♪ >> 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. >> there was a clear message from china. we won't just go after the small items. >> the bottom line has been the sanctions are put firmly on their radar screen. >> it is a message to the wider western world, don't meddle. l: 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 at? >> going private at that level wouldn't make sense. >> when mr. musk said funding secured, was funding secured? >> voices in business and policy chime in on the week's hot topic. >> we have seen more pressure on the short end of the curve. >> the market is pricing in higher risk for a financial crisis. mike: plus, a deep dive into a deluge of earnings reports. toughert conditions are for the industry. >> we are looking to cut costs, including some stock costs. >> it is all doing will be open to do right now. mike: it is all straight ahead on "bloomberg best." ♪ ♪ michael: hello and welcome . i'm 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 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. on monday, it raised the economic pressure a notch as well. >> president trump restoring sanctions on iran midnight tonight and reaffirms the u.s. plans to impose tougher penalties on the country's oil exports in november. the move has drawn fresh condemnation from european allies, who are standing by the 2015 nuclear deal that the president withdrew from in may. >> what exactly are in these sanctions? well, it will impact the u.s. dollar purchases and gold 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 sometime in mid november. we have seen the real hit by these sanctions significantly.

there have been some waivers for some countries that would impact the energy sector. >> in a televised 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? >> think the honest answer is not a great deal, and i think there is a huge amount riding on what the europeans can provide. turkey and china have stood up quite strongly against the sanctions, and we know that china is refusing to cut its own imports of oil from iran. that will be very important.

john: the lira plummeting to a record low and 10-year yields breaking a record. where are the authorities and what can they do to address issues that have gotten more dramatic over the last 24 hours? >> they have to get out of this situation with the u.s. and the u.s. has made it clear to the turkish side that 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 others the u.s. is calling political hostages. reacting sots are negatively to this just shows volatile the turkish economy really is. >> elon musk wrote, "i am considering taking tesla private at $420, funding secured." is going private a real possibility? >> going private at that level wouldn't make sense for a number of reasons. the company needs funding to grow. and to go private at $420 a share for probably be a total of

$72 billion less about $14 billion that elon musk has, he would probably have to finance around $58 billion. more importantly, he needs to raise $2 billion to build his new china factory. he is going to need to raise additional money to build the semitruck. going private would not make sense. emily: 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 that time? >> 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. [laughter] >> 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 made by the trump administration and follows the $34 billion worth of tariffs already in play. >> this is the second tranche of the announced. $50 billion 25% levels, not unexpected. we got a list of about 279 chinese products that will be hit from august 23, including things like steam turbines and motorcycles. >> china hits back. beijing announced it will retaliate against the latest round of tariffs from the trump administration in kind with a 25% charge on $16 billion worth of u.s. goods. >> i think what the surprise was they revised their list and included now are some petroleum-related products. and that is a soft spot for the u.s. wanting to grow the economy in that area and energy exports. so, there was a clear message from china by revising the list

that we are not going to go after just the piddly items, but when michael after some of the stuff that will be a centerpiece of the u.s. economy. but they did say that this isn't past the point of no return and that 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 announced new sanctions on russia to punish the kremlin for the nerve agent attacking in the u.k. earlier this year. the sanctions imposed under a 1991 law on the use of chemical weapons limit exports of u.s. technology related to national security but exempts operations -- u.s. cooperation with russia 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 at the summit in helsinki last month, and it seemed like things were on the mend in terms of their relations. the kremlin has shown no sign of

being willing to come clean and give up its denial of any role in poisoning attacks. i think for investors, the bottom line has been it puts the sanctions issue firmly back on their radar. 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 thing here everyone is focused on is when mr. elon musk said funding secured, was funding secured? sonlon musk and masayoshi are said to have held talks about softbank investing in tesla, including potentially taking the electric carmaker private. >> we know that ultimately, the way they played out was elon doesn't want to lose control of

the company, so softbank wasn't happy with the way it was going to be split. that was really the hurdle they were unable to overcome. emily: softbank has an enormous piggy bank and likes investing in tech. if you take them off the table who is left? , >> there are others, of course. we have not heard them connected to it at all. and most importantly, bloomberg has spoken to 35 investment banks. none of them 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. this is a bit routine. 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, they are in a precarious position because they have a very charismatic c.e.o. who happens to really hate being

the c.e.o. of a public company. 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 i can tell you $420 a share is not going to do it. there are a lot of long holders who think this company is worth $570, or more. they will have to do better than that. jon: turkey closer to financial meltdown and the lira, falling to a record low. president erdogan failing to stem the route. >> we don't have the minimum of difficulties, but we still suffer from an artificial financial pressure. >> you know, 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 that he cannot step down from that role as protector. what you heard in the speech this morning is that this is a foreign plot, i'm your protector

and 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 financial community if this happens. >> turkey is relying on the kindness of strangers. we are seeing the kindness to strangers evaporate as we speak. and donald trump tweeted where he has doubled the rate on tariff of turkey's steel imports. now turkey is not one of the major steel exporters, but this is not a good sign because the whole reason for the move today was we didn't have progress on the talks with the u.s. yesterday. and today, investors saw tariffs news. it tells you 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, it goes 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 review the week on "bloomberg best," elon musk may have talked with soft bank about a state in tesla. we talk with the softbank c.o.o.

plus, comments on trade from larry summers, blunt reaction to jamie dimon's forecast for treasury yields, and the head of the chinese hedge fund says don't run from mainland equities. but up next, earnings, earnings, and more earnings, including results from some 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 a result 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 their expectations. >> we saw good revenue growth the first two quarters of the year, and that is translating to a good reporting profit progress. we continue to invest in the growth of the business and have a strong balance sheet. so now, feeling reasonably confident about where we stand. david: softbank posted the strongest revenue growth. but 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 control of $386 billion already at half year so that is , where you see the growth, and that is where the strategy wants to see the growth. so, that is paying off well. in corporate clients, we still

have a very competitive environment. we see growth on the customer side and also on the loan side, which is fine, but monetizing this growth will probably take a bit longer than originally anticipated. this is where 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 abm, amro's next be? we understand 250 jobs are to go. is that a starter number? >> we announced a change at our corporate bank this morning. we have a very strong client franchise in our corporate bank here in the netherlands, but also in a number of sectors globally. the oil and gas sector, commodities, and shipping.

we are looking to do three things in the corporate bank. we are looking to reduce the capital we deployed to that business, cut costs, including some staff costs, and we are looking to transform the business model to ensure that 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 have you gotten right? >> i think the pivot to health and protection, the demand in asia for medical care, the out-of-pocket expense that you have seen many times on the show, it is something like $.40 on every dollar versus nine cents in the u.k., or $.11 or $.12 in the u.s. re.re's huge demand thei 70% of our new business profits are derived from that focus, so

that has been tremendous. and over 90% of that is regular premium, meaning those clients stay year after year, 95% of the existing clients renewed this year in the first half. relationshy client across a dozen markets. leadership positions, the wealth business is doing well. it is all doing what we hoped it would do right now. >> the standard life aberdeen is still hemorrhaging client cash, redemptions reaching 6 billion pounds in the first half. the latest sign investors remain nervous about market volatility and economic uncertainty. >> the very encouraging thing is that 80% of those flows are in what we call non-blockbuster assets that have driven the 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 a year earlier. that was fueled by a big boost from the vision fund. softbank shares rising significantly after the earnings report. what exactly drove these profit gains? >> you know, for the past two years, softbank has been in a tug-of-war between losses on one hand and profits of the domestic 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 of flip card as well as wework.

son has been talking for years about moving beyond just becoming a simple carrier and investors are getting a taste of what that will look like. matt: disney reported third-quarter earnings that missed estimates as canceled films wait on profits. the c.e.o., bob iger, gave an upbeat view on the future, however, as its espn streaming service has attracted more subscribers than forecast. the company also commented on its plans for acquisitions of fox assets. what did we learn from bob iger and from the disney results yesterday? >> i guess we learned clearly they are very optimistic about the acquisition of fox assets. the number is a slight miss, so disney does need to be adding content to its portfolio, building out its streaming service. but we did not 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, i think.

matt: 21st century fox is laying out plans for a new fox as its $71 billion deal with walt disney nears completion. all this came after earnings and sales topped analysts' estimates. fox news did quite well. >> indeed. i think the real standout take away here is how well the cable network programming division did. 60% of fox revenues, but more importantly, the center of profitability. as you mentioned, fox news, but also the fox business channel, fox sports, of course. but i think the big picture is that, you know, these business channels are actually highly profitable. obviously, if you have a sport'' channel, you have to buy content so a little less profitable. 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. but the world's biggest commodity trader failed to increase its interim dividend and expand existing buybacks. the million-dollar 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 as part of a share buyback and dividend policy. that looks pretty good. 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 there may be a $1 billion fine 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 it 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 just had fresh comments from

u.s. president 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 maintain broad access to go out and promote our new innovations. in the category pricing is , coming down for us and our competitors. i do understand drop pricing is a key issue for the president . i have a lot of sympathy for that because there are patients who were not getting access to rebates we give. but i think in particular, we have a case where pricing is coming down, and that is something we have been talking about for a couple of years now. ♪

tohael: welcome back

"bloomberg best." i am michael mckee. escalation of tariffs leave no doubt that the u.s. and china are in a trade war. one observer who thinks it will have negative effects is former u.s. treasury secretary larry summers. >> this is a trade war that will make america for because our consumers will pay more for products they buy and our producers will be less competitive. they will be paying more for inputs. i think china is a developing , still in terms of its average income, 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 new york will have to make a variety of strategic decisions, but should be able to maintain a role in financial services for a long time to come. michael: larry summers is on the bloomberg advisory board to be november toing in 2018 analyze the biggest questions facing the global economy. for more on the news and central themes, go to our new website bloomberg.com/new-economy-forum. coming up, more talk on trade and banter on bonds. jamie dimon warns u.s. treasury yields could reach 5%. guests on bloomberg television respond to his call.

>> i don't think we will get to 5%, but i think it would be good if we started to get there. michael: this is bloomberg. ♪ two, down and back up.

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>> this is "bloomberg best." i'm michael mckee. when j.p. morgan chase chairman and ceo jamie dimon speaks, and investors listen. what he predicted for u.s. treasury yields last weekend made them perk up their ears. >> jamie dimon is getting bearish, warning investors to prepare for yields of about 5%, -- above 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 with rates of 5% or higher."

it is a higher probability than most people think. >> 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? michael: 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 need to see material 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 become to the fore. it is a tail risk to the markets. michael: 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 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 should head. 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 -- but certainly here in europe are 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 price other credit insurance products, would simply be too low relative to economic momentum. that is where you start seeing bubbles appear. >> you have some sympathy with him. you think the market is underpricing -- it is not assuming enough inflation, that

there is more inflation, and 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 the gdp growth, that bond yield is 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 too low. 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 there. >> of course, the twists and turns in the u.s.-china trade dispute also sparked lively discussion. -- conversation. while the shanghai composite is down significantly this year, one top-performing hedge fund on the mainland is pursuing opportunities in the rout. shanghai investment manager president outlined his bull case for chinese stocks in an exclusive interview with tom mackenzie.

>> we are not bearish at this moment. we think the market has overreacted to 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. there has been a major policy shift on policy front, featuring slowdowns in deleveraging and an extension of fiscal steps. i think those changes 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 finance of crashes. that reaction has been overdone. we are increasing our risk exposure by taking our positions on major stocks whose long-term investors remain unchanged, and become more interactive after a -- attractive after a selloff. we like financials, we like independent power producers, consumer discretionaries. we also like manufacturing for machinery, homemade technology. michael: 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.

bloomberg's 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? -- thesis in terms of where it is investing? >> 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. when you look at the track record as an operator, i think

we've done an outstanding job. the turnaround of softbank of the japanese stock has probably been one of the best turnarounds in history of telecom. when you look at what we've done in sprint, bringing it where it is today, it has been remarkable. when you look at the track record and investors, the amount of money softbank has invested and the returns 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 where we have done good in the past, and 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 -- how real is the interest in terms of tesla? >> we never comment in terms of if we have commercial relations are 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 a partner to help them 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 musk has been an amazing entrepreneur, one i think a lot of people admire. but we look at him and there are so many incredible 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 michael mckee. let's continue our global tour of the week's top business stories with an unexpected shakeup in this week that food and beverage giant pepsico. >> stepping down as ceo of pepsico. she 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. having said that, there will be investor concern about fit of the north american beverages place within his portfolio. this company has relied heavily on internal, organic innovation to drive growth. that 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 faster growth. >> saudi arabia has suspended diplomatic ties with canada, halting new trade and investment dealings. the saudis 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 to calls on human rights? >> 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 women's activists. 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 a saudi arabia, but to arab nations and 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 criticize, we have very low tolerance for this. but the speed and intensity of the response was surprising. perhaps 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 u.k. prime minister 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 -- she would 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 favor 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 unity, -- 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 economists 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 trade wars 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 to prevent the yuan from plunging more quickly. >> 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 tire with

-- 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 2010 sinced 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. it is not only about search, but 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 is suing sinclair for $1 billion. what was the issue here? was it 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. they revived 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 chairman's 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, hasn't there, in terms of beijing, to the downside quite surprisingly. >> yes. the key is investors are not looking enthused about these listings. as you pointed out, the beijing falling as much as 4.6% under the ticker 616.

as the founder and ceo told us, on the global stage, hurdles remain in giving drugs to market -- getting drugs to market and 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. kong dollars, 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. the measure 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 it asked efforts, it

didn't happen. how much of a setback is this? >> in 2015, 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. -- setback for uber. >> 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? and by the way, they said apple would never be able to sell a $1000 phone and it seems to be 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. i think 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 throttled back a little bit, introducing new features. with a 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. 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 big thrust of this 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 on to other planes. ♪

>> check out the gtv if you want to look at a stock more in-depth. there's the graphic dashboard. you can get 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 are -- 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. ♪ are screens disrupting childhood and? 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 phone, 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. but there is a flip side to this. >> there is evidence to suggest kids can use their smartphone for up to two hours a day. if you spend your time sharing positive information on social media. >> 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. certainly, many parents want to throw the phone in the rubbish bin and make their kids play outside. >> and parents 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 for major

shareholders to address device addiction, apple has recently unveiled a new feature to help people take control of their habits. >> we know this is something that can help families achieve the right balance or them. >> 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. we know how long it takes academics to come to a conclusion. >> like it or not social media , and screens are here to stay. letting children too young to use technology and social media run amok, or risk isolating them from their peers. ♪ michael: 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 find on the bloomberg. best" this week. thanks for watching. i'm michael mckee. this is bloomberg. ♪ best" this week.

♪ david: you also ride 120 miles a week on a bicycle. have you thought how much higher the stock price would be? dennis: i thought i should start riding 200 a week. david: if i could look like you and drink the diet mountain dew, sure. let's talk about the space program. dennis: this is the most exciting time in decades. david: you grew up in iowa. dennis: every morning i had to milk the cows. david: did you ever say to them, drink some mountain dew? >> would you fix your tie, please? david: well, people woul