♪ emma: coming up on "bloomberg best," the stories that shaped the week in business around the world. pains alternate with gains as red october drags on for u.s. stocks. >> today is clearly a panic sort of sell everything kind of day. emma: saudi arabia remains the center of controversy after the killing of a journalist. >> it is not convincing too many people in the world. >> it is a heinous crime that cannot be justified. emma: italy projects defiance as the e.u. rejects its budget plan. the ecb holds fast it's stimulus exit strategy. european banks need a courageous corporate earnings report.

>> it is the second clean quarter for the bank. we have no legacy issues. >> we have always had to look at ways to become more efficient. we are doing that. emma: in a week of high anxiety, expert voices offer insight and perspective. >> if there is a slowdown, i think the debt can be worked through. i don't think you will see the default you might have seen 10 years ago. >> many chinese companies have a huge opportunity in china. >> i don't believe there are signs of recession anytime soon. emma: it is all straight ahead on "bloomberg best." ♪ emma: hello and welcome. i'm emma chandra. this is "bloomberg best," your weekly review of the most is important business, news and analysis from bloomberg television around the world. let's start with a day by day look at the top headlines. on monday, governments, businesses, and markets reacted to saudi arabia's account of the

violent death of a journalist. >> saudi arabia says that journalist and government critic jamal khashoggi was murdered by a rogue operation that has sparked an international outcry. >> the discussion varied from the saudi side. they said that they wanted to convince mr. khashoggi to come to saudi arabia and then discussions escalated to a chokehold that ended with his death. it is certainly not convincing too many people in the world. not the least the u.s. lawmakers. as senator bob corker and lindsey graham have made clear yesterday in various interviews. but also, as germany's chancellor made it clear that she also would like to see more of the full truth come out, and the germans have halted military sales to saudi arabia, as well as the french. they talked about the need for the truth to come out. >> erdogan isn't buying the

saudi version of the death of journalist jamal khashoggi. he says that khashoggi's killing in the saudi consulate in istanbul was the result of a thoroughly planned plot. >> the fact this was for the first time -- he portrayed the killing of journalist jamal khashoggi as a murder meticulously planned in saudi arabia. he in fact called on the king to bring all collaborators to justice, no matter what their positions are. according to people we speak with here, that was a veiled reference to the influential crown prince in saudi arabia, although erdogan has refrained from directly naming him. >> the european commission has rejected the italian government's budget, giving rome three weeks to make a plan with lower spending. speaking to bloomberg, the italian prime minister said there is no plan b.

>> if they are going to ask me to change the most qualifying measures, it will be difficult for me because i cannot affect that. >> he is saying that he will go and talk. he did give a signal that he would be ready to make some tweaks to the budget. the bottom line remains no changes on the substance. it will fall short of what the commission wants. the government is remaining committed to the budget, to the deficit figure. there's room to talk, but don't expect italy to rewrite the budget just because brussels says so. >> jes staley has a case to fend off an activist shareholder after more positive results at barclays. the securities unit saw fixed income, securities and commodities income outperform peers in the third quarter. >> we are pleased with the third quarter.

this is the second clean quarter for the bank. we have no legacy issues. profits were up some 40%. we generated for the second quarter in a row earnings over one billion pounds clean. that is a demonstration that the strategy of the bank is well on course. >> we've been talking about the banks. deutsche bank shares have slumped after the lowest third-quarter revenue since 2010. the bank also predicted a slight decline for the full year. the chief executive said the focus has to be on growing the topline without compromising control. >> he said you are on track for a profit in 2018. the first profit in four years. how much money do you think you are going to make? >> we don't want to get precise guidance. as christian says, we've been profitable in the first nine months. we have been working toward a profitable year. we've been working toward the near-term targets. they have been around expenses will and headcount. i think the third-quarter

results demonstrate our progress towards those goals. >> a punishing stretch for markets continues today with technology stocks leading major indices lower again. worries about economic growth and corporate growth continue to spook investors. the s&p 500 erased gains that it made on the year. is this a capitulation? >> right now it is. today is clearly a panic, sort of sell everything kind of day. i do think that the market internals have been so negative. once we break through that 2700 level, which a lot of folks are looking at for support, we continue to see weakness emerge. >> there's nothing really to stop this. there's a lot of concern that is this air pocket. it is harder to identify any sort of support. as you said, we are now lower year to date. psychologically that is not the best thing for investors. >> president donald trump will be briefed by the cia chief as the crisis over the killing of journalist jamal khashoggi

continues to grow. speaking of the saudi investment conference, prince mohammed bin salman said he would bring the killers to court. >> it is a heinous crime that cannot be justified. >> do you think mohammed bin salman has done enough to move the global perspective of what happened here? >> no. i don't think you can say that. i think the speech was very much directed towards a local audience. and there his mood was ebullient. the speech was quite effective. before this, saudi's that we talked to were quite upset about this whole thing, both in terms of the murder and the pressure the kingdom has found itself under. >> the ecb staying the course despite recent political turmoil and disappointing eco data. the european bank has left its outlook and quantitative easing unchanged. >> incoming information while , somewhat weaker than expected,

remains overall consistent with an ongoing broad-based expansion of the euro area economy and gradually rising inflation pressures. >> what was this central message that draghi delivered today? was it steady as she goes? >> steady as she goes for now. you heard his acknowledgment of the data is weaker than expected. that has to be a concern. it is likely to be a topic of debate within the governing council. to be honest, as one reporter asked, draghi said so many things were not discussed at the press conference. she wanted to know, what did they actually talk about? one has to assume the economy and a look ahead to have the economic in december might look is the key factor there. >> the dow jones industrial average adding 400 points. after yesterday, tumbling 608 points. of course, the s&p 500 gaining 1.9%. with most of the big sectors

advancing, led by technology with those big earnings on top. >> relief in the tech sector was really short-lived. amazon down more than 8% in premarket trading. they reported a second consecutive quarter of sales below analyst estimates. the world's biggest online retailer also missed revenue targets and google's parent company alphabet also missed targets for the third quarter. overall, is there a link between the two companies? why did they both underwhelm markets? >> the link is that revenue growth seems to be slowing a little bit, but they are compensating for that with really impressive bottom lines. both amazon and google beat expectations on a net level but missed on the revenue. google, the miss was really quite small. $100 million in the context of $27 billion in overall revenue. >> third-quarter u.s. gdp coming better than expected. 3.5%. walk us through the numbers. they look pretty stellar to me.

>> that 3.5% increase was really solid, especially after about 4% in the prior quarter. that said, it was led by a couple of indexes. particularly, it was led by consumers. we also saw strong profit in nondurable spending. i think some of this could be a cotton candy number. it tastes good while you've got it, but it fades away quickly. one of the reasons people are going to be looking at this number and seeing a slowdown in the next year is the government spending looks particularly robust. business fixed investment did not look particularly good. that is relevant because that is what you would hope to see. a pickup in the index and potential growth down the road. >> is it sustainable? >> we think that it is. you look at some of the technicals, get down deep in the numbers. this is a sustainable growth cycle that we are in.

it is a supply-driven growth cycle. one of the things we draw attention to is how mild the inflation numbers were. 1.6%. well below what people expected, but not what we expected at the white house. we have been telling people for the last year that this is a different type of growth cycle ee driven by the supply in the market, which would typically put less pressure on inflation. we feel like we are in that goldilocks moment. we are getting good gdp growth, but we don't have the inflation traditionally you might have seen with this type of market. maybe it takes pressure off the fed to raise rates. all things seem to be pointing in the right direction. emma: still ahead, as we review the week on "bloomberg best," insight on markets and the global economy from howard marks and david rubenstein. plus, exclusive interviews with the south african president and dallas fed resident robert kaplan. and up next, more highlights from the earnings report. could tesla's result be a turning point for the troubled company?

>> they are profitable. first time they've been profitable since the third quarter of 2016. emma: this is bloomberg. ♪ emma: this is "bloomberg best."

i'm emma chandra. plenty of earnings information to digest this week. let's continue our review of results with a profit beat from swiss banking giant ubs.

>> ubs reported income for the third quarter that beat the highest analyst estimate coming in at 1.25 billion swiss francs. ceo sergio ermotti has hit key financial targets for the second time this year. >> we have to look at ways to become more efficient. we are doing that. the real story for us is how we free up resources for cost initiatives. to reinvest in our business. that is the reason why we expect our cost base to stay flat, excluding variable compensation. that is performance related and grow our top line. growing the top line is sustained by two secular trends, wealth creation and wealth transfer. and also the opening up of china as a financial market. in general, we see those forces allowing us to grow at least as much as the real gdp growth globally.

>> tesla shares soaring as the company reports third-quarter earnings and as elon musk strongly hinted, tesla has made money. the company's net income was $312 million. analysts expected a loss. get this, positive cash flow. $881 million. walk us through the numbers. >> the big thing is that they are profitable. huge. first time they've been profitable since the third quarter of 2016. it is only their third profitable quarter ever. but demand is still really strong. that was a big surprise. the big bear thesis was that they pulled out all the stops in q3 and there were no longer be demand for these cars. the customer deposit number is still -- >> $900 million in deposits. >> so demand for these cars is continuing. even though they worked through the reservations as more cars get on the road, more people are ordering them. >> ford motors net profit fell 37% in the third quarter as sales slowed in the u.s. and china.

ford has elevated china to a standalone division as it seeks to halt losses in the world's top market. >> in the third quarter, we lost about $100 million less in china than we did in the second quarter. a 20% reduction. we have a number of important launches. we have the all new focus family that will be launching this quarter, as well as the escort. and an all-new suv that will be positioned attractively coming at the end of the year. the big product onslaught begins this quarter. >> caterpillar tumbling the most in more than two years after it warned that u.s. tariffs will impact its customers. counties like honeywell also fell after similar warnings this month. another industrial taking a hit, 3m. after lowering its profit forecast once again as sales dropped. third-quarter numbers are pretty good. that is not the issue. it is the outlook that is not doing it. >> the numbers are not the issue. in fact, if you look at s&p 500

earnings, almost a quarter of stocks have reported. all but 15 have beat on earnings. if you look at the average price reaction in the 24 hours following the report, they are down half a percentage point. clearly the numbers are looking good. it is examples like we saw with caterpillar, where they beat on the top and bottom line, but then executives talk about what may be perceived as peak earnings. now we keep seeing this trend about higher input costs. it is having investors question what this means for margins going forward. >> microsoft's first-quarter numbers are in. it looks like its cloud business is still driving growth. profit and sales exceeded analyst estimates. revenue was up 19% to $29 billion. revenue from the azure cloud services jumped 76% as the company works to fulfill ceo satya nadella's vision of transforming the company into a

service and cloud centered business. can microsoft keep this up? >> absolutely. 76% is still about 2.5 times bigger than the overall cloud market. that is very strong. overall, total revenues up 18% in constant currency is one of the strongest numbers i've seen. as far as i can remember. to put it in context, the entire software industry is growing at about 7%. microsoft is growing at 18%. that is a very big delta. >> twitter is getting a much-needed boost today. shares surging up almost 20% after third quarter earnings and revenue topped estimates. >> give us some detail on what is drawing more advertisers to the platform even though monthly users are going down. >> people really understand twitter is a place for you launch something new. twitter is where you go to advertise to the most valuable audience when they are most receptive.

we were just not clear about that a couple years ago the way we are today and has really started to resonate. we were pretty surprised at how quickly the business has turned around in the united states. it turned faster than we thought it would this quarter and in a bigger way than we expected. that was a big part of what drove the business this quarter. >> phillips has reported adjusted ebr for the third quarter that missed the analyst estimate. the dutch health care supplier has reiterated its target for 2017 to 2020. how big of a role did the weakness in emerging-market currencies have to play here? >> we recorded a little over 4% revenue growth. that is in our guided range. the 40 basis points of operational profit improvement could have been a lot higher indeed were not for currency headwinds of 60 basis points. emerging markets were weak due to the global geopolitical situation. it is something that we will

compensate for as we go forward. therefore, it will not get us off track. we reiterate our overall guidance. the momentum is strong. we are looking at a good order book. it is just we need to deal with those headwinds and we will. >> to ryanair now. it is putting plans for future share buybacks on hold due to uncertainty surrounding brexit. that comes as the airline reported its first decline in first-half profit for five years amid rising fuel prices, strikes by european air traffic controllers, and disruptions from the unions. which they have recognized. >> this is one of these great periods in our industry where the doodoo has hit the fan, oil has spiraled upwards, and it will be a fight for who has the lowest cost this winter. already we are seeing bankruptcies.

premier air, small planet, some of the smaller guys disappearing. i hope more of them disappear this winter because they deserve to disappear. >> french giant total has said it will keep spending restrained this year despite better-than-expected third-quarter profit due to rising oil and gas prices and production. eni also beat estimates. oil prices took a huge dive over this last month, but the reporting quarter saw prices rise and that helped. >> absolutely right. what you are seeing is a result of so much hard work. they were reducing spending. they were cutting breakeven costs. they were eliminating waste. they were also in the height of the oil price boom sanctioning new projects. now you are seeing that production come in, so you are seeing this great period right now for these oil companies. ♪ emma: you are watching

"bloomberg best." i'm emma chandra. as investors ponder signed that -- assigns -- signs that the economic expansion may be nearing its end, howard marks says a recession is probably not right around the corner. still, the cofounder of oaktree capital thinks caution is in order. he discussed the markets with haidi stroud-watts. >> the fundamental decision that an investor has to make is whether to be aggressive or defensive. i've had more of an emphasis on defense for a few years now. i think the easy money has been made. it is important to know where the market is in its cycle.

i think it is high in its cycle. that doesn't mean it is going down tomorrow. i think the economy is very powerful. it would be difficult to be out of this market. but i think one should be in in a cautious way. >> are you seeing a recalibration finally, rotating from everything growth to looking at values? >> i don't spend a lot of my time in the stock market, but i do think growth stocks ride high on optimism. which means they become vulnerable. when the optimism is taken away, then the vulnerability results in losses. it will ever be so. >> the current economic recovery is one of the longest ever. valuations are some of the richest ever. at the start of this year, you said it is plodding along. it is not so hot that we are going to see the end very soon. has that changed?

you've got more voices talking about a recession in the next couple of years potentially. >> look, our economy is still doing very well. in a few months it will become the longest recovery in history. i don't believe there are signs of recession anytime soon. in fact, in december, the government passed a tax bill which will be highly stimulative. it has produced a gangbusters second quarter this year. the third will probably be somewhat less than that. but i don't think there's any reason to expect a recession anytime soon. emma: more compelling conversations coming up. perspective from david rubenstein of the carlyle group. plus, what is the fed thinking as financial markets take a downward turn? we speak exclusively with dallas fed president robert kaplan. >> some amount of volatility in

the markets, up and down is typical. emma: this is bloomberg. ♪ emma: welcome back to

"bloomberg best." i'm emma chandra. weakening economic data, political turmoil, and mixed corporate earnings results all contributed to another fragile week for global equities. so where should investors look for growth? citigroup's asia-pacific head of corporate and invested banking said that despite trade tensions, he sees potential in china. >> the one big thing about china is many chinese companies have a huge opportunity inside china, absolutely massive. the growth opportunity that is so big, they are very careful about where to expand, because they don't want to dilute the focus on that massive opportunity.

where they are expanding into places like indonesia and in some cases india, but they are taking their spots very carefully because the opportunity at home is massive for them. >> are people pulling the pin on m&a activity? are they holding back as they see what happens with the trade flows and this trade war? >> i think people are looking at m&a on a continuous basis. certain kinds of m&a will be a little bit harder in the future, and that is something where we have to give clients advice around about how to navigate. but clients, when they do look at m&a, also look at market expansion. they're also looking at m&a to fill technology gaps they have, and that doesn't actually slow because it is strategic to their businesses. >> how worried are you about the trade war actually putting all this to waste? >> i'm not. i think you are going to see the

trade war will probably continue for a while, and what you will see is in that environment, the intentions of everybody are not malicious. i believe, i hope. i think what you will see is that the world will find ways to get through this. one thing to remember is that companies are smart and will find new opportunities and will evolve over time and find markets to sell goods in. >> carlyle group co-ceo david rubenstein brings decades of expert perspective to any conversation about the economy. bloomberg's ed hammond caught up with him in toronto. >> what are investors around the world wanting to know about america at the moment with midterms around the corner and what are they worried about? >> investors are worried about whether the united states might have an economy that slows down. the economy has been very good for the last 10 years, and there is some concern that the

slowdown in china could spill over into the united states, the tariffs and trade wars could slow down the economy, the interest rate going up might slow down the economy, and if the democrats regain control of the congress would produce more fights with the president. that could slow down the economy. it's unclear. >> you have been through a few different financial crises, you have seen a lot of different cycles. we're in a position now where we have seven times leverage, something like 13% of the deals this year had that. how worried should we be about that? people say it's nothing like 2008, but i'm sure in 2008 it's nothing like the last crisis. >> remember the debt coming in is roughly what we had before the great recession, not that much higher. but the terms are much more favorable. before the great recession, 30% of debt had no covenants. now it is 80% to 90%. if there's a slowdown, the debt can be worked through. i don't think he will seek the defaults of the kind of pace he saw 10 years ago. >> canada. it would be remiss to ask you about cannabis. does carlyle have any interest into the pot business?

>> we invest in canada. we like investing in canada, we are trying to buy another company in canada. hopefully we will win it. if we do, we will add it to the war folio we already have. canada, in my view, is a good place to invest. you have a very high gdp relative to other countries. in the end you have rule of law, you have transparency, exit opportunities. i think canada's excellent place to invest. my only reluctance is i don't want my peers to hear too much about how good candidate is because they may come in and drive prices up. what i should say canada is not a good place, you should not invest. my peers should not invest here. emma: in a week, when president donald trump again blasted the federal reserve for raising rates, bloomberg landed an exclusive interview with a top fed official. michael mckee sat down on friday with dallas fed president robert kaplan. >> what do you make of what has been going on in markets lately? >> well, i'll avoid in this

position commenting too much on market changes, other than to say some amount of volatility in the markets, an up and down, i think is typical. the one thing i would comment on is i watch earnings reports and talk to about 30 ceos a month. i think the story is consistent. input costs are higher across the board. labor, materials, steel, aluminum, and companies are struggling for whether they can pass those increases on in price increases or facing margin erosion. i see in the earnings reports a consistent story from companies. >> is there a level change, a percent move or something that would cause you to believe that maybe the fed should slow down, take a pause, not move in december? >> what i am looking for is what impact and what this all indicates about the strength of the underlying economy, and also the impact on financial conditions.

it's not a market move up or down per se. it's still what is my outlook for the economy, what is my assessment of financial conditions in the economy that might impact future growth prospects? >> we are getting closer to the neutral rate. you pegged it at 2.75% to 3%. how close are you to possibly making a policy mistake? >> so i've said that the estimate of the neutral rate is a concept, it is imprecise, it is uncertain, part of the mosaic i look at, and it could be 2.5% to 2.75%, 2.75% to 3%, we will have to make that judgment over the next year as the economy unfolds. but to your point, i'm very sensitive to not being rigid or predetermined about the pace at which we get there.

emma: south africa's rand plunged this week after the finance minister told lawmakers that government debt will peak two years later and higher than previously forecast. the country also cut the growth outlook for 2018 by more than half. on friday, bloomberg's guy johnson spoke exclusively with the south african president about the challenges facing his nation's economy. >> i'm overwhelmed by the level of interest that continues to be in the south african economy. many corporate and potential investors are here, and we have well over 1000 people here, and many of them are real investors, not just people who want to come in and have a freebie at a conference. they are here because they want to put money on the ground and make money themselves.

>> let's talk a little bit about where the economy is right now. because clearly you need the numbers to look better if you are going to attract more investment. it's a virtuous circle. >> it is. >> is the legacy from the zuma era even tougher than you thought it was going to be? is the job of fixing the south african economy even tougher than you thought it would be when you took the job? >> yes, it is tougher, because now in the full glare of the commissions of inquiry, we are beginning to really get into the depths of what has been happening. we can see the damage that was done to state institutions, to government departments, and corruption had become endemic. the unfortunate thing is that -- the fortunate thing is that the wheels did not come off. we're beginning now to renew and to roll back the bad practices

that had come into play. and therefore, we're now in a very determined way moving forward and making sure that we do indeed get rid of corruption. we do indeed reposition our state-owned enterprises. we do indeed improve levels of governance within our government departments. ♪ emma: you are watching

"bloomberg best." i'm emma chandra. let's continue our global tour of the week's top business stories. in china, where government measures were meant to stabilize markets, were met with mixed success. >> the chinese government has been taking steps just about

every day now to support the economy and its markets. but despite all those efforts, i the stock market was down over 2% today after a similar rise yesterday. the chinese government seems to be going to every extent it can to try to help things. is it working? >> clearly, they are sending a signal they want to stabilize, but like you said, that wasn't necessarily the message the market gave today. we had another 2.7% drop, some say it was down to china's specific factors, other say it was part of the global risk off story. at the same time, there's no doubt the authorities are making clear, both through the actions they are taking, the measures they are promising, and the rhetoric they are delivering that they are willing to step in when it counts and that they are watching what is happening closely. all indications are they want to stabilize things as fast as they can. >> the australian government is vowing to stay out of full-term despite a backlash in sydney. independent candidate karen

phelps looks set to remove wentworth, removing the majority in parliament. >> it is dr. karen phelps, the independent candidate winning an incredible victory, a 20% swing away from the liberal party and that ends the grip of the liberal party on the seat of wentworth. it has held for 117 years, since australia was federated. so that's rested on support for the liberal party, and it's gone. the prime minister said going into the weekend he understood people were angry but cautioned against them doing anything rash, imperiling the government's one seat majority. they did not listen. >> u.s. law enforcement agencies are investigating suspected pipe bombs sent to the homes of barack obama, hillary clinton, and george soros, as well as cnn in new york. the fbi says it is possible that other potential disruptive packages have been mailed, and is urging the public to be vigilant. >> what we don't know is who

sent them. we don't know why they were sent. we are waiting to see why. we are waiting to see what. that's the subject of ongoing investigations by bomb experts at the fbi and elsewhere. >> a suspect is in the custody of the fbi. i want to remind everyone that the defendant in this case, as in every case, is innocent until proven guilty. he has been charged today with five federal crimes, including interstate transportation of an explosive, illegal mailing of explosives, threats against former presidents and certain other persons, threatening interstate communications, and assaulting current and former federal officers. for these charges, the defendant faces up to 58 years in prison. >> president trump is promising voters there will be a new

middle class tax cut before the election. there is one problem though, apparently republican tax policy makers don't know anything about it. presumably this would be separate from tax cut 2.0, which would make last year's tax cuts permanent. give us the latest, including what kind of timeline we are talking about. >> this has been a head scratcher for pretty much everyone in washington. look, we had this plan, it looks like it's going nowhere in the senate. what is the second plan? lobbyists and folks on the hill are very confused as to what could be in here and what he could do in the next couple weeks with congress out. anything that would happen before the midterm would have to be some sort of executive action. indexing capital gains rates, that is something he talked about, but that's not a middle-class tax cut, that would be for investors. >> a record investment last may, it is determined we are going to examine now. saudi arabia has pledged as much as $20 billion to help the

investment firm build the world's largest infrastructure fund. it turns out this investment had very, very favorable terms. give us the details. >> absolutely. in a high level, the most favorable term is that they got a discount on fees. it's paying 75 basis points on the first $10 billion and 65 on the second $10 billion. to compared, the teachers funds is paying 75 basis points for two years, and that ratchets up quite quickly to 90 basis points. but what's interesting is beyond the high level discount, there's a revenue-sharing agreement. what we're breaking in this story today is that 15% of all the fees other investors pay to blackstone comes off the fee balance. and what is owed by the saudi fund.

>> saudi arabia today signed more than 25 deals at its flagship investment port in riyadh. today as we are on the air, siemens says they are pulling out of the power deal in saudi arabia. yesterday the ceo said he wouldn't go to the conference. >> yeah. the conference is still underway, so they are trying to make a showing that it is business as usual. but at the latest headlines from siemens show, it's not business as usual at all. its $20 billion deal is going ahead here it is just the timing that has been postponed. the optics are completely off on this particular occasion, and the ceo of total as well signed an agreement with the saudis for the asian companies represented. they might as well be signing some agreements as well. what is clear is that the european and american presence is much less than it was last year. you can feel that. that is what some of our colleagues have been telling us in the halls and corridors. >> china's greater bay area received a huge infrastructure

boost on tuesday. the world's longest sea bridge is set to connect the former european bastions of hong kong and macau to juhai on the mainland, and it should solidify xi jingping's vision of a high-tech megalopolis. what does this bridge mean for hong kong and china? >> so, the bridge is going to connect hong kong much closer to china in a literal sense. the trip to juhai used to be 3.5 hours, now it will be 30 minutes. for china, it is very significant. it is definitely xi jingping's vision of building this greater bay area to rival california's bay area there. but at the same time, this is the 41st year of china reform, opening up. if you think about the bigger picture, this is definitely in xi jinping's mind. they want to bring the economy up to the next level with technology advancements.

>> netflix has taken the crown at the entertainment awards thanks to its new, innovative programming. those shows come at a high cost. the company is once again turning to the junk bond markets to fund production. >> netflix posted a strong quarter last week. they added a lot of subscribers inthey added a lot of subscribers in the quarter with positive guidance for subscriber growth going forward, and that is all this story needs, that momentum of subscriber additions. however they come at a cost. a lot of programming expenses. this is a company that doesn't generate any free cash flow. in order to fund these programming investments they are going to the high-heeled debt market. we expect they will turn free cash flow positive maybe in 2021. that is what creditors are looking forward to. >> fiat chrysler has agreed to sell its high-tech car parts unit for 6.2 billion euros. the first major deal for the carmaker under the new chief executive. was this original idea hatched by sergio marchionne?

>> yes, it was his idea. it came at a time when he was really developing his spinoff strategy. we saw it with ferrari and cnh. there was an internal debate probably on whether they wanted to go ahead and spin it off. he was also getting offers, so this deal wrapped up that process and fiat managed to get a slightly higher price than some of the bids. >> shares of glencore are lower after the ceo told investors he will retire in three to five years. why now? he owns more than 8% of the company, and it doesn't look like he's getting rid of any shares anytime soon. why announce his retirement? >> well, he hasn't announced it as such. i think it's important to say that this is in private conversations with investors.

i think probably the key thing happening is investors are beginning to ask more questions about it. he's getting to an age where people might start to think about retirement, and the other thing that has happened recently that is prompting more questions is that glencore announced they had been subpoenaed by the u.s. department of justice in a corruption and money laundering probe relating to activities in congo, venezuela, and nigeria. ♪ >> down a break in place -- down

leg in price and above average volume. we are trading above the last 30 days and terms of the volume on both sides of the atlantic. this is the avac function, you can slice and dice it a number of different ways. there's the bar chart down at the bottom. you can see the track. the white line is the track today in terms of where volume is.

we are trading on above-average volume. emma: there are about 30,000 functions on the bloomberg, and we always enjoy showing you are favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, quic , which 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. >> japan's shrinking population is forcing the country to look for new workers, and prime minister shinzo abe thinks he has found the answer, women. abe is outlining goals is to create a japan in which women shine. the name given, womenomics. but while women have seen some success getting more women into the workforce, it still faces serious cultural hurdles. this is your bloomberg quick take on breaking down gender bias in japan.

by 2020, abe wants 30% of leadership positions to be filled by women. he has urged listed companies to appoint women to executive and managerial roles. he is working to fix japan's day care shortage, while encouraging workplaces to be more accommodating so mothers will be more inclined to rejoin the labor force. and it is working, sort of. female labor participation rose from 46.2% in 2012 to 49.8% in 2017. >> but most of the women that have been added to the workforce are working in these relatively low paid, part-time jobs, a mismatch there with physical of -- his goal of getting more women into management. >> although abe frequently touts the success of womenomics, a close look highlights a culture that systematically excludes women. an expectation that women should stay at home and be primary caregivers has held them back in workplaces all over the world, but in japan it is particularly deep-rooted.

in 2016, 45% of men surveyed agreed women should stay at home. japan also has the third highest gender pay gap in the more developed countries. although companies such as toyota are appointing female executives, change has been slow. only 4% of the managerial positions are held by women in japan, compared with 9% in china and 17% in the u.s. >> it's very much the working culture has built up around men and around the long hours they work. it can be very bonding, they go out drinking together in the evening. women simply don't fit into that cozy little world in a lot of cases. >> on top of that, just 1/10 of the members of japan's lower house are women, ranking the nation among the lowest in female political representation in the world. >> if you look at prime minister abe's cabinet, he only has two women out of 20. he is not really reaching his

own target of management -- of havingg 30% 30% of management positions taken up by women. >> some say quotas should be legally binding for real change to come about. such measures could have great economic benefit, including one report suggesting that gender parity could add $550 billion to japan's gdp. >> i don't think we are going to see a transformation overnight or in the next couple years. these people are obviously at the bottom of the ladder in the corporate world, so they are not going to be the one society how -- deciding how the corporate culture works for some time. emma: 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 emma chandra. this is bloomberg. ♪

>> from new york city for our viewers worldwide, 30 minutes dedicated to fixed income. this is bloomberg real yield. ♪ coming up, the global equity market. the fed into getting a market correction won't be enough to shake policy and the argument supported by strong gdp. a better-than-expected 3.5%. we begin with a big issue. conditions, lending funded