♪ david: coming up on "bloomberg best," the stories that shaped the week in business around the world. turmoil in turkey. each day brings new twists as investors look on with alarm. yousef: the market reaction really tells a powerful story as to the insufficiency of the latest move. mohamed: turkey is trying to rewrite the crisis management chapter in the playbook for emerging markets. david: the u.s. and china resume talking about trade talks. cryptocurrencies go on another ride, and elon musk's plan to take tesla private puzzles the -- -- cryptocurrencies go on another white-knuckle ride, and

elon musk's plan to take tesla private puzzles the market. max: the sec is taking this to the next level. it has become a more serious investigation. keith: tencent and walmart lead a parade of earnings reports. selina: we are seeing this first profit drop in a decade send shockwaves. ken: this is likely the earnings peak in retail earnings. scott: the challenge of getting excited about equities, all the investing in e-commerce. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome. i am david westin and this is "bloomberg best," your weekly review of the most important business news, analysis, and research from bloomberg television around the world. from the moment markets opened monday, attention focused on turkey. a country in the grip of political and economic crisis. nejra: the turkish lira on a roller coaster ride this morning as the country's central bank announced a list of measures it

says will support financial stability and proper functioning of markets. president erdogan has defended the turkish economy, accusing the united states and others of waging war on his country. take us through exactly what the central bank has done today. yousef: the central bank, doing something, but not with the market was hoping for. it was described as something is better than nothing. they are freeing up liquidity, $6 billion worth. the banks have to park less capital with the central bank. they said they will do whatever is necessary to preserve financial stability, but, again, not the interest rate it has been that has been a issue for president erdogan, who said it was a tool for explication over the weekend, and the market reaction tells a powerful story as to the insufficiency of this latest move. cameron: you've got private sector foreign-currency liabilities representing a large

percentage of the gdp. they face sanctions from the u.s., which obviously doesn't help. perhaps more importantly, the president, president erdogan basically telling the central bank not to raise interest rates. that is fundamentally the issue here. foreign investors, foreigners, aren't rewarded for taking currency risks. david: turkish president, recep erdogan, is again sounding defiant in the face of pressure from the united states. erdogan said turkey will boycott iphones and other american electronics, and the country will stand firm against the united states dollar. yousef: this really took the rhetoric to a new level. he has always been known for speeches with fire and fury, but a few key points show that it is a much more nuanced, but very targeted messaging he is pursuing. you mention some of the key points, also threatening they will be boycotting american product. another key point, saying the u.s. has been targeting many economies around the world. >> the threat was met from a

simple, staunch message from white house adviser john bolton. the u.s. will not negotiate. bill: this raises a lot of questions about where nato is headed, and whether turkey fits into the alliance at all. second of all, on the face of it, it is a remarkable dispute, because you essentially have -- the u.s. has said it wants this american pastor, andrew brunson, who has been detained for two years, back. the message from john bolton to the turkish ambassador was we have nothing to discuss until he is released. we really appear to be at a stalemate at this jonathan: point. turkey is still trading blows with the united states, announcing tariffs on $1 billion of american goods, including cars and cosmetics. kevin: president erdogan doubling down on his criticism of president trump's decision to implement tariffs from the u.s. let's look at what the latest tariffs on u.s. goods are.

liquor, cars, cosmetics, 140% and 120% onol, cars. henry: the real question in my mind is thinking about turkey g8 strategically. china is margin west towards geopolitical resources. it puts turkey in an important point from a western standpoint. you have seen it back off from nato and is turkey's overtures toward russia, arms purchases a step in that direction, or is it going to remain western focused? marcus: turkish lira gaining ground. authorities making it more difficult for banks to short the currency. they have done a de facto rate hike, but gone around it by making it more expensive to borrow against the lira. if they did hike interest rates properly, it would be a major step forward for turkey and we would see a wider e.m. rebound.

scarlet: u.s. stocks on a broad-based selloff domineering declines around the globe, commodities as well. materials and energy stocks are the worst performers because we are seeing weakness in metals. romaine: when you look a lot of the base metals, copper and even the precious metals space in gold, you have to wonder what it is telling you about the economic picture globally, particularly in emerging markets nations and in asia and whether this is something that will be more worrisome for us in the u.s. as well? manus: turkey is getting some outside help. asar plans to invest as much $15 billion in the country. president erdogan reached the rewards of standing by its gulf ally in the diplomatic standoff with saudi arabia. $15 billion will not be a check, but a sentiment about investing and standing by your neighbor. alaa: it is a search for allies. you said they are reaping the

rewards of the qatar boycott. one of the things that came from the qatari side, not the turks, the $15 billion is coming in projects, investments, and deposits. we're still trying to figure out that division of the components. matt: prime minister merkel is reminding president erdogan he has a potential ally in his country's biggest economic partner. a meeting of finance ministers on a phone call yesterday. she has had her issues with erdogan and now, it looks like she is offering him an olive branch. tony: a line from german officials, people close to merkel, that there is no aid on offer. nothing like $15 billion from erdogan's friends in qatar. even anything much less, but there is a notion of an olive branch and germany also has huge economic ties with turkey. shery: president erdogan dispatched his treasury and

finance minister, who is also his son-in-law, to calm investors on a conference call this morning. justin: he was defensive about the economy, talked about the strength of the banks, roll up capital controls. he said turkey will now address its vulnerabilities and put plans together to shore up inflation and to address the fiscal imbalances of the country is suffering from. julie: trade talks between the u.s. and china are back on. the reaction from wall street, cautious optimism. it is talks to talk. it is talks about reopening more substantive talks. sarah: exactly. this is a step in the right direction. china and the u.s. are talking again. these trade negotiations broke down two months ago and were at a higher level, the ministerial level, when the announcement was made that china's vice minister

of commerce would come to the u.s. and meet with a fairly senior treasury official for international affairs. it is a glimmer of hope at least that there can be some solution. it is not to say these officials are just bureaucrats who will be pushing paper. they definitely have some sway, they have the ear of the ministers above them, but again, it is not at the highest levels, and i think for many people, this is almost a signal of not setting hopes too high of having deliverables at this meeting, but really paving the way forward to get talks started again and see what the sides are willing to offer. jonathan: president donald trump prodding china to offer more at the bargaining table as the 2 countries prepare for their negotiations for the first time in almost two months. pres. trump: we won't do any deal until we get one that is fair to our country. peter: you hear a lot from china about the thucydides trap. the idea that a rising power will always come into conflict with the incumbent power, and

very often this leads to war. they are pessimistic about that. americans say no, the u.s. is not trying to keep china down. it is just trying to get china to follow the rules by allowing protection of intellectual property by american companies and by giving equal treatment to them in china. david: still ahead as we review the week on "bloomberg best," much more on the turbulence in turkey with insight from mark mobius and mohamed el-erian. plus, an exclusive conversation with a pioneer in cryptocurrencies who says market bubbles are actually good for the sector. joseph: it brings entrepreneurs, developers, it brings money. david: next, more of the week's top business headlines. hedge funds disclose their holdings for the second quarter and the trend may not bode well for tesla. brooke: fidelity cut their position by more than 20%. david: this is bloomberg. ♪

david: this is "bloomberg best." i'm david westin. let's continue our global tour of the week's top stories in silicon valley, where elon musk insists he has financial backing to take tesla private. the devil, of course, is in the details. selina: elon musk is elaborating on what sparked his move to take tesla private. the electric carmaker's ceo said the key to the gambit was the interest shown by saudi arabia's sovereign wealth fund. the fund recently bought a 5% stake. elon said he is continuing talks with the saudi fund and is talking to other large shareholders. do we have any idea who the large shareholders are and how far along these talks are? max: no. no, we have no idea about anything, in fact, and even with the information that came out this morning from elon musk's blog post, there is a wide range

of possibility that could've happened. i mean, we know there was some kind of concrete conversation in between the saudis and elon musk. i believe on july 31, we don't know if they talked about price. the blog post said there was due diligence needed and some very vague things that needed to happen. we don't know if they came to any agreement. julie: tesla's chief executive officer has been busy tweeting and blogging about how he will pull up the largest leveraged buyout of all-time. in the last 24 hours, he clarity on his infamous funding secured tweet, saying there is "no question a deal with the saudi sovereign fund could be close." then we learned tesla has formed a special committee to evaluate taking tesla private. explain to us the role of the committee. david: it is sort of routine here. whenever there is a buyout of

any kind, the board has to make sure they are representing the shareholders and not just management. they will make sure this is really a good offer and a good structure for shareholders. from there, we have to figure out how elon will fund this thing, what shareholders will turn their public shareholdings in for a private stake in this company, and see if there is enough of them so elon doesn't have to raise $70 billion to get this done. ramy: to tesla now, and the tale turns another page with the sec said to have sent a subpoena over elon musk's tweets about securing funding to go private. what does this subpoena actually say about this investigation? keith: what it says is the sec is now taking this to the next level. it has become a more serious investigation. they will look deeper, particularly at the part of elon musk's tweet that says "funding secured." he seems to be getting ahead of himself and what he is putting

out on twitter is causing the alarm with the sec. david: hedge funds closed the second quarter. let's talk about tesla in particular. people got rid of some tesla. brooke: big holders. fidelity and t rowe cut their position by more than 20%. this is obviously before all the fracas around elon musk's plan to take tesla private, but this is notable because his plan depends on these big equity holders rolling over their stakes into whatever the new tesla looks like. david: what is going on with facebook? brooke: a number of people bought facebook in the second quarter, and people who sold their positions. appaloosa all cutting their positions. you had george soros, d. e. shaw, all building holdings of facebook in the second quarter, and it seems those hedge funds that were buying came in after

ahe cambridge analytic scandal as maybe saw the low point as an opportunity. if you bought on the earlier end, you may still be in the green. jonathan: the trade spat with the united states takes its toll. the euro zone, growing faster than initially reported in the second quarter. what is going on with chinese economy, and what is in their control and out of their control? tom: people talk about china being buffeted by twin sharks. deleveraging at home and trade war being imposed on them in d.c. when we look at the week data out of china for july, it is the deleveraging which is the real driving force for the weakness. trade war is a risk, but the tariffs in place so far are too limited and have been in place for too short a period of time to really start biting into the numbers. piotr: the main reason why the euro zone economy grew faster than previously anticipated was germany.

the second quarter data was surprisingly positive. the main reason we look into the difference of the numbers is actually consumer spending and government spending, as well, that improved, which is good news. that shows the economy can grow on its own from the domestic strength, and despite all the fears about the trade wars. ramy: petrochina is said to be planning a temporary halt of purchases liquid natural gas from the u.s. to avoid potential tariffs in the trade war. sources tell the unit of state-owned will increase buying from other countries or swap u.s. cargoes. how will halting u.s. imports affect petrochina? stephen: the big thing that will happen is china is going to try to mitigate it as much as possible. the sources i have been talking to are saying it wouldn't be

hard for china, which just imports about 5% of their lng from the united states, to swap cargoes with other suppliers or buyers in the east asia region to minimize cost. right now, it looks like the strategy may be able to hold off large impact on the company. >> argentina has taken emergency measures to stabilize the peso. raising interest rates five percentage points and announcing an fx auction. these unorthodox moves from argentina come in response to the turkish lira's downward spiral ripping through emerging markets. felipe: what you have seen in latin america is when you have these kinds of negative external shock, most countries would allow the currency to devalue and absorb most of the external shock. that is how policy is supposed to work. you have argentina, where the currency has depreciated by almost 40% since they hiked

interest rates from 23% to 40% back in may. since may, the currency has appreciated another 40% or almost 40%. clearly, that was not enough so they have to think about alternative measures. francine: shares in the parent company of the operator of the bridge that collapsed in genoa have lost a quarter of their value this morning, that is as the italian government began the process of revoking a toll road concession. bloomberg says the board is planning an emergency meeting to assess the impact of the disaster but not until next week. of course, this is a human tragedy, a tragic loss of life, so we can't forget that, but if you look at the markets, atlantia was down some 25% on this license revoking concern. kim e-government actually -- can the government actually unilaterally revoke it? will they have to pay damages to them? greg: they can revoke it and, according to the terms, they do have to pay damages.

if there is no penalty reason that would allow them to revoke it. at this point, we don't know what the entire parameter of what the government is talking about is, but there is no question the company will strongly defend its interests. nejra: bayer shares plunged by the most in 15 years. investors weighing the costs of a legal battle after monsanto was hit with $289 million in damages. this on the news that roundup causes cancer. do investors expect this to hit the bottom line? naomi: investors are worried about uncertainty here. they are concerned about potential legal liabilities. they are concerned this could lead to a wave of other lawsuits, and that even if this verdict doesn't stand, bayer may need to pay settlement costs for other suits. jonathan: president donald trump says he has asked the exchange

commission to study ending quarterly reporting in order to ease regulations and spur growth. we have to draw a distinction between ending quarterly guidance and ending quarterly earnings. peggy: there is a difference, and this would be a bigger seismic shift if we ended quarterly earnings reports and go to twice-a-year system. we have been hearing from a lot of investors. they do feel the pressure on earnings these days on the stock price every quarter is really holding back companies from putting more money into research and development, which could in the long run benefit companies more. on the flipside, this could reduce transparency for shareholders on what is going on inside the companies, what executives are doing, how they are getting paid, and what the value of their shares actually is. ♪

david: you are watching "bloomberg best." i'm david westin. cryptocurrencies whipsaw this week. the market lost 10% of value in a 24-hour stretch before recovering. bitcoin and ethereum suffered significant midweek dips in the midst of these moves. erik schatzker spoke with ethereum co-founder joseph lubin, who wasn't fazed by all the swings. joseph: this is something we have seen so many times in the blockchain ecosystem since 2009, when bitcoin was invented. we have seen rises and falls. we have seen what many call bubbles, and i would agree. erik: that what happened last year was a bubble? joseph: we have seen six big bubbles, each more epic than the previous one. each of these bubbles are astonishing when they are happening, but when you look

back, they seem like little pimples on a chart, really, because the growth has been exponential. each of these bubbles has the advantage of bringing attention into our ecosystem. it brings entrepreneurs. it brings developers. it brings money. it brings the prospect of building fundamental infrastructure and creating more value, so what we have noticed is with each of these bubbles, we have a tremendous surge of activity, and that is what we are seeing now. so we had a big bubble. i think we are something back -- back to something like november, december prices, which we thought were incredibly high. since then, we have probably seen two orders of magnitude -- increase in developer activity, increase in scalability, technology. it is actually going quite well. erik: does it worry you at all that the developers, the entrepreneurs, the talent, and the money that enter the crypto ecosystem on the way up exits on

the way down? joseph: no, we are not saying that. we see trader types feel like their fortunes are rising and falling with the price of bitcoin and the price of ether. really all of these tokens are incredibly correlated. so it is really the trader types that are moving them around. erik: don't you feel it too? joseph: not -- erik: on paper, surely, when ether is at 1300, you are a much wealthier man than you are today. joseph: sure. we can look at the price and make growth plans and projections, and we are still on track, basically. david: coming up on "bloomberg best," compelling conversations around the week's central stories. investors, analysts, and policymakers talk turkey. the cause of the crisis, immediate effects, and the hard lessons. dan: people's understandings of the collateral they are

financing and the rate they are financing it are starting to converge. ♪ xfinity mobile is a new wireless network

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included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. david: welcome back to "bloomberg best." i am david westin. looking back on the week, turkey dominated the discussion on bloomberg, and the implications of that nation's crisis extends far beyond its borders. here are highlights from our conversations on the week's hottest topic. nejra: i don't want to sound like a doom monger, but it seems like this is a really unique set of circumstances. is there any other precedent we can look to, either in turkey or in other emerging markets, that can show us a way out of this crisis, or is everyone stabbing in the dark? william: i think emerging markets have been through these crises at various points.

nejra: exactly like this? william: the difference i think we are seeing here is that policymakers don't seem to be responding in a way that markets are wanting to see. historically, what we've seen when we have had large currency falls is the currency makers go to the imf for help. they raise interest rates, keep real interest rates high -- nejra: all of which turkey is not doing and says it will not do. william: the question is what causes things to change? some governments have managed to get through this without the imf. result and russia had a currency -- brazil and russia had currency crisis in 2014. it even then, we had some move towards reforms higher interest rates, a shift toward orthodox fiscal policy. turkey doesn't seem to be doing that. my concern would be there needs to be a deeper crisis to bang heads together. >> i didn't realize that trump would be so tough with regards securing bunsen and

his return. now we see a real bargaining taking place between the two leaders, and are probably not willing to compromise. >> a question for you, mark, about turkish banks. the u.s. bonds trading on $.50 on the dollar in turkey, do you have a comment, and if you were a depositor in a turkish bank would you be taking the money out and putting it under your mattress? >> i am a depositor in a turkish bank. i got most of my money out, but i'm keeping some in, because i think longer-term, it will be an interesting market to be in. but if you've got turkish lira, you are losing. in my case i had a little , turkish lira, so i'm in pretty good shape, but i'm concerned about any currency controls. if i want to get that money out, it wouldn't be in the near future, but this is something we have to look at. >> we're back to merchant

tilism. i think that is the real history -- that is the real story. it is potentially damaging to the world economy, in particular to some of us in the developing world. merchanwe're back to tilism the president is in some , way dealing with that this morning. the contagion risk to yourself, itafrica, and can you link to turkey, or get to the fact that we are back to merchantalism. rob: well, we have been affected by the currency instability. the south african rand has gone down from about 13 to the dollar to about 14 something to the dollar as a result, a direct result of the contagion from turkey. we are affected. but i think, more fundamentally, we have been subject to some of the punitive tariffs of the united states on steel and platinum products. they were imposed on us as well, and not on some other developing countries. not some other developed countries, but we have been

subject to those, we do not believe we are a cause of national security threats to the united states. we don't believe we should have been, but we have been. we are now under investigation for the extension of those punitive tariffs to our automotive products as well. we find ourselves in the global trade wars. >> the emerging markets, as a general matter, and like other tight fixed income markets, have had far too much access to capital. in the case of turkey, they took a lot of non-turkish lira denominated debt to further the borrowing desires. so what you see in those markets is not only they are tight, but up optionally in those markets is expensive. it indicates that the investor community views those not is not only tight, but ready to move down. in fact, we are not people who bet on those currencies. if we use them at all who use them to hedge other risks we have. we have seen a number of

currencies that have operated in sympathy with the turkish lira. for example, argentina, where our ability to hedge became suddenly far more difficult because market makers went away. i think you are going to see that all around the world. >> so the psychology that is exposed, the sentiment that is exposed, by this sort of reaction, how much further do we have with that? are we foretelling something here, in the broader market? >> i would say it is unclear to us whether we are in the last inning of the first game for the next game. a lot of the data points we see bubbling up across the world would suggest that people's understanding of the collateral they are financing and the rate at which they are financing it are starting to converge. >> we talked a little bit about emerging markets. which ones are flashing on your dashboard as ones to be concerned about? do you think we have passed the immediate contagion phase from

turkey? esther: well, of course, turkey remains an issue. turkishseen on this friday, when the turkish lira slumped, that the south african rand is vulnerable to contagion effects. this is due to a current account deficit. what we have seen in general is that those who need external financing who have current account deficits are most likely to also slump if we see any higher volatility in turkey. >> how weak does the euro get from here? turkey is something that had been weighing on the euro, what is your call? esther: i think some of this concern that the ecb could get more cautious is going to fade in the near term because right now we are not seeing any effect on the real economy in europe. they're going to sound cautious. they are also going to stress price stability.

we are on target and we are going to continue with the normalization path we have set out. jonathan: what would you do in terms of managing exposure to a county like turkey at the moment? >> so initial conditions matter a great deal. if you are overexposed to turkey, i would reduce exposure. i think turkey is trying to rewrite the crisis management chapter in the playbook. it is trying to go without interest rate hikes, it is trying to do it without the imf. that is hard. it is not impossible, but it is hard. jonathan: it looks like they are dealing with a symptom, but not with the illness, and if they continue to explore this unorthodox crisis management, how bad does it get before it gets better? : so the major concern whenever you look at these thing is what is a technical dislocation. it plays out through the

following channels corporate : bankruptcies, because of currency mismatches; massive pressure on the banking system, so you get increased dollarization; higher inflation, and then recession. that is what turkey must avoid. need a circuit breaker. you and i have talked about this. they need a solid circuit breaker to stop technical contagion from becoming economic and financial disruption. jonathan: the word i keep hearing is idiosyncratic. have we gone beyond idiosyncratic for emerging markets? mohamed: oh, yes, we have. we see correlations going up across the board in emerging markets. we are in the midst of a contagion phase that is impacting both strong and vulnerable economies. that is going to provide opportunities. if i were back in the game, i would be saying this is great, look at this, the market isn't distinguishing enough to create strong and weak names.

we have gone beyond that. we are in the midst of a contagion right now. ♪

david you are watching : "bloomberg best." i'm david westin. let's resume our roundup of the week's top stories with a focus on earnings. tencent was one of many firms around the world reporting quarterly results. >> the crackdown on online gaming in china is hurting tencent. the chinese internet giant suffering its first profit drop in over a decade. this is the owner of the messaging platform. it has struggled to secure approval from chinese regulators to monetize some of its most popular online games. was this the reason why the results disappointed, and is it likely to weigh on results in

the coming months and quarters? this are certainly seeing first profit drop in at least a decade sending shockwaves across the investor community. they were muted expectations given these regulatory changes, what we are seeing is even worse than expected. many know tencent is a social media giant, but at its core tencent is a gaming company. it has significant revenue run games, and the fact they can't make money off their most profitable games is a huge problem for them. >> wal-mart rebounding. the largest retailer posting its best quarterly u.s. sales growth in a decade, fueled by major grocery visits and online success, sending shares soaring. >> this is a tale of two companies. walmart's u.s. business is performing amazingly.

run foran and his team that the u.s. business have really turned this company around in the last couple of years. the challenge is getting excited equity all the investing the company is doing in e-commerce. they are going to close with kart in the next couple of weeks. that company loses $1.5 billion. inir own e-commerce business the u.s. continues to lose money. they said losses are going to be more than anticipated. that is the challenge to the investor. we have the great supercenter business taking share really well then we have these losses on the other side. >> macy's earnings topped expectations and investors are concerned that the department stores spending and shares are

sliding. their best estimates for what five consecutive quarters and are still not convincing investors. what's the problem? >> they raise guidance three times this year. all the news coming out was positive. i think it may have a lot to do that if you look beyond the second quarter into the second half of the year, this is likely the earnings peak in terms of retail earnings. our indexes going to be of 19.8%. it is unlikely it will come to a close in the back half of the year, and it is likely that is going to be that case for a lot of retailers. guidance is lower in the second half, and you have the specter of amazon, which is constantly present, given the stock has been up. i think that is what investors are looking at. >> home depot's second quarter represented a bounce back from a slow start to the year when bad weather cooled construction projects. what caused that what then

recovered in the last quarter? >> in the case of home depot really did see an unseasonably cold winter that dragged on. but they said last quarter was that they had some inkling that was coming this quarter. confidence that an overhaul of the computing network process will keep the company in demand. they gave a bullish outlook. they posted higher than expected quarterly profits and sales rose the third straight quarter. >> if you look at our performance, we have clearly driven a significant amount of innovation. our teams have done an amazing job. at the same time we have a strong global macroeconomic environment to operate in. we have dynamics with the rising dollar. we have some uncertainty in some of the emerging countries. we have the trade dynamics. these are things we don't necessarily control, so we will have to deal with those as they evolve. right now, things feel pretty

good. >> the end of the road for videos. has dried uphics faster than expected. it expected to sell $100 million of chips and the fiscal second-quarter, but only managed 18 million. the revenue is likely to disappear completely. does that mean bitcoin is biased? ust? 70%e have seen bitcoin drop since last year. bitcoin doesn't feel as hot as it did, but we have seen cryptocurrencies drop as much as this in the past.we've seen them drop more than 90% in the past. we are in the levels that look technically interesting, but i think the coming months will be telling. day.ving an up and down they beat the highest estimates

amid news it is setting up a expansion. good numbers. what was behind it? >> we are very happy with the you.rs, thank and very strong result in north america for us. a little softer in asia, but the geographic diversity we have an able to pull together a good result. >> the biggest wind turbine that theorted earnings trade war is unsettling the outlook of turbine manufacturers. a narrative guidance on revenues and margins. a lot of what you said this morning sounds cautious. what do you think people are saying in the numbers he posted today, the outlook you posted today, the buyback you posted today that you think is encouraging people to buy the stock? >> overall, remain in high activity compared to the markets.

take ase, the over and 43% year-over-year leading to a record high. that is of course a strong message. >> german industrial services has reported a quarterly net profit for the first time in over a year, and beat expectations with those numbers. talk me through your return to profit, and your outlook for building on that in the future. our revenues up 10%. down in revenue and a percentage. i think the top line shows momentum is established and we are on the way to delivering on our 2020 strategy. the good news is that the kind of business we are in, industrial process businesses in

europe, the middle east, and north america, they are stable and drive our orders and hence our strategy. flash businessss is booming. to get inare looking on the green. the latest investment comes from the corona beer maker brand making a $3.8 million bet on cannabis growth. the largest publicly traded cannabis company. >> this is an opportunity for an aligned and complementary type thing, since prohibition this is the end of a type of prohibition. at least on cannabis. we see it as a tremendous opportunity to add to our portfolio. >> when we make a beverage, it has no alcohol, but no calories.

it causes friday night to be uplifting, positive. you don't get sleepy, you get happy. if i can make that consistent, well branded, delivered to you for the type of purchase he want in different of aggressio -- pue you want in different demographics. netflix.p in the ceo plans a step down after eight years on the job in which the streaming service transformed itself into a content powerhouse. he is leaving to focus on philanthropy. he will choose his successor to use the transition. house apprising is his resignation? >> i don't think anyone was looking for this announcement. there had been no speculation about his leaving. unchanged, which indicates the market is seeing

this as a fairly orderly transition. ay to is going to stag handle the transition. it is a little bit of a surprise, but not a big deal to the company or investors. copenhagenasdaq, lost quite a fortune. the danish shipping giant led for the brexit and the energy interest. they want to streamline our structure and focus on their core transport business. >> we looked at options. that would option create the most value for our shareholders. there are many great companies in the drilling sector, but not a lot of companies with strong balance sheets. all the other positive transactions invert some kind of merger. effectively, it would mean we would have more exposure rather than less.

we think it is a good solution that will allow shareholders to remain invested in company that is well capitalized and will do well in the coming years.

david: you can follow more on the story and all the days trading on our market's live go. you can get a market run down in one click, and there is commentary and analysis from bloomberg editor's so you can find out what is affecting your now.tments right there are 30,000 functions on the bloomberg and we enjoy showing you our favorites. maybe they will become your favorites as well. ,go. will lead you to our

quick takes. personal data doesn't get much more personal than this. that is your dna. --exchange for a bio love sp they will reveal your heritage and close your health. sales are protected to triple in the next five years. after the test is done, the company still have your genetic data and there are few limits to what they can do with it. read the privacy, they actually outline for you very clearly all of the reasons you might want to think hard before you participate in them. 23 and me struck a deal to provide data to develop drugs.

that is a huge part of the business. say thereements also companies may have to share data with law enforcement if compelled i court order. they haven't complied with they may not need to. police in sacramento county, california believe they cracks the case of the golden state keller by matching dna from a crime scene to one of his relatives from an open source genealogy website. genetic passed the nondiscrimination act which is meant to bar employers and health insurers from using people's genetic information against them. >> life insurers could use your information to decide whether to offer you a policy or not. >> at least the policies do what they advertise, right? >> one thing they can definitely tell you is other people you are related to.

after that you get declining accuracy without the other applications -- with every other application. >> for example, breast cancer. >> what if you are negative for one kind, but you are at risk for other kinds. there are thousands of variables. the science is not there to effectively say how you should or whatising, eating, skin care products you should be using based on your dna. >> you might want to convince your relatives even if you a dna test isn't for you. remember, before you spit into the tube, it is not just personal, it is familial. onid: you can also find them bloomberg.com along with business news and analysis 24 hours a day. thank you for watching.

i'm david westin. this is bloomberg. ♪

♪ david: you also ride 120 miles a week on a bicycle. have you thought how much higher the stock price would be if you did not spend that time on 120 miles a week? dennis: i think i should start riding 200 a week. david: would i look like you and drink the diet mountain dew? dennis: sure. david: let's talk about the space program. dennis: this is the most exciting time in our country's space program 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? the cows would produce more? [laughter] >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok.