matt: coming up on "bloomberg best," the stories that shaped the week in business around the world. an investigation with global implications. >> this is the first find that the saudi leadership is starting to cave in front of international pressure. the trade war is taking a toll, but the u.s. treasury holds its fire in the currency report. report basically stopped just short of labeling china currency manipulator. >> the latest fed minutes show a trend toward tightening, with big beats from big banks. >> the numbers are really good. >> for bank of america and all

the banks, solid quarter. >> cannabis becoming legal in canada. a top ceo sees huge potential in pot. and bitcoin being beaten off lately, but some are still betting on a comeback for crypto. >> we have seen a real acceleration of demand over the past couple months. >> q1, q2, it will reach new highs. >> it is all straight ahead on "bloomberg best." ♪ >> hello and welcome, i'm rishaad salamat. this is "bloomberg 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. the week began with questions continuing to swirl around the disappearance of a journalist.

there had been an outspoken critic of saudi arabia's government, and the u.s. reaction drew particular attention. ♪ the king of saudi arabia has ordered an investigation into the disappearance of the prominent journalist, and could hold some accountable. president trump says there will be your punishment for those found to be behind the disappearance. >> we are going to get to the bottom of it and there will be severe punishment. >> this is the first sign that the saudi leadership is really starting to cave in front of international pressure, perhaps. they may come back and say, well, we investigated and we found nothing. but this is a stark difference from what they announced yesterday, where there was insinuation that they may use their position in the oil market as a bargaining chip if they were sanctioned by the u.s. >> president trump tweeting, just spoke to the king of saudi

arabia who denies any knowledge of what may have happened. he says they are working closely , ih turkey to find an answer am sending our secretary of state to meet with them. actors" could be "rogue that acted independently of the saudis, now the talk turns to whether or not this davos in the desert will continue, this as there has been a host of companies that have pulled out, from bloomberg, cnn, ford, "the new york times." ♪ >> bank of america reporting results this morning, the company beat on earnings, trading in line with estimates, net interest income rose 6%. for all intents and purposes, it looks pretty healthy, even though the unit saw 18% revenue decline. where does growth come from? >> i think that's the key question. for bank of america and all the banks, a solid quarter, coming

in in line with the interest 3% is something that caught our eye this morning and what we have been saying is what you need next year to continue the net interest income growth is low growth. ♪ >> goldman sachs and morgan stanley wrapping up a good bank earnings with better-than-expected numbers. both avoided the slump that weight on rivals, and goldman deal makers coming through in a big way for the new ceo, who took the helm october 1, with the investment growth hosting an unexpected 10% revenue gain. what kind of honeymoon trade is this get? >> people are pretty excited about him, the new management, the direction they will go. obviously we have an entirely different approach, the desire to build out a corporate relationship. people are really excited about that. he clearly has his own ideas about what he wants to build. >> morgan stanley's numbers are

really good. the other management side is a little weaker, i guess people are overlooking that it is still up, steadily up over the years. it has been one of their strengths after the crisis. the investment side, the trading revenues are up on both fixed income and equities which have struggled. also -- everything is good. they are all positive numbers. ♪ moments, the federal reserve will publish the minutes of its september meeting. will officials raise rates for third time this year? >> the big news today is all about the rate hike ahead. a few participants in these minutes say they favor modestly restrictive rate policies going forward. a number said they could see rates above the long run estimate temporarily, and only a

couple say they wouldn't favor restrictive policy unless they see an actual overshoot of inflation and overheat of the economy. continuess as the said to deemphasize the neutral rate as a guide for policy. they said it was only one of many factors they consult with setting rates. >> to be perfectly honest, i didn't see anything in those minutes that sounded different than what we were expecting. slightly more hawkish tone, continuing to say they will be gradual increases. there's nothing really new that would shock the market. ♪ the u.s. treasury has stopped short of calling china a currency manipulator in its report on foreign exchange rates despite the concession. to its lowestell level since 2017 after the release of the report. meanwhile the trade war has lands -- president trump to pull out of the treaty that

gives chinese company discounted shipping rates on small packages. one has been the response from the treasury department reports. report, it stopped just short of labeling china a currency manipulator. they said it does not meet the not aements but it was good report. it said the u.s. was going to be keeping a particular eye on the currency and what was happening with that. ♪ >> the british prime minister, theresa may, raised the possibility of extending the brexit transition period. >> what has now emerged as the idea, an option to extend the implementation period could be a solution to this i issue of a backstop. >> how much progress is being made? >> the question is very simple -- none.

i do want to point out that we have sources inside the said the tone wasn't that great and at this point no one has a solution to the irish border and it could be an issue that cannot be solved. it is unclear how more time would give her any kind of concession. her thinking here is the longer this goes on the less necessary weackstop will be that when talk to european officials they say a backstop has to be there. ♪ the treasury secretary steven mnuchin has officially decided with donald trump and mike pompeo that he will not attend the saudi arabia future investment initiative. shortly after, a news conference given by mike pompeo following his trip to saudi arabia, during which he said we need to give saudi arabia a couple days to figure out what exactly happened.

it's interesting to see the market react. clearly the market have expected that the treasury secretary would go to saudi arabia, and there would be some way of sleepiness under a rug. it is not going away, is it? >> no, evidence continues to mount that the saudi government may have been involved in some way in his death. is a costre seeing free way for the united states to express some disappointment or concern with saudi officials. this may be less an action that demonstrate saudi arabia will face consequences and more unawareness of the optics of looking too chummy with the saudi regime. ♪ >> we are still bracing for the china gdp numbers for the third quarter, which should be any minute. we are expecting a moderate slowdown. x .6%, looks like it was a bit. 6.5%.

just your initial take on these numbers? >> i think it's worse than the market expected. it will probably weigh on sentiment. but if you look at the details, some of the numbers people are expecting, quite a lot of it improved. retail sales have improved and if you look at some of the domestic demand indicators, there are signs that some of the policy support measures are starting to flow through. >> chinese stocks have persuaded officials to reassure investors that they can keep risk under control. >> what did they do today to try to engender some calm? >> definitely the three of them coming up at the same time, that's already an indication of coordination at the highest level. there's a large

focus on pledged shares. the banking regulators said they will have some products to and in liquidity risks addition they are urging banks to deal with shares were the collateral has hit. ♪ >> still ahead, as we review the week on "bloomberg best," cannabis and cryptocurrency. alternative investors taking steps toward the mainstream. and christine lagarde and the bank of japan governor haruhiko kuroda have insight from the imf meetings in bali. and more from a big week in corporate earnings reports. johnson & johnson are among the companies quite happy with the result. >> we saw strength across all three of our segment. >> this is bloomberg. ♪

♪ this is "bloomberg best." i'm rishaad salamat. let's continue our global tour of the week's top business stories with more earnings reports from prominent companies, starting with the blowout set of numbers from netflix. ♪ >> netflix, one of the best stocks after posting earnings well above expectations. we also have a pretty good forecast for the fourth quarter subscriber growth. >> this forecast in the fourth quarter was the one that surprised me. it is the only time i've ever seen a nine for them. the more i dug into the international numbers, even if they had missed their forecast this year, they are posting stronger growth international order after quarter after quarter, which suggests that this idea is it will slowly

build another market, whether europe or asia or latin america, and that continues to be true. ♪ >> johnson & johnson reported third-quarter results that beat estimates and raised its for your earning forecast. you be on top lines, earnings-per-share, what's the news? >> another strong quarter from johnson & johnson. we saw strength across all three segments. in the consumer business we relaunched our iconic baby franchise, to make it more responses to millennial moms and dads and the needs and wants they have. that complements the strength we had in over-the-counter and skincare. in medical devices, we continue to broaden our portfolio. we have areas of strength getting stronger, and we have improved some areas that were weaker in prior quarters. the pharmaceutical unit, oncology, neuroscience, we continue to have transformational medicine. ♪ akzonobel is intensifying its intense to lower cost as the

price of raw materials sores. it saved 200 million euros by 2020 and analyst have described that target as ambitious. you also have a goal of 15% profit margins by 2020. today,e saw the numbers do you still feel confident about that? the third quarter is showing we are definitely moving in the right direction. we had two percentage points sales versus last year, now we did 12.1 or 12.2 depending on the business. i think we took a big step. granted, this will not be linear, but i think on the medium-term we feel much more encouraged to get into those targets. specifically, the third quarter has a significant amount of headwinds that we were able to overcome. ♪ sap has raised its outlook for the full year again on

accelerating momentum for its cloud business. biggest technology company says new club bookings rose 37% in the last quarter, while cloud sales grew 41%. is this where you see the strongest growth, and is this where you are also putting your strongest investment? see a great momentum across all the pillars of our cloud business. there is particularly strong growth across our core erp cloud solution and our customer experience management. but also the rest of the portfolio, like the business network, has marched strongly ahead. and we are gaining efficiency in the cloud, the gross margins have been trending up quite nicely. we are very confident that this momentum will carry us into q4 and next year. that is why we have raised the cloud outlook, driven by that outlook, rising guidance. ♪ >> alcoa surprises third-quarter

earnings, almost double its estimates. the middle producer also announcing a $200 million share buyback, the first since the company split in 2000. what did they say about china, trade, and the terrorists? >> for the first time it seems like they have put in the forefront what they have been saying for a while -- listen, china overcapacity is still the problem. china is overproducing, spreading their aluminum through the world, and that is making about 50% of smelters around the globe unprofitable or cash negative. at these levels, more plants will have to shut down. what they are pointing at is that donald trump's tariffs on imports in the united states don't address this issue. this is what they have been saying constantly, and now they put it up front. ♪ >> the world's biggest miner, bhp billiton, release production data earlier which cuts it's for your forecast for copper output.

what's going on at bhp? >> bhp did cut its four-year full cast. that is certainly something of a disappointment for the company because what it saw was a rise in production from escondido in june, the world's biggest copper mine. those gains were offset by issues of other operations. there was a fire at a second also experienced an outage at a mine in australia. the overall effect will be that production will be lower this year. ♪ >>'s fears shutting down. the retailer has filed for bankruptcy protection after holding onto too much debt. the retailer's largest shareholder shut down. lambert still wants to restructure. is it possible for him to restructure? >> i would not be optimistic

about that. the logic behind that idea is that he's going to shrink profitability, but the sad reality is he has been trying to shrink sears for a decade and it hasn't worked yet. he has really cut costs to the bone. there's not much more that can be done. last year, there comparable sales were down 13.5%. it is hard to envision them making meaningful progress. ♪ >> invesco is agreeing to buy oppenheimer funds, as $246 billion in assets. they have improved the shares of the companies that what happens here? >> they have struggled a bit. when you are trying to build scale, there can be some hiccups in terms of adding companies together. invesco thinks this is going to be different. part of that is the structure of the deal. when we of the deal,

talked the ceo, they were pretty adamant that this is a partnership. and they work together still want to be a partner. ♪ >> activist investor carl ica hn argues that the proposed transaction undervalues shares of track and its stake in vmware. give us a brief. >> what he is doing is coming out against this plan to go public. he is saying that the price that was offering to buy these shares, in which he holds an 8.3% stake, the price is undervaluing the true value. and also i think he is saying that the threat of doing an ipo is part of the scaremongering, in order to get people to vote. ♪ delegates says personal

computing would not have existed without paul allen. the billionaire cofounder of microsoft died yesterday from complications of non-hodgkin's obama. he was 65. he steps down for microsoft in 1983 for health reasons, and in the past three decades he turned his microsoft stake into a fortune valued at more than $26 billion. >> he has had a diverse array of interest and investment. he spent billions of dollars in lost billions of dollars investing in cable tv and other technology companies. his most recent huge success has been real estate in the seattle area. he created for himself a second fortune, making billions of dollars by buying up real estate, a lot of which he wound up fashioning into headquarters for amazon. he built a music museum in seattle, he's involved with my environmentalism, protecting the ocean and endangered species, brain research, ai. he really had a wide array of

interest and a wide array of things he invested money in or donated to.

♪ welcome back to "bloomberg best."five rishaad salamat . on wednesday, canada became the second nation history to legalize the use of recreational marijuana. the booth creates opportunities for retailers, producers, and investors and companies throughout the canada's industry. the ceo of the world's largest cannabis company spoke with scarlet fu. ♪ >> it's a global growth opportunity. cpgs why you are seeing companies and alcohol companies, functional food and beverage companies, pharmaceutical companies desire to enter the

states -- they are hunting for global growth at a time where there is not a lot of global growth. this is $150 billion to $200 billion over the long-term, and i expect you will see multiple billion dollar market cap companies in this case in the coming years. >> i would you say investors should value a company like this? should they compare it to tobacco, health care, consumer discretionary? >> there's elements of all three. i think that's what's being reflected in the value. the canada's industry is disrupting, the pharmaceutical industry is disrupting, the alcohol industry is disrupting. to some extent, the tobacco industry. tobecame the first company ipo in the u.s. exchange. we were optimistic about investor interest, but even we have been surprised by not only

interest in the u.s. but around the world in this global growth opportunity. >> food and beverage companies have been tripping over themselves trying to get a piece of the action. risk that they are underestimating when investing in this space? >> i think timing is the biggest risk. we will see countries in the next two years, but that's the big unknown. arenow other countries looking at this regulatory framework being established in canada, and they are looking to implement similar systems. ♪ >> coming up on "bloomberg best," we shift from cannabis to cryptocurrency. our next guest tells us when cryptocurrency will shift again. and the imf meeting in bali. why central banks and governments should be on board for -- on guard for more volatility. >> it is time to buckle up, improve and increase both

monetarily as well as fiscally. ♪

rishaad: this is "bloomberg best." i am rishaad salamat. time to revisit some of the week's most compelling conversations. the imf, world bank meeting in bali brought together the many global financial leaders, including bank of japan governor haruhiko kuroda. kathleen hays asked him how the boj plans to signal a net it from its long-running program of monetary stimulus. >> what should the market participants be waiting for? when you are waiting to exit -- what will the signal be? what kind of thing, a change in interest rate? bond purchases? >> i think the amount of bond purchase is no more the monetary operating target.

it is cost control. it is cost control, it is -- the rate is around 0%. it is cost control, it is current monetary easing. from theiscuss exiting current exceedingly, extremely accommodative monetary policy, when the 2% target is met or close to being met, we can change the target, monetary operating target of interest rate in due force. but at this moment, inflation is

at 1%, so we will continue the current control at the current level of interest. rishaad: also in bali, haslinda amin sat down with the imf managing director christine lagarde. they spoke about the risks of a future financial crisis, and whether central banks still have room to respond. >> if you compare the situation today with previous crisis episodes, there is still now a limited policy space. but there a much stronger banking system. do not forget that in the meantime, there has been strengthening of the capital base of many banking institutions, better supervision, better regulations, less nonperforming loans in the system, and the leverage is still sensible. that part is much more solid. there are risks in the system, of course, and we need to be very mindful of that, and we

need to make sure that the buffers are rebuilt. while we have this 3.7% growth this year and forecast into next year as well it is time to buckle up. it is time to improve and increase the buffers, both monetarily as well as fiscally. and there is space for that. we have seen, for instance, flexible exchange rate play a very good role as a shock absorber because of these exogenous shocks, one that is clearly needed. and those countries are doing smart growth, friendly fiscal consolidation when i have high debt. that is also a way to improve the space. haslinda: you have talked about complacency in market, and how valuations in the u.s. are stretched. after the cuts in the growth projection for the world we saw a correction. do you see that as an anticipated reaction, or is there more to come? >> stock markets go up and down,

and i'm not going to comment on any episode of up or down. i think what we are telling policymakers is just be prepared, because there will be more volatility. as the u.s. economy is improving, there will be monetary tightening going forward. everybody has to prepare for that. haslinda: are there any risks that are being underestimated by the government today? >> anybody who doesn't keep their eyes on those levers that they have, whether it is monetary, whether it is fiscal, whether it is structural reform, is taking an unnecessary risk. i think now is not the time because we have had 3.7 last year, this year, and next. not the time to say, let's relax and do a bit of fiscal tolerance and a bit of slowing down of the reforms.

it is time to continue to steer the boat and steer it decisively in order to deal with those choppy waters. rishaad: 2018 has not been a great year for cryptocurrencies, but some investors and institutions will -- investors and institutions are betting the sector will pull out of its slump. this week, there was a new business devoted to managing digital assets. erik schatzker spoke to tom jessop, who will run this venture for fidelity. >> if you look at the existing market infrastructure, it is heavily skewed toward retail investors. we saw demand for an institutional quality offering. even though people see fidelity as an asset manager, we service about 13,000 financial institutions. we have taken the learning from that client base and applied it to crypto to give them tools they need to invest in the space.

and as you are aware, and as recently as last week, a number of big endowments, m.i.t. and harvard have allocated resources. we have seen a real acceleration in demand over the last couple of months. erik: what exactly will they be able to do thanks to what you are offering? tom institutions will be able to securely store their crypto assets or digital assets with us. erik: custody. >> custody, that's custody. we will provide a facility for them to trade with a number of providers. we will route their trades to the best prices in the market, at least amongst those we have connected to. and then we are also giving them the services and tools they need to integrate these assets into their own businesses. rishaad: erik schatzker also spoke exclusively to michael novogratz of galaxy digital. it is one of the most prominent investors in cryptocurrencies. they discussed the state of the market for such assets.

as atcoin, just to use it crypto proxy, is at $6,400 give or take. >> if this wave of institutional buying comes, where will it be six months from now? >> get to take at a technical 6801st level, and if that happens you will see people get excited and kind of front run the institutions coming in. 10,000 is a big level and i do not see us breaking it by the end of the year. i think as the institution comes in they will put in new highs. erik: you trade crypto. people need to know this. you go long, you trade short. how are you right now? michael: we are long. bitcoin is held really well above $6200. there seems to be some support there. what's interesting is in the last six months, people have divided the world, bitcoin and everything else, and bitcoin seems to have restored value.

>> except last thursday, or wednesday. >> the market falls out of bit and bitcoin dropped 5%. >> it is not going to be without volatility. we are still a very young asset.

rishaad: you are watching "bloomberg best." i am rishaad salamat. let's resume our roundup of the week's top business and financial headlines. in europe, where italy's government submitted a budget, but still faces pushback from brussels. coalition hasing reached a last-minute agreement on the country's budget. it delivers on costly election promises, but risks a confrontation with brussels over eu fiscal rules. will this be confrontational for

brussels? >> it certainly is confrontational. it drastically changes the figures put in place by the previous government. the real issue here is the widening of the structural deficit. previously, that structural deficit was going to go to 0.4%, 0.9% next year, which would put it in line with the under 0.5% that brussels required, but it is actually widens now, up to 1.7%. that is what the confrontation is over here, that structural deficit has widened, and rome is essentially flouting the rules. >> the gloves are off in italy's a fight with the eu. european leaders attacked rome's spending plans as unprecedented, saying the draft budget deficit can stay at -- can't stay at 2.4%. the political drama also played out in the markets with the 10-year btp bund yield spread reaching their widest level since 2013. a simple question, who will give

in first? the fight can't go on forever. >> no, it can't, but the european commission has been very specific with the numbers, and the italian government has been equally strong about maintaining its own position. so right now, it is a bit too early to say who will blink first on this one. francine: angela markel's sister -- merkel's sister party in bavaria has dropped to a historic low in the regional vote. it is set to lose its absolute majority as the party braces for the worst results since 1950. >> the far right afd did gain a lot in bavaria that the biggest winner of the day, arguably, is the green party. the greens are pretty centrist in bavaria, so with goes beyond the political margins here, but it is certainly is a rebuke to merkel. her party is going to have a state election in two weeks, and that will be a direct test for her party and authority.

the day she is looking at herself is in december, when she plans to run again as party leader with three years left to go in her term. at stake is her authority in her party, in the political system, and how much has her leadership eroded? manus: china's consumer prices rose for a fourth month in september, driven by the cost of food. producer prices slowed, but not as much as forecast. so what is the factory gate story telling us about the broader economy? that has implications in terms of profitability and corporate. >> you saw the producer price index coming in 3.6% down from 4.1% in august, despite higher oil prices. it suggests that the economy is slowing and these producers can't pass on those prices. in terms of the consumer price index, that picked up in line

with expectations, 2.5% to 2.3% in august. higher prices and food prices on things like fruit and bigs. what you did not have was pick up in terms of services, education and health care. those sectors softened a little bit. >> the white house has notified congress that it will start trading negotiations with japan, the eu, and the u.k., a procedural step before entering talks. what are we expecting? >> this is a procedural announcement they have to make. the trump administration said that they will, within three months, start negotiations with japan, the e.u., and the u.k. on trade agreements. japan and the e.u. were initially reluctant, but now because of some threats of tariffs on their autos and auto parts industries, it seems that both are more willing to move ahead. >> breaking news. we are learning that the justice department in the u.s. has

charged a russian national for interfering in the upcoming midterm election. first of all, kevin who are , these individuals, and why take these steps now? kevin: a russian national has been charged by the u.s. department of justice for election interference, not just in the 2016 election cycle but also in 2018. a woman from st. petersburg , russia allegedly served as the chief accountant for an operation known as project latkya, this from a bloomberg exclusive by chris strom. we should also note that this comes just two and a half weeks before the midterm elections in which state and federal law officials are working to make sure that u.s. election systems are better protected ahead of the midterms. it also comes as tech companies are also trying to bolster their security. clearly with this new doj charge against these russian officials,

it shows that there have been attempts that u.s. officials have been able to thwart. >> the financial stability oversight council decided that prudential financial is no longer a special risk for the u.s. financial system. >> the big factor was the reconsideration of the fundamental nature of insurance businesses. we back insurance policies. we don't fund assets. understanding how those insurance policies might behave under stress is a very important part of understanding what happens to prudential, and any subsequent consequences for the market or global stability. i think the reexamination of the way our policies are likely to behave in a stressful environment led to the right conclusions, which is that we are a very stable business model. >> prominent members of the wto are calling for an investigation

into u.s. metal tariffs, opening up a new front in this escalating trade war. >> china, the european union, russia, and norway saying the duties violate wto rules. they want an independent assessment. has it put them into a dammed if you do and dammed if you don't position? >> it certainly puts the wto in something of a quandary. we have seen a real escalation in the pushback against u.s. decision to impose tariffs on steel and aluminum imports. that complaint from a number of countries will be heard the week after next by the wto, and they have a real conundrum to wrestle with. if they back the u.s., does that encourage other members, other countries to also look to impose protectionist trade measures, citing national security grounds? on the other hand, if they rule against the u.s., you get more scorn from the white house, and that could be a trigger from

-- for the u.s. to withdraw from the wto altogether. rishaad: in the latest installment of small to big, food for thought from a successful startup. purple carrot began selling vegan meal kits in 2014, and the timing couldn't have been better. demand for meal kits is booming, and more americans are turning to a plant based diet. the company has high profile investors and partners as it positions for further growth. the founder and ceo weighs out purple carrot's recipe for success. >> purple carrot is a plant based meal kit, and we offer a range of plant-based dishes every week. the feature price is $72, or $12 per plate. the number of vegans out there is relatively small in this country, but i always said this will be vegan food for non-vegans, and 82% of our subscribers today are not vegan.

in the spring of 2012, i was diagnosed with crohn's disease, somewhat out of the blue. i found that as i ate more plant-based eating i felt so much better in general and gained a deeper perspective on plant-based eating. back in 2014, i started the business with $100,000, and within the first month we ship -- shipped all the boxes from my house. lo and behold, we started to catch traction. we got great word-of-mouth through facebook. in the summer of 2015, i was able to recruit a well-known cookbook author and writer for "the new york times." we raised $2.8 million in september of 2015, as markets propelled our growth. overnight, we grew our orders by five times. in the spring of 2016, we were approached by whole foods to introduce the first retail product in a whole foods store.

while the product was well received, it really was ahead of its time in the sense that grocers weren't quite sure where to promote the product within the store itself, and consumers were not expecting to walk into a grocery store and find a retail meal kit. at the same time, we were in discussions with tom brady and the folks at tv12, his wellness organization and we had to make a decision. should we stay within whole foods and focus on retail, or should we put it on hold and focus on the commerce? we chose the latter. tom is a part-time plant-based eater, which matches up very well to the type of audience we service. he represents a great image of what someone can accomplish eating a plant based diet. as arguably, the greatest football player to ever live. adding those meals doubled the size of our company overnight.

in may of 2018, we secured a minority investment from fresh del monte for over $4 million. it's a global company, may have -- they have a tremendous amount of buying power, they have access to a whole host of fresh fruits and vegetables with the farms they own. they have got ships and trucks that are servicing pretty much every retailer in the country. they provide the opportunity to go into the retail sector. we have three distribution centers now, las vegas, chicago, and new jersey. that allows us to reach 100% of the continental united states with one to two day ground shipping. we will probably ship 5 million meals this year to our subscribers. and we are just thrilled with the future ahead. ♪

matt: it was in black and white in the notes, but it has been green and yellow on my terminal and yours. we can see, at least, that the projection on the dot plot is for rates to peak at almost 3.5% in 2020, then come back down. rishaad: there are about 30,000 functions on the bloomberg. we always enjoy showing you are favorites on bloomberg television. maybe they will become your favorite. here's another function you'll find useful. quic go. 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. >> among the top 10 most valuable tech companies globally are two china tech giants making their presence felt. the industry has become a serious rival to silicon valley, but there are political hurdles ahead.

this is your bloomberg quick take on china's tech giants. early on, chinese companies like tencent had a reputation for being copycats. it's instant messaging app originally looked a lot like a popular messaging app used in the u.s. >> 90% of them got their original aspiration from a u.s. equivalent. the portal business was the equivalent of yahoo!, there's an equivalent of twitter. alibaba, people would say their model is a hybrid of ebay and amazon, the list goes on. >> comparisons are now harder to make. the tencent messaging app has grown from a texting application to a platform for shopping, dating, flirting, watching videos, playing games, and ordering food. there is no u.s. equivalent. since the introduction of the internet in china, the government has controlled the web with a complex system of censors. this is effectively quarantining

china's technology ecosystem, blocking access to the likes of facebook, twitter, and instagram. that has enabled local to develop services without competition from abroad, building platforms with the uniquely chinese flavor. the internet users are more than double the entire u.s. population, and the companies grew to be massive. they became so successful that some u.s. companies are taking note. >> 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 being introduced. >> but there is increasing pushback. >> china, they are draining us, they are taking our money. they are rebuilding themselves. >> president donald trump says china is stealing overseas know-how and has imposed tariffs. bloomberg businessweek uncovered that the chinese even plant chips in computers to potential

hardware hacks. >> two years ago we were seeing a lot of m&a investment in the technology from chinese companies in silicon valley. that has all been put on the brakes ever since the trade war. >> yet chinese tech company names only recently drew blank stares outside china are becoming increasingly familiar. it reached a pinnacle and 2018, overtaking apple globally, but the chinese big tech companies keep expanding and need to convince other nations they mean no harm. ♪ rishaad: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm rishaad salamat. this is bloomberg. ♪

>> jonathan: from new york city, for our viewers worldwide, i am jonathan power with three minutes dedicated to fixed -- 30 income. this is "bloomberg real yield." ♪ coming up, the fed determines to keep hiking, sending two year treasury yields to 10 year highs. a booming leveraged loan market getting even bigger, overtaking high-yield debt. and italian bonds ending the week on a better note. the eu striking a conciliatory tone. we begin with the big issue -- investors on edge. >> it is not a fantastic world out there. >> the market is vulnerable. >> you are seeing stocks and bonds act differently than they have in the past.