devices for just $4 per month at north vp slash tv today tell me up on bloomberg bestest stories in shape the week in business around the world shakes and woods as trumpet kim method singapore firstgood vibrations the step toward real results i can't roome the elephant in the and that is the new color is a shin on the question marks id is will can honor the agreement call really fell out how the new killer sation takes place a cool some good a medium agump for imagine it's a scanning pictures to at&t or trying to tech companies struggle to cook with sinks is bitcoin

security worries rise they've called it a cyber intrusion to 3 system plus it's a 1 punch the investors the central banks this you right decisions a sent by the feds not so much noise this time are trying to give in clearing out who the market as they can listen out for today downward pressure on the young it's all bloomberg hello welcome irish at salama this is boone bug best your weekly review the most important business news analysis in interviews from blum television around the world the week began with donald trump and kim jong-un heading to singapore for that long a waited face to face summit but i monday that still tension in the -- from the g 7 meeting over the weekend

9087 summit of course might not have a unanimous communicate through canadian prime minister justin trudeau said at the summit closing press spacing this is nation was insulted by u.s a lot president from the board a fourth one on rich string of tweet slamming toyota the other day nations and saying that the u.s would not sign the aggravatee how folder aggravated tweets coming that's it did seem hard to believe before the summit course calls of justin trudeau indignant any took the twitter and sort of last out at is allies i was actually at the meeting some we for a lot ofg fireworks and then it turned us at trump actually seem to really a loan with people at one point we didn't think there would be a communicated saturday we're starting to here there would be and of course the was and just introduce it up at a press thatrence and set it shows we can deliver when people thought we couldn't and it was

quite shocking then when we we the tweets of minutes later from trump thing you know this insult to us just introduce week and meet and so i think you know in the grand scheme of things not agreeing on a communicate does not change the world i think where we go from here though is that it's theg to be very hard for leaders of these major countries wille to trust that trump actually commit to what what he the meeting kim dot sumiton the potential program which means i'll do any sort of the world's biggest physicalf june tensions everly is anita show cast i took photos a smile issue pretty much the details that will that be included in the agreement will be and proven big good enough for both sides sign the joint declaration the cure ignore the elephant in new klu and that is the relations because that is the

strong points of the united on and itinsisting really is link to what the north backns want it all comes to the big d word the new color is a shin and the commitments timetables step potentially kim dylan can offer up president donald tromping north korean sign what jong on a prompt described as a very important document following and historic one on one meeting and working lunch between the two this is complete the nuclear north korea we verify a very veryed comprehensive documents and i believe he's going to live up to that address well president rump said that he's been able to assure a long term commitment the newth korea to clear eyes u.s is also saying that i might to send some military exercises that north korea has regarded as a security threat president ron kids say this time it exceeded his there has been some strong words of encouragement from related including region south korean president moon who said that that it is a huge that

the with the people across world who long so page and the president tromp has a save a one else has delivered rosen trump called this agreement he's fine with kim jong luna comprehensive agreement but really it's it's 400 words don't really spell out and it kind of deadlines or time tables for healthy new killers then takes place for what next steps are at&t shares or a rate after thee billionllar take dollars time warner without conditions at&t says the deal evolution into a media powerhouse that can go head to head with a likes of amazon this is a stunning big chase at at&t it's kind of embarrassing for the government actually look at it the government real estate this case on the fact that this deal it's dad would actually raised process the tape a tv judge does leon today absolutely just dismiss

the government space was just messing mr department of justice took a risk when they brought this knew that theyy took a risk when they brought it with this was you know a new division thisust is something that he felt very strongly about and he wanted to take that risk so it isn't good for him it is a first loss in a very big case and it is going to shaves antitrust law's going forward to pace ofup the tightening disease disease raised his key right and it hey telegraph move and taking the spur the step of signaling full rate hikes i come in 2080 never really solid hands here and so what we're doing is we are trying to conduct monitoring policy in a way that will theain that expansion keep labor market strong and keep inflation above right at sorry above but right at 2% i how was trying to convey is the idea that yes

are we calibrating monitored policies not new news we've been doing that since we were lifting from 0 some years ago and we're not doing this in the hope holding thison of economic expansion just keeping pace with it a lot of signal the bed not so much noise this time around the most important for thinking probably was theews conference announcement that they're going to do news conferences after every meeting beginning in that will change thinking on on trading desk because now you don't have those off meeting where you figure is going to happen come class has made a 65 billion dollar offer to apply matching 21st century folks to help a previous proposal by disney and setting up for quite a bidding war for proof of meadows media and pilot been a busy week when but whatin this space are the key terms of the offer that which i came back as you said it's 65 billion dollars is a headlock figure which composed that disney a half has offered the other key things

that they doing here is a -- breakup feed at disney offered if the deal gets disney hasregulators said to fall said it will pay it two and a half billion dollars comcast says that it will match only that it will also reimburse disney of billion foxwoodf that it that need to pay disney for breaking up this deal and the other thing they've given some guarantees on regular tree pause way to try reassure remote off and -- shareholders that they're they've told you about died vesting u.s.a said they've told about died vesting the regional schools network and the interest in hulu as you're being central bank is ending it's falling the buying program and the press and legality macd president mario joe he said the the decadeine down long program wendy's number separate abc be will hold interest rates on changed at summer ofrough the 2019 this is probably the most

times are in central banking we ever seen is it good for the european a colony of the financial systems to be this conference we were trying to do this clearance email to demarcus are trying to tell them what they're going to do been work hard to restore and howat they're doing they my 3x things go wrong for another assessment is that the doing pretty well so this allows them to stop buying and this would probably allow them to raise rates sometime in same time to have to me said that a certain pieces growing from geo politics to trade we know very well what is going on in the u.s what is going on in italy and and all that and this means that they want to keep your options open your program speak needed thank and left montay policy changed and no worries assessment at today's meeting after raising it in cronin ouncesine core prices and arrange of 0.5%

to 1% down from around 1% previously that pushes japan further behind global peers it week when the fed raise rates and set a super right height predictor 8th or the ecb place at the end of on buying the same from the video jerry they've already custer inflation outlook a whole time so one more circle change a lot they're going to keep the 10 year deal that zero start this highlights the contrast with the fed the fed raise interest rates and said they're going to do you cb said they're this is stop there bye this year so for a country for a central bank that's raising interest rates as in the u.s that's the currency sure drives risings after dollar is a whole bunch and for a country like japan where they have monetary sing and using insight long as you know for as the currency see is falling and end this this announcement today we'll we'll put more downward pressure on the elect it's lasting

terrace on 15 billion dollars of chinese import china planning to announce with tallies free matches president trucks kind of plymouth more than 50 billion dollars worth of terrace on more than 1300 president saying that those product list to be finalized despite push back from on capitol hill meanwhile 100 billion dollars he'sin the pipeline imposing terrace on 818 items dollarsna 34 billion dueher 284 items that are to the list of they're going to have to go through public comment period that would add get the totalyou of 50 billion and most of these things are intermediate good inputs into other manufacture products it's a kind of a global problem for everyone and we haven't heard from the chinese they say they're going to retaliate in kind and that will put more companies on notice because they'll be actually targeting specific u.s made products sinus fine it's nancy has just released a statement

selling the announcement of ace united states the u.s measures volunteer elephant rules of the world trade organization and it is country deniseconsensus reach simon u.s negotiations it seriously valley apology to interest in threatens the interests of our country and people to chinese just released have 34g you know we billion ready to be hit on july 6th we're still going through the list we're still translate again from chinese but what we see so far is a lot of agriculture port is on there obviously and pork producers been anxiousas about that potential retaliation for a long time now automobiles there so the chinese list of very targeted in terms of where to hit and where where it hurt stuart hos as we review the week on bloomberg best david ruben stain of carlyle group is

getting anxious about you listing says this booming business so i cooked along forever at some point we will have a slow down i just don't know know when it will be please with over 40 fully integrated applications you won't be able to contain your excitement either from just add on earth a pearl employee fun your entire business please all who won the hello let'susiness for a ride on a pallet on the france a couple thousand chase each other up a hill let's go make a personal debt then

beat it with your personal fetterman best we're still bring the world's best constructors right to you better yet let's go entire new york studio anytime anywhere with anyone who's willing and let's go do it all right we're ready the followingon message is brought to you by people up andom mesothelioma had many questions how did i get this disease what are my thisment options how will affect my life bloods you need answers which is why we offer a medicalk written by professionals who created mesothelioma call toll free +1-800-555-0949 or go to meadow so the world of who's the wrong the

favorite italian look or the lifetime on pos copies fairly warren limit on heels and i paid $100 for that i would over 750 the store at $5 off your first order download the british mark at now use offer code love pos you back with bloomberg best number sounds salon it's let's continue our global tour of the week so business stories in britain web face minister to reason a to key vote in pelham it on the future of his brakes it plans please may have this tape the banks in building c how's the concessions to rebel's in her own policy if britney's friend leah has we assure pro any members of the conservative concernst she has a over the possibility of leaving without sin seal pup the balance could be talked to strike is a text to ward's practice concessions of tourism a matador she just said trust bye what is sugar thing about

this particular compromising loss for thea compromises in this process is that it's a time to speak to you getting all these different accounts of what was pros you truly revels buses the more exit toting so i was for paula indian mrs my broad in the fifties rebels in soho office now they say she committed to giving them amendment which will bellport dodge the logs again next week it will give the coleman's effectively a some sort ofeal way of putting britain back for the bring from what they said is the guy was supposed to lock up now the bricks it department but out of strong statement ready ripping that up saying she knew nothing like that was open we just agreed to on talking to reason he's done compromising with curly least for the moment the government's in the tory rebels compromised all that pencilst over paula doraty and breakfast association of the deals that apartment is if you seendment publish them breakfast for dissolving that ground gambling

i'll beals will then any clothes so if it is is may come for the now she's got some his side to show manage to get through this potential stumbling block including reporting the government does things that it has the numbers to avoid or valley next week but we shall see it going to be nice at you know let's hope that they can yeah that is hello this is about it is county notes on your i was on the outside so we're going to have all my sent thef defeats pick up in loop on monday and then this is beene said 4 on wednesday going tell the most in 3 miles south or a half on that sounds to me and clip so exchange queen this year alone the virtual currency has some more than 50% bath of experience and ripple we gone at queen rail right now what was the latest is a cyber intrusion under system knees we can tell you is that so they have about

70% of the crips of currency they had under their umbrella is in a cold wallet off serverally taken so that the internet or internet them anymore the other 30% for the tokens that were affected and of that about thirds for frozen over covered is what the company is what the exchanges set so that tell the bourne this is as we can tell is the tokens that were stolen but in terms of dollar value we don't have any specific figure yet we also don't have any exactly how these tax for done who who perpetrated the attacks for the victims are the they areaid that cooperating with the thorat he's another exchanges to try to the it's china'ss factory installation rose faster than expected in may on rising for commodities including oil as well as metals does this mean that china is out of the woods in terms of any concerns firstowth i think the half of china i will be out

performing at least feeding the official target of six and a half of sandy sounds tea tea p of the pdi is it is a good sign we know that john has gone through four and a half the inflation starting from 2016 that the web on all basically help we've i've the whole economic momentum heyad some concern your it's rob with apci but the nd weenies over the weekend it's very welcoming and basically we we sing that the around 4% issue china's central bank has held off from immediately rising following cost following the fence hi the pdo state's decision time of economic gothic hammond worse than expected the world's second largest economy show signs of losing steam in slow downn unexpected in factory outpost and lack retail sales and investment the world as far as this concludes we don't have to

fredmemorial from believing god aside those of you that we have some pretty self numbers out of china this indicating with somebody of motivation going on i know same time we have previously good are you dying speaking in shanghai he was making three points of alarms from need for financing for small or medium size companies so the take away is the previously move for sure focus and itoo bro was on not over extending over over typing thing too much to make sure that there's enough heye flowing water call me for the oil to plymouth see racing present glamour putin soil production will be reached he said i think an agreement that satisfies most importantly the it will be ak reasonable and moderate

agreement but nothing outlandish the definitely going to raise productions the question is why how much my guess is it's about a million dollar million barrels that they will increase because i'll try to offset some of the decline from venezuela that crucial tipping point because they're at a point words a man destruction could soe place and they know that they need to try to balance thing and they also realize is in the oil market what i think i want to play this they're notly argentine has named and you after thenk chase surprise reservation for the rico schwarzenegger former finance minister louise caputo is it taking over to us with a currency crisis roofing the country's economy is argentina running out of options they've done pretty much everything they can invest in this current phase of the passes that go to a 15 billion dollar standby loan from the imf raised to pay interest rate

substantially couple of weeks ago to 40% assist in one 600 basis points move now the having ahead change at the central bank somebody who had probably suffer little bit on the on the in terms ofront end credibility from investors as for my crown campaign carolyn call nana for santa jail iqa judge with amanda for it moneyny things including laundering but he's back in jail today because of something else just within the last several weeks palmetto ford with the q's of witness tempering and that is why he is going behind bars today that court ruling coming hour thisn the last is the most monumental mostopment so far as the notable face of someone close to president rump political orbit in aoing to be sitting jail cell you can under state interactive brokers

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was the reason and that's a very you'reings feel like watching bloomberg pastime rashad salamat david ruben stain co executive and chairman of the carlyle group we also host the program participate on bloomberg television which lawrence it's a week with apple chief executive tim cook a special guest they're missing join global surveillance his tools onshed the u.s economy these uneasy level of government we are running a 900 billion dollar deficit probably maybe 1.2next year trillion quickly and we couldn't seem to chilean dollar handle don't get thewe growth rates that the government is projecting so we have 21 trillion dollars of death now in a decade i have over 35 trillion dollars of

death so that's something that they federal is or have to worry thinkright now i don't the wall street traders and bond people are concerned about it as ory will be in the years maybe 6 months you never know when these things will come back to haunt you but right now it's something to watch and clear the ittest worried about economic plan of how we understand under estimating or over estimating at the strength of the u.s economy what are you know if you look at economist whataccount is for cost are they getting wrong today i'm not sure they're going everything wrong girl it's hard to know right now what they're getting wrong but i think this are growingtion we a close to 3% which is pretty good for the condom oversized concerns of people would have our the deficit and the debt are there they're longer can how much we continue this we are about 109 months into a growth cycle had one gross like longer than this so people would say at some point this is going to slow down what's going to slow down is it emerging market corporate debt is a trade barriers and tara maybe the growing concerned about the deficit in

debt nobody would notice for certain it's not like it'll be as it wasortgages before but whatever causes the next reception bill kerr it clearly is something that we can front of us now we just don't know which of the things i the mentioned or like to closet or maybe some polly don't know maybe a geo physical factor at some point we will have a slow down i just don't know when heard sign the former head of the council they can amin advisors famous lee keepif something can't going on forever it eventually it won't so this this grow cycles been terrific i don't know how much longer will say i another year or two at least i think the reception is been pushed back because of the tax that bill and the favorable economy for at least if not tell me off of in the bed of the week stub company news as conversations on to the week's hottest topics the usl korea summit in singapore policy by the world's most important central banks i think they are taking the opportunity eyes interest rates and i've to say presently that

is something i welcome alone given life by kraft seductive italian this doing for xperia alfa romeo motor and and in truth who's still alfa romeo the perfect balance of engineering and ammonia

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rishaad: welcome back. there were plenty of promising optics at the u.s.-north korea summit in singapore, although few details were resolved, and the negotiations still remain. we spoke with several experts on geopolitics and global diplomacy about what the summit achieved, and what lies ahead. >> i think people are overanalyzing this. we have a framework now for discussions. the one, i think, significant benefit we have that no one is talking about is a reduction in tension. i haven't heard president trump mention fire and fury. and i haven't heard the north koreans talking about turning seoul and washington to a sea of

fire. we have had a significant reduction in tension. nobody is talking about the brink of war. i haven't had anybody saying that they were saying it a few months ago. this is just the beginning. the devil is in the details, no question. he will know when we get the north koreans to the negotiating table how we move forward. there's a lot of heavy lifting to be done, and i think mike pompeo will have a significant amount of work to do. like i said, this is just the start of a very long journey. there will be potholes and speed bumps along the way, but i think it is fair we should test north korea's diplomatic intentions and see if we can come up with something that will advance american interests in the region. >> when you boil it down, what did the u.s. or its allies get, with the suspension of u.s. military drills?

-- rok military drills? this is something that caught south korea and it government off guard. >> that was a surprise to me, too. i think most experts felt that we should not trade our legitimate exercises with an ally for commitments from the north koreans. we think they shouldn't do that. i was surprised that that. i think it is a mistake to make such a move without consultation, without allies. you will have to see how that works out. the president uses a vague term, war games, i don't know whether he means all military exercises, all joint exercises, or just certain exercises that improve the movement of a great deal of equipment. this is something that needs to be worked out and certainly requires consultation with south korea and japan.

i'm glad that pompeo went off to consult with our allies immediately after the meeting in singapore. >> on the plus side, let's give president trump and kim credit for meeting and for having a collaborative session. the atmosphere was very good. on the question mark side is will kim actually perform as he indicates and move toward denuclearization. on the negative side for the u.s., is if there are moves to take u.s. troops off the peninsula or cancel military exercises absent similar and equivalent moves from north korea, that's a loss for u.s. allies. >> how about the other, peripheral parties in this, watching from afar? did china get a good victory here? >> i think china would say anything that reduces u.s. military presence in the region

is good news. and secondly, any step that reduces confidence -- if it surprises south korea, if there wasn't a consensus, then we gave a good friend a shock, and that is good news for china as well. >> my concern, of course, is the south korean relationship. i think we have to be very careful not to create a situation where south korea thinks we were taking them for granted. a lot of people have pointed out that the south korean president is very concerned that the show goes on. this is something he pushed for. but he is equally concerned about showing to the south korean public that he can manage the u.s. relationship. there's a major disconnect like this, and that's not going to help him. so i think it is appropriate that secretary pompeo go to south korea first.

the u.s. relationship. there are also big issues for the japanese, who have some real concerns about the fact that there's nothing in the agreement about missiles. and finally, if this is ever addressed, and if we really get traction with north korea, and we look back and say how do we do this, i think china will be part of that picture. i think that is also something the administration has had trouble getting their minds around. rishaad: central banks and central bankers were another focus of attention this week, with policy decisions coming from the federal reserve, the ecb, and the bank of japan. here's some of what distinguished guests on bloomberg television had to say about developments in monetary policy. >> i want to get your initial reaction, not so much to the 25 basis point hike, because that was expected, but the hawkish tilts from the fomc and the expectation that there might be

four hikes total through the end of the year. >> right. well, when you read the statement, the language, especially in the first paragraph where they describe the economic outlook for the next three years or so, lots more hawkish wording. but what was striking to me was when you go to the numbers, the projections that the various fomc participants provided, really not much changed at all from the last time they did a dot plot back in march. it's not much. it's true that the sequence of dots for the current year, 2018, now suggests that there are four rather than three, but that is just the movement of one dot. when you look forward at the projections, their projection for gdp growth really peaks in 2018, then there is a deceleration in 2019 and a further deceleration in 2020.

the unemployment rate comes down a little more, so that's a little more robust. but the inflation rate is flat throughout this period. really, not much changed in the numbers themselves. so yeah, it is a somewhat more hawkish tone overall, but is specially when you look at the numbers, it's not a hugely hawkish position, in my view. >> let us talk about the institution we observed yesterday, the central bank of the united states. boy, are they trying to get out front of the data and game and guess. within your years of research, can any central bank do that? >> well, i think what's unusual -- it's difficult to look back to the past and to find a clear model of this.

i think that they are taking the opportunity to normalize interest rates, and i have to say personally, that is something i welcome a lot. perhaps here, we have missed a few chances to do that. my concern is that when we do next enter a downturn, the central banks don't have a great deal of ammunition. the more headroom they have to respond if we do have a more serious market situation developing, the better. i rather welcome what the fed is doing. it is clearly a little bit risky, but as they point out, monetary policy is still quite accommodative at the moment. i'm in favor of what the fed is doing. >> emerging markets benefited, really, from this decision and this press conference today by the ecb, and almost from the fomc decision yesterday. how does the divergent story play out now in the next three to six months?

>> one of the things we are seeing is one of the ramifications is dollar tightening. when the global economy was doing so well last year and outperforming the u.s., the fed could raise rates in the dollar was weakening. now when the fed raises rates, the dollar will strengthen. that's an additional form of tightening, an additional form of potential pressure in terms of dollar funding globally. there is some tightening of conditions globally, fed tightening is starting to be felt. it's proceeding as planned. they want to tighten policy, they want to cool things off. it is working more outside the u.s. than inside the u.s. right now, but that means we should probably continue to see the

dollar strengthened through the year as they proceed with rate hikes. >> why would there be an urgency to make a statement on rates? the economists we surveyed before today said it wouldn't come until december. why did he feel the need to make an announcement on rates, or give guidance on rates? >> i think maybe he wanted to push back the rate hike expectations, with what he mentioned about the external environment, the geopolitical situation, the soft data in the euro area compared to the u.s. i think it made the balance smooth. in qe on the other hand, not being too hawkish and not moving too far from the interest rate. i think expectations, given the way the council gave some space, to move next year. i think this is the main reason. i want to see more data from the euro area, where positive data, and i think they want to see how the u.s. develops and whether or not this affects the euro area. the forecasts are not taken into account at the moment.

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rishaad: you are back with "bloomberg best." i'm rishaad salamat. let's resume the week's top stories with an emphasis on company news, starting with a significant announcement from electric carmaker tesla. >> tesla titans. the electric carmaker plans to slash around 9% of its workforce. the ceo just tweeted this, saying it is part of a, quote, "difficult but necessary we organization. just to be clear, this is salaried staff and does not include production associates." >> that's right. when he explained this in his letter, he made it clear it is not production workers. the model 3 won't be disrupted, they won't pull people off the assembly line, anyone who's involved in the production of

the car. the support staff around it might be touched, but it will not be production workers. >> thereby answering the question all investors have, which is will this affect the production targets? >> daimler has been ordered to recall 774,000 vehicles in europe following an accusation it used illegal devices in its diesel engines. the move follows consultations with the german government in berlin yesterday, which the ceo called constructive. the carmaker escaped more caustic measures, such as fines or a hardware fix that has been very important. >> the cost is very low. it will cost them something like $75 million, $80 million max. the software will be approved by the german authorities. we have seen that before, in multimillion recalls.

these costs are immaterial. what is important is they have a solution, they make peace with berlin, and they get the cars properly fixed. >> shares in chinese telecom equipment maker zte took a dive after it agreed to pay at least $1 million in penalties and overhaul its management. this as part of a settlement that allows it to resume business after two months hiatus. apart from the billion-dollar fine, what are the implications for zte? >> well, $1 billion is an extra fine, and to put that in context, that's about equal to four years of operating income at zte. beyond that, the implications are that they have to fire their whole board of directors, all of

them have to go, according to the deal they signed with the u.s. department of commerce, and they need to get rid of all their senior management. anyone in a senior vp position or higher. in addition to that, any staff or executives involved in the deals that sold equipment to iran or north korea. that's a got them into trouble in the first place. i calculate we are talking 30, maybe 50 different people could be caught up and fired from the company. that's quite a lot, and would make it difficult for zte to get up and running quickly, even if the sanctions are lifted against them by the u.s. department of commerce. >> -- has agreed to buy envision health care. it's a provider of physician services to hospitals. it's been a long time coming. walk us through how it has done. >> sure. this is really the culmination of a month-long strategic

review. it started last october. one activist disclosed a stake in the company and was pushing for takeover options. the company said today that throughout the review, it contacted 25 different potential buyers, including carlyle, onyx, different consortiums. united health was also considered as a potential buyer. and kkr emerged as the leading bidder, and we will see where it goes from here. >> the rolls-royce is said to be cutting 4000 jobs as they try to simplify their business in boost profit margins. the retrenchments would bring the total number of jobs to nearly 10,000 since 2015. >> we know that they will focus predominantly on hq. rolls-royce has already said they are looking to shift their headquarters in victoria to central london, which will help them shed costs. but on a bigger scale, the

bigger question, why now? i think the ceo, who came in about three years ago, has been quite frustrated by the lack of progress that rolls-royce has managed to achieve in terms of the turnaround. this is kind of a crucial next step in what they hope to achieve. >> hainan airlines plans to raise a billion dollars by selling shares to investors. they are offloading up to 20% of its listed shares to 10 investors. what is this money going toward? >> hainan has been in this aggressive expansion mode, flying to nonstop destinations. obviously, this money they will be racing from their shareholders will help them in buying planes, and probably

addressing some of their pricing going forward. >> -- stock fraud. muddy waters was involved in $20 billion in overseas stock exchanges. >> so we are short tal education group, which is a china-based core profit edging -- china-based for-profit education company. the stock is up some 2500% in the past five years. you say it's a fraud? >> yeah. it's a real business, but its profits are fraudulent. some people might say, why would they do this? i'd point to the value of the chairman's holdings. three years ago, his holdings were only worth about $900 million. today, they are getting close to $80 billion. there's your answer as to why. to be clear, it is a real business with real students in real learning centers, it's just not able to grow nearly as profitably as its been portrayed. >> qualcomm has cleared the last

hurdle for its $43 billion-dollar takeover of nxp semiconductor. bloomberg has learned that chinese regulators have okayed the deal that has been pending for more than 18 months. acquiring it means qualcomm can lessen dependence on the slowing market for smartphones. >> we understood china had approved the deal, which is important to qualcomm. is it in jeopardy? >> it could be. this deal has been a political football between the united states and china for some time, at least that's what qualcomm believes, although there are legitimate reasons for antitrust hardee's to look at the

combination. it's a little bit ironic, too, because qualcomm has blamed the u.s.-china tensions for holding up the merger, but at the same time, qualcomm has also benefited from u.s.-china tensions because it's squashed this hostile takeover broadcom was trying to do for qualcomm. qualcomm has been on each side of this divide. ♪

>> for the next couple weeks, we will be getting live pictures out of moscow. if you are a bloomberg user, go and do your bracket. you can choose who you think will be the winning team. >> there are about 30 thousand functions on the bloomberg, and

we always enjoy showing you are favorite on bloomberg television. maybe they will become your favorite. here's another function you may well find useful, quic go. it will lead you to quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. >> after the end of the korean war, north korea was virtually cashless. everyone worked for the state and was provided for by the state. and in the communist bloc context of the day, it worked. in 1989, north koreans were more than twice as wealthy as their comrades in china. william brown spent his career analyzing north korea for the cia. >> they were integrated reasonably well into the soviet plan system of countries. >> the loss of support from the soviet union after its collapse in 1991 led to a series of great famines in north korea.

>> the famine pretty much ended the distribution system, in which the north korean state fed everyone through the russian system. the government couldn't supply food, so people went off on their own. >> since then, a strange hybrid economy has emerged. part government controlled, where rations are allocated by the state, and part graymarket, where currency is earned in the market economy. for example, a textile worker in the state run textile mill earns around 3000 won per month, which has a street value of about $.40. but the worker pays nothing for housing, utilities, and receives food rations. her sister might legally work for an export company. she's allowed to get 30,000 won per month, with fewer perks. another could work for a chinese company and earn 300,000 won per month, but with zero perks. >> all state workers get paid through this incredibly low wage

system and are dependent on rations. the ideal situation is for one person in a family to work in a state system, and other people in the family work in the marketplace and earn real money. >> it's a highly inefficient system, and per capita income, north koreans are eight times poorer than chinese and 20 times poorer than south koreans. rather than reform, the government sought to fill a shortfall of hard currency by trafficking illegal goods abroad. according to numerous reports, this illegal business is run by an agency known as office 39. >> it's an office that organizes principally to raise u.s. dollars for the ruling kim party. >> a study from a washington-based human rights group traces the criminal ventures back to the 1970's,

where about a dozen diplomats were expelled for smuggling. later, the government switched to foreign organized crime syndicates to sell things like counterfeit pharmaceuticals and heroin, manufactured from state-mandated poppy farms. north korea's government has dismissed the claims, and some analysts have also questioned it. since 2005, intercepts of north korean smuggling have fallen sharply, though more recently, claims of cyber theft have proliferated. meanwhile, kim jong-un has started speaking to south korea, about opening up for investment in restricted economic zones, and is talking about switching to a more china like economic system. whether that is a true change of heart or a tactical retreat in the face of sanctions remains to be seen. rishaad: that was just one of the many quick takes you can find on the bloomberg terminal. you can also find them at bloomberg.com, along with all the latest business news and analysis, 24 hours a day. that will be all for "bloomberg best" this week. thanks are watching. i'm rishaad salamat. this is bloomberg.

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>> welcome to "bloomberg businessweek." i am carol massar. jason: i am jason kelly. carol: in this weeks's issue, a lot of global stories. jason: we start with israel and bibi netanyahu. this week, new news about his political travails and business. this is a familiar story. carol: a lot of questions out there and speaking of questions, a lot of questions about the