28 million for infringements. >> samsung has said it disagrees with the ruling. the big dispute is over whether, even if samsung did infringe on these, what should the penalties be? should the penalties be on all the sales that samsung got from the entire products that were sold with these infringing patents, or should it only have to pay for a particular component that infringes? that is the dispute we are going to see over the next few months and perhaps years. ♪

mark: this is the spread between the italian 10-year and the german 10-year. look what has happened in the last week. the spread continues to widen, the widest since june last year, having jumped by 34 basis points last week. david: we have about 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 is a function you will find useful. that is qic . it actually leads you to our quick takes where you can get insight into timely topics. here is a quick take from this from this week. >> cyber warfare is a cyber attack that has the backing of one nation with the intent of hurting another. >> it is using a computer and using hacking to accomplish something you ordinarily would need a bomb or a gun to do. >> this takes on many forms, it can be infecting an enemy computer by holding it hostage with ransomware, disabling it with messages, or with good old-fashioned malware, like a

virus or worm. >> shutting off the power, that is a big one. shutting off service in hospitals, transportation networks, rail services. port service. >> a number of countries, including the u.s., are known to have active cyber warfare programs, but -- >> russia decided to really go on the offense and be noisy and make it known they have these capabilities and they are ready to use them. >> like causing two large-scale power outages in ukraine or manipulating social media to sway elections. >> the thing that we have to worry are about is not cyber warfare but these information operations. that is what happened in the 2016 election with the u.s. >> attacks including information operations have grown by the thousands each year since 2006, and those are just the attacks we know about. >> i think there is just a lot of things that happen in war time that general public is not aware of. we do not know how often it happens. we have no idea. david: that was just one of many

takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i am david ingles. this is bloomberg. ♪

>> with him. it is a advanced fighter in the world. you originally quoted