♪ julie: coming up on "bloomberg best," the stories that shaped the week in business around the world. e.m. mayhem. currencies sink and economies stagger in nations around the world. >> too little too late, unfortunately, the story of this emerging market crisis. >> i despise the word contagion. julie: testimony times two. a court candidate and some tech titans answer questions on capitol hill. >> to believe that this problem of manipulation and misuse of platforms is even close to addressed is fundamentally false.

>> mob rule is how senator patrick leahy describes the setting here on capitol hill -- julie: amazon's market cap touches a trillion. citigroup restructures its investment bank, the carney era run longer at the bank of england. >> this suggests the fed's on the right course in terms of tightening. >> the data is unmistakable. we are growing, boom-like across the board. julie: plus, an exclusive conversation with jack ma about what comes after alibaba. jack: i think some day and very soon i will go back to teach. julie: all straight ahead on "bloomberg best." ♪ julie: hello and welcome, i'm julie hyman, this is bloomberg's best, your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day-by-day look at the top headlines.

markets were closed in the u.s. on monday, but meanwhile, troubles in emerging markets showed signs of becoming a full-blown crisis. >> argentina took action today amid its fiscal crisis. president macri said he would impose taxes on exporters to h-needed revenue after the peso changed. >> the key thing here is that government officials took to making a more concerted effort outlining what will be their efforts to decrease the fiscal deficit. they said today that they would seek to bring their primary fiscal deficit to zero in 2019, one year earlier from what was previously agreed with the imf in 2020. that is supposed to bring confidence to markets, but

we're still concerned that a weakening peso will erase complications for the country's financing needs for the next year. >> turning to turkey. the country's central banks inching higher in august. the lira changed after the announcement. marcus: too little too late is the story of this emerging market crisis. turkey, they are talking about raising rates at the next central bank meeting september 13 as they indicated today, why didn't they do it straight away> ? they've done emergency rate hikes before, and this crisis, we have produced prices coming up 6.6% on the month, extraordinary the level of inflation built into the pipeline is only going to get worse. the central bank will raise rates almost certainly on september 13, but the question

is -- by how much, will it be enough? and whether they will commit to keep on raising interest rates, the only thing that will break this vicious cycle, i'm afraid. francine: rent has fallen after the south african president suffered the same false start as his predecessor nine years ago. that's recession in his first six months in august. how concerning is it? does that mean the south african economy is much worse than we were expecting? >> it does certainly seem like this is bad news for the south african economy. and also the investment goals, president ramaphosa has to try to boost the economy by bringing in investors and bring in money to increase jobs and bring in more money. g.d.p. rose in the second quarter compared to a decrease of 2.6% in the first quarter. it seems as though the fundamental structural challenges working against economic growth still persist. he will have to work hard to unravel those and hopefully resolve them, so he can stimulate economic growth.

david: there was a day when supreme court nominations were largely partisan-free, but no more, as hearings on the nomination of judge kavanaugh today is not get past the introduction before democrats and republicans were trading heated words about the process. caps on: mob rule is how senator patrick leahy would describe capitol hill. this is, of course, as democrats have taken issue with the release of 42,000 documents just hours before this hearing was underway. they had been calling on chuck grassley, republican from iowa, to adjourn this hearing to give more time to review the documents. >> what are we trying to hide? why are we rushing? >> this committee has more materials for judge kavanaugh's nomination than we have had on

any supreme court nominee in history. greg: it's remarkable how little of this discussion is about brett kavanaugh. democrats are complaining about the process. they're complaining there are millions of documents that could be relevant to his nomination they haven't seen yet, and there's a relatively small amount of talk about brett kavanaugh and his qualifications to bring to the court. caroline: silicon valley taking center stage on capitol hill. facebook c.e.o. sheryl sandberg and twitter c.e.o. jack dorsey and a third chair left empty for google, faced questions from the senate intelligence committee. >> jack dorsey has said i understand these problems are large, and i haven't done enough, and i'm willing to fundamentally re-evaluate the business model for twitter. at the same time, he doesn't really seem to know exactly what twitter needs to do to get better. so i think some of that uncertainty, coupled with the idea of regulation, if twitter doesn't even know what it needs to fix, how will the government know. that's one of the reasons you're seeing the stock fall today.

>> to me, one of the most significant things that came from today's hearings is that governments and companies need to work more closely together. there was some willingness on both sides to have a more reasonable discussion about that. the basic point i would still make is, to believe that this problem of manipulation and misuse of platforms is even close to addressed is fundamentally false. alix: emerging-market stocks and the cost of a bear market for a second day, a few signs of relief that selloff. the year's rout is now the longest since the 2008 financial crisis from peak to trough and contagion is the worry. what do you do about the selloff? do you sell into it or look for value? >> look for value, definitely. i'm not saying you jump in with two feet, but you at least begin to stock picks.

>> at the end of the day, the fundamentals of the world in terms of global growth and earnings still look pretty good. it's not like we are in this dire position. by the way, i just despise this word "contagion." ok? just because it happened in the last recession doesn't mean it will happen in this one, so please, please stop that. anna: china is bracing for potential new u.s. tariffs to come imminently. duties on $200 billion on chinese imports, everything from bicycles to baseball gloves, digital cameras. what is the mood as we wait to see the next move from the white house? what is the mood amongst business leaders and those in china? tom: from the official side, the view is we are digging in, shoring up our defenses, not budging. we are not going to back down. from the business perspective, i spoke to a very influential lawyer here in china this morning, a man right in the heart of dealmaking particularly between foreign and chinese businesses. he has worked with chinese clients and says it is a grim

situation, a lot of concern overshadowing business sentiment here. shery: president trump now saying there could be another $267 billion of tariffs on chinese imports ready to go. that would be an additional one to the $200 billion worth of tariffs. of course they haven't imposed them yet, but the public comment time has just ended for those tariffs. they are the imposed at anytime now. >> this would be a huge escalation of things. we are in the final stages. we are hearing that over at the white house, at the u.s. trade representative's office, they are working through the final stages of nailing down the specifics of what they want to do with the $200 billion trench that we've been waiting for. we know the president is eager to go ahead as soon as possible, but he has really dropped his bombshell on air force one today, saying there's another $267 billion to go further. that is not going to help things. jonathan: after days of negotiations in washington, a

nafta deal is not looking likely today. a canadian official telling bloomberg, talks between the u.s. and canada are not expected to lead to an agreement this week. kevin: jared kushner arriving at the u.s. trade representative's office early this morning. keeping no comments out of him, tight-lipped, with regards to any possible deal. the president last night saying that he does not think they are going to make a deal anytime soon. >> what is the main sticking point here? have they changed from a couple of weeks ago? >> the u.s. is really pushing for more access to canada's dairy market and the canadians are really pushing back against this u.s. idea of scrapping dispute resolution panels. another issue that has emerged that is somewhat new to the discussion is that canada wants to preserve its cultural industry. they want to prevent u.s. television programs and movies and such from infiltrating local markets. discussions are ongoing. they say they are positive, but we are not seeing any major

progress. mike: attention, wall street, wages are up. we saw no august effect. 201,000 jobs created. unemployment unchanged, 3.9%. wages, average hourly earnings raised .4% on the month. pushing the annual gain to 2.9%, the highest since june 2009. >> what is a little surprising to me is that labor force participation rate climbed. you put that together with slightly stronger wage growth, than was expected, part of that because of the base, but not all of it, probably. this suggests the fed is on the right course in terms of tightening. >> i mean, look, we are on an economic boom. it's the story of 2018, so many people thought it would be impossible. we are actually picking up speed on things like i.s.m.'s and business investment and wages and so forth. the data is unmistakable.

we are growing, boom-like, across the board. julie: still ahead on "bloomberg best," what really matters to jack ma? an exclusive interview about philanthropy and purpose with the founder of alibaba. jack: i can do unique, different. and something in my jack ma mind. julie: plus, what is ahead for the global oil market? trade, weather, and politics have created a host of question marks. and up next, more of the week's top business stories. the football player famous for taking a knee is the new face of nike. but will customers just buy it? kevin: from what we understand, this is the beginning of a lot more of colin kaepernick you're going to see through nike. julie: this is bloomberg. ♪

julie: this is "bloomberg best." i'm julie hyman. let's continue our global tour of the week's top business stories with yet another sign of

amazon's success. on tuesday, the company reached a market cap of $1 trillion. isx: amazon starting september with a bang, shares pushing the tech company beyond a market value of $1 trillion, a milestone that apple reached just last month. most notable was the speed with which amazon hit the milestone, shares have more than tripled in the last three years. is this rational? >> this is a company that has executed extraordinarily well over the past 10 years. the acceleration and loyalty to amazon prime, the increasing of fulfillment by amazon where amazon turns its warehouses over to third parties -- all the things it does so well, and online retail is 5% of total retail in the u.s., smaller than other markets. so i think some of the optimism as investors rationally looking and seeing that amazon is an

extraordinarily well-run company in markets that have so much room for growth. >> citigroup unveiled restructuring of investment bank operations. the news comes two days after citi announced its cfo and two other key leaders would depart. give us the details. >> the restructuring is not unusual because -- most banks on wall street do include mortgage or origination businesses in the investment banking unit, and that is what citi is doing. now bringing origination into the rest of investment banking. the head of investment bank is becoming vice chairman and chairman of a unit. meanwhile, some underlings are being promoted. the co-heads of new investment banking unit, one of them was head of origination, which is now becoming part of all of investment banking. and the other one was head of emerging markets in europe and africa. it has grown in the city a lot, and new people, i guess, are going to push it forward.

vonnie: shares of cbs bouncing back after an initial decline, up 1.3%. following reports that the company is in talks for the ceo , les moonves, to exit the company. will he take $100 million and run in stocks? >> i think it is impossible to know what will ultimately happen, but the outcome was assured. when you go to war with your majority controlling shareholder, forget about layering on all of the risks and challenges that the #metoo allegations against moonves have added, he went to war with the controlling shareholder of the company and tried to take away voting control of that majority shareholder. he was going to lose anyway, so rather than losing in court and delaying this, seems like he's

figuring out there's a better path, especially for the company, than fighting this to the bitter end. >> there is a new ceo of the world's largest advertising company. mark reed succeeding martin sorrell who resigned over allegations of misconduct. he says there are no sacred cows and he's talking about change. what do we expect? >> frankly, there will be change, but there will also be more of the same. they have been slow to adapt to the new reality of the advertising industry. this holding company they've had before isn't really set for purpose anymore. there will be changes on that front. the fact is, a lot of those changes have already started. it is a matter of seeing those changes through. >> billionaire founder of jd.com has returned to china after his weekend arrest for alleged sexual misconduct in the u.s. authorities say an incident happened in the university of minnesota involving another chinese student. >> expectations seem to be that there won't be an overly long-term effect on the company.

this will go out the window if the ceo of the company is forced to come back for more questioning or is in fact charged with a crime. at this stage, he is only accused, rather than formally charged. vonnie: nike is betting on colin kaepernick, the former nfl quarterback who sparked controversy for kneeling during the national anthem will be the new face of nike's iconic just do it campaign. shares are lower today. why so much controversy? >> somebody finally signed colin kaepernick. just not the company we were expecting. there's a lot of controversy, as he's been with the last two years, as he's a lightning rod for the debate about the future of the nfl, race relations in the united states, the way people address the military and flag. there is so much wrapped up in this.

from what we understand, this is the beginning of a lot more of colin kaepernick that you'll see from nike. there may be a shoe coming, an apparel deal coming. you'll see more from him in the future. this is not a one-off -- nike is going to double down. alix: bayer showed lower earnings after the purchase of monsanto. the company issued its first forecast since the acquisition, which seems to have disappointed the market. >> the earnings-per-share are lower than so far guided, a technicality, because we are closing the monsanto business a little bit later than we had expected. the earnings of monsanto that have been generated this year come to us to allow us to to larger extent as cash flow rather than reported earnings. but also, the monsanto business is very healthy, so we are very, very positive for the combination of the businesses for the remainder of the year. our people are pumped up and are ready to go. >> deutsche bank is at risk of losing a major investor, china's

hna group, which lost most of its voting rights, is said to be planning exiting its entire stake in the bank, according to those familiar with the matter. the question is, does this make it awesome double, or less possible, that we could see a tie up with commerce bank? now that hna is out of the way here? >> i don't know if there a direct answer to that. to my knowledge, hna does not have much of an opinion on the merger. i don't see any obstacle arising out of this, but i don't see the potential of the merger accelerating as a result, either. it depends on who will take the shares that become available. if it is someone who is betting on an eventual merger between the banks, it could accelerate proceedings in that way. vonnie: tesla shares falling by as much as 10% after two senior executives announced their departure, following another

interview with ceo elon musk. this one saw him smoking marijuana and sipping whiskey. >> here's what happens, elon smoking marijuana and sipping whiskey. they lose their chief accounting officer this morning. he actually joined the day before elon tweeted that he wanted to take the company private. there is a greater call for there to be a ceo or coo to help him run the company. ♪

julie: you are watching "bloomberg best." i am julie hyman. this week, bloomberg's tom mackenzie sat down exclusively with alibaba group founder and chairman jack ma. they didn't talk about e-commerce or global trade. the topic was ma's journey from english teacher to corporate leader and how he's now dedicating more of his time and fortune to philanthropy.

jack: i do a lot of things on education, because i think education is so critical for the future. so, education, environment. these are the two things that i focus on a lot. there's no one thing that is the most important. the most important is for everybody to do something. tom: to what extent do you think that your identity as an entrepreneur has been shaped and forged by your first love, your first job which is, of course, as an english teacher? jack: people don't like for me to talk a lot. i'm a teacher. the only thing i can do is share. i learned so much from alibaba, from that journey in the past years. i think it's my responsibility to share. whether people like it or don't like it, agree or disagree, it's ok. the thing is, you have to share. society gives us, gives me so much resources. so much experience.

you should not waste it. share it with others, maybe it is a professional disease i've got. teaching, you know. tom: do you miss teaching? would you like to be back in a classroom? jack: i miss very much. i think i came to the business field by accident. just coming, started to do it. i think someday, very soon, i will go back to education. this is something, i have more confidence. i think i could do much better than being alibaba c.e.o. i think that is why i prepared the jack ma foundation. rural teachers, kindergartens, all of these things that i have been preparing for 10 years. these are the things i want to devote the most of my time when i retire. be, that will that

transition? jack: very soon you would know that. tom: you stepping away to focus on the jack ma foundation, with a focus on education? jack: yeah. >> would you look at the bill gates model question mark giving away most of your wealth? jack: i think there's a lot of things you can learn from bill gates. he's been many years ago, people say, jack ma, bill gates, i can never be as rich as bill gates , but one thing i can do better than him is retire earlier than him. i can do something from an educational view, i could do it uniquely, different. something in my jack ma's mind. i would learn from bill gates, warren buffett, a lot of great philanthropists in the world, but i want to do something using my own way. julie: coming up on "bloomberg best," more of the week's top news, including the latest on italy's budget battle. and straight ahead, more exclusive conversations. a top energy executive shares concerns about how trade wars could hurt its business.

>> if china falls off significantly, that would have an impact on global demand, no there is no question about that. julie: this is bloomberg. ♪

♪ julie: welcome back to "bloomberg best." i'm julie hyman. the outlook for oil is, well, complicated. a tropical storm in the gulf of mexico, impending sanctions against iran and pending trade sanctions against china were on the mind of china this week. bloomberg television spoke with several industry insiders to get more insight. let's start with our exclusive interview with nigeria's oil minister, who expects opec and its allies to continue oil curbs on oil production through next year. >> the threats on iran and a couple of countries, there are so many challenges in iraq. libya will continue to play. when you add those to what is

becoming a much more disciplined relationship within opec, you're bound to see positive movements in terms of compliance. >> do you expect that plan to continue into 2019? >> if the question is momentum is still leaning toward that, yes. because it has worked for us. i think before with large what may be quotas, we have got to see how the market plays out. if come december we find out everything is working well, definitely what you will find is everybody will leave it as it is. we struggle with that decision in june. but if in december, prices go up dangerously, we will foresee a reaction from president trump and his team. if we begin to see that, you're probably going to see a loosening up of volumes.

>> we see global oil demand staying strong. we think there is going to be growth in demand. things come up every day but we see oil demand growth being strong. alix: bigger changes come from trade agreements. we have maybe something with mexico, maybe not with canada maybe not with china. how does that effect where you send your oil and natural gas? david: overall, we want a strong economy in the u.s. and in north america. so that will overall impact demand. we would like to see some sort of agreement reached that is mutually beneficial to everyone just to keep the economy strong in each of these countries. it does have impact from that standpoint. but as far as where we send or we receive oil from, that is really driven by is the actual demand for that individual product, do we have agreements that we can sell at a good price?

alix: if you lose mexico and china, is there enough demand in other countries to keep sending natural gas and oil? david: that would have an impact. if china falls off significantly, that would have an impact on global demand. there's no question about that. mexico, from a natural gas standpoint, we are counting on growth. it is slowly occurring. we think that will be beneficial, but overall, we think natural gas is probably in the three dollar environment for a long time. michael: the macro environment has been ticking to a more concerned state over the last six months. the oil demand dynamic benefited from very strong diesel demand and synchronous global growth. all industrialized countries firing on all cylinders. that key e.m. demand growth is a key part, 20% to 30% of the global oil demand mix, and was being in a robust state for at

least a year and a half. i think there are a lot of concerns when you look at the currency effect, in addition to the oil demand effect of higher prices. so both the price and the income effect is starting to raise questions about the sustainability of the 1.5, 1.8, two million barrels per day demand growth we've seen over the last couple of quarters. remember, q1 in 2018, we saw almost 2 million barrels per day in demand growth, and we have expected that to start to go lower over the course of the year. the trade tensions give a lot of concern to the oil demand growth profile, because it is affecting that e.m. component of demand. alix: the other part of it is we have seen a lot of countries take off the subsidies they had, which makes them even more sensitive to fluctuations in the oil price. are you having to factor that in yet to your oil demand thesis? michael: yeah, definitely. when you look back at the way

the end price to a retail consumer in some of these countries, we are back at levels we were seeing in 2007 and 2008. that's an incredible full circle we have come, and that's as a result of tax changes and subsidy removal in some of these key countries. julie: from oil and gas to cars and planes. bloomberg's guy johnson was a man on the move this week, speaking with airline executives at the global aviation festival in london, after he sat down exclusively with the volkswagen cfo frank vitter in our london studio. vw makes vehicles in the u.s. and mexico, so they began by discussing the uncertain future of nafta. >> i think having an agreement in place is important. we need reliable conditions. unfortunately, we don't know yet all the details of that agreement. we know that canada is supposedly coming to terms.

for the time being, it is a work in progress, but stability is what our industry needs. we appreciate any move toward an agreement, which is the basis and foundation for our business in the region. guy: there was a report that you were approached or part of the tesla go private plan. i am curious, is there any truth to that? were you approached? were you in any way involved? frank: no, i heard about the rumors too. there is no substance. those discussions were entirely up to tesla and we were not part of it. guy: tesla has been an amazing story. it quite literally has electrified the car sector. i remember talking to elon musk a while ago and him telling me his whole emphasis was on getting german engineers, who he thought were the best in the world, to get their act together when it comes to electrification. have we now achieved that? it feels like we have. have we reached peak tesla? is peak tesla behind us? frank: i don't know.

we have a lot of respect for tesla and elon musk. i think they changed the thinking in the industry. they had a strong impact. they have been the benchmark in many respects, and they will overcome the problems in terms of ramping up production, therefore we should and do take them as a serious competitor, but we trust in our ability. we are very excited about the audi, the porsche, and then the big next issue is getting into volume with our m.e.b. base platform, audi product, and this is the wave of electrification. i think we have something to offer, which will be very convincing. all segments of the market may be luxury and volume. if we look at every competitor we certainly looked and do look at tesla, but we focus on our strengths and abilities. luckily, most engineers stayed with us. guy: when is jetblue going to fly to london?

robin: well, look, we are very interested in the opportunity. we look at what we did in the u.s. transcon market between the east coast and the west coast when we rolled out our mint product in 2014. we improved the experience and fares have approximately halved. we look at the obscene fares that they are charging transatlantic, and we think we can bring price discipline to the market, we can bring lower fares, and stimulate demand. when or if we do that, we have to balance that with all the other great things we got going on. guy: is it imminent? is this something i can look forward to? if i'm thinking about flying across the atlantic, is the jetblue experience something i'll be able to -- i'm thinking of a holiday, am i going to be able to get on one of your planes? robin: we haven't made a decision. and i don't want to tip our hand

on what we are thinking. we do think it's a good opportunity. when the time is right, we may well do so. guy: you've taken over air berlin. you have more business coming in. are you starting to see the business coming in? are you starting to feel the advantage? johan: i think one should remember that we launched the sales, that we completed the transaction only in december last year. our first departure was january. so this is a strategic transaction that we made, which give us a fantastic position in the biggest city, the biggest market in europe. this will take some time before we get up to a profitability that is an average of the network. we are targeting to break even next year, and we've had a fantastic year in terms of response from the customers in berlin. operationally, we are very pleased with how the year has gone so far. guy: you signed a deal as well

with singapore. this is part of your worldwide program. effectively what you're doing is becoming the short-haul network for the full-service carriers. the full-service carriers have always struggled to make money when it comes to their short-haul networks. they used them as a loss leader to to feed into the more long-haul ones. can you make money on worldwide? can you make money on a transaction like this? what advantages does it bring you? johan: what it does is it opens up for a whole new set of customers by connecting our european network, which is the strongest and best when you are looking at what we are delivering to europe. but what we haven't done until we launched this product, we were unable to be part of a single transaction when you connect the destination. this is what easyjet is doing and the fact that we signed singapore airlines is a testament to the caliber of our partners attracted to this

proposition. we definitely think we can make money on it, and it is a good solution from a customer perspective. ♪

♪ julie: this is "bloomberg best"" i'm julie hyman. let's resume our roundup of the week's top business stories with budget discussions in italy. the nation's new populist government had vowed to oppose eu restrictions on deficits, but as the week progressed, leaders seemed to back off from that battle. francine: in italy, the finance minister has accepted that weak economic growth and the populist program means the 2019 budget deficit may need to widen more than anticipated. this comes as the league, one half of the populace coalition running italy, is discussing a budget deficit below the eu3% g.d.p. limit.

the league is full of entrepreneurs and entrepreneurs want a good stock market so they'll never jeopardize the stock market to win voters. is that fair? >> the traditional base of the northern league is in the north the richest part in italy. there was a lot of anxiety about possibly spooking the stock market and what happened to bond yields, which shot up to above 3%. all of these i think is suggesting caution to salvini. remember, we do not have the final figures. there will still be a lot of differences if we see a 2.7%, 2.8% budget deficit target. we still don't know where they are going to land.

i think this is work in progress. but i think the change in tone compared to just three months ago is remarkable. anna: the bank of england governor mark carney says he is open to extending his tenure for a second time to help the u.k. transition out of the european union. he is due to step down next june, just three months after brexit. mark: i think we all know there's a lot on at the moment, the government has a lot on its plate.parliamentarians have a lot on their plates. i would expect this to be resolved relatively soon. >> the reality is personnel changes at the bank of england won't necessarily change the dynamics for either u.k. assets or the pound. it is not a bad thing, but equally it is no reason for the u.k. markets to rally especially when you take a step back and look at the key driver for u.k. assets in sterling, it's going to be brexit. that is by default a function of brexit.

so i think this small noise will not filter through into sterling but it is not a bad thing. haslinda: china plans to match its second and third largest mobile carriers. at the stake is the ability to shape and control 5g wireless technology. when you talk about this merger, how will it boost china's 5g ambitions? >> as far as we understand it from the sources we've spoken to, a proposal is currently on the desk of china's top leaders that would see these two, the second and third biggest mobile carriers merge and create a company that, the argument is being made, would be more nimble in terms of acting on developments in 5g technology and be more nimble and able to make the investments that china sees as needed to dominate this technology. 5g is key to the made in china 2025 ambitions of president xi jingping.

it is something china wants to dominate and move ahead on, and this could be part of that plan. manus: to russia now. it says it is ready to take an emergency step of buying its own ruble debt if a new wave of the u.s. sanctions threatens to up-end the market. how prepared is the finance ministry for the worst-case scenario? nejra: when i put this question to the deputy finance minister, on a scale of zero to 10 with 10 being very prepared how would you rate your preparedness? he gave me a very clear 10. what we are looking ahead is the worst case sanctions, sanctions on new sovereign debt and sanctions that affect state banks. in terms of the new sovereign debt, the fears have already pushed ruble bond yields higher, and sent the ruble itself weaker. we have seen foreign holdings of ruble bonds decrease as well. i did ask if in extreme

scenario, you could see the central bank intervening and he said this would be a possibility. if you do get that worst-case scenario of sanctions on new sovereign debt, that affect the state bank, what will you do to protect the economy? >> we already did a lot of things and the key things is what we have done on the market economy policy side. we have a surplus on the fiscal side and on the current account side and low external debt. all those factors allow us to have a stable economy in case of external policy with it. whether it is sanctions or an em crisis, the chances are increased in the past couple quarters, so in case of any external volatility, we have sound fundamentals domestically that protect us. haslinda: in this economy, expanding at the fastest pace in nine quarters, strong demand and

robust manufacturing set offset worries about a trade war. gdp grew 8.2% from a year earlier. faster than the estimate in a bloomberg survey. >> the glass is half-full, very strong gdp, and a very favorable base. the corresponding quarter was at a multiyear low. it was helped by a favorable base. notwithstanding that, a strong print. two things stood out, one is consumption, india continues to hold up well. which is music to policymakers' ears. i think more importantly for the first time in many quarters exports began to grow stronger than imports. so the drag from net trade was lower and that is early signs that the rupee depreciation may be showing up in terms of boosting relativity. so i think it's a good start to the year, there are many risks to growth down the year but policymakers will certainly take

a print like this to start the new fiscal year. scarlet: "the new york times" publishing an anonymous op-ed, reportedly from a senior official in the trump administration. this person says they are part of the resistance inside the white house, and "many trump appointees have vowed to do what we can to preserve our democratic institutions while thwarting mr. trump's more misguided impulses until he's out of office." we don't know who this is, but this lends credence to the idea that things are a circus in the white house, and what bob woodward has written about rings more true than not. >> absolutely. i was in the washington bureau of the "wall street journal" during watergate, and this is very reminiscent of the fast-moving, more extraordinary events every day. you think you've seen it all, and you get something like this. there is clearly a conspiracy going on in the white house among senior administration officials, but in this case it

is a conspiracy of good, where they are trying to restrain the president from his worst impulses. romaine: president trump is demanding that "the new york times" reveal the name of the senior staffer who wrote that anonymous blockbuster op-ed in the newspaper. the official said key members of the administration are working against the president. what do you make of this? this is the first time we've seen something like this in my lifetime. >> there have been two categories of commentary about what this means. some have said it is a coup. i think that's extreme. others have said this is normal and every big organization -- it happens at bloomberg, right? we ignore our managers. i do not think this is normal. i think this is unusual. caroline: easy come, easy go. bitcoin bulls get beat down again. the world's number one digital currency went from a one-month high to one-month low in two days. meanwhile, the crypto index fell to a nine-month low. that is following a report that goldman sachs is pulling back plans for a crypto trading desk. is it the goldman news that is

pressuring here, or is it adding to a list of concerns that this isn't going institutional anytime soon? lily: i think you hit the nail on the head. the goldman news was a pretty big deal this week. we have regulators cracking down on crypto that the sec just rejected plans for nine bitcoin etf applications and there are a couple other things this week. actually just today, crypto exchange cracken told bloomberg that they were doing layoffs, laying off around 60 people, just another sign that demand might be cooling. ♪

♪ julie: let's get a round up of

the stories you need to know to get your day going with today's edition of "daybreak." bloomberg subscribers can see it on their terminal. it is also available on the bloomberg anywhere app. you can customize your settings so you can only get news on the industries and assets you care about. check it out. julie: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, quic . 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. >> it has been a long time since electric vehicles had anywhere near the market share of the internal combustion engine. today, it is still not even close. in 2017, electrics made up 1% of worldwide auto sales but governments have always had an outsized influence, possibly even more so than car companies. so get ready for a lot more electric vehicles.

since electric vehicles create a third as much carbon as those running on gas, some countries like norway and the u.k. have already enacted deadlines to convert all new car sales to e.v.'s. but china is making the biggest push, in part to tackle the air pollution choking its cities. >> china is the biggest market for electric vehicles, and there are cheap programs in place. one is subsidies for consumers, which make them more affordable, and there's also a system in place in china where automakers are required to make electric vehicles. they have to make them or buy credits from companies that do. >> electric vehicles have come a long way. the tesla model three can travel 310 miles on a full charge, which is only slightly less than the range of a traditional sedan. >> a few years ago, buying an e.v. meant buying a luxury car. now there are ones you can buy that are comparable cost to a midrange vehicle. >> e.v.'s can be cheaper than internal combustion cars by 2025. there are hurdles, like charging

time. it takes 30 minutes to recharge the tesla so it can drive 170 miles. still, many are forging ahead. volkswagen says it will spend $81 billion to develop electric versions of all its models by 2030, and next year volvo will begin phasing out models that use only gas. >> most carmakers have already unveiled plans to make electric cars, at least all the biggest ones. they recognize the market is shifting, and they do not want to be left behind. >> china bought 68% more cars in 2017 than the u.s. did. thanks to growth and wealth, if china can succeed in designing and manufacturing great electric vehicles, it could be the detroit of the 21st century. julie: 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 of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm julie hyman. this is "bloomberg." ♪

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head to xfinity.com/stream to start watching. simple to rent, easy to buy, awesome to go. jonathan: i am jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, treasuries dropping, payrolls beating forecasts. wages accelerating. the president readying another round of tariffs on chinese imports, leaving emerging markets on edge and policymakers struggling. we begin with the big issue, another solid jobs report. >> i think this is one of the best numbers ever. i'm an equity guy, i like good growth. >> if this continues, the f