♪ taylor: coming up on "bloomberg best," we look at the stories that shaped the week in business around the world. trade issues again dominate discussion as uncertainty continues. >> markets go down because they see changes in policy and then a spokesman goes out and says, nah. taylor: a landmark decision in a landmark departure from the u.s. supreme court. >> definitely a chance for trump to leave his mark on the court for a significant period of time to come. taylor: eu leaders need to tackle the immigration crisis. the federal reserve releases results, and companies find themselves in the crossfire. >> in the trump administration, you can go from poster child to piranha in a new york minute.

taylor: and executives weigh in on the impact of a trade war. >> they will have an impact in the long haul. >> we think demand the world needs everybody to be a part of that energy mix. taylor: ray dalio shares insights into the economic scene. >> if you have a downturn, i think it will be difficult. taylor: and the prime minister of greece and malaysia speak exclusively to bloomberg. >> i do not believe in absolute free trade. >> the most important thing today is that this is the end of it uncertainty for greece. greece is coming back. taylor: it is all straight ahead on "bloomberg best." ♪ taylor: hello and welcome. i'm taylor riggs. this is "bloomberg best," your weekly review of the most important business news and analysis from bloomberg

television around the world. monday, investors awoke to the results of the presidential election in turkey. >> rested tayyip erdogan won a mandate to government sweeping powers after a victory in presidential and parliamentary elections. the nation's longest serving leader took 53% of the vote. against 31% for his closest rival. what does it mean for the turkish economy going forward? >> it is another critical step for president erdogan who has been in power for 16 years, and is looking to extend that power. the issue was in the first round, the expectation was it would go for a second round but that did not happen. there were claims of vote manipulation. we will see what kind of measures the election commission takes, and will be done about -- the focus is switching towards what will be done about economic policy, will the expansionary aggressive easing and more towards reform and

austerity measures to rebalance the economy. >> on friday, treasury secretary steve mnuchin is due to release new restrictions on chinese investments in the united states. and reports are that it will focus specifically on investment in the tech industry, including electric vehicles, robotics, and aerospace. >> so the treasury has until july 29 to announce a proposal on restrictions on chinese investments in the u.s. this would be in retaliation for taking of intellectual property rights for u.s. companies operating in china. >> if we go down this road, then they do get serious about restricting chinese investments in the tech sector, it will only deacon -- indeed deepend the divide between the u.s. and china because, china is clear they are willing to buy more goods to close the goods deficit, but are not willing to budge on their future industrial strategy.

alix: the chinese ministry did not respond, but secretary steve mnuchin took to twitter to disputes it. saying that on behalf of president trump, the stories in bloomberg and wall street journal are false an fake news. >> there is a lot to sit through as we see the selloff and reaction to the news that the administration was considering investment curbs on china, in a u.s. technology firms. we just heard from peter navarro who said that there was a misunderstanding about the administrations trade policy, saying that there are actually no plans to implement investment restrictions on china and others. could the market action today have dissuaded the administration from putting those curbs in place? >> we have seen this situation where markets go down because they see changes in policy, then a spokesman who has been a cheerleader for that particular policy goes out and says, nah. that is not what i meant and that is not good. it's increases uncertainty. >> race to rebound shares up

today as the ceo shrink the company in order to save it. we've got the health care. and distributed our business. >> this is a radical break up, what people have been waiting for, and it goes a long way in simplifying ge to making it less of a conglomerate. and john flannery believe use this as an opportunity to change the narrative in terms of the way the company communicates with investors. when you think about it health care business, it has been a starved for capital and attention within ge, and people ignore the fact that that is actually a very good business. margins are increasing and revenue is growing, cash flow is great, but it is hard to get excited about that when your power earnings are dropping off a cliff. you talk about dividends potentially getting cut, nobody really cares. so now, you have this business going on, this standalone or it could potentially make acquisitions and invest in organic growth. that will be exciting for investors. jonathan: the trump administration taking a softer

than expected approach to trade, deciding against harshest measures on chinese investment. how does that contrast with what we expected? >> president trump and senior administration officials saying that they are getting behind bipartisan legislation on capitol hill that would expand the committee on foreign investment in the united states , or cifius. what exactly this does is expand the committee, with steven mnuchin chairs to a lot to -- allow foreign entities that not only have a potentially majority stake in u.s. businesses, but also foreign entities who are minority stakeholders. in addition to expanding the organization, the president is calling on congress to pass legislation as soon as possible. >> it is a victory for steven mnuchin, it suggests a friendlier approach. cifius can be lobbied, the way that other governments cannot be.

access toe more cabinet secretaries than they do the president. if your deal is coming under scrutiny, it is probably easier to influence the outcome of that decision than just going to the president of the united states. >> anthony kennedy retiring from the supreme court, the longest-serving member. he has been a swing vote on a number of groundbreaking decisions, including legalizing same-sex marriage and preserving the roe v. wade ruling. >> justice kennedy was the swing vote. of course, in the last week, we saw him citing mostly with conservatives. but you can expect that whoever does replace him will probably shift to the right on key issues. >> many observers believe that whoever trump appoints will probably be to the right of kennedy on issues from immigration to gay rights, definitely a chance for trump to leave his mark on the court for a significant period of time to come. >> the federal reserve's tougher stress test includes scaling

back proposals of dishing out additional cash to shareholders. in deutsche bank's u.s. unit failed their stress test on capital management and risk management. >> the numbers pretty much came out in line. wells fargo is really the big winner in my opinion. a lot of people thought they might quantitatively fail the test just because they are under the fed consent order. among the other banks, jpmorgan, their dividend came in better than expected, which i think is something investors will view favorably, especially for those that specifically seek the dividend. and goldman sachs and morgan stanley, they received focus over the last week, goldman got things done in the beginning of the year and came in at the lower range of expectations. morgan stanley, may have disappointed some versus expectations before last week but i think could be enough. >> what the results of the stress tests, what it tells you for deutsche bank is that they

have plenty of capital on the books. the fed said that there were material weaknesses in the capital planning process. they talked about issues with internal function which includes risk management. it was not a surprise, the fact that the issues really points to do process, and not something that is balance sheets related, that should quell concerns. ♪ >> italy's new prime minister has negotiated a package of measures at the eu summit to stem the flow of migrants in to europe and to spread the burden of handling arrivals. >> two main points is that european leaders will agree to create migrant control camps. or centers, as they like to call it essentially, to vet migrants. qualify professionally for asylum would be allowed to stay, and those who don't, will be sent back to their home country. and to a reference that was key to the italian government if a , country feels overwhelmed by the flow of migrants, the rest will have to contribute and distribute the quota.

the problem now is when you look at the fine print, it looks like a classic fudge from brussels. it is voluntary, not enforceable by law. it is unclear which country if any at all the volunteer. jonathan: this morning, axios reported that the president is set to withdraw from the wto. >> we heard from secretary steven mnuchin, who is a globalist on trump's team, who said that it is an exaggeration, that there are no plans. it would take an act of congress to withdraw from the wto. trump could give notice to the wto to withdraw, but the actual legislation that back set up is in congress's purview, and he would need congress to formally withdraw. but when he pulls out of agreements, such as the paris climate agreement, u.n. human rights council, it sends a sign that he may be about trying to pull out of this agreement.

taylor: still ahead, as we review the week on "bloomberg best," a conversation with ray dalio at the aspen ideas festival. plus, frank talk from industry leaders at the world gas conference. and up next we will get more of , the week's top business headlines including canada, just , one of the country's setting up a strategy to deal with the trade war. >> canada has no choice but to retaliate with a measured, perfectly reciprocal dollar-for-dollar response. taylor: this is bloomberg. ♪ ♪

taylor: this is "bloomberg best." i'm taylor riggs. let's continue our global tour of the weeks top business stories with an exclusive from the u.k. two years after brexit voted to

leave the european union, are reporting revealed that some hedge funds make huge profits from foreign exchange turmoil on the night of the vote. let's call it "brexit's big short." >> a bloomberg investigation has found that hedge funds hired polling companies who sold them critical advance information on the e.u. referendum, including data which would have been illegal for them to give to the wider public. this allowed some of them to earn fortunes by shortselling the british pound on the night of the brexit vote. we have been looking into these relationships for seven months, what are the most surprising things you found? >> oh my gosh, so many things. just on the surface, the fact that these relationships existed. there were sort of some generic references to the run-up to the vote, that hedge funds were looking at hiring pollsters to do some things, but the depth of the relationships in the days before the vote and on the day of the referendum were pretty shocking. we had no idea that people were

curating the democratic conversation about the vote were on an undisclosed basis working for hedge funds with major stakes in one side or the other or were betting on how the market was moving based on polling data. the secret relationships existed without anybody really knowing specifically what they were, or the depths of those relationships. >> the e.u. split without a deal, over $100 trillion of derivativess contracts and insurance liabilities could go on serviced. best on serviced. that is the word of mark carney, the governor of the bank of england. there could be havoc and this is not dealt with, yes? >> yes, it is a strong warning for the european union that they need to put their house in order about this derivatives issue. mark: what was the general tone via the financial stability review report? what was the overall tone today? >> i think there is recently saying, that without exit,

things are pretty silent. that is where most of the risk comes from, the biggest domestic risk. vonnie: the u.s. supreme court as upholding president trump's travel been in a 5-4 vote, giving trump legal victory on an issue that helped define his presidency. >> the supreme court did allow the administration to continue to enforce the travel ban, which currently prohibits entry from seven countries. it is important to know that the supreme court did not accept the trump administration's suggestion that they should ignore the president's comments, which suggested that the ban had been adopted for anti-muslim purposes. instead, the court says that when you look at those comments, and you look at the national security justification that the trump administration put forth, on balance, the administration can go ahead and enforced the ban, and it violate the -- it does not violate the constitution's prohibition

against favoring one religion. david: the supreme court today could end its term with a bang, ruling that the practice of requiring public employees to pay union do's, "violates the amendment and cannot continue." the dissent said it would "alter the relationships of public employees and their employers in unexpected ways." >> this is a significant whack and how big labor camp allocate funds to fund themselves. just at the supreme court ruling, this overturns the decision from back several years ago, and according this supreme court ruling, they said that decision had "led to practical problems and abuse, it is inconsistent with other first amendment cases." this, of course, being written by justice alito, who delivered the opinion of the court. i do want to note the political implications here because this was a 5-4 decision. and judge neil gorsuch, who was, off course, appointed by president donald trump, the conservative justice on the

court, really tilting the court in the conservative favor. in this decision and the decision yesterday on immigration. >> the u.s. has said to be pushing allies to end all imports of iranian oil. crude jumped on the news, that there will be no discussion of waivers or extensions before the november 4 deadline. how much more pressure is are going to be on the price of oil, given the u.s. rhetoric on iran? >> i think there will be a lot of upward pressure on oil. right now, there is a little bit of overhang in the atlantic basin, which we are clearing off. because we had really high u.s. exports in the past. once that clears up, substantial upward pressure. there was no reason why oil could not trade into $90 a barrel a year and, given the volume of oil we are talking about that could be lost. >> the chinese renminbi is in focus today. what happened was the central bank extended the strengthening

buying, fixing its currency. stronger than the level many traders expected. and there is pressure building on chinese authorities to support the renminbi. and perhaps avoid the grand champion, was that the moniker? grand master? >> certainly, coming at a difficult time, david. as the trade talks or lack of trade talks go on, you have the currency coming off the weight that it is, all of those tensions and suspicions that mr. trump had. the critical question becomes at what point is a policy decision to allow currency to weaken even further? or whether or not they step into put a floor under it? do they weaponize it as they do with trade in the u.s., or do they keep it stable? certainly, the risk is that they might weaponize the yuan, and it would risk significant volatility for themselves as well. shery: we now expect president trump to meet with the russian president, vladimir putin, this summer. do we know at this point what they expect to discuss?

>> vice president mike pence told us in an exclusive interview last night, that they will talk about russian election meddling again. the president has raised that in previous meetings, he says, but he has received assurances by vladimir putin that the kremlin was not involved. so, we will see if the president indeed brings up election meddling again in this summit in july. the u.s. intelligence committee has warned that they think the russians will probably try to interfere in the midterm elections again, and that our elections are not really properly safeguarded against that activity. shery: canada pushing back against protectionist policies with a lift on their own tariffs president trump's northern neighbor has released a list of $12.6 billion of u.s. exports. >> canada has no choice but to retaliate with a measured, perfectly reciprocal, dollar for dollar response.

shery: from the canadian foreign minister, targeting u.s. exports such as metals, chocolate, dishwashers, saying that canada will not escalate on the tariff dispute, but say they have no choice. david: from the canadian point of view, is it a popular move? >> very popular. all the polls show that everyone wants justin trudeau to fight back. you can imagine polls also show donald trump is not particularly popular in canada, but there are fears to what it could lead to if it escalates. that gets to a where the economy point in canada could take a hit, that support would fall. but right now, at least in principle, people like the idea of retaliating. ♪

♪ shery: billionaire investor ray dalio is reportedly taking a

step back from bridgewater associates, telling clients that they could go towards a partnership model. what could that look like? >> well, this is something that ray has been working on for the last 10 years. he has been stepping away solely from the business. -- slowly from the business. this is a next step in that. other people will have more control of what goes on inside the firm. taylor: bridgewater's ray dalio is one of wall street's most outspoken figures. always ready to offer insight into the markets, politics, and policy. he spoke with bloomberg's erik schatzker this week at the aspen ideas festival. erik: risk in the financial system today, the risks to investors, people with capital are different than they were , clearly, in 2007-2008. what would you say are the principal risks? in order of importance. ray: ok. as far as the debt crisis, we calculated that we would have a debt rollover crisis.

and we don't have that. but we have a situation in which the number of ious that we have, in terms of not only debt, but so one.are, pensions, are a lot. so, there are more ious than can be dealt with, and that is a problem. as we sell more bonds into the market, because we are and the process of a larger deficit, and running down the balance sheet, that is supply and demand. i would say, let's say if i take , three things, in terms of what i would say are the three most important issues of our time, other than the cycle, how we deal with the next downturn, i would take a second on that downturn -- if you have a downturn and we are so much at odds, i think it will be a difficult time. i think you can get more political polarity. the left could be more extreme, the right, even more extreme. so i am worried about that. but the longer-term, the three

things would be, how well does capitalism get reformed, in a way where it is working for the majority of people? erik: more people feel like they are benefiting were invested in it? ray: that's right. in a way, it creates incentives that pay for themselves. i am not talking about just social programs. i am talking about enabling and empowering people. we have to deal with that. number two issue, not in order of priority, is the relationship between the united states and china, and then of course, other countries, as we come into a rivalry. how is that rivalry handled? will that be handled peacefully, or will it be antagonisticly? and then the third thing, is big data and artificial intelligence. so when we look at the world

five to 10 years from now, and that is not so far, i think we're going to see a world that will be very different, depending on how we handle the world in terms of data and artificial intelligence, how we use it, it will be a different world. the world in terms of that conflict or competition with china will be a very big deal. and then that issue of whether we can operate as a country, as a whole, in which we don't have the factionalism where we are united among common principles and pull together to be effective, those will be the three things. taylor: up next, more of this week's compelling conversations. energy executives from around the world discuss how a trade war would hit their business. and two heads of government speak exclusively with bloomberg. malaysia's prime minister pulls no punches in describing donald trump. >> he is mercurial in that he changes his mind every 24 hours.

taylor: this is bloomberg. ♪ what's a gig of data?

well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today.

taylor: welcome back to "bloomberg best." i am taylor riggs. the energy sector had plenty on its mind dealing with new opec output levels, the prospect of further sanctions on iran, and trade tensions between the u.s. and china. alix steel was in washington for the global gas conference and spoke with several industry leaders about their concerns starting with the conoco phillips chairman. alix: trade impacts between u.s. and china, u.s. and the rest of the world, how does it affect your business? >> we are watching it closely, and hopefully it does not escalate into a large-scale

trade war. that's not good for the world. when you boil it down to our business, it is the aluminum and steel tariffs that are placed on some of those products. for our company not having a huge impact in 2018, but if it is persistent in the next couple of years, the cost of that steel is rising. it has a material impact on the company going forward. we use the steel in the tubing that we put in the ground and casing that we put in the ground, the pipelines we run across the surface to move product. in the long haul, it will have an effect but not so much today. we hope it gets solved in the near term so it does not have a material impact. alix: what about the demand side? china buying oil, starting to buy more oil for the u.s., would you be worried? >> some of our export volumes have made their way to china. to the refineries on the chinese coast.

today, we have not seen a large impact on demand but we will see what happens if they place a tariff on the liquid side of it. the market will rebalance itself and we will send volumes, maybe not so much to asia, but more to rotterdam, south america. the lng side will be different, all eyes are upon that. today, as i understand it, it is exempted so far. a lot of our natural gas in the u.s. is finding its way to asia, to meet their growing demands. we are watching that closely. some of our gas makes it to the export channel as well. we are hopeful that will get solved as we go through this. alix: what would you have to see to start making different business decisions? >> the longevity, how long will we think it will persist and in the shorter market. we are used to volatility in the

short-term market, and it is trying to make the assessment over the medium-term and long-term that will drive capital allocation decisions within our company and changes to where we are investing and the mix of oil and gas that we are investing in. largely, today, the gas production is rising pretty well in the u.s. and will continue to do that. we will have to find outlets. if it is not china, it will have to be europe, the backstop, and to places in south america and other places that need lng. alix: if china has a reaction to buying u.s. lng, what kind of opportunity does that create for you in china? >> it is important we leave lng energy out of the trade war, if it is called a trade war. for us, it's important that people can get access to clean energy, and gas is the cleanest energy available. in the fossil fuel arena.

alix: so far, it is left out. if it gets in? what opportunity does that create? >> my advice would be to leave it out, it would make us more competitive and make the u.s. less competitive. if that is the case but we think the demand needs everybody to be a part of that energy mix. qatar is the largest energy supplier. we have announced we will grow our lng business from 77 million to 100 million very soon. there is big growth. we are investing in the u.s. to have additional lng. alix: aggressive growth plans, a report today said the u.s. could become the biggest supplier if their projects come online. if that happens, do you have to produce more, do you have to discount lng? do you have to get more price competitive in asia? >> what is happening, if you look at the growth around the

world and the requirement for the cleanest fossil fuel, gas, china, india, growing countries, europe, there is need for everybody to produce more gas to cope with requirements for the future. enough to go around and we need everybody to grow and have a good supply to cater to the demand everywhere in the world. alix: where does all of your natural gas go? >> recently, all of it has been going to asia and more specifically into china. alix: when you hear headlines about trade wars, back-and-forth between the u.s. and china, how do you think about that? >> i focus on our customer. we keep in close contact. we sent about 50 tankers to china recently. they need us, and we need them. we try to keep the politics out

of it. alix: do you feel there is any circumstance where you would start to question lng going to china? >> it would be hard for us. as you know, we have a very diversified customer base. when i look at the grand scheme of things, with over 30 million tons, 1 million to 1.4 million tons destined for china for the next 25 years. it's a very small position we have. i am not worried from a country risk perspective about china or asia. alix: the malaysian prime minister is changing the rules when it comes to the country's foreign-policy. he is reopening a five decade dispute with singapore over the price of water, investigating the terms of contracts with china, and he is not shy about expressing his opinion of donald trump. we sat down with him this week

for an exclusive interview. >> every country should not try to dominate the whole world. i think the wealth of the world should be shared. >> your personal thoughts on president trump? >> i have already said that he is mercurial in that he changes his mind within 24 hours, plus, meet with president kim, he does not want to meet, he thinks president kim is a great person to do business with. >> can you trust a man who changes his mind about issues and policies every other day? >> when you have a man like that, you need to be cautious. you need to know whether this is

for real or not. >> how would you deal with a man like president trump? >> like any normal person, because nobody in this world is perfect. everybody has weaknesses. we have to deal with them. knowing their weaknesses and their strengths. >> do you think the world order would change with a leader like trump? has it changed? we seem to have issues with nafta, now tensions between the u.s. and china, trade. are you concerned we will turn around and make a trade issue with malaysia? >> if there is a good proposal, why not? it must be balanced. i do not believe in absolute free trade because when the competition is between the weak and strong, you need to have some protection for the weak.

taylor: the prime minister of greece took over in 2015, challenging brussels and berlin over his nation's debt load. three years later, the nation has met the demand of creditors and cleared the way to exit its bailout program. bloomberg editor in chief john mickelthwait sat down with him for an exclusive conversation about greece's economic outlook. >> the most important thing today is that this is the end of uncertainty for greece, and greece is coming back. at the same time, austerity comes to an end in greece. based on the 2019 forecast, 2021 and 2022, we have fiscal margins above our obligation of 3.5% of the primary surplus between 2019 and 2022. the important thing about the end of this program is that the greek government commit to these

goals and other responsibilities go to ourselves. >> the other thing that has happened recently is the s&p last night upgraded your debt rating. are you likely to issue more debt, more bonds, because of that, and when would you do it? [speaking greek] >> i believe the coming period will be very good news for the greek economy. yesterday, we had the upgrade showing a positive way in which the euro group decision had been received by the investment community. i think the biggest success for greece is that it managed within relatively short period to implement so many important structural reforms. we believe we will not only reach the program goals but also have the fiscal ability to

lighten the burden and heal some of the wounds from the last eight years. i am optimistic the international investment community will respond positively. we have already seen we have downward trend in 10 year bonds. the fact that loans will be paid back after 2032 gives some stability and certainty to investors to invest in greece. this is what we need now. ♪

taylor: you are watching "bloomberg best." i am taylor riggs. let's resume our roundup of this week's top business stories.

starting with an iconic american company that announced a plan to cope with impending tariffs. david: president trump's trade war is rippling back to american companies. harley davidson announced it has moved production out of the united states in response to retaliatory eu tariffs. what is going on? is this really because of eu tariffs? >> that's what they are saying. tariffs for harley davidson go up from 6% to 31% and they say that will add a cost of $2200 per bike. they are taking this seriously, talking about reassigning production to locations outside of the u.s. alix: companies starting to detail the impact the tariffs will have on their business, harley davidson said they will shift production out of the u.s. president trump said the company should be patient and this morning tweeting saying that harley davidson said they would move much of the plant operations in kansas city to thailand, long before tariffs were announced, hence they were

just using trade war as an excuse, shows how unbalanced and unfair trade is but we will fix it. who will be after harley davidson? >> this episode shows that, in the trump administration, you can go from poster child to piranha in a new york minute. depending upon what your reactions are. in many ways, what we have seen hours, these 24-48 are just the canaries in the coal mine for what is going to be a slew of other corporate actors following suit. >> general motors in the past few minutes announced it could cut u.s. jobs because of auto import tariffs. gm is not talking about specific tariffs. is it talking about the eu, is it talking about canada, all of it? >> they are talking about the investigation that would slap

potentially big tariffs on imported vehicles. gm does not like where this is going. they import a few cars from europe, a little bit from china, quite a bit from mexico. what they are saying is if you start taxing vehicles, you are basically going to reduce auto sales, reduce jobs. >> uber was given a 15-month license to operate in london by a judge after working out most of its differences with regulators. 15 months is a lot shorter than the five years they were hoping for. >> shorter than the 18 months they were applying for. let's talk about this because it is more of a probationary. >> exactly, they have 15 months to make good or continue making good on promises they have said they will make. behaving better and reporting crimes and offering other changes. it is a 15-month period that they just have to keep going,

keep doing the right thing, and eventually reapply for another license in 15 months. hopefully they will get it without having to go to court. >> battle control for fox entertainment assets, latest round going to disney with antitrust regulators approving a $71 billion bid, raising hurdles for potential rival comcast. disney got the department of justice's vote of approval but still have to jump through some hoops. >> right, a big win for disney, especially in light of what at&t had to do to buy time warner, basically challenging the justice department in court and win. having this approval so relatively soon in the process is good news for disney. the one condition, they have to sell fox's regional sports networks, local cable channels tied to teams like the new york yankees, basically have approval for everything else. consolidation in the movie business and tv business. definitly a victory so far.

david: the supreme court handed down its decision, american express antitrust case, ruling the card company did not violate the law by prohibiting merchants from directing customers to other cards with lower fees. what was the basis of this ruling go -- ruling? >> they looked at the market definition and said you have to define a market and show that american express has market power in the market and has been restrained in that market. they saw this as one single market for transaction, rather than a merchant side and a cardholder side, they said this is one transaction. if you look at the transaction as a whole, even if merchant fees have also gone up, benefits to consumers have gone up and has to get that essentially but they did not show that. a second government loss in a month in a vertical deal, and at&t-time warner, alleging a vertical merger and now a vertical restraint. and the court said in both cases this will be a higher bar to prove there has been an anticompetitive effect, where it is a vertical issue.

>> shakeup at hsbc, the biggest bank in europe announced it is hiring former rbs financial director to succeed ian mccain. is it a good hire? >> i think it is. he came across after four years at rbs, four years of losses, fines, getting involved in scandals. not behaving as they should towards their customers but he came out with a good reputation. as cfo, they have returned to public ownership, the government still owned a 70% stake until a couple of weeks ago. the person he is replacing has a good reputation. he had been there for 11 years and was considered for the coo job. this will not change the direction of the bank, hsbc will keep doing what it has done but the people i have spoken to think it is a good move. francine: xiaomi has raised a

$4.7 billion in the hong kong ipo. that is according to bloomberg sources. the beijing-based smartphone maker priced shares at 17 hong kong dollars each, the lower end of the market range. separate sources say george soros and a chinese company are among investors that placed the orders. how does this match expectations we had? >> originally, sources told us they were targeting a valuation of $100 billion and ended up getting about half of that valuation, $54 billion, the reasons complex. one, the markets are certainly rocky, the trade tensions have been challenging. they wanted to raise some money out of the mainland domestic market through the china depository receipts which did not work out partly because regulations are complicated. no company has done that so far. they were not able to pursue that at the same time they did the hong kong ipo.

the fundamental reason is they never really persuaded investors that they are more than a smart phone company. >> apple and samsung have reached a settlement in the u.s. patent battle, ending a seven-year fight over smartphone design. what a saga. was this kind of exhaustion? >> someone told me the only people who won were the lawyers with all the legal fees. apple got what they wanted, the courts to side with them on patents and it is good in from -- motivation for an innovative technology company like apple because it confirms to than the patent system works, why they are doing what they are doing. they got $.5 billion out of it, not much money for them. samsung does not have to fight anymore. some people say the designs are cooler than apple's at this point. it is pointless to continue this fight. >> amazon agrees to buy an online pharmacy in a deal that will further push it into the

health care sector. we don't have a lot of details on the deal. the company is privately held. we thought amazon would go into the pharmacy or drug distribution business. >> until today, the one thing you could buy at cvs that you cannot buy on amazon is prescription drugs. it right now, that is quick to no longer be the case. investors saying amazon getting into health care. that is the one thing walgreens and cvs had over them, and that is going to be no longer the case. this is a huge deal for the companies. vonnie: bj's wholesale has opened, trading at $21.11. a nice premium on the opening two trades. >> they sold shares at $17 apiece, on top of the range. they were taken private in 2011 by cbc capital partners, now coming public once again.

seeing the strong demand, stock already got a buy rating, saying this is good value, particularly compared to other types of grocery related chains. that wholesale club model offers more value. ♪

>> and there is one feature on the bloomberg we would like to bring to your attention, use our interactive tv function, catch up on the conversation with catherine of fidelity investments. you can rewatch any of these interviews on the bloomberg function, the charts we talk about, join in by sending us is

-- instant messages during our shows. taylor: there are about 30,000 functions on the bloomberg, and we enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function that you will find useful. it leads you to quick takes where you can get important contexts and insights. here is a quick take from this week. >> sugar has always been me --at of a front of frenemie, but only in small doses, and with obesity on the rise, the bad image has grown much worse with added sugar blamed as a culprit. public health experts like tell distinguish between natural and added sugars. pound for pound, all sugar, whether glucose, fructose, a combination of the two is caloric late equal.

aloricly equal. limited sugars found in an apple come with nutrients and dietary fiber. fiber is filling and lowers the likelihood of overeating and helps pace liver function and avoid spikes in blood sugar. the world health organization recommends the average person eat at the very most 12 teaspoons of added sugar per day. you can find that amount in 15 ounces of coca-cola. how have advocates tried to help people cut back? governments in 30 countries and a handful of u.s. cities have started by treating sugar beverages like they do cigarettes or alcohol and taxing them. there are signs that taxes could be working. after mexico imposed a tax on sugary soda consumption drop of more than 7%. critics argue that disproportionately affects the poor and could lead to food and industry job loss. looking at mexico's tax again, we find that the wealthy paid the tax mostly while poor people cut back on soda. taylor: that was one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com with the business news and analysis 24 hours a

day. that is all for "bloomberg best." thank you for watching. i am taylor riggs. this is bloomberg. ♪

i am jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg real yield. coming up, wrapping up the first half with treasury closing down emerging-market assets facing down one of the worst quarters in almost three years. just how safe is the new safety trade? investors flocking towards leverage loans. can u.s. markets be coupled from the rest of the world?