shery: coming up on "bloomberg best" the stories that shaped the weekend business around the world. friends or foes? the lines blur as a trump/putin summit. >> we do not know exactly what was said between the two in that more than two hour sit down. >> you can't sit there with the president of russia and not more strongly defend the united states. shery: wall street dig into a feast of earnings reports and is officially the end of an era at goldman sachs. >> the secession played out so inelegantly. shery: the eu slaps a record-setting fine on google . comcast calls off it's chase at fox.

jay powell takes questions on capitol hill. >> he noted very little about the biggest issues chasing wall street. shery: trade tensions could be trouble for investors. >> clients are worsening the -- questioning the whole foundation of international investing and that is the foundation of globalization. shery: and donald trump's campaign manager claims of the media slanted against his candidate. >> their employees have bias. those decisions go into every line of code they write and everything they do. shery: all straight ahead on "bloomberg best" ♪ shery: hello and welcome, i'm shery ahn. this is "bloomberg best," from bloomberg television around the world. the week began with a summit meeting in finland between donald trump and vladimir putin.

after it concluded, the reaction was decidedly mixed. ♪ >> a good start in helsinki, that is how president trump described his meeting with vladimir putin, but members of his own party have different words for it. shameful, disgraceful, bizarre. flat out wrong. president trump sparked a republican backlash suggesting he equally trust vladimir putin and the intelligence agency. president trump: dan coats came to me and said they think it is russian. i have president putin who says it is not russia. >> we don't know what was said between them and that more than two hour sit down. that was just between them in a translator. but in the public press conference, we had some pretty interesting statements. putin admitted he wanted president trump to win the 2016 election. president trump had harsher criticism for the mueller probe

and the fbi than he did for putin and russia. >> president trump did not back off the u.s. opposition to the pipeline that he has been critical of with european allies and their relationship with russia. nor did he suggest there would be any easing of the sanctions for crimea and russia's annexation of that. which the u.s. position is that that was wrongly annexed. >> bank of america beating profit surge by the banks consumer unit which boasted its highest revenue in more than eight years. is it all about interest rates? >> it's all about interest rates, absolutely. people were worried about the flattening of the yield curve. and what that would mean for jpmorgan, bank of america. they are showing they are able to make money. they are showing the health of the u.s. consumer and that they are investing to gain shares. for bank of america, they also, even with an aggressive cost-cutting plan, said they would invest hundreds of millions of dollars into digital banking efforts. people are reacting pretty well to that today, even though net

interest income is shy of expectations. results this morning were next. -- mixed. ♪ shery: if you look at shares of goldman sachs, they are slumping today after the bank reported earnings in expensive and a drop of equity trading. this comes as goldman officially announces david solomon will be taking over as ceo in october, ending lloyd blankfein's 12-year run. >> with lloyd blankfein pushed out of goldman sachs? >> that's the overwhelming sense that people have. why? because the secession played out so inelegantly. goldman has been struggling in some areas. commodities and fixed income more broadly. it is overcapitalize and hasn't been able to grow revenue. been fixed income commodities and currencies. so, there is a sense that goldman needs to reinvent that business and more broadly reinvent the firm. and lloyd blankfein having been there for 12 years in the eyes of some people on the board and

at his age, may have run out of ideas for how to accelerate growth at goldman sachs and transform the firm as fast as some people feel it needs to be done. ♪ >> federal reserve chairman jay powell making it clear to congress he wants to stay in his lane and keep on the message of monetary policy. his message may have come with a caveat. jay powell said gradual rate hikes will continue for now. >> he is mostly concerned with the economy and not making waves for the markets. he noted very little about the biggest issues facing wall street and didn't say much about the yield curve other than they are watching it. a lot of talk about ranking -- banking regulation. the new bill that passed earlier this year that lightened some regulation on smaller banks, powell said they are trying to implement that as quickly and carefully as possible. he took some hits from elizabeth warren and other popular democrats for the stress test they conducted this year in

which morgan stanley and goldman sachs came up short but were allowed to pay out dividends anyway. at this point, it looks like he satisfied most of the critics on capitol hill without doing anything to really upset financial markets. ♪ >> a rare oval office about face. president trump reversing course after a summit with vladimir putin after intense outcry on capitol hill, including from some usual loyalist. he walked back some of his comments in helsinki. he now says he excepts the -- accepts the conclusion by u.s. intelligence agencies that russia interviewed in the 2016 presidential election. >> the president was definitely being given a message that you can't stand there with the president of russia and not more strongly defended the united states. so, we will see if this quells some of the outburst and opposition, but it was definitely as close as we get to

a public apology from president trump. ♪ >> morgan stanley beating expectations on the top and bottom line and reporting stronger than expected trading and fixed income revenue as well. you have to say they absolutely smashed it. >> yes, they did. you started with trading but i would like to start with the blowout in investment banking. specifically the underwriting side. you will see from the results that they blew it out of the park there. plus 34% in the new stocks field , category. in the bond yields category, plus 7% and that was over expectations for them to be a bit negative in those areas. trading was really great. increased 14%, driven by the strong morgan stanley equities franchise. >> google was fined $5 billion. change then order to way it puts certain apps on android devices.

it is a global record for antitrust penalties. >> it's a big fine. you want serious behavior changes. but when it is 90% of the market in terms of search, will it really make much of a market? >> the differences now, we have a choice. those who produce mobile phones for us, we can choose. if i would like to put and other operating system for those who are search rivals to google? they make it a fair chance to get to us as consumers to show their products. >> she did not actually say how google has to adhere to the ruling. she said that this is what you are doing is wrong. you will face a fine if you do not fix it. ultimately it is about contracts that they agree with the smartphone makers and it will be the new phones going forward. if you already have an android phone, it doesn't affected at all. it just means the new ones shipped, they have not done an agreement with the smartphone maker that they have to install

all of the suite of google apps. it is not something we will really see until the next generation of phones comes out perhaps later this year or next year. ♪ >> the pboc set a daily reference rates for the yuan , weaker than the dollar. china does seem like it is willing to tolerate greater volatility. >> what we are seeing now is very politically motivated. they are sending clear signals to america that they need to back up on these tarrifs. at the moment, there is a trade war going on and america is being brutally beaten in this. >> the mood music is different this time around compared to 2015 and 2016. remember the authorities still , have very firm capital controls in place. there is no sense of panic in terms of getting money out of the country. another point to remember is this is coming at a convenient time for china. the economy is slowing and they are facing a trade were. the yuan's slump could potentially offer a cushion for

growth going forward. ♪ >> comcast waves the white like, -- flag bowing out of the battle , for fox entertainment assets. they will focus instead on when -- winning control of sky. >> the question is will disney do the same thing and cede sky? to comcast as they just seated fox to disney. is there sort of a quid pro quo? we don't really know. disney has said they want the sky asset and comcast is very much in that business. it does strategically make more sense for comcast, but disney has said they want to be closer to the customer and have direct billing relationships with the customer. that is something sky provides. it is still a little bit of a tossup whether disney will stay in this or not your it. -- or not. ♪ >> the fed under fire from the oval office. president trump taking aim at the federal reserve chair that he appointed, criticizing jay powell's rate increases. now the white house is already backtracking this remark, saying

he is not interfering at that he -- and that he respects the independence of the u.s. central bank. does it matter the president said this? >> the reason this president doesn't talk about the fed is not about politeness or some sort of tradition. it can backfire are two reasons. one is people start to feel feel the fed is going to kowtow to the president and allow the economy to grow too fast, overheat, inflation to go up, interest rates will rise. the bond vigilantes will kick in and the rates will rise, which is what the president is not what. -- does not want. or, to show its independence it , will preemptively raise rates, either way the president is shooting himself in the foot. ♪ >> president trump ratcheting up tensions with foreign countries and the u.s. federal reserve bank. the president tweet this. "china, the european union and others have been the nebula in -- manipulating currencies and

interest rates lower will the u.s. is raising rates. the dollar gets stronger and stronger with each passing day, taking away our big competitive edge. as usual, not a level playing field." >> he wants the dollar lower. i don't think anybody believes donald trump is steeped into the mechanisms of currency markets. but that is therefore dangerous because other nations, if they take actions based on what they think is strategy may cause miscalculations. things can barrel out of hand. it is a very dangerous thing donald trump is doing, but ultimately he wants to see the dollar lower. ♪ shery: still ahead as we review the week on "bloomberg best," an exclusive conversation with blackrock's larry fink. who sees terrorists as a major threat to global markets. -- tariffs as a major threat. plus, aviation executives talk about trade, and the earnings drumbeat continues and a big miss for netflix is among the biggest headlines.

>> they missed by one million subscribers. that is quite a big number. shery: this is bloomberg. ♪ shery: this is "bloomberg best"

and i'm shery ahn. earnings season kicks into high gear this week. although deutsche bank won't release results until next week, the lender said monday it expects profits to beat analyst estimates by a wide margin. the announcement sent shares soaring and took pressure off the bank's new ceo. ♪ >> this is the news he has been waiting for. they need to move quickly. is the timeline sped up for deutsche bank or can he take a more responsible path up to 2020? >> there is still a lot of pressure on him despite the

surge today. they are still trading at a very low price. just over 10 euros now. it was about 12 euros when he took over in april. he is still overseeing a decline in share price and investors are still demanding a quick return to profitability. i think there is still a lot of pressure on him to perform and maybe certainly reach the target he unveiled when he took over. ♪ >> netflix shares have plunged after the company posted disappointing subscriber growth numbers for the second quarter. should we be worried? certainly, if you been invested in netflix, even not having sold your shares yesterday, you're doing great? >> its one quarter they missed. they have had a number of quarters where they had beaten. that is the natural flow of things. that is the argument netflix makes. equally, they missed by million subscribers. that's a big number. given this is netflix, they sort of say they can move subscriber

numbers in the direction they want. that has not quite worked. >> unilever expects sales growth to bounce back this year after missing analyst estimates in the first half. that is as truckers in brazil walked off of job. to protest rising fuel prices. >> the second half of the year we do believe there is a bit more pricing come in because it is relatively on the low side. that will obviously help. we have facing of initiatives coming for in the second half. we think of the guidance we have given to the markets to be between 3% and 5% range. we will hold that pattern. ♪ >> j&j shares up after second quarter was solid. the company did give full-year guidance below median analyst. plus, it had to trim the forecast for the drug sale revenue due to a stronger dollar. is that a trade war effect and how does that affect other parts of the business going forward? >> it is not attributable to the

trade war at all. i would say it is just the impact, the macro impact that we manage on operational sales performance. if you look across our business, our performance was very balanced no matter what region you specifically look at. domestically, we grew 9% outside the u.s. outside the u.s. on operational , basis it was 8%. so very strong. in terms of tariffs or any impact on our business right now, minimal at this point. >> s.a.p. raised its outlook for the year citing exhilarating business in the second quarter, the german software giant benefited from increased spending on business products. >> in a period of time where the there is growing uncertainty, companies across all industries are turning to software providers like sap to really help them weather the storms. become more efficient, to be able to have greater

transparency around their supply chains. and you see that from our results in the cloud business up 40% as well as the stronger resilient core license business we have which was up 3% as well. from that perspective, we believe we will do well for the remainder of the year despite any uncertainties that the macro environment might bring to us. >> keeping an eye on net income for the second quarter, 3.8% above estimate. you say your strategy is bearing fruit. just how good could this year be? >> i am satisfied. there are a lot of bright spots here. first of all, we can see underlined income now improving. which we have worked really hard on. and i think we continue to deliver on cost, the credit quality, capital, and also on compliance. so i think the key elements of delivering on our in place. i think we can continue. >> microsoft reported strong

fourth-quarter sales as the cloud-fueled turnaround kept on going. sales and profit got a boost from customers signing up for more internet-based storage, processing, and office software. talk to us about the cloud. it looks like everything firing on all cylinders. >> absolutely. not just in the infrastructure side, but applications. even on premise products, so we are seeing enterprise tech spending is strong. it is very strong. when you look at someone like microsoft, we saw commercial pc numbers accelerate which we would not expect in this day and age. you could say broad-based id spending and microsoft group 15% -- grew 15% in constant currency, that is two times the total software market. these guys, they know what they're doing. ge delivered, beating estimates for the second straight quarter. strong demand for aviation and

health care equipment. that helped boost results. what was your biggest take away? >> it looked like a decent clean quarter, which is not always the case with ge so there was some sigh of relief there. they didn't cut numbers which is surprising to me because they only done about $.35 and the first half and are looking at a buck for the year. we are looking for cost reduction, stability and power, that didn't happen yet. not a surprise. and health care and aviation will just keep carrying them. >> the big point to focus on is cash flow. and on that front ge cut its , annual guidance for 2018 because they came up short in the second quarter. looking at -$1.4 billion in adjusted industrial cash flow for the first half of the year. ge tends to be backend waited when it comes to producing cash flow. just the nature of its business. but this sets up a steep hurdle for it to clear in the back half of the year and that is exactly the situation the company found themselves in last year when ceo john flannery had to cut dividends. ♪ shery: you're watching

"bloomberg best," i'm shery ahn. blackrock recorded second quarter earnings that the -- beat estimates. but the world's largest asset manager saw outflows and lowering inflows into these exchange traded funds. in an exclusive interview, they ceo larry fink told us they are seeing a shift in client behavior. >> we saw clients worldwide pause. we saw clients confused as to what direction the markets will go. >> this is what they're telling you? >> absolutely. i'm traveling everywhere. clients are questioning the whole foundation of international investing and that

is the foundation of globalization. as we start entering the conversation about trade and tariffs, we are seeing clients pull back a little bit. we are waiting to see how does this play out? the backdrop is we have very strong earnings. first quarter, we saw strong earnings throughout the s&p. we believe we will see strong earnings in the second order. we are going at a rate of $800 billion worth of stock repurchases. we have record amount of m&a. the backdrop is we are shrinking the amount of equities. we have record earnings in -- and yet markets are , essentially unchanged. >> does that surprise you? >> absolutely. if you asked me if we would have record amount of m&a and earnings and stock repurchases, i would have said the market would be up 10% to 12%. markets are essentially flat. if you strip out --

>> instead of the s&p 500, it would be more like 3100? >> yes. more importantly if you strip , out the seven major tech stocks that have done really well the breath is really poor. , we are seeing evidence of that. let's go deep into the flows, because the flows, the overall macro number doesn't tell you what was going on. we saw a lot of churn in the index equity business. that is where we saw outflows. we had about $13 billion of outflows in that area. very low fee. we saw investors pull out of what i would say emerging markets and other areas. i need to remind you, cash for the first time since 2008 is earning you a return. you are earning two plus -- >> why is that important? you could cause and earn money. >> people can afford to wait? >> you can afford to wait. this is a huge change in the marketplace in the last nine years. people have forgotten about that. you are earning 2.5% on a money

market fund, similar to the five-year treasury. you could pause. by the way, equities are not up 2.5% so you could be earning money in cash and pausing. let me get back to the flow. >> hang on a should people be second. pausing? does that seem like a wise, smart thing to do right now? >> it depends. if your horizon is the next five years, it is good to pause. if you're focusing on retirement and pension fund you , should never pause, you should continue to invest. it depends on the time horizon. ♪ shery: coming up on "bloomberg best," more of the weeks top business stories. the sec questions a media merger and japan signs a trade deal with the eu. plus, more of the week's most compelling conversations. donald trump's 2020 campaign manager speaks exclusively with bloomberg and says social media didn't put the president in the

white house. >> when president trump won, facebook is .1% that deliver his message. shery: this is bloomberg. ♪

leaders in global aviation came together this week at -- international. other manufacturers announced major deals with airlines. -- on the brexit proposal. sky johnson was there and spoke with several top executives, starting with boeing ceo --. >> aerospace is growing. it is a positive trade policy. some things that have happened

in the demo the administration, regulatory reforms and added momentum. their concern about some of the discussions right now around trade. our aerospace business thrives on global trade. we will find solutions as alternatives and tariff discussions that have been going on. >> when you talk to the white house talk to the present, without a feedback do you get? what is he saying to you? >> the of a sea of the table. global trade is a complex topic. we understand there's issues that need to be addressed. to the will the back idea aerospace to summon the contributes to growth in multiple countries around the world. the u.s. china trade relationships for example, china needs the flux capacity of aerospace. aerospace, u.s. and

it is the biggest trade surplus generator. last year the -- billing dollar trade in the u.s.. there's a lot going on our supply train. aerospace is uniquely suited to help grow economies run the world. bewe think we continue to international in the u.s. in the americas, and europe, and asia, and china. it is a very infinite supply chain. we buy in the u.s. and sell in the u.s.. we want to keep going in that direction. we continue leading people and nations as a business with more as a business. two international level of discussion. >> your supply chain is critical to what you do. as a to feel pressure coming

through. are they guessing the things that they need. > there is a whole -- supply chain. -- 50is a production rate to 60 of the more on the next step. is linked to trade. there -- these are the problems of growth that we like to manage. our number one priority from the brexit association was retaining our membership in the aviation. based here in europe in the second is in the u.s.. we have a significant role and influence in that european agency. it, it ising part of crucial.

>> there are other voices over the last few weeks have been there are particular some on the front pages. surrounding the direction of .ravel that brexit was taken why did it take so long for the injury to step up and make its voice heard or of a simply waiting for them to insert themselves. we have a making this point very clearly and concisely. privately during the course of the last 18 months. us but there is a range of industrial players a public statement of their concerns. that we hope, pushing the prime minister to make the key decisions around what the future relationship should look like. and also recognizing that we needed that free trade area in order to inshore that as a european industry, we've not put

a competitive disadvantage. >> let's revisit another bloomberg exclusive. scout, hen abroad par said that even though spending on target facebook ads held trump to victory in 2016, he is not sure killer pizza strategy the next election. >> some days i wake up and facebook, twitter, google, all of them will not play fairly. maybe they decide they want to make the api harder. now, they used to that we could put in at up in a few seconds and now takes a couple of days. it's hard to put up millions of ads. >> and you recently met with them? >> i went straight at them and

said that this is the kind of change that is biased towards us. understanding how technology works, you created the role where it is difficult for us to use that. that is frustrating. maybe they do take it away from us. i like we will take it away for us to get done. he more popular than you was on election day but the most popular republican president in modern history. it's ironic you're frustrated by facebook given that some people believe facebook critical role in winning the election. not onlyk facebook has one of a lot of ways, but when president trump one, the .1% deliver the message. if it didn't exist to be a lot tougher. facebook connected the country. there were times of backgrounds,

and is due to exactly what is designed to do. i think facebook also is a liberal company that maybe it's management is an, but it is based on a place that is extremely biased. i can see today, going to california -- their employees have biased. those conditions -- petitions go to code they write. they going try to kill. i think they are all trying to kill it. the question you're asking me is whether they can crush that. i.s. --they inherit bias. ande a leader in our party run a campaign, make sure those companies are held accountable and do everything they can to kill in turner biases. biases.nal

>> you are watching bloomberg best, i am sherry. let's return to our global tour of the weeks top business stories in china, where the latest gdp data sent out mixed messages about the health of the economy. trade tensions failed to make significant -- in china's economic expansion. even as a gross as second report of the gdp growth 6.7% it has gone up slightly from the first quarter. >> we know the economy is floating -- slowing down. where does the president gdp numbers. in --.some softness we are sure that could be a sign of things to,. interestingly though, retail -- is rebounded.

time, there is good demand on communication and communication devices. suggesting that despite the trade war backdrop in the economy backdrop, the economy is doing ok. it is not an negative thing for the chinese economy, going forward. moved to bars retail investors and investing and what they call risky foreign stock. the new rules will affect those fusion the nation stock links with hong kong. tell us the rationale behind these moves behind beijing recently. is there an element of chinese money should support chinese companies? this change will effectively do, we are looking at excluding was going to include for companies, stable security, and voting rights. in the index from this quarter, china has said not so fast third you can include them but we want to include them to the stock link. that will keep chinese money within the chinese stock.

as a pertains to four companies and it also will stop chinese investors from investing in the likes of --. sinclair was to buy tribute to the stations at $3.9 billion, the sec is now questioning the legality, dealing a blow to the plan merger. cause apected to significant delay and cause a revelatory hurdle for the tv station. this was not suspected at all. >> sinclair's going to have to restructure some of the confused. about 23 of the stations to apply with the 39% ownership cap, what has happened now is that the sec is raising the issue that some of those are not cleanly structured. they're going to have to come back with a new proposal and make it a squeaky clean and presented to the agency. china and the e.u. are

pledging to work together to per -- check the global trading system. talk to us about what china and the e.u. have agreed to do? got substance out of this one-day summit and even if it was not groundbreaking, we did not get a first joint statements 2015. you said they pledged to uphold the multilateral trading system and open markets. we also got movement around the financial investment treaty that they've been working on both , moving them forward. >> japan has signed a trade deal datascraps a wide range of between two economies. the two want to send a powerful message against protectionism. they have not named the u.s. or trump specifically but it sounds like a pretty pointed emphasis on u.s. trade policy. it's true they didn't name

trump or a specific nation but given what is happening globally, it is pretty clear to whom they are sending messages to. it is very clear that they promote free trade and continue to fight. leadership and free trade deals is very important at a time when protectionist movements are actually strong. japan managed to reach a grant with the e.u. and we also led the -- 11 deals. i understand is not easy for the u.s. to rejoin the -- deal. but is important that the u.s. understand the value of multilateral trade agreements. christmas in july for amazon shoppers, if you can get on the website. amazon suffered an outage on their prime day kick off yesterday. but they have been shopping since big sales numbers. they've had done well despite the technical failures. >> technical glitches where

limited to the first hour. and this kind of thing, there's always going to be limited inventory's there will always be disappointed shoppers who miss out on a deal. but this was exaggerated in the first couple of hours where the site was simply crashing. we got down that from a company seat visor and it provides pricing software to a lot of clients. we were able to estimate the sales boost. the sales numbers than 12 hours were up 90% compared to the first 12 hours a year ago. the glitch, amazon prime day is off to a much better ending than beginning. ceo brian crutcher is resigning from his post after filing the companies -- violating the code convict. ceo aftere third intel and rambus who has lost his job for the sources violations. >> particular for texas

instruments which is a steady and low-key, disciplined operator. this is a unnecessary distraction. and rich new ceo templeton was looking forward to returning after serving for more than a decade. and for a long time at the company. unnecessary distraction but it does not take away from the investment pieces. u.s. aluminum tariffs are meant to protect the industry from competitors but instead they are taking a bite out of the earnings. as low as 2018 projections as theffs are presenting what company is presenting a significant headwind. there is a fine tradition here of coming out was very aggressive terrorists. the back-tracking rapidly when you realize it will cause the economy to collapse. the intentionere was to go after one individual.

the may relate there's going to have this enormous effect on the rest of the world and everyone is going to suffer. they backtracked on that. i think we are heading down the same path here. political uncertainty in italy is valley investors. there are reports of a finance ms. -- minister might be forced to step down. bachus to the events of the last 12 hours. >> is one of the came across reported there were differences regarding finance -- then there came a whole bunch of denials and know there was not a rift, then a key matter happened in that is apparently that the governor has reached agreement on the head of the state lender, that was the heart of the matter that we were hearing. it has been up and down all day. now there seems to be some sort of, returning. president trump continues to

criticize the e.u. over trade. foreign governments are condemning his idea of raising the --. in a public hearing, attendees when the administration that tariffs on car imports would hurt the u.s.. i understand the e.u. is for parents in retaliation. are working on a list of american goods that they will retaliate against if the u.s. were to hit the e.u. with this auto import tariffs. the word we are hearing in brussels is that the size of the retaliation would probably be about 20% of the volume of goods that the u.s. hits. now let's focus on the startup that is taking the footwear and swing into new territory. >> making casual shoes and sneakers from renewable materials like wool and tree fiber, less than three years

they sold over a million shoes. the company's cofounder told us about their journey from small to big. >> the idea for all those firstborn and younger on the wool could behat used to make shoes not more comfortable but better for the environment. it was an idea that seemed obvious. 540 couple of years and we were born. us itof people have told was not how you want a shoe brand. we started with wool and added heard we are really excited about it. we have a focus product and sell a handful of styles. to that's whatus the customer has seen. >> every transaction that we

have in our business model, we know what they want and when they come back. >> that customer interaction and relationship has allowed us to move really fast. it is the key part. this thing has grown much faster than we are -- could ever imagine. we started a few years ago with joe, myself and waking up at our mother-in-law's house. from the beginning we realize that culture really differentiated us. of time defining our mission and our vision, it is been incredibly helpful. a budget outsiders with a couple of exceptions. theas allowed us to attack industry with completely fresh -- i think again to invest in that and making sure all culture

is front and center is a priority. as a directd consumer business and sold on a e-commerce platform. we quickly added stores. we now have 100 employees across two continents. we sell and for geographies. not just in the u.s. or new zealand but in canada and australia. have two retail locations, when san francisco and one in new york. we were able to sell a million shoes. >> i think we believe is a revenue there is a revolution going on. customers are starting to know that the things that they wear. focusing on making materials that are new. i think you're going to see a whole lot more of that and hopefully we will be popping up around the world. it is just the beginning.

>> i've got the ea which is a function of the bloomberg that can take it to different indexes , earning results or ape -- report card. there is growth over 9% and earnings over the same quarter last year. there are about 30,000 functions on bloomberg. we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. week's's wrap up this program with a look at one of china's most fascinating technological initiatives through creating new ways to tackle pollution problems. editor exports

china's emissions for a u.s. style shale boom. china needs natural gas. propelled by president -- he pledged to reduce --. china's natural gas use skyrocketed. the country now is the world's largest gas. news, china has more shell gas than anywhere in the world. the problem, how to get out of the ground. it is the biggest challenge of all, there is a low-lying plains and fish -- you're not kansas anymore. top and putff the it back. the new bring everything on top of the mountain. reserves -- in the u.s.. china produced 9 billion cubic meters of natural gas. that is close to 639 million.

>> the u.s. model is like a factor, a flat plane. as many as you possibly can. theith hopes to meet increasing gas --, they've cut shale by 30%. they have encouraged major producers. >> there is a certain -- uncertainty the policy will continue. seat. government is back they don't seem to be doing a great deal. they're more say it is time for you guys -- . chinale is taking off in in the country southwest. it is the largest shale outside of north america. important in terms of authority. learn and how to they improve production. energya's entered --

giants are pouring out. 160 5.4 billion u.s. and by the 2020. leave in the chart on the ground, >> will try to expect output in a steady way and achieve a capacity of 10 billion cubic leaders but 2020. >> they are showing signs of project by -- progress --. expiration feeling cause have dropped 40%. it is far to go before they can plan success. >> they will not care the aspirations on shoulders alone. when you find more feelings. we need to see evidence. >> that will be all for bloomberg best this week.

you can with the bloomberg.com for all the latest business news and analysis 24 hours a day. thank you for watching. this is bloomberg.

jonathan: with 30 minutes dedicated to fixed income, live from jpmorgan asset management, this is "bloomberg real yield." coming up, stepping on the fed's independence. president trump pushing back against higher rates. chairman powell testifying that gradual interest rate hikes will continue for now. and meeting presidential resistance, the dollar rally and the u.s. struggling to find stability. we begin with a big issue, stepping on fed independence. >> ultimately, i think it puts into question what the stature