>> coming up on "bloomberg best," the stories that shaped the week in business around the world. sanctions come down, tariffs go up. political hardball leaves a mark on markets. >> a clear message from china. we won't just go after the piddly items. >> the bottom line has been the sanctions are put firmly on their radar screen. >> it's a message to the wider western world -- don't meddle.

>> samsung rolls out its latest smartphone. >> mexico's leader steps down. elon musk jolts wall street with a tweet. investors wonder what he is driving a. >> going private at that level wouldn't make sense. >> when he said funding secured, was funding secured? >> voices in business and policy china in on the hot topic. >> we have seen more pressure on the short end of the curve. >> the market is pricing into higher risk for a financial crisis. >> plus, another deep dive into a deluge of earnings reports. >> we are looking to cut costs, including some stock costs. >> it is all straight ahead on "bloomberg best." hello and welcome. i am michael mckee. this is "bloomberg best," your weekly review of the most important analysis and interviews from bloomberg television around the world. let's start with a top

-- a day by day look at the top headlines. since withdrawing from the nuclear deal in may, the u.s. has been turning up rhetorical heat on the government of iran. monday, he raised the economic pressure as well. >> president trump restored sanctions on iran midnight tonight, reaffirms the u.s.'s plans to impose tougher penalties on oil imports in november. the move has drawn fresh condemnation from european allies who are standing by the 2015 iran nuclear deal that the president withdrew from in may. >> what are in these sanctions? going to impact the u.s. dollar purchases and dollars training as well as aluminum and industrial software, as well as potentially impacting the automotive sector and iranian debt purchases. the second round of additional sanctions are set to begin in mid-november. we have seen the real hit by

these sanctions significantly. there have been waivers for some countries that would impact the energy sector. >> in an address, president rouhani said iran is open to talks with the u.s. if they are sincere, but insisted such dialogue would be pointless while the nation is being hit with sanctions. >> negotiations and sanctions at the same time is meaningless. >> what can rouhani do to offset the impact of this particular round of sanctions? >> i think -- is not a great deal and there is a huge amount riding on what the europeans can provide. turkey and china have stood up strongly against the sanctions and we know that china, refusing to cut its own oil from iran. that will be important.

>> talk of an imf bailout for turkey, the lira plummeting to a record low and 10-year yields breaking a record. what can officials do to address issues that have gotten more dramatic in the past 24 hours? >> they have to get out of this situation with the u.s. and the u.s. has made it clear top -- time has run out and there is only one way to get out of this and that is to release the u.s. pastor and four other people the u.s. is calling political hostages. the fact markets are responding so strongly to this shows how vulnerable the turkish economy really is. >> elon musk wrote "i am considering taking tesla private at $420, funding secured." is going private real possibility? >> going private wouldn't make sense for a number of reasons. the company needs funding to grow and to go private at $420 a share would probably be a total of $72 billion, about $14 billion that he has he would

probably have to finance around $58 billion. million --raise $2 she needs to raise $2 billion for a china factory, money for the truck. >> shares of tesla, closing 11% higher, but hardly a straight line up. what you will see is a very unusual horizontal line. what happened during the time? the stock was halted from trading? >> it is crazy. elon musk tweeted, then they stopped trading, then a statement came out about an hour and change after that happened and they resumed trading. my supposition is he wrote the statement in that amount of time. >> the united states has confirmed it will impose 25% tariffs on an additional $16 billion of chinese goods as of

the 23rd of this month. that delivers on a previous threat from the trump administration and follows the $34 billion worth of tariffs already in play. >> this is the second of the $50 billion announced. 25% levels, not unexpected. we got a list of about 279 chinese products that will he -- be hit from august 23, including things like steam turbines and motorcycles. >> beijing announced it will retaliate against the latest round of tariffs from the trump with atration in kind 25% fine on $16 billion worth of u.s. goods. the surprise was a revised their list and now included are some petroleum related product. that is a soft spot of the u.s. trying to grow the economy in that area and energy exports.

there was a clear message from china by revising the list that we are not going to go after just the piddly items, but some of the stuff that will be a centerpiece of the u.s. economy. they did say that this is an past the point of no return. we could see this rolled back, but it is up to the u.s. to start that process. >> the russian ruble plunged to a two-year low after the united states and announced new sanctions on russia to punish the kremlin for the nerve agent attacking the u.k. earlier this year. the sanctions imposed under a 1991 law on the use of chemical weapons in -- limit the import of u.s. technology due to national security, but exempt school operation on the international space station. give us a sense of the reaction of moscow to the new sanctions. >> it has been tough for the russians because they have had warm words from trump about putin in helsinki last month and it team -- seemed things were on the mend. the kremlin has shown no sign of being willing to come clean and

give up its denial of any role in poisoning attacks. for investors, the bottom line is this has put the sanctions issue firmly on their radar screen. we don't know exactly what it will look like, but is likely to get worse the next couple of months. >> tesla down by 2% and for the third straight day, the company faces the same question from wall street and now perhaps washington. where is the funding coming from? where is the money, elon? >> the general question everyone is focused on is when mr. elon musk said funding secured, was funding secured? >> elon musk and -- are said to have held talks about softbank investing in tesla, including potentially taking the electric carmaker private. >> we know that ultimately, the

way it played out, elon doesn't want to lose control of the company, so softbank weren't happy with the way it was going to be split. that was the hurdle they were unable to overcome. >> softbank has an enormous piggy bank and likes investing in tech. who is left? >> we haven't heard other funds connected to it have all and bloomberg has spoken to 35 investment banks. none of whom had an inkling of any kind of investment. it makes it highly unlikely there is someone lined up, frankly. >> what may happen next with tesla? >> the latest that happened is the board is going to meet with advisers next week to figure out what they should do next. whenever there is a leveraged buyout plan or an offer to buy a company, the board has to make sure the interests of shareholders are represented and in this case, there are in april. in this case, they are in a precarious position because they have a very charismatic ceo who happens to really hate being the ceo of a public company.

he doesn't like short-sellers. he doesn't like the scrutiny of the markets and that is why he wants to go private. they have to make sure whatever offer comes in, that being the board, is in the best interest of shareholders and $420 a share is not going to do it. there are a lot of long holders think this is worth $570 or more. they will have to do better than that. >> turkey closer to financial meltdown and the lira, falling to a record low. president erdogan failing to stem the route. >> we still suffer from an artificial financial pressure. >> he has billed himself as the protector of his people and what we are seeing now according to him is a financial attack. it is not a complete surprise he can't step down from that role as protector and what you heard in the speech this morning was this is a foreign plot. i am your protector. i will put an end to this. right now, i am concerned he is

at least thinking about capital controls for turkey and this would be the final break from the international community. --lects turkey is reliant on >> turkey is reliant on the kindness from strangers and we are seeing that evaporate and donald trump tweet where he has doubled the rate on tariff of turkey's steel imports. turkey is not one of the major steel exporters but this is not a good sign because the whole reason for the move today on its own was we didn't have progress on the talks with the u.s. yesterday and today, investors saw tariffs news. things are not getting better. >> when you look at what is happening with the banks in europe right now, the stoxx 600 banking index down 2%. this is something that goes beyond turkey and to some of the biggest banks in the world and potentially, you have to worry if it could get outside of europe. michael: still ahead, as we reviewed week on "bloomberg best," elon musk have may have talked to softbank about a stake in tesla.

we talk with softbank ceo. plus, comments on trade from larry summers, blunt reaction to jamie dimon's forecast for treasury yield and ahead of the chinese hedge fund says don't run from mainland equities. up next earnings, earnings, and , more earnings including results from optimistic european banks. >> we can see growth also on the customer side and growth on the loan side. michael: this is bloomberg. ♪

michael: this is "bloomberg best." i am michael mckee. corporate earnings reports were again a major focus of investor attention this week. our roundup begins with results from a global banking behemoth. >> hsbc is struggling to produce any significant revenue growth from its long-term bet on asian markets.

costs increased 7%. even so, the finance director told bloomberg first and second quarter results were in line with expectations. >> we showed good revenue growth through the first two quarters of the year and that is translating to a good reporting profit progress. continue to invest in the growth of the business and are sitting at a strong balance sheets are right now, it is feeling reason lately confident in -- reasonably confidence in -- confident and where we stand. >> the pace of winning new customers slowed and commerzbank warned operating costs would be higher than planned. >> we have seen growth where we have reached our year-end target of $386 billion at half year so that is where you see the growth and that is where the strategy wants to see the growth. that is paying off well. in the corporate bank, we have a competitive environment and growth on the customer side and on the loan side, which is fine

but monetizing this growth will take longer than anticipated because we have slightly reduced our revenue expectation for corporate clients. >> amro numbers second-quarter net profit of 688 million euros. operating income came in at 4.6%, above estimates. what will ab and amro's next be? is the jobs number a stop -- cut number a starter? >> we announced a change at our corporate bank this morning. we have a strong client franchise in our corporate bank in the netherlands, but also in a number of sectors globally. the oil and gas actor, commodities, and shipping. we are looking to do three

things in the corporate bank. reduce the capital we deployed to that business, cut costs including some staff, and we are looking to transform the business model to ensure that business is well-placed to succeed. >> prudential has reported first-half operating profit that beat estimates. the number came in at 2.4 billion pounds, sending shares higher. the asian part of the business is doing particularly well. what did you get right? >> the pivot to protection, the demand in asia for medical care, the out-of-pocket expense you have seen many times on the show, $.40 on every dollar versus nine cents in the u.k. or 11 or 12 in the u.s. 70% of our new business profits are driven from that focus. that has been tremendous and over 90% of that is regular premium, meaning those clients stay year after year and 90% of existing client renewed. very healthy climate relations

on 250 million clients across a dozen markets. the wealth business is doing well. it is all doing what we hope for it to do right now. >> the standard life aberdeen still hemorrhaging cash, -- 6 billion pounds in the first half, the latest sign investors remain nervous about market volatility and economic uncertainty. >> the encouraging thing is 80% of those flows are in what we would call the asset set of driven success in both companies in the past. it is a well diversified inflow picture we have, but market conditions are tough out there for the industry and we

certainly feel we are in one of the best positions with one of the strongest balance sheets in the world to weather a tough period ahead. >> first-quarter profit at softbank climbing 49% from the year earlier, fueled by a big best -- boost from a fund. shares rising significantly after the earnings report. what drove the gains? >> for the past few years, softbank earning has been a tug-of-war between losses on one hand and profits of the message telecom operations. the last quarter has been a change in formula. 49% profit gain due mostly to valuation increases at vision fund. there was a one-time gain from the sale of the china subsidiary of the arm company, but 255 billion of it came from

increased valuation from wework. moving beyond just becoming a simple carrier and investors are getting a taste of what that will look like. >> disney reported third-quarter earnings that missed estimates as canceled films weighed on profits. bob iger gave an upbeat view on the future, however, as it espn streaming service has attracted more subscribers than forecast. the company also commented on plans for acquisitions of fox assets. what did we learn from bob iger and the disney results yesterday? >> we learned that they are very optimistic about the acquisition of fox assets. the number is a slight miss, so disney does need to be adding content, building out, streaming service but we didn't win -- learn too much about what happened with sky, the final asset in play in the bidding war that has emerged between it and comcast. a mixed bag.

matt: 21st century fox is laying out plans for a new fox as it $71 billion deal with walt disney nears completion. this came after earnings and sales topped analyst estimates. fox news did quite well. >> indeed, the real standout takeaway here is how well the cable network programming division did. 60% of fox revenues, but more importantly, the center of profitability. you mentioned fox news, but also the fox business channel, fox sports. the big picture is that these business channels are actually highly profitable. obviously, if you have the sports channel, you have to buy content so the real picture is around the new fox assets that will remain with fox and not be transferred to disney. >> glencore has posted record interim profit and cut debt to below targets for the world's biggest commodity trader failed

to increase its interim dividend and expand an existing buyback. the question is what do they do with the money? do they buy something, reinvest, or give it back to shareholders? >> it is a balancing act. they are already paying out 1.4 billion dollars as part of a share buyback and dividend policy. but remember, the earnings are great but a portion of these earnings and a lot of the earnings growth is coming out of the congo and maybe a billion $heading their way. i suspect ivan must be worried about what is heading his way and what the ramifications are. >> novo nordisk is the world's biggest maker of diabetes drugs and says the u.s. prices for its products will continue to fall next year, hurt by rebates in the medicare program.

how do you see the pricing situation in the u.s. developing? we had comments from donald trump about drug prices that he wants to come down. you are already dealing with this issue. do you see it changing for the better or worse going forward? how does it affect your business? >> what is important to us is to go out and promote our new innovations. pricing is coming down for us and competitors. i do understand drop pricing is a key issue for the president because there are patients were not getting access to rebates we give but in particular, we have a casework pricing is coming down and that is something we have been talking about for a couple of years now. ♪

michael: welcome back to "bloomberg best."

i am michael mckee. escalation of tariffs this week leaves little doubt the u.s. and china are in a trade war, but opinions differ on how the conflict will play out for the participants. one observer thinks it will have negative effect and that is larry summers, former u.s. treasury secretary. >> this is a trade war that will make america poorer because our consumers will pay more for products they buy and our producers will be less competitive because they are going to be paid more for inputs. i don't think china is the savior of globalization. i think china is a developing still in terms of its average income country with average standards of living like those in the united states during the 1930's. the context is very different. there will be competition from more places, but i think in london, the principal risks have been the self-inflicted wound of brexit.

i think that new york will have to make a variety of strategic decisions, but should be able to maintain a major role in financial services for a very long time to come. >> larry summers is on the advisory board of the bloomberg new economy for them be held in beijing from november 6 to november 8 2018, analyzing the biggest questions facing the global economy. more on the forum and news pertaining to central themes, go to our new web vertical, bloomberg.com/new-economy-forum. more on trade and banter on bonds. jamie dimon warns u.s. treasury yields could reach 5%. guests on bloomberg television response to his call.

>> i don't think we will get 5%, though it would be good if we started to gently head there. michael: this is bloomberg. ♪

♪ >> this is "bloomberg best." i'm michael mckee. j.p. morgan chase chairman and ceo jamie dimon speaks, investors listen. what he predicted for u.s. treasury yields last weekend made them perk their ears. ♪ >> jamie dimon is getting bearish, warning investors to prepare for yields of about 5%, even as they struggle to push above 3%. speaking in colorado, jamie dimon said this. "i think rates should be 4% today, and you better be prepared to deal 5% or higher."

>> definitely an optimistic outlook on the u.s. economy. 5% is very high. we haven't seen that level since 2007. it's a really bold call, and i'm sort of wondering what the probability is. he says there's a higher probability than people think, but if the probability is zero or 1%, how likely is this going to happen? >> food for thought, fodder for discussion. we asked guests on bloomberg television what they thought of jamie dimon's bold call on rates. >> although it's possible, i think it's highly unlikely. we would need to see several factors. to be fair, we would need to see several factors unfold to get to even 4% on the 10 year. we'd need to see mature breakout, higher wage inflation in the u.s. haven't seen it that, although anecdotally it is there. we would need to see the ecb and the bank of japan really moving ahead on tightening prospects.

if we saw all of that, then i think the whole rising u.s. debt picture would come to the fore. that is not the baseline and something we would use, tell risk to the markets. >> all right. along what timeframe and what number are we talking about that is probable? >> our central tendency is higher conviction for the next 12 months, the 10 year close to where it is now. the forward rate market would anticipate a further rise in the 10 year. we see more pressure on the short end of the curve. we see the federal reserve raising rates for more times before ending their cycle in the middle of next year. on the two-year part of the curve, we would certainly see more upward pressure, more flattening. whether it inverts, largely it depends upon how and what the economic conditions are when the fed communicates. >> the key thing from his point

of view is where he thinks, given current growth and inflation trend, bond yields ought to have. bond yields, if they got to 5%, i wouldn't be that troubled. i'm inclined to be slightly hawkish at this stage of the cycle. i prefer bond yields higher than the are. my guess is we will break 3% around the turn of the end of the year, then get near 4% toward the end of 2019. my view is that bond yields, not just in the u.s., often not pricing in enough growth and inflation expectations. if that lasts too long, you will get to a situation where bond yields, which are used to priced -- if that lasts too long, you wile products, would simply be too low relative to economic momentum. that is where you start seeing bulls up here. >> you have some sympathy with him. you think the market is underpricing -- it is not assuming enough inflation, that rates should be higher?

>> i have some sympathy with that view. if you take the u.s. nominal gdp growth at 5% now, roughly speaking, historically, there has been a pretty good correlation between annual nominal gdp growth and 10 year bond yields. relative to that 5% -- bond yields are too low. remember, in the early 2000's, before the financial crisis, the fed was talking about the conundrum. it was raising the short and, but the long end was staying. that seems to be happening. i don't think we will get to 5%, though i think it would be good if we started to gently had -- gently go there. >> of course, the twists and turns in the u.s.-china trade dispute also sparked lively discussion. while the shanghai composite is down significantly this year, one top-performing hedge fund on the mainland is pursuing opportunities in the rout. a bull case for chinese stocks in an exclusive interview with tom mackenzie.

>> we are not bearish at this moment. rethink the market has deleveraging and the u.s.-china trade dispute. we see more opportunities than risks, because the market discounts too much bad news, the sentiment has been so weak that they turn a blind eye to policy development. for instance, there has been a major policy shift featuring slowdowns in deleveraging and an extension of fiscal steps. i think they should have quite a policy impact down the road. >> how do investors position in this environment? where are the opportunities? >> we think the market has

priced in too high risk for financial crisis. that reaction has been overdone. we are increasing our risk exposure by taking our positions medialer medial -- inter stocks whose long-term investors remain unchanged, and become more interactive after a selloff. we like financials, we like independent power producers, consumer discretionaries. strong brand recognition and we also like manufacturing for machinery, homemade technology. >> the japanese telecom and tech firm softbank made plenty of headlines this week, weighing new ventures on the back of the major profit boost from its

burgeoning vision fund. ed hammond caught up with the coo and sprint chairman for an exclusive and timely interview. >> what is the unifying theme behind softbank's thesis? >> artificial intelligence will be one of the unifying things, if not the most important unifying things. if you look before the pc, then to the internet, then to broadband. we believe the next wave of disruption will be powered by artificial intelligence. >> it makes sense for softbank to be doing this, but if i'm an investor in softbank, what does that do to my holding? the company today will be very different in five years. how do i quantify my investment? >> i think the best way to look at it is look at the track record of softbank. if you look at the track record as an operator, i think we've done an outstanding job.

the turnaround of the japanese stock has probably been one of the best turnarounds in history of telecom. when you look at what we've done at sprint, bringing it where it is today, it has been remarkable. when you look at the track record and investor, the amount of money softbank has invested and generated is the best in the world. we decided, why don't we put more focus in replicating and putting our money to work in areas we have done good in the past, in then be able to invest in put more tension in investing, helping grow business? >> as an entrepreneur you've been linked to in the last 48 hours, elon musk, how real is he in terms of tesla? >> we never comment in terms of if we have commercial relations or not, that wouldn't be fair to anybody. one thing i can tell you is most

entrepreneurs today want to do a big transaction or who are looking for financial help to expand their business, we will have conversations with them. >> so that kind of company would fit the bill in terms of the areas and potentially the type of founders that softbank would back? >> i mean, i would say that is more in the area in terms of finding entrepreneurs that will disrupt the way we work, the way we live, the way we move, the way transportation gets disrupted. elon has been an amazing entrepreneur, one i think a lot of people admire. there are so many credible disruptors today that are leveraging artificial intelligence to change the way every thing gets automated, and that is where we are putting most of our focus. ♪

♪ >> you are watching "bloomberg best." i'm michael mckee. let's continue our global tour of the week's top business stories with an unexpected shakeup this week -- food and beverage giant, pepsico. >> stepping down as ceo of pepsico. he will leave the role in october after a decade at the helm. she will be succeeded by one of her top lieutenants. >> it looks like an orderly transition is in the making. that said, there will be investor concern about the fit of the north american beverages place within his portfolio. this company has relied heavily on internal, organic innovation to drive growth. among other things, it will be her legacy, that she drove innovation as an innovative company and leader.

but to grow faster rates within mature industries, it may require them to put their balance sheet to work, to make more aggressive acquisitions, particularly outside the u.s., where in developing markets you see growth. >> saudi arabia has suspended diplomatic ties with canada, halting new trade and investment dealings. they are responding to canada's call for the kingdom to release the jailed women's rights activist. how normal is it for the saudis to respond this aggressively? >> it was certainly seen with the crown prince, a very assertive foreign policy. saudi arabia in the past has reacted aggressively to sweden, to germany, but there is no mistake he is firmly the power behind the throne. as we've seen in reaction with qatar, they have no qualms about going in hard, and it's not a reciprocal response.

they have escalated far more than canada. >> saudi arabia, they say they will continue to ratchet up pressure on canada for criticizing the recent arrest of a woman activist. the kingdom's foreign minister says the next wave of retaliatory steps will be taken. >> saudi arabia is part of a large islamic organization, and canada must understand that its actions are unacceptable, not just to saudi arabia, but to arab nations in the entire islamic world. >> one interpretation is that this is not just a message to canada, it's a message to the wider western world, don't meddle, don't criticize, we have very low tolerance for this. but the speed and intensity of the response was surprising. one factor here is that there isn't much of a strategic partnership on the economy with saudi arabia and canada, giving investors something to think about.

>> deadline on downing street. the european union wants a brexit deal by september, but theresa may hopes to stall until november, gambling that the g20 summit will make the eu more ready to accept a deal. >> i think there are two ideas behind theresa may's hope for delaying some kind of a deal. one is that she needs to get an agreement at home. she doesn't have agreement within her own conservative party. she is also very much like not to have this happen around the time of the conservative party conference at the end of september. secondly, she's hoping that the timing will work out in britain's favorite, because the eu will want this off the table at the time when it happens, it's big g20 summit, trump comes in, they will want to show of that a show of -- a show of unity, to say they put brexit behind them. i'm not sure it's going to work out that way, though. >> china's foreign exchange

holdings are picking up last month in spite of the weakening yuan and the worsening outlook for exports. tell me what is going on with china's fx reserves. >> china's fx holdings rose beyond all economist estimates. that shows that right now, china is not intervening in its foreign exchange market, and it is a signal that china has not weaponized its currency in the trade war's with the u.s. so far. we also had another important development i want to raise your attention to. the pboc told some banks they should avoid herd behavior and chasing yuan momentum moves. this comes after the move last week to make it more expensive to short the currency, and it is clearly a signal to get the markets to stabilize the yuan from plunging. >> one of america's most powerful companies may be bending to china as well. sources are telling us google is

in talks for a cloud tie up with tencent and others, after it reported a story that it is preparing a censored version of its search engine. it's a pretty dramatic reversal. >> it's amazing how much things have changed since they left china. the whole world has somewhat changed, and the powerful companies that are now much more powerful in china is something that has attracted google. this report shows google wants to get back, or get into the cloud business here in china, and that could be a huge part of their business. >> sinclair stumbles in a bid to consolidate u.s. broadcasting. tribune media has rejected its merger attempt, and assuming sinclair for $1 billion. what was was the issue with antitrust regulators? >> it was, but it was less about the regulatory environment and more about mishandling. the fcc bent over backwards to make this deal possible.

the revised an old regulatory loophole on media ownership limits, to allow sinclair to proceed with this deal. then sinclair still had to make divestitures, even with those modifications. the problem was they just did not come up with workable solutions for these divestitures. in some cases they were trying to sell assets to business affiliates, to sell assets to companies with connections to the family. i think the fcc was frustrated and irritated by the steps sinclair took. >> in beijing, hong kong debut. there has been a bit of movement on these stocks, have since -- a bit of movement on these stocks in terms of beijing, to the downside quite surprisingly. >> yes. the key is investors are not looking enthused about these listings. beijing following -- falling this morning as much as 4.6% under the ticker 616. is the founder and ceo told us,

on the global stage, hurdles remain in giving drugs to market and to the end user in a timely fashion. turning to china tower, it at least has avoided becoming a swamp like xiaomi, now trading pretty flat, hitting a high of 128. it is keeping its market value at 28 billion, a 20% discount from the valuation it was hoping to achieve. >> new york has dealt a major blow to uber and other ride-hailing apps, three years after voting down a similar measure, the city council approved a one-year industrywide cap on new licenses. it also grants authority to the limousine commission to set minimum pay standards for drivers. this is something that uber successfully lobbied against several years ago, this time despite its efforts it didn't happen. how much of a setback is this?

>> in 2015, of far less -- a far less ubiquitous uber beat down mayor bill de blasio and scared the government from regulating it, allowing it to continue to grow. now it's well-established, has a large number of drivers, but it is definitely a blow for uber to set a cap rather than to grow and shrink with the amount of demand. it is a major setback. >> samsung has unveiled its priciest phone yet in an attempt to rejuvenate sales of its flagship line, starting at $999. the galaxy note 9 enters the smartphone market amid slowing global demand. does this signal samsung is forging ahead with a more aggressive smartphone strategy? by the way -- they said apple would never be able to sell a phone and now it is all

the rage. >> first of all, i think the share price tells the story. it is down a little bit. there is a little disappointment that the note 9 did not represent a more advanced step forward from previous iterations. you are right in that samsung is starting to get a little more aggressive. in the wake of the infamous note 7 incident, i think they traveled back a little bit, introducing new features. with the note 9 you are seeing an upgrade to the stylus and other features, and that signals a management shift toward a more aggressive strategy. but i think in many ways the note 9 is sort of playing a holding pattern game before the next big thing. >> ryanair is grappling with major strikes for the first time in its three decade history. it matters if you are an investor, because disruption is

set to hit a new peak today. friday. we have at least 400 flights lost across five nations, as pilots ramp up a bid to get better contracts from the company. how did we get here? >> this is the unions trying to show that they will have a voice here. about a year ago, there were no unions at ryanair, and now this is what they have to contend with. the thrust of the strike is in germany, about 250 flights canceled today alone. they are expanding, others are expanding, so they need to be careful that this doesn't turn into an issue before people start rebooking. ♪

♪ >> check out the gd if you want to look at a stock more in-depth. there's the graphic dashboard. a whole slew of information, including a look at the volume, a look at the analyst notes, buys and sells, and corporate events. >> there are about 30,000 functions on the bloomberg, and

we always enjoy showing you our favorite on bloomberg television. maybe they will become your favorites. here's another function you will find useful. 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. disrupting childhood? in short, yes but it is complicated. the average age for getting a first smart phone in the u.s. is about 10, and half of all american and british kids have social media by the age of 12. smartphone wielding teenagers and pre-teenagers are glued to their phones, often using social media to share sensitive data about themselves, during what could already be a tough time navigating puberty or adolescence. there are worries that screen time and social media activity can be addictive, and researchers say it can lead to bullying and depression.

a recent survey reported 22% of 8-17-year-olds said they had been bullied online. there is a flip side. >> but there is evidence to suggest kids can use their smartphone, if you spend your time sharing positive information on social media. it can make people happy. >> that is giles turner. >> i am the tech editor for europe at bloomberg. it's like anything. you have a drink with your friend, it's great. if you carry on drinking for 12 hours, it's not so great. is the responsibility of the parents to manage that. many parents want to throw the phone in the rubbish bin. >> and parents are the only ones -- aren't the only ones sounding the alarm bells. pediatric and mental health experts are lobbying facebook to discontinue its messenger kids, a version of the messenger app for children ages 6-12. most platforms do have age restrictions, but the honor system is virtually impossible to enforce. after pleas from major

shareholders to address addiction, apple has recently unveiled a new feature to help people take control of their habit. >> we know this is something that can help families achieve the right balance. >> meanwhile, experts still can't agree as to how serious a threat all this is. >> most of the evidence is relatively new on whether social media is a good thing or bad thing. you have to remember snapchat only came around in 2011. it takes a long time to come to a conclusion. >> social media and screens are here to stay. putting concerned parents in a difficult bind. letting children too young to use technology and social media run amok, or risk isolating them from their peers. >> 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 will be all for "bloomberg best" this week. thanks for watching. i'm michael mckee. this is bloomberg. ♪

two, down and back up.

our phones are more than just phones. they are pocket sized personal trainers... last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today.

>♪ carol: welcome to "bloomberg businessweek." jason: we are at bloomberg headquarters in new york. carol: coming up, a story on apple and whether or not it really is a champion of privacy. jason: we also go to the big news of the week, elon musk taking his company private. carol: we look at the relationship between steve