scarlet: coming up on "bloomberg best," the stories that shaped the week in business around the world. the people in italy. a political stalemate makes shock waves the global market. italy is a country that is raking down. >> we are in a situation today where the fundamentals of italy are very good. >> what we are seeing across the board is reduction of risk. scarlet: another week of actions and reactions on global trade. >> it no longer appears to be america first, it appears to be america alone. >> chinese markets open up as the mainland shares join some indexes. the u.s. jobs report provides another data point.

>> the hawks think they can move forward once, twice, some say three times. scarlet: and canadian prime minister justitrudeau gives us an exclusive on his nafta stance. >> no nafta is better than a bad deal. scarlet: and how seriously should investors take the turmoil? experts show their insight. >> i don't think we are facing an existential threat at all. >> the trend is still heading higher in rates and higher in equities. >> the italian situation shows uncertainty can certainly rear its head at any moment. scarlet: that's all ahead on "bloomberg best." hello and welcome. i'm scarlet fu. this is "bloomberg best," your weekly review of the most important business analysis and interviews from bloomberg television around the world. oil entered the week on an extended losing streak after

some of the world's major oil-producing countries signal they may be ready to do away with curbs on output. >> oil continues to struggle in asia this morning after plunging on friday, the most in about a year. this after opec and russia saying the market rebalance lack -- rebalance back in april. are we at peak oil or past peak oil? >> there's a lot of speculation that the next opec meeting will say that they are going to increase supplies after a long period of having contained supplies. that is a negative factor. and apparently president putin sees oil prices at $60 per barrel, which is somewhat below where the market is seeing it at the moment. he is probably talking about brent oil, which is higher than wti. if he sees brent oil at $60, wti would probably go back into the 50's. >> what i would like to stress is that yesterday antedate no decisions remain.

we discussed possibilities always on the table. the solution will only be made when all the ministers are gathered in june. the dust italy's president has just asked the continent -- an economist to form a government on sunday. the aspiration of populist leaders fell apart as the president rejected the choice of a euro-skeptic finance minister. tell us a bit about who he is and what does he believe in? >> he is quite strict on budget , as everyone has been mentioning. he is a former director of the international monetary fund. and atell known in italy one point a few years ago, he was in charge but called a spending neighbor -- spending review. he is known here for mr. scissors in his interest in cutting budgets. >> italy's populist leaders are preparing for an election as soon as september, even as they

work to form a cabinet. five-star movement and the league is urging supporters to stage protest. >> italy is a company that has fractured right down the boot. basically we will see and have already started seeing demonstrations across the country. on paper we could see elections in august. but the speculation is that the president would like parliament , the parties to take initiative and agree to delay elections until september. you can't really have campaigning on the beaches. >> italian influenza spreading across budgets. political tensions are escalating. >> the situation is not well-defined. we are in a situation today were the fundamentals of italy are very good. of course, there is political uncertainty, but it seems the fear of italy leaving the eu or the eurozone is something that

is overdone, and this is what has prompted the selloff. corporatesay that his clients are happy, but at the end of the day it is difficult to argue that this political uncertainty is going to stop in 24 hours. >> let's take a look at where the real center of the action was today. the bond market particularly. sovereign fixed income. in the u.s., massive flight to safety. basically, some of the biggest moves we have seen across the curve, more or less, since brexit. there you see the italian two-year yield. it's not unprecedented that -- it's not unprecedented, but it is pretty remarkable. i think that what we are seeing across the board is reduction of risk. >> the tariffs are back on. going aheaduse is with their plan to target chinese good, announcing that a final list of affected products will be released on june 15 and go into effect shortly thereafter.

beijing is responding to the u.s.'s $50 billion threat. the commerce ministry came out with a statement. what did they say? >> they are disappointed and surprised at the same time the trump administration would do this. they thought they would have an agreement with the administration or wilbur ross would come over -- where wilbur ross would come over to beijing and they were going to put together a list of things china would buy. in a statement, they said "no matter what measures the united states takes, china has the confidence and ability to guard chinese people and chinese core interest." in other words, don't push too far. >> whether or not there ever was a trade war with china, the truce is now over. calling it an unfortunate soundbite. >> it is hard to keep up with this administration and their politics on trade. this is a big step, given that we are headed to the third round of talks. secretary wilbur ross is headed to china this weekend.

now we are here and we are all questioning -- are we doing this or not doing this. is it on or off. it seems to be changing by the hour. >> italian yields in stocks over there stabilizing as well today after a better than expected bond auction. the country sold $6.5 billion worth of fresh debt. it is definitely a signal to the market that things are calming down. and there is appetite for italian exposure and bonds. >> i think the market definitely showed some overreaction yesterday. if you look at the 10 year, 10 year bonds for italy, they went up about 3%. you might say that is where they should be, but long-term, bond yields try to measure nominal gdp. last time i checked it was not anywhere near 3%. we have seen numbers starting to come down. so i think rationality will come back over the next couple of

days as people start to reprice what is most likely to occur, rather than the worst-case scenario. >> commerce secretary wilbur ross announced the united states will proceed with tariffs on imported steel and aluminum from canada, mexico, and the eu -- effective when the exemptions expire at midnight tonight. what is the reaction? >> the reaction, as you can imagine, is perhaps one of anger but not surprised. this mightpated happen, particularly the europeans, after a series of negotiations with the commerce very and trade representatives in paris over the past few days. these are the 25% tariffs on steel and 10% on aluminum. they were put in place seven months ago and suspended based on the outcome of these negotiations. every member of the g7 is affected. japan was never exempted, the eu is now included, and canada along with mexico, the two countries that got an exemption because of nafta talks. those talks have not preceded

far enough, wilbur ross says, and have not, stood up, so those two countries join the others in being sanctioned. >> it has been an extraordinary 24 hours for anybody that studies trade. this is a historic moment. >> these tariffs are totally unacceptable. >> whatever they do in terms of trade actions that affect trade close to today, it will be encountered by a similar weight action from mexico. >> it no longer appears to be america first, it is almost like america alone. >> mexico says it will be flat steel, pork, lamps, apples, cheese. canada came out and said aluminum, steel, yogurt, whiskey. >> they've run the gamut from -- to anger. the president yesterday saying he is at a loss when it comes to donald trump, but the eu will strike back against 2.8 billion euros worth of american imports.

those could take place as soon as this month. >> italy's populist party striking an agreement to form a government after weeks of negotiations. a law professor with no political experience set to be sworn in as prime minister. italian bonds coming for a third day, sending yields back close to where they were a week ago. >> what investors have been focusing on is the new appointment of the finance minister. the thing with him is that he has heavily called for a debate on europe. he has not as eurosceptic as savona. but this article you wrote -- he wrote is making the rounds. people who call for unconditionally leaving the euro as a cure for all ales are not right, but neither is the central bank president mario draghi when he says the eu is your reversible -- the euro is irreversible. >> the economy adding 223,000 in may, beating estimates. the unemployment rate going to 3.8%. average hourly earnings rose to

2.7%. weighing in on the report. >> the most important number to me with average hourly earnings annualized at 2.7%. so are we making america great again? i guess in the standpoint of jobs and gdp and inflation moving higher in terms of wages -- it is pretty much a scenario where the fed, the fed hawks basically think they can move forward once, twice, some say three times. i say june is the last. >> we have been asking questions about the wages for a long time. when will we see it finally pick up? this might finally be it. every company we are talking to says they are increasing bonuses wages, and are hiring more people. we might see this and mays report. >> we have a new leading indicator. the president's tweets.

"looking forward to seeing the employee numbers" at 8:30 a.m. >> he saw the numbers, he liked them and he wanted to tell everyone. he couldn't help himself. scarlet: still ahead, as we review the week exclusive interviews with prime minister justin trudeau and more. of next, more of the top business headlines. >> they hope to be able to flip it, like a expensive condo or something. scarlet: this is bloomberg. ♪

scarlet: this is "bloomberg best," i'm scarlet fu. let's continue focusing on the week's top business stories. we focus now on turkey, where

the central bank took steps to reassure investors and sure up the nations plunging currency. >> central bankers to the rescue. the volatile turkish lira is leading currency gains. rising as much as 2.6% against the dollar after the country's central-bank said it's planning to simplify its monetary system. to simplifyplanning its monetary system. give us an idea of what the control bank has done today? >> what is interesting about the decision today is they raised most of the main interest rates significantly, but they are not referring to this is a rate increase. at the same time, what they have done is switched the benchmark rate. they declared a new benchmark rate as the repo rate and equalized it with the current top rate, which was the only one they have been using for the past year and a half. this is something the central bank governor has been promising to do since 2016, when he first took on the job, and something investors have been asking for to get predictability and that turkishter outlook for

monetary policy. over that time, turkish monetary policy has gotten significantly more complicated. today they are going back to a simple policy and something investors are cheering. >> there is now new hope for the once counseled summit -- once canceled summit between the u.s. and north korea. president trump has confirmed that kim jong-un has sent an aide to the u.s. for talks. former spy chief kim young hol, the highest ranking official from north korea to enter the united states since 2000. meanwhile a u.s. delegation in singapore meeting a north korean delegation. >> it is appearing this is all a go on june 12 in singapore, the meeting between president trump and kim jong-un. earlier this morning, president trump saying we have put together a great team and meetings are currently taking place concerning the summit. heading to new

york. looks like they are planning to go through with it. >> mike pompeo said that real progress was being made during progress with north korean delegation here today. >> we will be meeting on june 12 in singapore. it went very well. it is really a get to know you kind of situation. the big deal will be on june 12. and again, it is a process. it doesn't go -- we are not going to sign -- we are not going to go in and sign something on june 12 we never -- june 12 and we never were. we are going to start a process. i told them today, take your time, we can go fast or slowly. i look forward to the day when i can take the sanctions off of north korea. a week long truckers protest leaving brazil with a massive bill, lower growth, expectations and the possibility of more strikes to come. you have the brazilian real hitting the lowest level against the in more than two dollar years. >> the government has announced a few times that the strike is over, but we are still seeing

protests in most states. fuel is still scarce everywhere. supermarket shelves are a bit empty. it is unclear at this what is point going on. the government has met almost all of the truckers' demands and now you are getting reports of people calling for military intervention or change in government. it is unclear what the category wants. >> canada's pipelines will be expanded. the government has agreed to buy kendrick perkins transmountain kinder perkins transmountain pipeline for $3.5 billion. are we shocked that they are nationalizing this? buying it from a publicly traded company? >> for now there are at least nationalizing it. this is farther than they wanted to go the first time. they said they were going to backstop you. so now what we have is them looking like they need to go all in in order to do this.

they hope to be able to essentially flip it, like a really expensive condo or something, where they can get it off to a third party or collection of third parties to sorthey really have of become pipeline magnates one way or another. but i think we will see the federal government hold onto it for a while. there is a lot of uncertainty and these things take years to build. >> the federal reserve board of yesterday toed change the volcker rule, which regulates banks trading activities. it will be the most substantial win yet for financial regulation in the trump era. >> there are many agencies in the volcker rule. >> the securities and exchange commission, the office of the comptroller of the currency. it's an alphabet soup of agencies. they all have to submit their proposal for public comments. this is a particularly controversial rule. they will give banks, investor advocates, anti-wall street

people like elizabeth warren months to weigh in on this. we might not see a final rule until the end of the year or potentially into 2019. >> let's go to china because it is a very big day for the country with more than 200 mainland stocks making their very long-awaited debut on msci's emerging markets indexes. this move will open up the secondary equity market to investors. >> what is the feeling like there? >> certainly in places like shanghai, there is enthusiasm from investors that we have been talking to about this. beyond china, we have heard from the likes of jamie dimon saying he thinks that despite the moves being relatively limited, it will help to educate people about chinese stocks. we spoke to james gorman yesterday, who said this is positive and would closely or

more closely integrate the chinese market with the global market. he saw that as in terms to tick of the positive so far. 234 shares included in the msci market. it is a further move again toward integrating china's market, the second-largest equity market, as you said into the global system. it is the symbolism as much as anything else at this stage. >> spanish lawmakers have voted to oust their leader, making such as the primary. this means that he was overwhelmed by the drumbeat of corruption revelations that have gone throughout his seven years in office. >> spain is out with the old and in with the new. marciano rajoy is no longer prime minister. he has been ousted from office. move inan unprecedented spanish politics. no prime minister has ever been

unseated by parliament, now he has gone and we have a new prime minister, pedro sanchez. the country taking a turn to the left. we have a socialist government in place and a new prime minister. ♪

scarlet: welcome back to bloomberg best. i'm scarlet fu. this week in toronto, stephanie flanders sat down for an exclusive interview with justin trudeau. they discussed the halting progress of nafta talks, but trudeau insists he is not worried. >> we continue to believe deeply that there is a win-win-win opportunity for canada, mexico, and the united states on improving, modernizing nafta. we are continuing to work with the united states and mexico to do that.

we know that trade is a powerful lever to create opportunities and jobs and growth in our economies. we understand there is an anxiety about trade out there in sort of a -- large segments of the population that don't feel it has worked well for them. that is why as a country, we have been working hard to make a case for trade. working hard to demonstrate that we can sign progressive trade with, like the cp tpp asia, where we demonstrated that issues like protection of the environment, gender equality, workers' rights are integral in creating the success of trade deals that create growth. >> and how do you think it is going to affect the summit if the u.s. has just slapped tariffs on canadian steel? friday is the deadline for that. >> well, i think taking a step back and what the actual summit is focused on, the g7 is fundamentally a gathering of the world's most advanced economies

to talk about the economic challenges that we have in common. and there is one big economic challenge that is shared right across not just the g7 but much of the developed world, and that is how do you reassure people that all the changes we are going through in our workplaces, from automation to ai to greater trade deals to globalization in general, how are these factors going to ensure that the growth we create is fairly shared by everyone? >> in the next few days, you have to make some real headway with the americans to have a deal, to have a prospect of a renegotiation this year. are there things you're willing to give up as part of the conversation? >> as i've said many times, i'm not going to negotiate in public in terms of how we are moving forward. in any trade deal, there are always ways to looks for

-- look for compromises and ways to understand that we can get to a win-win-win. canadians know this of me, i will stand up for canadian interest and i will only sign a deal that is good for canada. no nafta is better than a bad deal. we have made that very clear with the president. we know that there is a good deal to be had that can create gains for all three of our countries. that is the nature of the non-zero-sum game when trade is done properly. but we are not going to move ahead just for the sake of moving ahead. scarlet: coming up, we will cover the week of the top company news. protests ataces amazon's annual company meeting. evidencee compelling -- plus, more compelling evidence in an interesting week for markets. we have expert perspectives all straight ahead. >> we've seen this environment where there will be some geopolitical news and a spike in yields and yields will relax.

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♪ scarlet: this is "bloomberg best," i'm scarlet fu. let's revisit the week's most interesting interviews on bloomberg television, starting with tom mackenzie's exclusive gormanation with james at the china summit in beijing. >> we have extraordinary global synchronized growth, everywhere from japan through to the u.s. doing well, china doing well, southeast asia, across continental europe. global synchronized growth. we had these political eruptions, which is what it has disrupted, whether it is brexit, what's going on now in italy and

spain with the coming elections, angela merkel trying to pull together a coalition. it is this almost competition between inexorable corporate growth earnings and economic strength against political instability and rise of populism. and the latest italian- mini-crisis, if you will, which lasted all of 24 hours, is another manifestation. >> it seems like you take a more nuanced view than george soros, that he thinks there's another global financial crisis and they are facing in existential threat. >> honestly, i think that's ridiculous. i don't think we are facing an existential threat at all. this is something that has been playing out over 10 or 15 years, and there are many countries around the world, a sense where the average performance of the economy is much better than the

individual performance of the citizens in that country. that is what has given rise of the wave of populism. this has been a long, evolving political trend that we are facing. so no, i don't think the eurozone is in jeopardy. positionw do investors in this environment? >> you don't react to 24 hour news. you know, the 10-year in the u.s. moved down 30 basis points thene or less, overnight, rebounded. you can't respond, we are not traders, these aren't hedge funds. the average investor is trying to preserve their capital for the long-term and generate decent returns. it is not something you respond to. my reaction is you don't. you watch it for a while. david does it seem like a : flashpoint? cut the spike in yields we have seen trigger distress in europe? >> it is always this way. when you look back, you say, of course,it happened, of

that was a trigger. i have no idea. it could. i'm hopeful it will not. i'm hopeful the euro union will stay together, and it will be a part of it, but you know, outside of our control. david: but if interest rates, market rates, yields rise, and spreads don't compress, it is going to become that much more expensive. >> absolutely. absolutely. and we have seen this environment where there will be some geopolitical yields, and then yields will relax, come back down. not to where they were, but back down a little. there's the general mindset of, things have been pretty great with low interest rates, and we don't want to mess it up. i don't know where that leaves us long-term, as i said, this is a grand experiment in military

policy, which -- in monetary policy, which no one can predict definitively how it will go. but it sure feels good having low interest rates. >> clearly, december-january in the equity markets, we got ahead of ourselves. back in february, there was a weird technical thing that set it off, but it was basically, people were too long -- the bond market, we got a reasonably sharp selloff, just because so many people were short. but the trend is still heading higher in rates, and gradually higher in equities, until we get some significant inflation. >> when you look at the fed and its tightening cycle, there is a sense we could be closer to the end because there is no inflation than they think. >> well, we are closer than we were at the beginning of the tightening cycle, but i suspect it's more likely that this environment goes on for another

12 months than we will suddenly get something different. the fed will keep raising rates until they really see a change in the environment. but at the moment, u.s. growth is pretty good. the second quarter is clearly weaker in europe. there has been a few disappointments. people got caught up in the idea that european growth will be strong. but u.s. growth is pretty good. chinese growth is pretty good. it provides a decent backdrop for equity markets. >> you've got two new governments -- one in spain, one in italy. what can you tell us about what you know about the italian government? >> this is democracy at play. we have to continue working with all countries in europe to progress in our agenda. i'm looking forward to meet the new finance ministers. it's going to be a continuation

of what we have been observing in europe. we have an agenda and we have to proceed. >> are you concerned that italy may be less than enthusiastic about staying in the union? >> we need to make the eurozone and euro the common currency , a source of enthusiasm for everyone. it is a crucial element for the development in our foreign economies, and i'm sure we will be able to make it. >> will the euro group do anything to try to convince italy to stay in, particularly an aid package for use with the migrant issue in italy? >> well, the political agenda in each of our countries is quite -- we need to make sure that we provide economic conditions for is theple, and that

whole of the discussions we have in europe. >> the spanish government, not as big a change. what do you think the new administration there. they are more friendly. >> the discussion there is good, but yes, we will continue to work. we are working very closely with the two finance ministers of spain, and i'm sure it will continue to be like that. >> what will the federal reserve make of this week's economic data? st. louis's fed chair james ford spoke exclusively with bloomberg. but there was still plenty to discuss our monetary policy. >> what about the political crisis in italy, which had such an outsized impact on market this week? how does it affect your view of

the proper course of fed policy? does it make a difference? james: i think uncertainty about the future of the euro is serving a big issue in the last decade, and the rise of eurosceptic parties in italy is a serious matter. certainly take that on board and discuss it. we have certainly been through this before, with the sovereign debt crisis that raged in 2011 and 2012 in europe. , but iis a major factor would also say that, you know, when we were projecting out with the fed would do, i always felt it was priced for perfection cap as if nothing could ever happen, or nothing could ever go wrong. i think the italian situation shows you that uncertainty can rear its head at any moment. >> looking at what's happening in italy, as well as what is happening with all the trade tensions not just with the u.s. , but with china as well, to what degree do you think that

this is more ammunition for yourself being the strongest dove on a slower rate hike, slower expectations? james: well, as you know, one of the things i have been concerned about is that we go ahead to aggressively -- too aggressively, and too much on the timetable, not sensitive enough to incoming data. and this is a type of thing that could give a person pause. i am not saying that it will, but a renewed crisis in the e.u. would certainly be a major factor from the u.s. point of view in how we want to proceed. i don't really think we are to that point yet. it sounds like the italians have formed a government, and we will have to see how this plays out over the summer. ♪

♪

scarlet: this is "bloomberg best." i'm scarlet fu. let's resume review of the top business stories starting with a report that warren buffett didn't do a deal. >> a bloomberg scoop. warren buffett proposed investing $3 billion in uber earlier this sure, but the talks fell apart amid disagreements over the terms and size of the deal. it is warren buffett's ammo to top in situations -- m.o. jump in situations of crisis, but what do you see in uber to want to invest $3 billion? >> crisis is exactly right. there are echoes of going into goldman sachs during the financial crisis, except this time, you know, uber is in a crisis of its own making, but it seems vulnerable, a good opportunity to where a company would benefit from having warren

buffett behind them. they were talking with buffett about different sized deals, potentially above that there was $3 billion, a proposal for $2 -- and there was a proposal for $2 billion, and ultimately fell apart. mark let's talk about rbs. : the cfo has resigned, yes. a respected, four-year veteran -- four-year veteran, who piloted the bank restructuring has left. why has he gone? >> it is an odd time to announce it. i mean, rbs seems to be coming decadethe woods after a after the crisis. it looks like the government will be able to sell its stake in the company, and he's off. he's gone somewhere else. you can only imagine he has had a good offer from somewhere. maybe in australia or new zealand. maybe he had a good offer from the bank somewhere in that region and has decided to take it up. it will be interesting to see what happens and how quickly.

jonathan the u.s. subsidiary of : deutsche bank added to the federal list of troubled banks. says he isnk's ceo committed to the united states, and you might call back on a couple business areas, but the u.s. is the most important market. , they remindnews ambassadors is the difficulty they are facing in the u.s., clearly it means a special attention from the u.s. regulators, which doesn't make your business dealings and -- dealings any easier. >> deutsche bank's credit rating has another blow to the the turnaround plan. >> it has really fallen behind a lot of its rivals, as s&p noted in its report. barclays, commerce bank, even rbs have already structured, and deutsche bank is behind. morale has to be an issue inside the bank. they address that in a letter to staff just this morning, the morale issue, the bad news flow. you have to wonder what impact

that has on clients? >> they say it is open to an approach from an anchor investor. the two businesses have announced an end to formal negotiations, and have said to have disagreed over the price and size of the stake. what would they have gotten out of softbank? >> both have been really quiet about exactly what their motives are, but we can infer from the type of investor that they hope d to get a lot more access to asian markets, which are very popular with the insurance industry, and probably also some help in improving their technology, which is a big issue in the insurance agency. swiss's board be willing to give up some control? >> the inference was that swiss re didn't want to create new shares, and softbank did. and then maybe the whole reason why the deal fell apart. >> earlier this morning, general motors had a big announcement.

it said that softbank's vision found has invested $2.25 billion in their cruise automation. >> this is a major deal for general motors. they made some announcements late last year about the ambitions they had for cruise automation, their self-driving unit, and talked about getting a self-driving taxi service on the roads by 2019. so, what you are seeing is this is a big endorsement, and a major help toward getting some legitimacy around these plans in putting these cars on the road and contend with the likes of google and self driving cars. >> i think it is the big recognition of the rapid progress we've made over the last couple years in developing this technology. i think even more important, it is recognition of the huge potential impact that this technology can have on the world, the business opportunities, that will come around that. and we are just delighted to have softbank on board as a partner sharing in the vision we had for what autonomous could do for the world.

>> amazon's ceo jeff bezos handling increased government scrutiny with flying colors. bezos spoke at the company's annual general meeting in seattle. the normally low-key event is being swarmed by not just investors, but by activists and protesters, too. he is not doing too badly, and neither are shareholders, and his role as the ceo and -- in his role as the ceo and chairman, yet some would like to see the roles separated. how welcoming is he going to be about you? >> there was a group here, and they were protesting outside. some of them had signs, one saying "bezos needs a boss. "bezos needs a boss." one of their members spoke inside for the proposal, saying that amazon should not be structured this way, with the board chairman serving as you know. amazon's board recommended to vote that proposal down, and it did lose 20% of shareholders, in favor of splitting up the role, but it was handily defeated, and

the main argument of the board of trustees again, the proposal was look at amazon performance. we did so well under the existing structure we have, so don't mess with success, was the message they had. >> shares of some iphone display suppliers fell in asia following a report that apple would use ninth generation screens for all of its new models next year. analysts are skeptical apple could adapt the technology so is unlikely tois happen in 2019. >> it seems like a chicken and egg scenario. the big problem is the led display, it is hard to get production levels high quickly. the biggest two manufactures of the technology at amazon apple , might get what is left over. lg display, which can only -- the reason all these shares are falling, those guys can't make it. if they can't make it, how will

they get the technology? that seems to be the strange dichotomy in the middle of this. >> we are looking at china's biggest ipo since 2015. we will go back to the country's top tech headlines. who is buying into foxconn share sales? >> baidu, alibaba, and tencent. 21.8 million shares apiece at roughly 13-14 yuan per share. this is the unit which is the main assembler for apple. the company unit is called foxconn industrial internet, and clearly baidu, alibaba, and tencent want to get a slice of the action. it has raised $4.3 billion they will plow into things like 5g wireless and smart manufacturing, and again it's , not just interest in the unit, but the cloud of these companies

when it comes to investing across the tech space in china. >> the u.s. is open to starting talks with e.u. to reach a settlement over state subsidies that would block paid to airbus, according to a person familiar with the matter. a resolution could potentially avoid billions of dollars in sanctions against investors. now significant is the proposal put forth by the u.s. >> it came unexpectedly. we were expecting yesterday at dispute settlement body, the u.s., to start the process for sanctions against the eu as a result of illegal subsidies to -- the e.u. as result of illegal subsidies to airbus. the result was actually a proposal by the ustr to say, we are prepared to talk. that potentially averts billions of dollars in potential tray tariffs against the e.u., on all

goods, not just against airbus. >> just over six weeks after his resignation from wpp, morten sorrell will lead to rest in capital, an investment company. any reservations on his side, given the manner, the way he departed wpp? >> it is hard to say, but what you just said answers the question. which is this is largely an endeavor started by sorrell. the company being acquired, he is backing this with his money. we do have some indications he has got some financial backers should he find a big acquisition he wants to make. but this is largely his endeavor. >> should he find a big acquisition he wants to make, any idea what he's going to spend that money on? >> there's lots of speculation that he will focus on the ad

industry that he just departed. the one analysts speculate the most about, so it is a big ticket item, is kantar. ♪

♪ >> euro area confidence cooling economic growth, met with budding political uncertainty. the index of sentiment slipping, taking the gauge to their lowest in nine months. the decline was less than economists had forecasted, but it is the fifth month of drop off after optimism reached a 17 month high in december. scarlet: there are about 30,000 functions on the bloomberg, and we always enjoy showing you are favorites on bloomberg television in the hopes they will become your favorite. -- favorites.

here's a function i find useful. it will lead you to quick takes where you can get important , context of fast insight into timely topics. here is a quick take from this week. ♪ >> 2016 was the hottest year on record, and the previous 17 years have seen our 16 most scorching. scientists overwhelmingly agree -- global warming is the culprit. and it's just getting started. icecaps, extreme weather, wildfires, droughts, and the hits keep coming. what are we doing about it? in 2015, the world took its boldest step yet to stem climate change with a historic accord in paris. but now comes the hard part. nations must change energy policies and invest huge amounts of money, and they will likely do it without the united states. president donald trump announced u.s. wouldhat the withdraw from the accord. pres. trump: the reality is that

withdrawing is in america's economic interest, and won't matter much to the climate. >> here's the situation. decades in the making, the paris agreement united the u.s., china, and more than 190 other nations to push the limit of fossil fuels pollution. the u.n.-sponsored plans to cut greenhouse gases that traps heat in the atmosphere to avoid other environmental disasters. but the globe is still expected to warm by as much as 3.4 degrees celsius this century, more than the u.n. target. it means governments will have to offer more incentives for clean energy, scale back support for fossil fuels, make emissions more costly, and reduce deforestation. it is estimated it will require spendingllion of through here's the argument. 2030. unlike past climate pacts, each country sets its own targets and promised to revisit and improve them.

the u.s. was primed to play a lead role in climate change, but trump's energy and executive order reverses obama era rules and directives putting place, and expands production of coal, the dirtiest fossil fuel. the resulting policies threaten the global fight against climate change. without the u.s. commitment to emissions reductions, other countries may join it in abandoning the paris agreement, which could make it even more expensive down the line to stop climate change. activists argue the shift to a lower carbon future is already underway. businesses, cities, and u.s. states, such as in california are already investing in wind , and solar. pres. trump: i've been called an environmentalist, if you can believe that. ♪ scarlet: and 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 businesses and -- latest business news and business analysis 24 hours a day. that will be all for "bloomberg

best" this week. thanks for watching. i'm scarlet fu. this is bloomberg. ♪ erg. ♪ two, down, back up!

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♪ carol: welcome to "bloomberg businessweek." i'm carol massar. jason: and i'm jason kelly. we are here at bloomberg headquarters in new york. carol: in this week's issue general motors signing a winning , strategy in china. jason: that's right. i don't think many people have heard of it outside of china. carol: exactly. jason: we get to a first, really interesting story t