>> coming up on "bloomberg best ," the stories that shaped the week in business around the world. a banquet of news from central banks gives markets plenty of decisions to digest. placeping low rates in for an extended period of time. >> this is the right decision for the economy given the track it is on. >> the plan for rate increases is being further cemented. guy: lots of noise and aggressive signals around trade and tariff. >> they believe in negotiations, they say. >> don't underestimate president trump's determination to push through.

guy: earnings season with results. >> we remain disciplined and conservative in our -- >> a new manufacturing footprint. >> feet on the ground, people are pleased. guy: a new firm with old ambitions and high hopes. >> i have a feeling it will be a slow grind and pop. guy: plus, expert insights on trending topics and is this an finance. >> we will see volatility and pullback. america issure if really serious in negotiating a trade deal. guy: it is all straight ahead on "bloomberg best." guy: hello, and welcome. i am guy johnson. this is "bloomberg best," your

weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. the previous week posed a selloff in tech stocks and the decline continued monday. falling,tocks are sliding after silicon valley favorites including facebook and netflix delivered disappointing results. looks like a three-day selloff on the nasdaq composite, now 3.8%, the most since march. >> i would describe this has the karma quarter. if you could look at the pent-up ill will toward these names, it correlates with the drop. the tech sector got out a little and the market was ready to unleash some. on facebook. >> the question is whether there

is a re-rating of tech names or if this is a bump in the road. >> it looks to be a fundamental change. not only the broad-based selloff in tech, but some rotation within the tech names. this was a crowded trade. hedge funds have piled into this, pension funds have, a huge retail sale -- set of investors pile into this. when people head for the exit, everyone else goes out through the door, as well. >> the bank of japan has left its key interest rate unchanged while announcing policy tweaks. and colleagues said they will maintain the target and 0%, but will be more flexible in bond operations. analysis says this is the longest wait since september 2016 when yield curve control was announced. this seemed like tweaking around the margins, but what were the important tweaks we need to pay attention to? >> the flexibility and bond markets operations, july 20, all

kinds of press reports in tokyo that the debate was underway. they need to allow the 10 year 0.1% to go even above because of the negative side effects this was happening on the bond markets, regional banks dealing with a flat yield curve. that came through. that is why they had to debate longer than they usually do because they had to come to some decision and how to communicate it. important, as well, they said they would keep this depending on conditions in the economy and markets, but they will keep these low rates in place for an extended period of time. that is the federal reserve sending the signal, this is a policy that is going to be around for a while. apple, jumping in extended trade after delivering an earnings beat in the third quarter and a strong sales forecast, high-end iphones and

services. let's start with the good. billion, revenue, 53.3 iphone sales up 23% year-over-year, strong sales in the services and a clear path forward for the services segment for apple. les up 60% year-over-year. , thebad news, mac sales lowest unit sales reported by apple since the third quarter of 2010. down 5%revenue year-over-year and ipad down five year-over-year in terms of revenue. to a bloomberg scoop, china and the u.s. are aiming to restart trade discussions after a nearly two-month stopgap, possibly averting a full-blown trade war as the treasury secretary steven mnuchin and vice secretary of next wavehead of the

of tariffs set for this week. anything agreed so far? >> nothing agreed so far and i would note this is also still on this -- under discussion within the cabinet in the u.s.. what we are talking about right now is really the logistics of will talk to who? when will we talk? where will we meet to talk? nothing has been decided. president of the united states and the president of china get involved because we are at the point where it needs to go to the highest levels if talks are supposed to move forward and avert a full-blown trade war. these are the discussions being -- questions being discussed in the u.s. cabinet as we speak. >> the u.s., threatening to more than double planned tariffs on chinese imports. china warning the u.s. to stop blackmailing it over trade. what a difference a day makes. president trump hitting back

against china. china also hitting back this morning saying "if the u.s. further escalates the situation, we will surely take countermeasures to uphold our legitimate rights and interests are coke that is from the ministry of foreign affairs. they will not be "blackmailed. for all their strident rhetoric, they say they believe in negotiations and there is a solution if both sides meet on the basis of equal respect. perhaps a hit from -- hint from china that they are willing to come to the negotiating table. >> we are moments from the decision. there is a lot to chew on for the central bank, including a 4.1% print on gdp in the second quarter. the ongoingout from trade war as well as changes, tightening in financial conditions. thisere is no new trade on one carried no change in rates and no change to forward.

monetary policy remains accommodative and there is no reference to chairman powell's july 17th testimony that gradual rate moves on the plan for now. the biggest issue is growth is not just solid, but strong, acknowledgment consumers and investment are picking up. , -- their comments round growth indicate they think things are getting stronger. what it is telling us is the plan for rate increases is being further cemented. the bank of england, presenting a united front. policymakers voted unanimously to raise rates and governor carney indicated brexit could lead to policy being adjusted in other directions. it has been interpreted as a dovish height. >> i think that is correct. they are starting the slow process of normalizing rates. moreover, they are now starting to focus on the balance sheet. the boe's balance sheet and how they actually start the process

of unwinding it. it is a fundamental change from where we were a few months ago. >> the important thing is, this is the right decision for the economy given the track it is on. there is a wide range of brexit outcomes possible and we all hope that by the end of the year, we will all be much better in warmed on which path the u.k. and eu are taking. the iphone maker has just become the first u.s. company with a market cap of over $1 trillion. passed over $207 per share. a trillion dollars is a psychologically important number and shows how far apple has come in 40 plus years from a company that nearly died in the 1990's to two the most valuable u.s. company in history. cooled in july with

150,000 jobs added last month, less than estimated. annual wage gains holding steady at 2.7%, the jobless rate 3.9%. >> i don't think there is any reason for alarm when you look at the top line number. private sector is up 170,000, the numbers will be month-to-month. we will have to see a ratcheting down eventually of job growth to around 100,000, 125,000 a month giving our demographics, what we are doing with our immigration policy, given the workforce. think this is in line with the other economic indicators. china, punching back on trade, and announcing plans for tariffs on $60 billion of u.s. goods. >> the chinese are saying they will increase between 5% to 25%. wilbur ross on fox earlier saying "the reason for the

tariffs to begin with was to try to convince the chinese to modify their behavior." instead, they have been retaliating so the president feels it is potentially time to put more pressure on. >> i am going to make the case economic are in a weak position carried that is not a good place for them to be vis-a-vis the trade negotiations , first point. second point, they better not underestimate president trump's determination to follow through go.ur asks, ip theft, no forced transfer technology, no go. on tariffsal trading and nontariff barriers, the many times,s said no tariffs, no barriers, no subsidies. we want to see trade reforms. china is not delivering. their economy is weak, their currency is weak, people leaving the country.

don't underestimate president trump's determination to follow through. i can't speak for the communist party in china. i can speak for our president. do not underestimate his determination to change trading practices on a fair, reciprocal plain. ahead as we review the week on bloomberg best, mike nova grad speaks exclusively about his latest venture, a merchant bank focused on cryptocurrencies. plus, the u.s. treasury read -- unveils its strategy for the upcoming quarter. next, more of the week's most interesting earning reports. results banks announce and top executives explain them. >> the context is less favorable. guy: this is bloomberg. ♪

guy: this is "bloomberg best."

i am guy johnson carried let's continue our tour of the top business stories with a focus on corporate earnings. starting with some of europe's biggest banks. >> credit suisse's chief executive is giving investors reason to stay with a bank or its restructuring process. private banking on the swiss unit compensated for a little trading weakness. ourore than 60% comes from -- and that is the heart of the strategy. institutional advice and services. joint manager -- joint venture between wealth management -- 25% in the second and accelerating. that is good in these results. >> barclays reporting better

than estimated second-quarter results. the ceo telling bloomberg his turnaround strategy is paying off. >> one of the best quarters we have had in years to generate a 12.3% return on tangible equities is a great result. over 1.4 billion pounds of after-tax earnings. board, barclays' u.k. consumer business did quite well. the corporate and investment banking well, particularly the markets business. socgen's investment bank showing signs of emerging from ,he doldrums better-than-expected second-quarter earnings, income from financing deals and trading topped estimates. >> there are risks and that is why we might not be that far from the and of the cycle in the u.s. and that is why we remain conservative in our risk-taking and it is reflected across our risk, which is low across the board.

bnp paribas reported second-quarter profit, beating estimates. revenue falling 17%. are you disappointed with the performance and fixed-income side of the business? >> you have to take into account a negative effect and also the fact that compared to a year ago, the economic context is in particularly in europe. continuess, the bank its transformation plant wrapping up -- plan ramping up to 2020 and continuing sustainable finance. >> standard chartered, one of the biggest financiers of global trade has reported a 34% increase in pretax profits for the first half of the year, beating analyst estimates. the chairman also played down the trade war thread. its statement, saying

direct exposure to the risk of u.s.-china trade tensions is limited. talk to me about cost. this is what investors are worried about. where will you spend the money in the future? >> cost is a second order issue. we are improving the profitability of the business. , which is where we wanted to be carried the costs were up about 7% year on year, a little less than the constant foreign exchange basis but that was very deliberate. we brought forward investment to improve the business and for the full year, we would expect to be at a similar level in the first and second half. reported results that beat estimates after the oil giant announced it would buy bhp shale assets. results, and were gearing is coming down, gave us the confidence to raise the dividend for the first time in 15 quarters. he momentum and people are

pleased. >> what are you hearing from investors about the deal? >> initially, people were concerned we would break our financial framework and the message of the we be structured this is we would stay within the 15 to $17 billion capital framework and continue to divest part -- assets to offset of this deal and increase distributions for shareholders. discipline is the main word and we are still planning the company in the 50 to 65 range rather than these higher prices. samsung, concert -- confirming profit and sales falling short of forecasts. the demand for galaxy devices hit and rivals in china ramping up competition. why the miss? sales missed s9 estimates and other than that in cuts of sentiment, samsung down the number of models available, probably a way for

them to streamline their operation and at the same time, rising composition -- competition from the chinese headsets. second quarter is quite a disappointment. baidu posted a strong set of results despite a string of executive departures. walk us through these figures. >> it looks like things have matched or beaten expectations on the top line and the bottom line. that is good news for baidu because it lost its chief operating officer and president not long ago. he quick after lesson two years on the job. baidu is a company that remains in transition. it has only recently started shedding unit that don't make money, such as food delivery, and really concentrated on its core, which is technology, things like artificial intelligence to try and make money.

there is still plenty of uncertainty for baidu to come but this is a good sign things are still on progress. volkswagen was a rare bright spot in july u.s. auto sales, jumping 13% for a seventh straight month of growth. the ceo herbert deeds said the carmaker needs a titanic effort to meet global delivery targets this year amid trade tensions and stricter emissions rules. >> to adopt new trade policies, to adopt new manufacturing footprint is usually costly, so i would be very happy if trade and tariffs could remain on the same level and i am really thankful that those negotiating partners are really looking for a solution. shares surging in late trading after second-quarter results missed estimates, but revenue beat expectations.

-- in theic carmaker period, less than the $900 million analysts predicted. the headline seems to be the words about sustainable profitability and cash flow positive, but is it possible? >> absolutely. the question on profitability is when will they start making investments future products? about ak has talked smaller suv than the model x and a pickup truck, a semi-, a chinese factory. all those things cost money, but big expensese aren't going to come until next year. maybe he will be able to swing it. ♪

guy: you are watching "bloomberg

best." i am guy johnson. cryptocurrency merchant bank galaxy digital traded on wednesday on toronto's venture exchange. it could be a milestone for the industry. as for the company's founder, the former goldman sachs partner discussed his plans for the business when he talked to bloomberg's erik schatzker in toronto. >> our real purpose in the long run will be to help raise capital for people in the system. the crypto revolution, this decentralized movement will fulfill its destiny with $300 billion of market cap. it is going to need lots of capital and we want to be the credential iser raises capital. is doing great. we have $450 million under management. .xternal capital we have a $325 million venture

account that operates around the eeoc ecosystem. we have a cash management account and we have our bloomberg galaxy crypto index fund, which tracks the index we set up with bloomberg. >> a year from now, how much will you have in em? >> i hope a lot more than we have now. >> of course you hope, but i want to know what it looks like. >> we will not raise another venture fund because we have venture on our own balance sheet and this tos venture fund. i think the bloomberg galaxy index will be one where you are grinding in money and it hit an inflection. we are spending tons of time educating institutional investors about the space and we are hoping that all that elbow grease and education comes back when they start biting. this is a really good product

for institutional investors. have four sales guys, i call it the boiler room. they are on the phone, traveling the country and the global, sitting with people and saying this is how it works. this is why you should invest. this is your first step in. we have raised more money last month -- live -- this month than last month and i have a feeling it will be a slow grind. the $5 million in the year, i would be excited. guy: that was galaxy digital founder and ceo mike nova grad speaking to bloomberg's erik schatzker. bluebird lp owns and operates the bloomberg galaxy crypto index with galaxy digital. compelling wii's conversations. if you are having trouble figuring out where markets are headed, you are not alone. ubs investment bank's chief says there is plenty to be confused about. >> how do you price trade wars?

how do you price brexit? how do you price protectionism? this is bloomberg. ♪ retail.

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♪ >> welcome back to "bloomberg best." i'm guy johnson. throughout the week on bloomberg television, leaders in business and finance have offered their perspective on the most important issues facing the global economy and financial markets. tops begin our roundup with interviews with the president of ubs's investment bank. francine lacqua asked about his outlook for the second half of the year. ♪ >> we're going to see more volatility, we expect to finish the year up. >> but you were not predicting a recession, that would be the end of the cycle coupled with the

central bank or anything like that? >> at this point in time, absolutely not. >> what do your clients ask if you? >> i think it's the difference between an economy and the background that is very buoyant, and markets which are a lot more volatile, and how do you navigate that? specifically europe and in the u.k., events that are keeping this bloc behind the u.s. in the emerging markets. >> if you look at m&a in europe, how is that going? >> it is going quite well. people can extract synergies with positions in portfolios, improve their prospects, become more efficient by merging and refocusing the way we do business. that has been quite good, and actually, we are said to have a record year this year. europe in particular is driving that trend. so i do think the fundamentals

are quite good. day,just that, day after the market environment is quite volatile and filled with uncertainties that we don't have to price. how do you price trade wars? how do you price brexit? how do you price protectionism? how do you price events in italy over the budget? you try to price them, but it's difficult to forecast and adapt to. ♪ rst of trade war -- fi all, it is only between the u.s. and china. i think trade is a very rational thing, there's a lot of room to negotiate. as far as non-terrorists, the iffs, who knowsr what they are. i believe they will be very happy to make donald trump look good, but what about all the non-tariff stuf? who is winning? who knows? i think it is just between the

u.s. and china, but what i do worry is donald trump is betting on everybody, and when that happens, it can disrupt the supply chain in the world, and that is dangerous. it reminds me of 1920's. that is how the great depression came about. i think it's important that donald trump knows how to stop, and don't just pick on everybody. >> do you think this is going to continue through the midterm election in terms of election posturing, or do you think there will be some push and pull to a real agreement? >> well, first of all, i don't think donald trump wants an agreement. all he cares about is the midterm election. after the midterm election, it is his own reelection. i'm not sure if america is really serious in negotiating a trade deal. they're so much domestic politics getting in the way. the rest of the world just

suffers because of domestic policies in america. ♪ >> when you are looking at the oil market, what are you looking at? what do you think is firmer? >> i think it used to be political, geopolitical uncertainty. i think everybody is watching us now. you look at the uncertainty in the iran sanctions, what that means for the market. venezuela is a human tragedy of thing, that will affect the oil market. and you've got tensions coming out of the persian gulf. on the other side of it, demand is keeping up, production is keeping up. u.s. production will rise, it is bottlenecked in the permian basin. it is offsetting factors. but it just feels like it's firmer rather than softer for the rest of the year. ♪ >> out of all the executives that i speak to, you have a unique insight into what's going on with china. werewe first met you, you

sorting out the multibillion-dollar trade with the country. a lot of people trying to understand what's going on, and i'm wondering what your insight is. >> it is clear that the economy is slowing down, as expected, as forecast. at the same time, you saw a few weeks ago -- at thewhen i look others, i do not have any concerns whatsoever. the chinese situation, as far as we see it, is pretty good. my personal experience -- i go therefore times the year. last time i went with the chairman who controls most of it in china. he was pretty clear in his discussion that the restructuring of the industries are here to stay, which means that china will continue to buy high-quality products. >> do you see them hitting an inflection point, where they start to boost demand by

shipping toward stimulus then pulling away from deleveraging? is that something you can see playing out? >> yeah, i think it could happen. it could happen, absolutely. they are managing the debt in a pretty good way. i am one of the most optimistic persons on this program. the economy keeps growing full. you should look at it as over extenders. ♪ aboutk to me a little bit some of the market reaction today. the pound is down. are they skeptical about your ability to raise rates, or should we not read into it? >> i think it is the view of the bank of england that the equilibrium interest rate globally is lower than it was previously. wedges also -- there's a

between the overall level of the librium and where it is in the u.k.. a lot of that is caused by the uncertainty around brexit, which -- you look at what's happening to business investment in this country right now, it should be on fire. it's just moving very tentatively. take away that uncertainty, one would expect using business as an example that they would adjust quickly to the new realities. investment comes in, you start to move up between the equilibrium level and global rates. so that's the other element. if you're sitting in the market, you have to make a judgment. i'd suggest -- but the crucial thing is, what do i think will happen with brexit and that uncertainty and the impact of the economy? in fairness, a lot of the risk

premium that exists in the u.k. assets are being determined by different views on where the crucial negotiations will go. ♪

♪ >> this is "bloomberg best." i'm guy johnson. turning back to our view of the week's most important business headlines, there was plenty of important economic data for investors to analyze. lead by manufacture numbers from china, that came in soft. ♪ >> the virtual factory gauge weakened this month amid tightening credit conditions and trade tensions. what can we glean from today's data? >> the manufacturing pmi for july came in at 51.2%, down from 51.5% in june.

the forecasts have been 51.3%. factories also softened. that's the construction and services sector of the economy. it seems there is pressure now on the factory sector in china, domestically and externally. the deleveraging campaign in the first half of the year, really aggressively attacking the shadow banking actor. and of course you have the ongoing trade tensions of the u.s. raymond young thinks we will see a gradual slowdown in the second half, in that really comes into line with the views of many economists, it seems. ♪ >> a lot of data out of europe this morning. higher-than-expected inflation, lower-than-expected growth. the markets didn't react too much. there are some positive numbers. >> i think it is a headline miss in terms of the economic growth, but it wasn't a miss in terms of the ecb's expectations.

if you look at projections earlier in the year, it was half a percentage point, quarter on quarter. so for the ecb, it is reasonable news. same thing for the inflation data. a lot of the strength we see in inflation coming through in energy prices, the ecb had been telegraphing that. not a time that was unexpected. ♪ >> turkey trading sharply to the downside this morning, and european stocks exploding. this follows what happened in the united states. yesterday, washington following through on threats to impose sanctions. is hitting a record low against the dollar. and the worrywn, of investors is that this is the first step, in there will be more sanctions to come.

what the u.s. wants is for the u.s. pastor to be released, but ingres -- but ankara is refusing to do so. investors are already concerned about financial independence, and they are not doing enough to raise in -- to rein in inflation. now they have sanctions as well. ♪ >> the u.s. treasury has unveiled its latest refunding plan, with a total of $78 billion in sales. the move is sending the 10 year treasury yield about 3% for the first time since mid-june. this is the third consecutive quarterly increase. give us details. >> what the treasury decided to do was $3 billion more, and that will over time probably have the effect of flattening the curve. there's going to be more short issuance. the other interesting thing was come october, the beginning of the new fiscal year, they will be issuing new bills,

another instrument to raise more money. ♪ >> facebook says it has identified an ongoing effort to influence the u.s. midterm elections. the company shut down the number of inauthentic accounts while the investigation continues. what's the latest on this? how extensive is this effort that facebook has identified? >> we are being led in on this effort, in the very early stages, this is earlier than they would bring people in from the public, but they have been informing congress, the fbi, they have been trying to work with the government to figure out who's doing this. i think the biggest question is what was the actor behind this? we don't know enough yet, or facebook tells us they don't know enough, to say whether this was russia. of course, a lot of congresspeople in senators are saying they believe this is russia. ♪ >> the trump administration

rejected canada's bid to join high-level nafta talks of the u.s. and mexico this week. the country's attempts to join the negotiation were either ignored or spurned by the u.s. trade representatives. president trump has suggested he might go for a bilateral trade deal with mexico before turning to canada. so what's happening? is a bilateral or trilateral? >> we thought it would be bilateral with mexico. it is probably not going to be deal, it might be an agreement in principle. the mexican government is in a transition period with a new president. the old administration would like to get off their plate, the new administration would like to not deal with it when they come into office. there's motivation to get something done, but there isn't with canada. the u.s. feels canada hasn't done enough to come to its position, and if they can strike a deal of mexico, they feel it will put pressure on canada to

make concessions. ♪ sideline its chief executive? they have met today to discuss les moonves's fate. what are we expecting out of today's meeting, and how long does les moonves have had the company? whetstone has said she wants there to be a thorough an open investigation. she's not calling for him to be sacked right away. we expect they will hire an independent law firm. they will also appoint specific members of the board will be in charge of the investigation. >> the cbs board met today, decided at this point it is not going to make a decision, and is exploring hiring a counsel to head up an independent investigation. but for him monetarily, what could he stand to lose if indeed he would be let go? >> there's a lot on the line for

les moonves. just last year, he signed a new employment agreement that stands third made 2021 -- through mid- 2021. if you step down tomorrow or if the board fires and for cause, he could lose out on as much as $300 million. ♪ has becomea tower the second high-profile company in a month to price its hong kong ipo at the low end of the range, with this sales set to raise $6.9 billion usd. xiaomi a little bit. is this a softening trend? >> get has definitely been receiving -- in terms of the mega ipo's that have been priced in the past month. two highly unusual that deals of this size priced in comparedaugust -- but to deals like six or eight

months ago, like china literature, like good doctor, the reception has done a lot. ♪ >> starbucks is teaming up with alibaba to strengthen its position in china. they are working to improve food and coffee delivery, and starbucks is opening it will help stem a decline last quarter in its second-largest market. >> we are in a phase of growth in china where it is about store builds. as we build 600 new stores per year and expand the port folio, that is where we are growing our reach. this enabling of delivery and this digital experience, this virtual starbucks store, in every alibaba property, not really opens the aperture to reach 500 million active, registered users of alibaba and bring the starbucks experience to them. ♪ 2016, a travel brands shipped its first suitcase, and since then, they

and with over 300,000, $31 million in venture funding, it's ready for more growth. small to big. ♪ ♪ brands a global travel to make travel more seamless and enjoyable, and we started with luggage. we wanted something that would make packing and prep a lot easier, to empower you to focus on the travel. we interviewed hundreds of people to get their feedback on how they pack, get to the airport, what they do at the airport. design,ned into product manufacturing. within a year, we shift our first suitcase. ♪ >> we started with the carry-on, which was one suitcase in four colors. we went really narrow with the

product, and overtimes we went to different sizes, more colors, collaboration. >> the first production line, we made 4000 kerry owns. were totally sold out within a week. uswas a reoccurring theme of underestimating, rushing to get more. we got better at that. >> we are definitely born online, but we found out early on that people really wanted to interact with the brand and the product off-line, and that is how the restructuring came. ♪ >> right now, we currently have four stores. >> all of our stores are standalone, it's great brand awareness and great marketing. because of the experience, we also sell a lot of suitcases. >> faa issued a new regulation earlier this year that lithium-ion batteries can be in check bags.

our carry-ons all come with lithium-ion. luckily, we made a design change out,our batteries popped but the earliest versions were removed from the ins. -- inside. we came up with the way to convert them all into injectable batteries. we have been able to offer the whole program at no cost to customers, and the response has been overwhelming. we appreciate that we are refitting there's the cases for free, so they can continue to travel. the business has exceeded our expectations in every way possible, there were four of us, and now there are close to 150 people. in the next year or two, we are focused on a few things. we are listening to our customers to expand our product line into everything they need to travel. we are also focused on expanding geography. a third thing is six ending our retail footprint.

>> there's the potential to change a lot of things. there are so many things wrong fromthe many points -- where you stay to how you get there, there is a lot of opportunity. >> we want to be the biggest travel brand in the world. if there's any part of travel we can make more seamless and enjoyable, we will do that. ♪

♪ go onck out gtv bloomberg, where you will find all the exciting charts we highlight here at bloomberg. if you want to check out the magnitude of the drop in the bank stocks, you can check this out.

it is still unbelievable. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. now, let's wrap up this edition of "bloombergit is still unbeli. best" by mating of business master. apple became the first publicly traded u.s. company to reach a market cap of $1 trillion. bloomberg technology's mark gurman explores what that means. ♪ >> after months of waiting, it has finally happened. apple has become the first u.s. publicly traded company to hit a $1 trillion valuation, leaving the likes of amazon, alphabet, in microsoft in its wake, but not far behind. significantstone is and a testament to the rapid growth spurred by the success of its product like the iphone and

takings well as the ceo, over for the visionary cofounders have jobs. >> we are calling it iphone. ♪ >> but let's not forget that what is now the world's most valuable company was on the brink of bankruptcy as recently as the late 1990's. that was until the cofounder, steve jobs, returned to the full. he said it was one success after another. in the seven years since his death, the company was steered to new heights by launching new devices like the apple watch and iphone x. he has also pushed the company deeper into new services, like apple music. and cook and his team are stopping. -- aren't stopping. they are keeping apple on the technological edge. what does he think is its greatest milestone? "i don't think about it, that's

the truth. i still view apple as a pretty strong company the way that we operate. i know it's not numerically, but the way we function is very much like that." trillion,yond $1 apple has to keep churning out cutting-edge smartphones while still finding its next big hit and growing the digital services businesses. a larger version of the iphone x, and the cheaper model are on the horizon. beyond that, it could revolutionize personal proceedings, with the big online coming soon to an apple screen near you. ♪ bloomberg technology's mark gurman on apple attaining a market cap of $1 trillion. you can follow this story and find out more business news and analysis 24 hours a day at bloomberg.com. that will be all for bloomberg best. thanks for watching. i'm guy johnson. this is bloomberg. ♪

♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." apple's $1 trillion milestone has everyone talking. but with sector reclassification on the horizon, how big is too big? plus, the great firewall. china wants to be the world's tech leader but leading companies still want to beijing to let them then. where google and facebook stand in a brewing trade war. and peloton raises $550 million