♪ emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up, elon musk's settlement with the sec. he is out as tesla chair and he and tesla will pay a combined $40 million in fines. did he get off easy? we will look at the road ahead. instagram has a new boss. the vice president of product will leave the company, taking over from the social networks founders after their exit.

and the u.s. agrees to trade deal with mexico and canada after months of high-level negotiations. we will look at the impact for tech as the china trade war continues. but first to our top story, the securities and exchange commissions is making elon musk pay a price for his infamous funding secured tweet. over the weekend, musk agreed to step down as chairman of the company he founded. the settlement mandates separate $20 million fines for tesla and musk. the money, going towards harmed shareholders. the chair praised the agreement, saying the matter has been followed by our main street investors. when companies and corporate insiders make statements, they must act responsibly. what happens now for tesla? and what about musk, who remains ceo? to answer that, we have our guest in new york. with me in the studio, you have been busy this weekend covering tesla. what happened over the weekend that triggered this about-face?

>> we don't know exactly, but the stock tanked 14% friday and that probably had influence on musk's thinking. he took the deal and this was a big weekend for deliveries. so now the narrative is back on, how did the quarter go? that is what everyone is focusing on now. emily: that said, what the sec wanted in the original suit was more extreme than this result. did musk and tesla get off easy? >> i think that the end result was veryand tesla positive. the concern was if he was no longer ceo, the company could suffer. that could hurt employees and shareholders and car owners. so i think this is an excellent outcome and allows him to be ceo. the company does need to have more governance in place. if they had more governance, what happened may not have happened, so i think it is good for the company that they separate the chairman and the ceo role.

they are adding two independent board members, and i think elon musk is lucky and this is a great outcome for him and the company. emily: do you expect separating the chair and ceo roles will have an impact at the company, where elon musk is larger-than-life? he doesn't appear to be moderating his behavior. dana: he is still on the board and could be reelected as chair in three years. it is like a timeout from the chairman role, but he is not banned for life. what matters is who are the two new independent directors going to be? is the independent chairman going to be someone existing or someone new? emily: ivan, do you expect this will have an impact on the governance of the company? ivan: yes. even though they are very friendly to elon, they needed to increase their governance, and i think it will have a positive effect.

i think the outcome is very positive. there were concerns on that this friday could be detrimental to the company, that there were people predicting if he was removed as chairman, it could i think the outcome is very put the company into a death spiral. so i think it would have negatively impacted the company, so i think having him remain as chairman, as ceo, is most important and that was the outcome. i think this is a positive step that they can now move forward to focus on production of the model three and the introduction of the semitruck and the new model y and the roadster. emily: meantime, we are waiting for metrics on model three production this week as we near the end of the quarter. you have been reporting all weekend. we have had bloomberg reporters dispatched to multiple tesla locations across the country to monitor delivery. what did we find? dana: they were jammed. even across the country, the brooklyn store was quiet saturday morning, but in

chicago, there were 75 people jammed into the showroom. and multiple reports on social media of people getting their cars as late as sunday night. so it was by all means a heroic end of quarter push. employees across the country were volunteering at the showrooms. a lot of existing tesla owners helped out. now we just need the actual numbers. emily: what are the numbers you will be watching in terms of whether tesla can deliver on these promises that musk has made come even in the midst of the controversy? ivan: anything over 3000 model threes a week would be positive. he did hit 6000 in one week a few months ago, but there is huge demand for the car, which is good. the car, the model three is spectacular, as are the s and x. that is the most important thing, that they produce a great card. there is a lot of demand for it. there is a lot of excitement around the car and the company , and that is the key that will keep everything moving forward. emily: why is this quarter so critical? dana: musk needs to be

profitable. he said on the last earnings call that he expects to be sustainably profitable in the second half of the year. if they have a strong delivery actuallythey might show a quarterly profit, which would be the first time in several years. emily: all of this considered, we now have some suggestions on independent board members. we will speak with gene munster later in the show. he is suggesting al gore as a potential chairman for tesla. what do you make of some of these names thrown out there? ivan: i think somebody that is from the auto industry as chairman would really be more positive than somebody like al gore, who is outside the auto industry. emily: like who?

ivan: bob lutz, even though he has been very critical of elon and tesla, but there are a number of retired and even current executives that would be very additive to the company. emily: what are your reactions to the names we are hearing? dana: there needs to be another woman of the board. somebody with utility experience. traditional auto, i can't see tesla going along with that. there are whole point has been to disrupt auto. i don't know what the process is for searching for the new board member, who will decide, if they are bringing in a search firm or not. emily: what we know about the timeline? >> he has to resign as chairman. i am imagining they will try to get new board members as fast as possible, but i forget what the exact deadline is. emily: aside from model three production, what are the other challenges ahead? he has promised profitability. as late as sunday, early sunday morning after the settlement was announced, he said another revving up the troops email to the entire staff talking about

what needed to be done in order to deliver on this goal of profitability he has promised. ivan: i agree that the new board member should be a woman in light of the new bill that was signed, and they need to have some diversity on their board. but the focus is going to be continuing ramping up the model three production, and the goal to profitability, because those are the two key promises elon has made. then it will be the introduction of the semitruck, which is getting a lot of orders. in fact, walmart canada just placed an order for 30 more trucks, because their goal is to be 80% renewable fuel for their entire truck fleet by 2020. so there is a lot of interest from a lot of the trucking companies and the consumer product companies that truck goods in the new truck. i think that will be the next game changer for the company. emily: ivan referencing the california bill just signed into

law requiring that all public corporate boards have at least one woman by the end of 2019, and more aggressive goals in coming years. ivan, thank you so much. i know it will be a busy few days for you, thank you as always. coming up, the latest facebook breach is its biggest ever, 50 million accounts. but unlike cambridge analytic the outrages dialed down. check us out on the radio, on our mobile app and sirius xm. this is bloomberg. ♪

♪ emily: last week the co-creators of instagram threw in the towel

and facebook just named its new leader. he was the vice president of product at instagram and has been with facebook since 2008. he joined as a member of the design team. he was now be tasked with running one of the company's most important product. joining us now is sarah frier. who is adam mosseri? ck loyalist? >> he worked on the news feed and was brought to instagram in the spring to be the director of product. that sort of helped bring in of facebook's goals for instagram, and now he will take it over. the way this was managed, you are seeing the picture of several people together announcing this as a friendly transition. he says on his instagram that he plans on establishing the same sort of values and focus on the

communities the founders have. after the news we reported about the tension there has been in recent months between instagram and facebook that led to the founder's departure, they are trying to explain today that not a lot is going to change, although gradually, it will. emily: you reported he was the most likely person to get the job. we heard employees internally have been frustrated, nervous. what is the feeling now? sarah: people expected mosseri would take over this role. the main problem employees are facing is there's not going to be somebody with a founder level authority to advocate for what instagram's vision of the future is going to be. fewer bold bets that are instagram specific. the battle, for example, instagram had to fight to launch instagram tv, a competitor to facebook watch. will instagram be able to do things like that in the future? so, you know, this is something

that, the title for mosseri is head of instagram, not ceo. it is not that kind of title. one of the anxieties here is instagram because more of a product division of facebook and less of its own company within a company. emily: all right, now on to other pressing news about facebook that we have been digesting all weekend. facebook saying it was an " sophisticated attack" that led to the attack of 50 million accounts. these are the words of the these are the words of the facebook vice president at am ad week panel monday, talking about the latest and largest data breach and facebook history. unlike the cambridge analytica scandal, this was an actual hack. what can the fbi do? we have mark, director and head of digital investigations.

prior to that he was a special agent with the fbi, investigating international cyber crimes. mark, what do you imagine the fbi is doing here and how are they liaising with facebook? mark: probably one of the first thing they are doing is leveraging some of the preestablished relationships they have at facebook. this would involve partnering with facebook, outside investigators, or law firms they brought in to try to preserve the evidence. one of the main reasons to bring in law-enforcement or working with the fbi is to preserve perishable evidence that may be on servers domestically or internationally. emily: now, what makes this different from the cambridge analytica scandal, they were using publicly available information, generally, and information that facebook users, whether they understood with a they had consented to, had consented to be used. here, you have an actual attack on facebook accounts, at which point the hackers had access to everything in your private profile. why aren't we hearing the same

level of outrage? sarah: there was a tangible misstep in the cambridge a.alytic humans decided it was fine for this developer to get all this profile information from users. facebook said, take information on these people and their friends. once you have it, we trust the you won't do anything bad with it. of course that developer passed it along to cambridge analytica, which then helped donald trump get elected in the 2016 election, so there is that political intrigue too. in this case, the actual information in this case is much worse. this is not just public information. this is private information, your private posts, the ability to post on your behalf, the ability to log into every other app that has a facebook login connection. so it is much more serious. emily: mark, how serious would

you say this breach is? mark: this is very significant, so it is muchby far facebook's a breach. in terms of scale, it is very large. it is a hack, unlike so many large data breaches in the past where people are socially engineered out of their credentials or other phishing attacks that may take advantage of them into providing their password. this seems to be a true hack. as we heard this morning, a vulnerability was taken advantage of by the attacker, surreptitiously take advantage of these people's accounts. it takes a sophisticated attacker to pull off something, having intimate knowledge of facebook's application. emily: facebook says we may never know who is behind this. what is your suspicion? is this a nationstate? is this some criminal organization? how are the consequences different depending on who perpetrated this attack? mark: i think based on the number of users involved and the type of attack we heard, i think investigators need to look at

all options. that means the criminal element, hacktivists, and nation-states. and don't forget insiders as well. someone had very intimate knowledge of this. if you think about the amount of data available, think back to the yahoo! hack and other large -scale data breaches like this, it is a wealth of information. you have to think about what motive would somebody have. somebody can't take 50 million personal information of 50 million users and sell it on the dark web today. there has to be an old terrier other motive. emily: what you think it could be? mark: espionage is the top of my list. if you look at the groups that would benefit from this, beyond what tech was attributed to russian intelligence officers that were using it for targeting individuals, government officials and executives in the private sector. certainly there is a wealth of information on facebook from 50 million users that could be used

for espionage purposes. emily: all right, mark zuckerberg and sheryl sandberg were also targeted. -- >> all right, mark zuckerberg and sheryl sandberg were also targeted. emily: the mention of an insider is intriguing. thanks so much, sarah and mark. the fbi has a busy week this week. coming up, competition to be the first 5g network has heated up. verizon may be a step ahead of the others. that is next. this is bloomberg. ♪ ♪

♪ emily: the race to 5g has begun and verizon is off to a head start. today the phone carrier announced the beginning of what it is calling the world's first 5g network with in-home service. they are offering three months of the service to residents in houston, indianapolis, l.a. and

sacramento, with plans to expand to a mobile 5g network in 2019. bloomberg's caroline hyde set down with the ceo to talk about the launch and the future of 5g. there are many use cases. fiber intohaving their home, we have wireless. it is a revolution what they can do with wireless. we announced two weeks ago that you can order it, and today we will make the first customers in the world get 5g. it is just an exciting time for us. >> why is it revolutionary right here, right now? to many, the internet of things and the application of 5g doesn't become a reality until 2019. >> many things are happening in solutions,ise we as consumers we will

get smartphones in 2019, which will be a new experience. there are so many facets of 5g. there are two things you can trade on. now you have latency that is super low. we as consumers we willyou havt can be extended for a long time. there are so many things you can do with it. we think this is a new market where we can address our customers. >> how many signed up? >> we had massive interest. it is only four cities, but we had so many people coming in and checking if there is a code is included. we are starting small. we are going to roll it out to the masses of the country. >> it is a lot of investment. when does it help your bottom line? >> what is different with this technology with some use cases compared to 4g, this time we have enterprises, home, wireless customers and a lower cost by using 5g. so i think the return is much easier to see that in 4g. >> how quickly? >> i think you will see this over years.

remember, our 4g customers are important to us and they will be there for a long time. we need to see they have a seamless experience. 5g is going to rollout and we will see smartphones in 2019, but volume-wise, in 2020 or something like that. >> competition is heating up. how do you feel about that? >> i think that we are focused on our customers in this moment and i think we are more focused on executing our strategy. we have all our assets. we have a great set of assets to execute on. so we don't spend too much time thinking about what others are doing. we have our strategy. >> you have been streamlining your workforce. when you might you see this add to jobs? will this add to the rollout of jobs at verizon? >> right now, we have a volunteer offer because we want to be ahead of the curve when we are transforming with the g, and alltion, 5 that. we have a program we launched

last year, and we are working on another one. they are not correlated. we are doing a volunteer program because we want to see employees have a great way to take the offer if they want to. >> so when will you start to see the enterprise make important moves? how important is the in price as part of your business when you are rolling out the internet of things? >> it is important. when you come to 5g, you can think about the real-time enterprise. you can take away all the records. we're talking many enterprises. we have good relationships with the big accounts. but probably the latter part of 2019, when the devices will be more mature and the network will be there. >> what about the regulatory perspective and the way in which people are still fighting out, the sec, ftc, and people are looking at net neutrality. how much do you feel like, having come from europe, the u.s. is where you want to build a business focused on consumer and enterprise within telecom? >> the regulatory environment is important.

i worked in 180 countries. hand-in-hand and do the right investments in the country. each country has their own set of rules. we are following those and supporting those. >> lastly, you have gone the route of 5g rather than content. at&t thinks content is king. how sure are you that you made the right decision? >> i think we have a lot of of content. we have our brands with yahoo!, yahoo! finance, and yahoo! entertainment. the discussion has been more the right decision? >>about the distribution of distributors, tv channels. that is an area we are not that interested in, but content will play a vital role. we partner in some areas. >> no acquisitions? >> not in the large into entities that everybody is talking about. we are happy with assets we have. emily: when we come back, as elon musk prepares to step down

as chairman of the board of tesla, ideas for who will replace and are flying in. we will discuss who could make the shortlist. find out when we return. ♪

♪ emily: this is "bloomberg technology." a new chapter for tesla and elon musk. he learned it is tough to win a fight with the fcc when -- the -- when the agency plays hardball. he is out as chairman for the next three years. i caught out with gene munster -- caught up with gene munster to talk about how this will impact the governance of tesla. >> it allows the company to have more structure. that has been the piece that has been missing, especially over the last six months in terms of elon's behavior. the reason why giving up the chairmanship will provide a new

level of structure. that allows the company to better retain existing employees, which has been a big problem over the past year or it separately, recruit new people. by creating this, getting rid of his dual citizenship as ceo and chairman, it provides an important opportunity. this is a gift tesla got from the sec. the board didn't do this on their own. emily: you are suggesting names for the new directors. one is a former boeing ceo and another is al gore, who you suggest could be chairman. he is a fairly divisive person, though he has been very supportive of tesla in the past. why these names? have you had conversations with them? are they actually interested? >> i haven't had conversations with them but i think they make a ton of sense for two reasons.

in the case of al gore, his take is, renewable energy is a big part of what he has been advocating for many years, and i think tesla's mission, which may surprise some people, is to accelerate the adoption of renewable energy. that sits well with his mission. the one challenge with his chairmanship is that he is currently on the board of apple, and i think he enjoys that role. to me, he is the ideal person. in terms of bringing in the old boeing ceo, this could be appealing to elon in the sense that the space industry, aerospace and his expertise on the manufacturing side i think would bode exceptionally well. either of those would be a home run for the company, and i think both of those are two people to elon would agree to, which is important.

emily: tesla's problems are not behind it. we are waiting for an update on model for reproduction. what is the biggest challenge i had? -- the biggest challenge i had? >> we will get numbers probably tomorrow, maybe today. they typically report those at the beginning of the third month of the quarter. the biggest expectation based on the september 70 blog post from elon musk was it they have doubled the production of model three. if they do that, that is better than 50,000 model threes produced for the september quarter. i think they'll be a positive. some investors look at elon's published comments with a grain of salt, so the fact that these are formal numbers will be viewed as a positive. it is a big deal because this is what they need to do to scale. emily: let's continue our conversation on how tesla's

governance may be changed from here. do we think musk's behavior will actually change? >> i think in all likelihood this was embarrassing for elon musk in terms of his relationship with employees, his public relationship. you would think the modest penalty that tesla agreed to, you would think that would make him think twice before he tweets something. as gene pointed out, this is still elon musk's company. even when you add in the independent directors, he is very close with many board members. he is still ceo, still the guy in terms of the person customers think of as associated with this. you can imagine him pretty much

going back to the way things were, maybe with a little bit more caution than before. emily: the settlement also requires the board to create a committee to oversee his tweets and any communication with the public. how do you think that will work? max: good luck. the way it was phrased, it looked like they only have oversight over tesla related tweets so i don't understand how that will work. my guess is there will be some sort of audit or some sort of way they can formally say you shouldn't have tweeted that. it is hard to imagine he will have to run most of his tweets by compliance. you would think they would try to come up with a system where if you will tweak something that has to do with financial information, there would be a process. emily: we have learned tesla is applying to set up another 4000 square foot tent to protect

vehicles that it has produced. what are the implications about how well production is going and whether they can meet the goals musk has said they would meet? max: the tent is not as big a deal as the last one. the last tent, they were actually making cars under it. by auto industry standards, that is kind of strange and maybe a little desperate. this is a way to store the cars that have been piling up, the tesla hasn't been able to deliver, without them getting rained on or damaged. this is another piece of evidence showing they are having trouble getting these cards to customers, which is no small thing. the question of how many they made is obviously a big one. we will see, everybody assumes

that because of the september seven blog post, they will meet their goal and exceeded by some amount. we will see how much that is. the other big question is, how many are they able to deliver? deliveries will lead to revenue and profitability. profitability is crucial for tesla now because elon has gone around saying they have to be profitable, and tesla has all this debt. many people think it will have to go back to capital markets. if they can get to the fidelity -- profitability sooner, that will be huge and given the upper hand. emily: we will have those numbers when they come in. max, thank you. the trump administration is suing the state of california over its net neutrality laws

after jerry brown signed a state bill in defiance of federal regulations. the legislation prohibits isps from stratifying users and websites to those who can pay for faster speeds. it prohibits locking broadband providers and charging for faster access. in response the trump , administration filed a complaint accusing california of trying to second-guess the government's authority to regulate internet providers. governor brown signed bill setting a new deadline for california-based publicly traded companies to have female directors. 165 companies with all-male boards will have to find one or more female directors. that's by the end of 2019. it requires at least two be female, and those with six or more directors will need at least three women on the board. this is a threshold that many of the state's biggest companies,

don't currently meet. still ahead, nasa is no more. with a new agreement set to replace nafta, what it means for tech. this is bloomberg. ♪

emily: the u.s. has reached a trilateral they deal with canada and mexico covering $1.2 trillion in trade. the replacement for nafta comes after months of negotiations between the nations. president trump touted the deal

from the white house. >> it is my honor to announce we have successfully completed negotiations on a brand-new deal to terminate and replace nafta. emily: what does it mean for the tech industry? the deal has a focus on auto and intellectual property. let's discuss with the co-author of a new book, "the leadership lab." how consequential is this for the business and tech community, especially given the trade war that is happening with china? >> i think it is very important. just renaming the deal gives it new life. there are certain specific provisions that fundamentally mean we will have more inflation in the united states. it will make prices go up. for the tech sector, it actually

shows there is hope for a deal with the chinese, we will get a lot of aggressive language and suddenly, you get a deal. this is potentially promising. emily: there is the question of whether the bluster will lead to the consequences the president threatened, or whether this will in general, it is just bluster, potentially marketing on behalf of the president. pippa: bottom line, the president is a property guy. this is how you do property deals. you put everything in the -- on the table and say everything is up for negotiations. you make a lot of threats. this reflects the president's negotiating style whether we like it or not. usually on trade negotiations, you reach impasse after impasse. emily: we know the traditional auto industry is affected by trade with canada and mexico and has been fiercely competing with

tech giants in the realm of self driving and connected cars. what does this mean for u.s. automakers? pippa: automakers are going through vast change. already, we will enter the driverless car era we won't need the combustion engine. so much innovation is taking place anyway. this deal is going to raise the cost of purchasing automobiles in the u.s., so workers will get paid more, parts will cost more, and that cost will get passed on. it will show up in the form of higher inflation rates and higher inflation rates for the general public. that will be an issue for the fed. take from one hand and give with the other. we get a deal, but it has consequences that are beneficial for workers and adverse for general inflation circumstances. it is an interesting exercise in leadership. the president will claim credit

that he has gotten something done that people said was impossible and it is hard to take away from that. it has to make you encouraged that we will get some sort of equal outcome on china. emily: the dynamics with china are very different. the threat, the concern there is their tech leadership, whether they could beat the u.s. in an ai arms race, how will that impact the actual fallout from this potential trade war, or a resolution if there is one? pippa: i have a section about this in my book. we are in the new arms race, which is for computational power. the chinese are building a facility right now which will

have one million times computational capability of the entire planet today in about two years time. we introduced a supercomputer that can do in one second what takes a human 6.3 billion years to calculate. this is where the action is. the more data you have, the more you need computational power to support it. that is the arms race. whatever deal we make on trade, it doesn't begin to encompass what the new issues will be. emily: author of "the leadership lab," pippa, thanks for weighing in. the deal is timely for automakers. greg for other manufacturers, they are engineering a return in a decade with a car sharing service and selling vehicles. the ceo spoke with bloomberg ahead of the paris motor show. >> this is a timely decision because we are now preparing for our u.s. come back, and this is part of the framework we need to

know before we make the final decisions, which we intend to do within the next few months. we are eager to listen to president trump on this matter, and we adapt at psa group to conditions in which we operate. we will adapt our strategy to the conditions that will be set by the u.s. administration. >> you said psa would come back to north america within the next 10 years. could that accelerate your plans? >> i don't think it will accelerate because we want to do things properly. we want to learn about the u.s. consumer expectations, and we are already operating in the u.s. in terms of mobility services in order to learn and understand this market as precisely as possible. we will go step-by-step. we are preparing our

distribution model and preparing one needs to be done in terms of manufacturing. we have started to prepare the engineering of our products to be u.s. regulation compliant. all of this is under planning and we need to synchronize the different parts of this business model to make it happen. that should be done within the next few months. >> this is relief in the short term. we have seen new tariffs between the u.s. and china. how have the new tariffs impacted your production and prices? >> most of our production is in europe for the european market, and china for the chinese market. of course, there is cross manufacturing around the world, but it is reasonably limited. we think we need to produce our cars close to the market where they are bought. we believe manufacturing our cars near the final destination

makes sense from a business model standpoint, from an environmental standpoint, and from a customer expectation adaptation standpoint. for us, it is natural to do so. of course, for global companies like ours, we are sensitive to the tariffs and we believe in terms of wealth creation, it is better to have lower tariffs than higher tariffs. it creates less tension and better collaboration across nations and communities. but we will adapt. emily: that is the psa ceo speaking to bloomberg ahead of the paris motor show. still ahead, a science fiction series has a dystopian view of tech. tech may change the way we watch the show. how netflix is giving viewers a say in "black mirror," next. this is bloomberg. ♪

emily: netflix changed the tv game once with binge watching, and now, it is switching things up again. the company is developing a series of choose your own adventure specials. science fiction series "black mirror" will be one of the first of the projects, debuting a choose your own adventure series. how will this work? >> we don't know all the details yet, but people will be of the -- able to watch, then choose from several different endings of the episode. the season will start in december, and this is not totally new for netflix. they tried this a couple times on children's programming.

this is the first time they have taken a hit show and tried to do this. emily: how do you think multiple storylines will impact viewership? with the kids' show, maybe not as much but when people have an emotional connection to a series, part of that engagement is driven by how it ends and not knowing. chris: this is not entirely new. hbo tried this. if you think about the lives singing shows, you could call in and pick the wing -- the winner. a lot of people are watching on mobile devices, so it is easy on your ipad to click a different ending and if you think about, we all watched the last episode of the sopranos and wondered if this was a better way it could end. maybe this is the future. emily: netflix is a huge budget. is there a cost that this will

entail? is it a drop in the bucket? chris: it will cost more, which is why studios have avoided this. you may even pay double work in all these different endings. in the overall budget, netflix has 700 chosen development, $7 billion of production spending. this won't cost that much. emily: there will also be video gaming elements incorporated into this series? explain how that will work. chris: there were rumors whether netflix would get into gaming directly and that is not the case, but they have been licensing a lot of ip like minecraft, and turning those into tv shows. that is a videogame that is interactive. they are trying to use this technology in the same way. it is just starting. emily: "black mirror" will be one of the first shows they are experimenting with.

is this something we would expect netflix to do season after season? chris: we will see. tv watching has always been a passive thing. you come home and lay on the couch and veg out and whether people want to interact with their tv that way remains to be seen. if there is a company that will try it and a time to try it, it is netflix, and now. emily: chris, thanks so much. fascinating. we will see how this works out. that does it for this edition of bloomberg technology." don't miss our show tomorrow. this is bloomberg. ♪

issef: this -- manus: this "bloomberg daybreak: middle east." our top stories. the ims christine lagarde says growth outlook is dimming as trade war escalates. pointedx months ago, i to clouds of risk on the horizon. it's not boring, but there's a bit of a drizzle. some of the risks have begun to materialize. thatf: