matt: coming up on "bloomberg best," the stories that shaped the week in business around the world. [laughter] tollrade war is taking its . [laughter] the report stopped short of labeling china from being manipulated. [laughter] morgan stanley is good.

cannabis is becoming illegal and -- legal in canada. bitcoin has been beaten up that there may be a comeback for crypto. it's all straight ahead on bloomberg best. welcome. this is bloomberg test your weekly review of the most important business news, and analysis from bloomberg television around the world.

questions continue to swirl around the disappointments -- disappearance of a journalist, and the u.s. reaction drew attention. there is an investigation, and .ould hope people accountable president said there will be severe punishment. >> we will get to the bottom of it and there will be severe punishment. what's this is the first time that the saudi leadership has caving into international have -- pressure perhaps. this is a difference from what they announced yesterday that they may use oil as a bargaining chip to. >> the president tweeting and our ago, just spoke to the king

of saudi arabia. he said they are working closely said thereanswer and could be rogue actors that acted independently of the saudis, now all talk turns to this davos in the desert will continue. i host of companies have pulled out, uber, new york times as well. >> bank of america reporting results on earnings. trading in line on net income rose 6%. where does that come from here? income coming in

and line, it's holding up pretty well but bank of america, that growth caught eyes this morning. >> goldman sachs along with morgan stanley racking up big earnings. thee the -- avoided investment banking slump. with the investment group posting a 10% revenue gain. what kind of honeymoon. does this management get from investors >> have aously, we different approach, the desire to build out the corporate relationship. people are excited about that. he clearly has his own ideas

about what he wants to build. >> morgan stanley's numbers are very good. it is still up, steadily up over the years. they are trading revenues are up, it's income inequities which people have struggled. everything is good. they are all positive numbers. reserve willl thissh the minutes of meeting well officials raise rates for the third time this year. the big news today is about the rate -- rate hike ahead. the vacancy rates are above the long-run and only a couple said

and anuldn't -- overheating of the economy. that comes as the fed continues -- as i got four policies. they said it was only one among many factors that they consult in setting rates. i didn't see anything in those bullets that sounded different from what we were expecting. , therey more hawkish tom will be gradual increases. there is nothing new there that would shock the market. >> the u.s. treasury has stopped short of calling china on foreign exchange rate. this remains on the administration's watch list. the trade war has turned to mail.

what has been the response from the treasury department reports? >> that report stopped short of labeling china currency manipulators. it was not a favorable report that said that the u.s. will be currencyn eye on the and what was happening with that. may talks of extending the >> it. >> it is the idea that an auction to extend the implementation. >> how much progress is being made on the brexit issue? think that the tone has

improved. we do have sources inside the that.as said .obody has a solution it might be an issue that cannot be solved. with unclear how more time make a difference. the longer this goes on the less is necessary. >> stocks are lower after's steven mnuchin has decided that he will not attend the initiative -- saudi arabia initiative next week. mike pompeo following his trip , when he saida that we need to give saudi

arabia a couple of days to figure out what has happened to the saudi journalist. it is not going away is it? >> no. evidence continues to mount that the saudi government has been involved in some way. what you are seeing is a cost free way for the u.s. to express some disappointment or concern with saudi officials. this may be less an action that demonstrates that saudi arabia will be facing consequences. are waiting -- it should be any minute now. we are expecting a moderate slowdown. percent. half

what you take on these numbers? >> it's what the market expected. it will weigh on the sentiment of it. numbers we were -- a lot of pressure to improve. domestic demand indicators that we support these matters. what do we do today to try to do gender some calm? on specifics the regulators

they are going to allow some insurance to sell some products. they are urging banks to politically deal with the collateral. >> as we review the week of bloomberg best conversations about cannabis and investors taking steps towards a main street. japan and insight with the meeting. more from the big week in corporate earnings. johnson & johnson among the companies quite happy with the results. >> we saw strength across all of our segments.

this is "bloomberg best." let's continue our global tour of this week's top business stories in a blowout set of numbers from netflix. >> netflix one of the least loved stocks after posting third-quarter earnings that came in well above expectations. a pretty good forecast for fourth quarter as well. >> the one for the fourth quarter is the one that surprised me. the more i dug into the international numbers, even if they had missed their forecast the sheer they are posting stronger growth in quarter after quarter which success that this

idea is going to slowly build and other markets, continues to be true. johnson reported its third-quarter results. you beat on top line and earnings on share. fornother strong quarter johnson and johnson. in our consumer business we relaunched our iconic a be franchise. that complements the strength we have had an over-the-counter medicine. in medical devices, we broaden areas ofolio, we saw strength get stronger and improve some areas that were weaker. immunology, oncology, we continue to have transformational medicines. is intensifying its push to lower its price for raw material

aiming to's save 10 million euros by 2020. this is described as ambitious. slashing profit margin's by 2020. do you still feel confident about that? >> that quarter showing that we are moving in the right direction. ,e added two percentage points we are now at 12.1, 12.2. we took a be step it will be linear come in cc of a business. we feel much more encouraged, the third quarter has had a significant amount of headwinds that we were able to overcome. sap has raised the debt load

for they feel -- full year on momentum for its cloud business. they said new clout bookings are at 37% growth over the quarter. is this where you see the strongest growth and where you are also putting your strongest investment? >> we see great momentum over all of the pillars of our club , our cloudrom growth solution, our customer experience suite. we are gaining efficiency as , it has beenloud trending up nicely. we are confident that this momentum will carry us into q4 into next year. that has why we are changing our cloud outlook. alcoa posted its

third-quarter inning -- for earnings. it is the first buybacks since 2007. what does this say about china and trade #>> it seems like they have been saying for a while. they are saying listen, china thecapacity is still problem. they're over producing spreading their a lumen throughout the world and that is making 6% of smelters unprofitable or cash negative. more plants will have to shut down. what they are pointing out is donald trump's era son -- tech , theyald trump's tariffs just put it up front in the earnings report. causes isliton

four-year forecasts for output. what is going on at bhp? buyback at 3% and that will be a disappointment for the company, what they saw was a rising production in chilly, the world's biggest copper mine. the gains were offset by issues --h operations, a fire at a in chilly, they experienced and outage at a mine in australia. the overall effect is that production will be lower for this year. down, they shutting filed for bankruptcy after falling victim to too much debt. they are going to shareholders and will step down as the ceo. toit possible for him

restructure? >> i would not be optimistic about that. the logic behind that idea is that he will shrink to profitability. but the reality is he will -- he has been trying to do that for years and it has not worked yet. he has cut costs to the bone. last year's sales were down 13.5%. invesco is agreeing to buy oppenheimer funds. deals improveent the shares of the company. what happens here? >> i think when you are trying there can becale some hiccups in terms of adding two companies together. invesco thinks this will be different. part is that is the structure of the deal.

invesco when you talk to the ceo was pretty adamant that this is a partnership. that thecahn argues shares are undervalued. give us the three-story. coming out against his plan to go public. he is saying that the price that dell is offering to buy these stake,which he holds a the prices undervaluing the true value. he is saying as well that the threat of doing an ipo as well inpart of the scaremongering order to get people to vote for the transaction. >> bill gates said that personal

community -- personal computing would not have happened without paul allen. he died from complications of non-hodgkin's lymphoma. he retired in 1993 for health reasons and he turned his microsoft stake into a fortune. >> he has a diverse of interest and investment. he invested in cable tv and other technological companies. his huge success has been real estate in the seattle area. he created the second fortune creating billions of dollars buying up real estate, which he wound up stashing into a headquarters for amazon. he is involved in environmentalism and protecting the oceans, rejecting endangered species, brain research, ai.

he had a wide array of interests this -- and -- that he donated money to. >>

>> welcome back to bloomberg best. on wednesday canada became the second nation in history to legalize the use of recreational marijuana. this is an opportunity for retailers, producers and investors in countries throughout the cannabis industry. >> it's a global growth opportunity, that is why you are seeing companies and alkaline hot -- out call companies,

pharmaceutical companies desire to enter the space because they are hunting for global growth at a time when there is not a lot of global growth. billion opportunity over the long term and i expect hundredee multiple billion dollar market cap companies in this space in the coming year. how can you>> compare that to a tobacco or health care company? >> there are elements of all. that is being reflected in the value. the cannabis industry is disrupting the pharmaceutical industry, thehol food and beverage industry. we became the first cannabis the u.s.o trade on exchange. we were optimistic about the investor interest, but we have

been surprised by investor world inaround the this global growth opportunity. >> foot and beverage companies have been falling all over themselves trying to get a piece of this action. what does one risk that they are underestimating the timing? >> timing is the wrist. it is a big unknown. we know that other countries are looking at the framework being established here in canada. coming up on bloomberg best we shift from canada's -- they think that bitcoin will gain and when the move is likely to happen. -- the imf meeting in valley bali, should people be on board for more volatility. >>

rashaad: this is bloomberg best. time to revisit some of the most compelling conversations. the imf world a annual meeting brought together global financial leaders, including the bank of japan governor. kathleen hays asked how they plan to exit from monetary stimulus. readyn you are actually to exit, what will the signal be? -- think

and will in an you link to

according to the department of justice, this from a bloomberg exclusive by chris strong. also the two and athletes before the midterm election, state and soeral law officials worked u.s. election systems are protected ahead of the midterms, and tech companies are trying to

bolster. with this new deal charge against russian officials, they have been -- u.s. officials have been able to -- >> the financial stability that's the prudential financial is no longer a special risk to u.s. systems. >> the reconsideration of the fundamental nature of the insurance business. we got insurance policies. we don't fund assets. understanding how they behave under stress this a part of understanding what happens and the consequences for the markets for global growth. wayre-examination of the our policies behave led to the right conclusion. we are a stable business model. >> prominent members, for

investigations into u.s. me tals tariffs. norway wanted independent assessment. this is a damned if you do and damned if you don't position. >> it is a quandary. we have seen a real escalation in the pushback against the u.s. decision to impose tariffs on steel and aluminum. the complaint from a number of countries will be heard the week after next. they have a real conundrum to wrestle with. if they backed the u.s., does that encourage other members, other countries also look to impose protectionist trade measures citing national security grounds. ,f they were against the u.s.

could even be a trigger for the u.s. to a draw from the wto altogether? -- food for thought from a successful start up. the timing could not have been better. demand for meal kits is booming and more americans are turning to a plant-based diet. high profile investors and partners for further growth. the ceo these out purple carrot recipes. ♪ is arple carrot plant-based meal. plant-based dennis for our customers every week. for our customers every week. it's vegan food for non-vegans.

in the spring of 2012, somewhat eatingthe blue i found plant-based made me feel some it's better in general. by 2014, i was in the business. we shipped all the boxes from my house. we got a great deal of word-of-mouth through facebook. by the summer of 2015, i was able to recruit a writer for the new york times. million. $2.8 overnight we grew our orders. in the spring of 2016, we were approached to introduce a meal

kit. ♪ >> while the product was well received, grocers were not quite sure where to put the products. people were not expecting to lucky to the grocery store and find them. discussions. we had to make a decision at that point to focus on the real tell -- retail opportunity. we chose the later. it matches a very well. great image of what you can accomplish eating a plant-based diet.

it doubled the size of our company overnight. 2018, we secured a minority investment of over $1 million. they are a global company and happy tremendous a lot of buying power. they have access to fruit and vegetables. they had chips and that sort of thing. it provides us the opportunity to do that. we have three distribution centers now in las vegas, new jersey. we can reach almost all the united states with one or two day ground shipping. we are thrilled with the future ahead. ♪

>> it was in black and white, but it has been green and yellow my terminal and yours. you can see the projection on the dot plot is for rates to peak at almost -- a 2020 and come back down. rashaad: there are about 30,000 functions on the bloomberg. we enjoyed showing you are favorites on bloomberg television. it is another function you will find useful. go. you can get insight into timely topics. here is a quick take from this week. among the content most viable tech companies globally, a few chinese tech giants are making their presence felt. the industry has become a serious rival to silicon valley

but there are political hurdles ahead. this is china's tech giants. early on, chinese copies had reputation for being copycats. it's instant messaging app looked a lot like icq, a popular messaging app in the u.s. >> over 90% of them got the original aspiration from the u.s. equivalent. is the equivalent of yahoo! alibaba. people say their model is a hybrid of ebay and amazon. >> comparisons are harder to make. tencent's messaging app has grown to a platform for shopping, flirting, dating, watching videos, playing games and ordering taxis. there is no u.s. equivalent. since the introduction of the internet, the china has controlled the web with sensors

and gateways known as the great firewall. this effectively quarantined their ecosystem, blocking access to the likes of facebook, twitter and instagram. that has enabled locals to develop without competition from abroad with a uniquely chinese flavor. users more than double the entire u.s. population. successful that some u.s. companies are taking note. >> i think a lot of people would point to facebook trying to copy the we chat model where they are allowing third parties to open e-commerce stores, third-party games introduced on the platform. >> there is increasing pushback. president trump: china. they are draining us, taking your money and rebuilding themselves. >> president trump says china is stealing u.s. know-how and is imposing tariffs.

bloomberg reports that they even planted chips. >> we were seeing a lot of investment in technology in silicon valley from chinese companies. brakes sincethe the trade war. they areecently becoming increasingly familiar. every synthetical in 2018. for chinese tech counties to be expanding video to convince other nations they need -- me no .arm rashaad: that was one of the many quick takes you can find of the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis 24 hours a day. that will be all for bloomberg best. thanks for watching. this is bloomberg. ♪

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