♪ scarlet: coming up on "bloomberg best," the stories that shaped the week around the world. brexit plans move forward despite chaos in theresa may's cabinet. >> she is facing a life or death moment within the conservative party. >> the question now is what does europe think? scarlet: trade tensions ratchet up as u.s. and china tussle over tariffs. >> they described the latest move as a shocking. they say it is totally unacceptable. scarlet: earnings season rolls in with some of the big banks reporting results. >> jpmorgan came out with strong results, nothing missed. scarlet: opec issues its output outlook for 2019. canada's central bank announces a rate hike. fox and comcast keep stepping up the bidding for sky. >> the market thinks this

bidding contest is not over. >> it could go higher from here. scarlet: experts share their analysis of a turbulent global economy. >> because of changing policy, there is going to be stress on spreads. >> we are not complacent only risks. >> if we lose those animal spirits, we have an issue. scarlet: heavy hitters in tech and media weigh-in from sung valley. >> it has changed dramatically, the industry and it is not yet finished. >> what we're doing is disruptive at some level, but positive. >> it changed everything. amazon is changing everything. facebook and google. scarlet: it is all straight ahead on "bloomberg best." hello and welcome. i am scarlet fu. this is "bloomberg best," your weekly review of the most important analysis and interviews from bloomberg

television around the world. after a marathon meeting last week, theresa may announced her cabinet was finally united behind a plan for britain's divorce from the european union, but the solidarity didn't last through the weekend. francine: the u.k. brexit secretary david davis and his deputy have quit, plunging theresa may into a crisis. the resignations come two days after the prime minister announced she had secured cabinet backing for a plan to keep close ties with the european union after brexit, which a bloomberg source says davis could not support. is this a crisis or not? >> i think this is probably the worst crisis in the last year since she lost the general election, and a lot depends on the next few hours. the attention focuses on what will pro-brexit lawmakers do with this? -- and say may cap stay,

stay, that is a challenge. >> turmoil in the british government as foreign secretary boris johnson has resigned. it heightens the chance of a leadership challenge to prime minister theresa may. >> we do not agree on the best way of delivering our shared commitment to honor the result of the referendum. i want to recognize the work and similarly to recognize the passion that the foreign secretary demonstrated in promoting. >> order! this is an unseemly atmosphere. >> i think she thought she had a convincing script put in front of people. now, she faces these different dynamics and like the whole of brexit where you have to play to 10 different galleries at the same time, what has happened now is she is facing a life or death moment within the conservative party, and that will probably concentrate her mind on that and that may be the single thing that boris johnson and david davis wanted to achieve.

david: court of appeals judge brett kavanaugh is president trump's choice to succeed justice anthony kennedy on the supreme court, announced from the white house last night. give us a precis. he is well-known within the beltway and has a stellar career. >> extremely well credentialed. he is somebody any republican president would have considered nominating. his real forte has been administrative law, looking at federal statutes, deciding whether administrative agencies have gone beyond their power under these regulations. he has voted to strike down environmental regulations, voted to limit internet regulations and net neutrality rule from president obama's era, and has said the director of the consumer financial protection bureau should be fireable for any reason by the president, giving the president more control over those agencies. >> the trump administration has pushed ahead with plans to impose tariffs on an additional

$200 billion in chinese products by releasing a list of targets. this is an escalation of the trade war between the world's two largest economies. >> the details we have is this is a list of about 200 items. we are talking about a 10% duty being proposed on $200 billion worth of chinese goods ranging from electronics to textiles, clothing, leather goods. this is for the u.s. side about ip theft and forced transfer. you saw that again in a statement today. they said they are willing to talk to the chinese, but they are focused on trying to change the behavior of china when it comes to technology transfers and what they see as intellectual property theft, and this is punishment for that. david: give us a sense of the reaction from china. >> pretty strident. they described the latest move as shocking. they said it is totally unacceptable, and they accuse the u.s. of bullying and promise

to retaliate, as they always have promised throughout the trade dispute. david: president trump is meeting in brussels this hour with leaders of the other nato countries. things got off to a testy start when the president, first thing this morning, confronted the nato secretary general on the issue of german dependence on russian oil. president trump: germany is captive. >> even now in the meeting, he is tweeting about soybeans and how american farmers are up against terrible trade barriers with the rest of the world. he is not forgetting his base at home while here in europe. >> the whole issue of nato defense spending has been a long-standing one between the u.s. and nato, but trump is turning up the pressure and has singled out germany, the economic powerhouse in the nato alliance. people are saying behind the scenes that the private meetings are a little more calm, but on the surface, there is quite a bit of dissent.

>> crude oil is plunging the most in almost a year. the commodity falling midway through today's session. oil helped drive the bloomberg commodity index to its worst day in three years. what happened? >> the biggest thing was the tariffs and trade concerns. that dragged everything down. everything in commodities, concern about the economy, and if there is a weaker economy, you have less demand. i think the concern is wider repercussions, and if you have a bigger trade war, it hurts economic growth all over the place. it is not just in the u.s. or china. we import almost no oil from china. it is not a direct impact. it is a broader economic impact people are worried about. >> the nato summit in brussels wrapped up, and president trump reiterated the u.s. commitment to nato. president trump: we are very happy and have a very powerful, very strong nato, much stronger than it was two days ago. taylor: he is touting it as a complete victory, saying he extracted a firm commitment to

substantially increase the target to 2%, quicker than the 2024 deadline. he said countries will increase by $33 billion and even more will come, he says. he is looking forward to a 4% target in the future. mark: you have the controversy over brexit, theresa may announcing the plan to keep the u.k. closely tied to the eu single market with the free trade area for goods and services like banks could be cut loose. we had three pages a week ago, we have got 98 pages today. fill in the gaps. >> there aren't new headlines, really. nothing has particularly shifted from the highlights we got at the end of last week. it is the big items you mentioned, the free trade area comprising the u.k. and europe for goods, services, divergence, services including banks and telecom services, legal, that the u.k. can apparently strike

its own trade deals around the world. the city doesn't like it. they have said it is a big blow, this proposal. it will make it harder for banks in the city to do business across europe. the big question now is what does europe think? the government has been working on this for a very long time. the ball really is in the court of the european commission. francine: u.s. president donald trump has dealt a double blow to the prime minister theresa may on his first day of the visit. his comments on brexit are dominating the front pages, meanwhile protests are expected across britain as he visits. when he says, we may not get a u.s.-britain trade deal because of the kind of brexit they go for. is it going to be really the case, or is it just a comment? >> no, i don't think he has a particularly deep grasp of soft brexit versus hard brexit, but he likes to put the foreign leaders he deals with on edge a little when he meets with them.

there is kind of a broad -- i don't know if you are to call it a strategy -- a tactic i suppose, when he goes into meetings like this to make them a little uncomfortable. president trump: i don't know what they are going to do, but whatever you do is ok with me. that is your decision. whatever you are going to do is ok with us. just make sure we can trade together. that is all that matters. vonnie: jpmorgan kicking off bank earnings with a strong report. citigroup and wells fargo dealing with weaker than expected second-quarter earnings. >> jpmorgan came out with strong results. analysts saying nothing missed, maybe with the exception of one or two small items. i want to talk about citigroup because they were someone who did not have a great quarter. fixed-income trading was lower. they are talking a lot about not -- about there not being such great movement on spread product. wells fargo, not really having a good quarter. broad-based weakness, even worse than already low expectations.

mortgages falling by one third, fees dropping there. deposits are trending down, commercial real estate, where wells fargo in the u.s., is falling. consumer loans are lower. scarlet: still ahead as we review the week on "bloomberg best," former treasury secretary jack lew explains why he is worried about current u.s. fiscal policy. plus, tech and media titans speak their minds at sun media valley. more of the week's top business headlines, promotions at morgan stanley set the stage for ceo succession. >> there has been a great deal of elevations. it was well orchestrated. scarlet: this is bloomberg. ♪ ♪

scarlet: this is "bloomberg best." i am scarlet fu.

let's continue our global tour. we head to asia where fanfare surrounded the trading debut of xiaomi. >> trading debut, not the best opening day. investors questioning the valuation of the company and if it can evolve itself into a software services company. we have reversed losses, but not trading above the ipo price. what gives? >> we are expecting a weaker open and the pessimism that was surrounding this and also the investor concerns that this is a company that is a lower margin handset maker now. it is kind of selling a dream and facing the reality today. >> we are a new species. we are an internet company that can do e-commerce and hardware as well. i don't think there is anything like us in the market.

>> xiaomi's debut was a day to forget, falling in hong kong as an escalating trade war and uncertainty about valuation dampened the biggest offering in two years. >> this isn't great timing for the markets if you look at china and hong kong, both markets are down, and there are a lot of jitters about the trade war. taylor: it didn't take long for investors to change their mind about xiaomi. a day after its disappointing debut, shares rose by double digits. after monday's closed, it was announced that xiaomi would join the hang seng composite later this month. vonnie: tesla announced plans for a factory in china. the goal, to build 500,000 vehicles a year in that factory within two to three years. that is the goal. that was also the goal at fremont. we have not reached it. would it be easier to make that goal in china? >> hopefully, they would have learned about the problems they

had ramping up for model three. i think they will be starting fresh with producing the model three there, hopefully learning from that but also the model y, an important vehicle for them. it is the crossover equivalent of the model three. it will be a cheaper crossover, priced below the model x, and it is important for them to have that local manufacturing in china in order to have those vehicles priced more competitively. >> 21st century fox has increased its cash offer for sky to 14 pounds a share. it is an increase of around 12% on a rival bid from comcast. will comcast come back, or are we at the end of that story? >> i think sky investors expect comcast to come back. the share price is traded around 14.18 pounds, the market thinks this contest isn't over and comcast will come back and the price be pushed back higher. manus: comcast will have to want

to take on debt if they want to counter this bid, don't they? >> exactly, and this is where the two battles come into play. you have the wider battle between comcast and disney for fox, and that could be pushed ever higher. and the extent to which they did high in that contest could affect the other context could imply bidding higher for skype. the ceo has to make big decisions in what he will prioritize here and whether he wants to target cash. guy: comcast has raised its takeover bid for u.k. broadcaster sky to 26 billion pounds. america's largest cable company is offering 14.20 pounds per share. that is 5% above the proposal. how deep are murdoch's pockets? >> i think it is more of a question of how deep are disney's pockets? they have to get approval from disney every time they increase the offer. guy: how deep are disney's pockets? >> disney is a well-capitalized company. it could definitely go higher from here.

emily: twitter's efforts to weed out fake accounts are taking a toll on shares. the stock, falling almost most -- falling the most by march after a "the washington post" report of account suspensions has more than doubled since 2017. >> this amounts to a delayed overreaction to twitters disclosures. i reported two weeks ago they have been finding three times the amount of spam and automated accounts per week. that number has risen to 10 million. all of this is part of their ongoing efforts to root out manipulation. they have been under fire from congress for allowing fake and automated accounts to run rampant on its platform. the reaction from investors is quite misplaced since roooting out these accounts does not have much of an impact on monthly active users and their disclosure numbers is most accounts are dormant and aren't regular tweeters. that said, it is important to delete these accounts because many of the accounts we saw active during the 2016 campaign

were long dormant accounts that were then activated at key moments to cause manipulation and change the conversation on the platform. >> morgan stanley's ceo has indicated he plans to stay on several more years. he is removing senior executives in an effort to groom his successor. today, new moves were announced. what caught your eye? >> what caught my eye is ted tick, a 49-year-old rising star, he helped lead it into a number one equity shop. helping it surpass goldman sachs in stock trading and then he moved over to run bond trading and is now running all of banking and trading operations. separately, we have frank pettigaw, who is taking a greater control of international operations. he has been a long time in london, overseeing operations and cohead of investment bank.

there has been a great deal of elevations. it was very well orchestrated. a lot of people were brought up at the same time today, so a lot of people should be happy in times square. scarlet: pepsico came out with results that had an effect on the rest of the sector. it got another boost from its food operations last quarter. we saw strong sales helping the company beat bottom line estimates. beverage sales still struggling. sales down for a fourth straight quarter in north america. this is a consistent problem. >> it is. people turning away from soda, and coke finding their stride a little. coke is heavily tethered to the soda business. whereas pepsi has the frito-lay operation. coke has been spending a ton on advertising, but pepsi is falling into the second-place role there and having a harder time turning that business around. but thank goodness for frito-lay. scarlet: blackstone plans to raise its next global private equity fund three years after gathering $18 billion from investors. what does this say about where

blackstone sees the credit cycle and business cycle? >> it seems to be there is still a hearty appetite for private equity and alternative assets. blackstone had the record back in the day, $21.7 billion raised in 2007. that was bested last year. they raised 24.7 billion. we will see if blackstone tries to get more than that. they are aiming for more than $20 billion. scarlet: guggenheim, striking a deal to acquire a company, in an effort to bolster its restructuring and liability management practices. the financial terms were not disclosed, but it was announced the cofounder will join as cochairman of guggenheim securities. talk us through how this fits in with your view that we should be preparing for a downturn in the economy, a recession could be forthcoming next year or in 2020. >> in terms of our firm, it helps diversify the mix on the security side. we are representing disney in

the acquisition of fox. we have a lot of great m&a capability, but what happens if i am right and we ultimately do have a recession, and m&a falls off? and so being able to do , restructuring, the stuff that jim has made a name for is a great way to enhance our business and reduce the cyclicality. ♪ ♪

scarlet: you are watching "bloomberg best." i am scarlet fu. as if trade tensions weren't making investors anxious enough, the yield curve is under close watch as it continues to flatten, which has historically signaled the approach of recession.

former u.s. treasury secretary jack lew spoke exclusively with "bloomberg markets: asia" about the risks he sees ahead. jack: historically, the yield curve has been a very stable predictor. it has accurately predicted almost every downturn, and i don't believe it has had more than one false positive in terms of predicting a recession when there wasn't one. if you saw an inverted yield curve, you would see people getting quite nervous now. we are at a moment when, because of changing policies, there is going to be stress on spreads and it may not be a normal time in terms of the yield curve being the leading indicator, but i do think it warrants careful attention. it doesn't show a lot of confidence in the long-term when you don't see long-term rates starting to creep up when short-term rates are being forced up by changes in monetary policy. i think there is a lot of reason to be nervous about the economy.

obviously, we are in the ninth year of a recovery and will probably break a record. >> it is actually one of the longest. jack: i am proud the first seven years of it were on our watch. we did a lot to drive this recovery, and i hope it goes on. i don't see any reason it has to be stopped in its tracks. i look at the policies being put in place, and they are not friendly to continuing a long-term growth period. >> such as what? jack: i think trade policies are causing uncertainty that will be reflected in investment decisions, and it is going to put a drag on the economy in terms of higher prices and less open markets. i think the tax policies, which while they were cheered by the business community, is a little bit like pouring kerosene on a fire. there is a flare when you pour the kerosene, but then it burns off. the after effect of the tax cut will be trillions of dollars of debt. trillions of dollars of debt,

and i think that will be a burden on the economy as we are getting to the end of the economic cycle. i worry if we had an economic downturn that we don't have the fiscal arsenal that we should have to respond. you would want the federal government to be able to jump in like we did in 2008 and put a lot of fiscal measures into the economy to get it going. when we are adding literally $2 trillion to the debt over the next 10 years, it is going to put a lot of stress. i think it is going to be a problem driving interest rates up. it is going to have a drag effect on the economy, and in the downturn, it is going to be harder to respond. scarlet: coming up on "bloomberg best," more compelling conversations, including insight from philadelphia fed president patrick harper and ecb executive board member. and media moguls shared some of their thoughts. >> what we need to do is combine

and connect the data, technology, and creativity. scarlet: this is bloomberg. ♪ scarlet: this is bloomberg best.

global leaders in technology and media converged at the conference. bloomberg television was also there for in-depth conversations on the larger economic picture. let's start with this interview. >> it a traditional avatars of the industry. headed towards this meltdown we saw in the retail industry. >> i think we will see maybe even more speakers because there are such huge changes.

starting with the consumers. you always have to start with consumers. at the end of the day, everything we do is for consumers. when we look at their attitudes, the fact they are doing everything on the internet, the fact that they are doing everything with their mobile phones. this has changed dramatically. they are researching information and communication etc. will need -- the industry is not yet finished. what we need to do is to combine and connect the data, technology. not that easy because of the culture of people. and the fact we need to invest massively to transform the industry. >> you have some really

interesting people in, jeff bezos, warren buffett. potentially the two people who are doing the most to disrupt your industry and the industry -- health care industry more generally. what is the conversation like? >> well, i won't talk about things at the conference. i will tell you what they are doing is disruptive at some level, but i think it is positive. i think we need to look at how things are done, and they have a total of maybe a million and a half lives, which is not a huge number, but it's an opportunity to explore other ways to do things, as we do in our own business. we need to be supportive of that. i just view it as an opportunity. not an issue. >> so disruption is a force for good in the health care industry? >> it could be, yes. >> is the media industry too focused on content and not enough on distribution? >> you can't have one without the other. i mean both of those things are , really important. at&t and time warner is this combination of content and

distribution, and whether that deal is a good one or works out, i don't know. i think bringing in competition to the big internet players to the extent that it lets them be with the big internet players, that lets them be with everybody. >> do you think that is the real threat to the industry? the big internet players? >> yeah, absolutely. netflix changed everything. amazon is changing everything. facebook and google, those are massive threats to those businesses. >> in which case, we can look at the scaling up that's going on, the attempted scaling up on the part of comcast, as being a defensive measure, prophylactic against the netflix onslaught, or whatever is coming on. is scale alone going to be enough to protect them from that? >> i do think scale helps, but it has got to be product. i think one of the things that could come out of this, that i

think will come out of this comcast-disney-fox thing, is one controlling shareholder of hulu, and whoever the winner is, what content they put onto hulu could be interesting. if they put all the content on hulu and try to mount that asset as a real offense against those things. that could be very interesting. there's all kinds of ways this could be interesting. scarlet: guests on bloomberg television throughout the week had plenty to say about trade, monetary policy, and the state of markets around the world. let's revisit some of the most interesting conversations. caroline connan spoke exclusively with ecb executive board members. she asked how a trade war will affect the central bank's policy in the eurozone's economy. >> so far, the backdrop is very strong growth in the eurozone, resilience growth.

far, what we so have seen has the potential to derail the recovery. >> can the ecb just sit back and watch this trade war happening? >> well, we're never sitting back and watching. we have to understand what's going on, but so far we believe growth is strong enough. to withstand the shop. >> have you already seen some companies holding back investment because of these protectionist policies? >> that may happen. we're not complacent on the possible risks. a full-fledged trade war would be extremely bad for the world economy. starting with the u.s., by the way. the first victim would be u.s. jobs, u.s. workers, and we hope that doesn't happen. >> the ecb plans to exit qe by the end of the year. what could derail the plan? >> that is clearly our anticipation, but with that

said, that will be data dependent, as with everything we do. as we speak, mid july, i see no reason to change. >> with a growth rate of 3% or better in this quarter, the most recent quarter and this quarter as well, does that change your view of how many interest rate moves you need to make? >> at the beginning of the year, i had put in three for this year and three for next year. i have not moved off that, but i am open to a fourth increase this year if we see inflation start to accelerate. michael: let's talk about some of the risks. we were talking about trade wars. in your view, is what we have seen so far is serious part of the economy? -- threat to the economy. >> i think what we have seen so far, and with the presenters in the last session have discussed, and i think they said it's absolutely right, is we have seen concern. but the overall issue right now is not going to affect the

economy in a significant way, absent one fact. the actual numbers, if you run the numbers, the percentage of gdp as described in the last session is not a big number. however, if it affects confidence, then i'm worried. this is what, anecdotally, we are starting to hear a little bit. the ferns, not large firms, small and medium firms who are , looking at making investments are now saying at least through survey work and interviews, we may hold off on these and see how things shake out. if enough of that happens, if we lose that animal spirit, then i think we have an issue. again it is a self-fulfilling , prophecy. if everybody believes it is going to have a larger impact that it may in fact have, then it is going to have a larger impact. >> we have a lot of fiscal policy, a lot of fiscal stimulus. is that a good thing at the time -- at a time when the economy is growing at a strong pace?

>> i'm ecstatic about the return of fiscal policy as an active tool of macro management. the timing of it was miserable. we should have had fiscal policy, robustly expansionary early in the recovery. it was strictly a political decision on the part of the trump administration to go keynesian in the middle of an expasion. i don't think it makes sense to do it that way. i think it is giving us a grand experiment in running a hot economy. janet yellen talked about the benefits of running a hot economy. we're running a hot economy on the back of fiscal policy. but i'm not against it. but the big thing for me is that fiscal policy be ready, politically as well as economically, to be used in the next economic downturn.

i think as i look out , longer-term, the biggest risk i see to the fabric of our democracy is if we have to fight the next recession with monetary policy alone, because the consequences of having done it last time are not good. it has polarized our society. >> scott minor, the cio of guggenheim's investment division, says he believes the next recession is coming within the next two years. is that what your timeline is? >> i think it could be sooner. what you see the fed doing now is tightening monetary conditions, and in the postwar period, the stat is something like six out of the last eight tightening cycles have been followed within 18 months of a recession and slowdown of economic activity. because as money supply is constrained, it has an impact on the real economy. moreover, i think the uncertainty created by the

president's tariff initiative is likely to reduce business investment, increase costs to consumers and producers in the united states, and reduce the sales opportunities for u.s. producers. you're already seeing that, the harley move is a response to the possibility of increasing tariff wars, tariff levels both here and in europe. so the impact, the uncertainty this resort to tariffs as a tool of trade negotiations creates for businesses, and the increasing costs for consumers, is likely to see a slow down in demand. ♪ ♪

scarlet: you are watching

"bloomberg best." i'm scarlet fu. let's resume the roundup of the week's top business stories with a focus on politics and policy. turkish stocks continued to ride a roller coaster amid a slew of changes following the reelection of president erdogan. mark: executive president erdogan has issued a decree empowering him to name the head of the central bank and deputy governor, the latest change signaling his plans to follow through on a pledge to tighten his grip on monetary policy under the new executive presidency. we have also seen his son-in-law named as economy czar. can you walk me through how the changes work? what authority does he have? >> previously, the appointment of the central bank, even though erdogan was the supreme decision-maker, he would advise and consent. these decisions have to be made by the prime minister. sorry, the prime minister, the

deputy prime minister in charge of the economy, and then they had to be signed on by the cabinet. now, it is just erdogan, he does not have to get any compromise or advice. >> u.s. secretary of state mike pompeo has fired back on the north statement calling the american disarmament demand "gangster like." secretary pompeo: if those requests were gangster like, then the world is a gangster, because it was a unanimous decision of the un security council about what needs to be achieved. >> when pompeo was on his way to pyongyang, we had the impression that the u.s. was going to be asking to get some sort of flesh on the skeleton deal that was made in singapore. the thing is, it seems that the u.s. and north korea are talking past each other. the u.s. is talking about denuclearization, and they don't seem to be talking about peace

or the end of the korean war or north korean security, and those are the things that the north koreans are obsessed with, so this is where this cross talking is taking place. we just need to see how they sort it out. >> china's foreign currency holdings increased in june for the first time since march. the level right now $3.1 , trillion. key takeaways? >> released earlier than expected. increase of about 1.5 billion u.s. dollars from the month of may. the state administration for foreign exchange coming out saying they had stable cross-border flows, and the strength of the u.s. dollar was a factor as well in seeing a tick up in the fx reserves. of course there is this view , that as the trade war grinds on, the yuan will come under pressure, and policymakers will be resigned to using the fx reserves to support the currency. it seems like they have kept their powder dry, and capital controls remaining firmly in place for now.

>> german chancellor angela merkel meeting with china's prime minister today. they announced a number of agreements with chinese partners, including a plan for basf to open a second chemical complex in guangdong province. >> i think this is a very important milestone for the industry and the market, because so far until recently, it was restricted for a company to own more than 50%. we are now, as the sf, the first who can elaborate this opportunity, and we are very happy about this. i think it is a strong sign of trust. >> certainly, both china and germany are trying to keep the world trade arrangements that exist now up and running, but this relationship for china is no replacement for the united states. china ships nearly six times as much of its exports to the united states as it does to

germany, certainly not a replacement. for germany, the story is slightly different. in fact, germany exports almost as much as it does to china as it does to the u.s. it helps cushion any blow there more for germany than china. >> bloomberg's new energy finance minister showed a new mixed picture for global energy investment. solar power is falling, but commitments to wind power and energy smart technologies are running above last year. >> it has been an interesting year. typically, $300 billion any year goes to clean energy, and we think when all is said and done, we may end up in the same place, but the ratios have changed. a big part of that is that china is typically the largest market for solar, and right toward the end of the first half of the year, we saw a very important announcement that china is reducing its support for solar. that has caused us and others to reduce our forecast. meantime, in the u.s. in particular, we have seen an uptick in wind, in part because

wind projects are trying to get built before the step down of an existing substitute. that has been very helpful in terms of the amount, but it is frontloading investment that that might not otherwise have been spread out. we also see big announcements from big utilities doing wind at a bigger scale than before. >> opec released its monthly report, saying there is enough supply among non-opec nations to meet demand. what was your biggest take away? what does it mean for saudi arabia? >> i mean, i think it's a reinforcement of the idea that opec has been trying to get out there that there will not be a shortage. you have the big members saudi arabia and russia pledging to provide as many barrels as the market needs. this, to some extent, reinforces that idea that there is no need to panic, and there's no need to tweet anymore if you happen to be the u.s. president. >> the bank of canada sticking to its path to raising rates,

the central main -- bank raising its benchmarks rates of 1.5%, making it the fourth hike over the past 12 months. the canadian dollar pared sum of its earlier gains against the u.s. dollar. >> the options heading into the day really were one widely presumed option, which is a hike with a reiteration that future hikes will be gradual. the bank is trying to respond to an economy and stronger inflation by moving, but of course, trade risks are posing a headwind for them right now. and so, the pace of those hikes, the subsequent hikes, is the real question mark. they look to be gently pumping the brakes. they talk about being data driven, that's another way of saying they are taking trump more by what he does then what he says, and he says a lot. i guess it's their only option. >> switzerland's top prosecutor says malaysia's 1mdb was a ponzi scheme in which a

group of conspirators pocketed funds and bribed officials. authorities have been investigating how billions of dollars from the fund made its way into swiss banks. what are the swiss actually saying about what they discovered so far? >> the swiss have been investigating 1mdb for several years now, since about 2015, and the attorney general was in malaysia yesterday to speak to his counterpart. what they are saying, it was a ponzi scheme, where about $7 billion flowed from 1mdb into the global financial system for a period of about six years. and so they were looking at what , exactly was appropriated. >> zte taking another step toward escaping a u.s. ban from doing business even as tensions escalate. what do we know thus far? >> what we know is that zte has signed an agreement with the

commerce department in the u.s. to set up an escrow and start a payment, which is expected to happen in the next 24 hours. this is part of a fine of around $1.3 billion the u.s. came to with zte following the decision by president trump to overturn this deal, this block on zte for seven years on buying u.s. tech and semiconductors in particular. we're getting closer now to zte being back to full operation. they will then be able to buy most of those components from the u.s. side. scarlet: the justice department appealing the at&t-time warner merger decision. a washington judge had blocked the bid to block the deal. was this expected? it seems like this was done. >> it is absolutely not expected, this is a huge surprise. the justice department were not only blocked in their pursuit of

trying to stop at&t from getting a deal with time warner, but they were really smacked down by a judge who said they should never have run the case in the first place, in said he would be very opposed to them doing any kind of appeal. i think this is a huge surprise. if this happens and they are successful, you would see this huge, huge deal be unwound, which would be almost without precedent. >> deputy attorney general rod rosenstein announcing the indictment of 12 russian spies for the hacking of the 2016 election campaign. the deputy attorney general says the russians went after 5000 voters, and 12 russian spies will be charged in connection. does with this cast a shadow over the putin-trump summit? >> this is something people will be talking about through the next couple days, and a related question to that is why did the special counsel bring this indictment?

is he sending some sort of message? prosecutors have immense control over when they file charges, which charges they bring, and it is fair to ask whether robert mueller wants to send some sort of message. ♪ scarlet: julie observed that if

you go on the sqrt function on the bloomberg, they have the -- pepsi had the best one-day reaction to earnings of 4.8% since fourth quarter of 2007. >> recording of fourth quarter of 2007. so in february of 2008. it has been a while. >> it has been a long time, is a nice way of putting it. >> let's pop into the bloomberg and use the global commodity function here, glco. you can see it is a screen of red.

the energy complex is lower, metals are lower, agricultural is lower. scarlet: there are some 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television, in the hope they will become your favorite. here's what function you'll find useful, quic go. it will lead you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. >> cyber warfare is a cyber attack that has the backing of one nation with the intent of hurting another. >> it is using a computer, using hacking to accomplish something you ordinarily need a bomb or a gun to do. >> this takes on a lot of different forms. it could be infecting an enemy computer by holding it hostage with ransomware, disabling it with the flood of messages, known as a distributed denial of service attack, or with good old-fashioned malware like a virus. >> shutting off the power is a big one. shutting off services to hospitals, transportation networks.

so if you shut down rail services, shutdown port services. >> a number of countries, including the u.s., are known to have acted cyber warfare programs. but -- >> russia decided to really go on the offense and be noisy, making it known that they have these capabilities and are ready to use them. >> like causing two large-scale power outages in ukraine, or manipulating social media to sway election. >> the thing we have to learn more about is not the cyber warfare, but the information operations. that's what happened in 2016 in the u.s. >> attacks including information operations have grown by the thousands each year since 2006, and those are just the attacks we know about. >> i think there's a lot that happens in wartime that the general public is not aware of. we have no idea. we don't know how often they are used. 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 business news and analysis 24 hours a day. that does it for "bloomberg best" this week.

thank you so much for watching. i'm scarlet fu. this is bloomberg. ♪

coming up, the trade war, is it time to buy bonds. but are weter getting longer. a restart to crush or crack. start with the big issue, rising global trade.