coming up on "bloomberg best," the stories that shaped the week in business around the world. instead of voting on a brexit deal, parliament votes on a prime minister. >> this no-confidence vote has been threatened for so long. >> the parliamentary party does have confidence. >> theresa may survives another challenge, but can she get her brexit lan across the finish line? >> she will still have a deal she cannot get through the house of commons. >> she is a dead woman walking. >> not much clarity on the trade front either as the u.s. and china send mixed signals. >> we are hearing they separated

and they arehauwei focusing on areas of common ground. >> the ecb ends qe. threatens aump government shutdown of congress rejects his border wall. >> i will take the mantle of shutting down. >> i guess it is a little bit discouraging if you are an investor. >> has political uncertainty ratchets up, distinguished guests discuss whether growth is about to slow down. >> there will be another downturn. >> it may be more difficult for growth to continue. >> i don't know if we are going to have a huge amount of trends. >> it could ju be and enormously volatile period. >> it is all straight ahead on "bloomberg best." hello and welcome.

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. investors began the week bracing for a tuesday vote on a brexit agreement. the deal negotiated by theresa may and approved last month by the european union, but as with just about everything else in the brexit process so far, it did not go as planned. >> brexit break. facing the prospect of defeat, prime minister theresa may has announced the parliamentary brexit deal vote scheduled for tomorrow has been delayed. >> it is clear that while there is broad support for many of the key aspects of the deal -- [lab protest] on one issue, the northern ireland backstop, there remains widespread and deep concern. we will therefore differ the vote scheduled for tomorrow. >> theresa may was basically

defending her deal and saying this is as good as it gets, there is not a negotiated deal better than it is. also is asking for from brussels is reassurance, assurances. she's not a talking about opening the deal or overhauling her deal. she has refused to put a date of one her vote would come back to parliament. when she was asked a few times, all she said was the january 21, the deadline which is ensconced in legislation, it is a date by which the government has to tell parliament what it is up to. >> president standing bullish on trade, tweeting moments ago the following, "very productive conversations going on with china, what for some important announcements." talk to me about >> important announcements. the president declaring premature victory as it relates to auto tariffs. now they're getting new reporting that suggests that the

president was right about that, that china is said to move on u.s. car tariffs. the terroristsat would be reduced but nothing concrete. steve mnuchin and bob lighthizer, the u.s. trade representative, have been meeting with the chinese vice premier. off of those trade talks last night on the phone, we are hearing they have separated the issue of hauwei and they are continuing to focus on areas of common ground, particularly in the agricultural sector. that is good news for farmers, agricultural sector, and that is what treasury secretary mnuchin said will be the biggest positive impact of this in the short-term. >> president trump has just held a contentious meeting with the democratic leaders in congress, chuck schumer and nancy pelosi. >> i will take the mantle, i will be the one to shut it down. i'm not going to blame you for

it. the last time you shut it down, it did not work. i'm going to shut it down for border security. >> if this is a view into how this will go forward in the new congress, i did not find it very encouraging. >> i guess it is a little bit discouraging if you are an investor. it does look like we are headed toward a government shutdown next week. that ifident proclaimed the government shuts down, it will be donald trump who makes it happen. you could almost say that the losey and schumer sort of baited him a little bit in taking ownership of a government shutdown should it happen on next friday. cfo has been granted bail by a canadian court that allows the executive to stay in her vancouver home as she awaits possible extradition to the u.s. over fraud charges. >> the canadian judge in what was a very tense and dramatic bail proceeding did agree to

release her, saying that the defense proposed a number of restrictions that offset the flight risk. it is quite a long list. the topline figure is the bail that was set at $10 million canadian. >> president trump says he would now intervene in the case of that arrested hauwei executive if it would help the trade deal with china. he said, "if i think it is good for what will be the largest trade deal ever made, which is a very important thing, what is good for national security, i would certainly intervene if i thought it was necessary." >> it has left a few people scratching their heads wondering how donald trump might intervene in the hauwei case. it might send an interesting message to the chinese about the rule of law in the united states and the independence of the judiciary looking at how donald trump tries to get involved in transactional relationships, whether he can actually do it or not, that is a different question. the man who heads the back

benches in the conservative party has announced there will be a vote of confidence into theresa may. that will take place tonight. only he knew whether he had 48 names locked away in the safe, 40 letters of no confidence. it seems he has that number in her. >> we are finding here this no-confidence vote in her leadership has been threatened for so long and it is actually happening. the question all along, there have been enough people to trigger this. they have waited for their moment to do so. the expectation has been that they don't have enough support to actually topple her. >> i will contest that vote with everything i've got. >> assuming that she wins this, she was still have a deal that she cannot get through the house of commons. deal missing that changes is she won't have to worry about a leadership challenge again. will this increase her authority? not desperately. will this solve any of the problems? no. helde result of the ballot

this evening is that the parliamentary party does have confidence -- [loud cheering] >> now that we have dealt with the fact that theresa may's leadership is secure for another year, we now have to get back to getting the deal over the line. >> all this shows is that the brexit deal that she has put on the table is unacceptable to about two thirds of the house of commons. she is a dead woman walking. >> sources say beijing, they have pushed back plans for high-tech domination by about 10 years. as it tries to ease tension with washington. >> the ambitious made in china 20.5 program has been one of the main targets in china -- president trump's trade war. >> the industrial policy, the made in china 2025 program, has

been seen by china as a redline when it came to negotiations with the u.s., which is why it is interesting that maybe they are looking at amending it. it will come down to the details, exactly what changes, they are looking to implement. they may delay this program from 2025 to 2035. we heard from the wall street journal that it may open up the project to greater participation. oft is certainly a desire european and u.s. executives who operate in china, something they have been pushing for. >> they have made some moves to help protect international property rights. they have announced that they are going to do away with the 25% retaliatory tariffs on u.s. exports of cars to china. they are making a number of steps in addition a very large purchase of soybeans and a very large potential purchase of lng.

they are starting to make some very early stage, very preliminary, but very welcome moves that are specific, tangible, and measurable. >> a landmark decision from the ecb, the central bank saying it will halt quantitative easing this month.mario draghi expect -- expressed some concerns about future economic growth. >> the balance of risk is moving to the downside. >> how should we perceive mario draghi today? dovish enough? >> it was a classic dovish tightening. >> europe is the region in the the sharpest deceleration. it is leading economic indicators. there is no sign of a bottom. he is highlighting a lot of uncertainty around china's fiscal stimulus. italy,ensions, brexit,

better call -- better political stimulation. italy post-up was a recessionary growth numbers. these are signs to the downside. >> european leaders have toughened their stance on brexit, removing some of the helpful parts of the communiqué that diplomats had drafted in advance. at the same time, the eu is stepping up plans for a no deal departure. is theresa may further to getting away with her deal? it seems that she might be thrown some assistance by eu leaders and then it seemed to change overnight. night,ne point of the european leaders say and, maybe we can give her some concessions. what has become really clear is that the irish backstop, if we deal get this cleared the is not going to go through parliament.

the problem is that european leaders were taken aback by the presentation. she did not give enough detail and the eyes of european leaders. they thought she was too vague. to clearly explain what it is that you want. is that i'm hearing december is going to be a no go for brexit. the real deadline is now seen as january 21 here. china is taking steps to bring down the trade tensions with the u.s.. after three months, beijing will remove the punitive 25% tariffs on american cars. how far will this go? ease any potential negotiations from the trump administration? >> i think this is a good day for donald trump. he had said that this was the chinese were going to do. for a while, it looked like they were not saying they are going to do it, now they are going to

do it. that has to be a notch in his beltm a success. it is good for american companies. ford, tesla, also good for german automakers, they are leading exporters of cars from the u.s., bmw and daimler. i would call it a red letter day. still ahead, an exclusive conversation with the credit suisse ceo. the bank announced billions and buybacks and he says the rebound is working. and coming up, more of the week's top business headlines. france's president promises more spending, a pledge that could cause another headache for the eu. out rules are applied when it comes to different member states. juliette: this is bloomberg. ♪ .

♪

juliette: this is "bloomberg best." let's continue our global tour of the week's most important business stories in india, where the head of the central bank unexpectedly stepped down. india's central bank, the head of the central ink unexpectedly resigned the midst of repeated clashes. >> these concerns were definitely scripted for quite clashing with rbi the government. there was a lot of uncertainty because of the meeting coming up

, but also the statewide elections, which could signal how much strength narendra modi as going into next year's national election in next may. the r.b.i. has been under a lot of pressure since tony 14 to use -- 2014 the use its capital reserves to help the governor boost economic growth and that eventually led to patel's present nation. >> india appointed a new head of the reserve bank less than 24 hours after his predecessor abruptly stripped down. he was the economic affairs secretary, part of the administered there are -- ministry of finance, and he then oversaw one of the moving forces behind modi's demonetization of a program that is still controversial to this day. he has been a member of the finance commission and he was one of the sherpas at the last g20 meeting for india. >> china's trade surplus with

the u.s. hit a record, $1.6 billion in november, despite overall exports waning and uncertainty over the trade war. factory gate prices slowed further. consumer inflation saw moderation. does this give you a sense of it arade war or is structural slowdown that was already hitting china and that continues to play out? >> i would say that we have traded toward weak demand and effect of the u.s. china trade tensions. in the meantime, china's trade surplus jumped to $45 billion u.s. dollars. that is on track to shift china's current account balance to a moderate annual surplus from a deficit in the first three quarters. italy's populace has been

helped by an unlikely source, emmanuel macron. vestder to stop the french this yellow vest protests, it told help italy's challenge the eu budget rules. >> it is a big story here in brussels and could potentially turn into a much bigger headache because it really are applied when it comes to member states. the italian government and the european mission have been in talks to bring down the deficit.

the italian government wants to spend more money to fuel more growth. that is their argument. they were told you have to stick to the rules. the problem is that emmanuel macron has decided to go on a spending spree to bring down tensions in france. the italian premier said that the italians are thinking of the french are spending, why should we not do the same? the rules of got to be applied for everyone. it looks like this will be a big fiscal headache for the european union. ministeralian prime has proposed to reduce the deficit target to just over 2% for 2019. this represents a significant concession to the european commission, which had rejected the target of 2.4% as a breach of rules. a spokesman for jean-claude juncker said good progress has been made, but the risk of eu sanctions could still remain. is everything settled now that italy has made this important concession on the deficit? or is there still some strife? to be details still need worked out. you could say that the shouting is over, but the game goes on. finance minister tria is in brussels to work out those details. the commission will want to see lots more in writing before it makes a final decision. chinese industrial production

well below estimates. but we did have a pickup in investment and that could indicate stimulus is beginning to reach the real economy. the estimates had been for brought stability. that is not what we got. retail sales numbers are disappointing. well below the forecast of 8.8%. that is the lowest number since may 2003. there have been some expectations that you get this alibaba singles' day bump because that was a big event on the 11th of november. of course, we had the industrial production number coming in below the estimates well below all the estimates, 5.4%. we have the fixed asset investment number that would be one silver lining in this data set coming and above the

estimates suggesting that possibly some of the stimulus is starting to play out. sayingd from the pboc that there is increased downward pressure and that the central bank is ready to provide support. ♪

juliette: you are watching "bloomberg best." i'm juliette saly. buying back as much as $3

billion in stock, marking the completion of the bank's three-year rebound under the new ceo who supervised a pivot from more volatile trading to wealth management. he spoke exclusively to francine lacqua about the buyback and credit suisse's turnaround. said that if they supported us, we would come to a position where we can return capital and we are pleased to return that point. >> shareholders ask for more buybacks and you could do it. >> it is not a function of the current position and market conditions. these numbers announced today are very prudent. it is reasonably safe. i'm not known for holding capital as a ceo. any extra capital will be issued. francine: talking a little bit

about the headwinds in the market conditions, are the going to get worse from here? when i came into this job, we already have been very long into an expansion. all of our thinking has been about protecting the bank. we cut risk. we cut cost by more than $5 billion. we could stand a drop in revenue and remain profitable. we raised capital and we dealt with their issues. low risk, low-cost, low capital. a great place to go into a difficult environment. francine: this is a market correction or something worse? growth albeit at a lower

level which drives our ability to make profits. profits will be higher than they were in 2015. inhad 60% of our business the executive banks and we now have more than two thirds and financial. we have a much quote -- higher quality of earnings and higher profits. now it leaves us in a much safer position. juliette: coming up on "bloomberg best," more of the week's top company news, including an uncomfortable trip to capitol hill by the google ceo. plus, more compelling conversations. the imf sees risk on the horizon for the global economy. >> we will surely have another downturn. the question will be, is that a

garden-variety downturn or another more serious crisis like we have had be for? juliette: this is bloomberg. ♪

juliette: welcome back to "bloomberg best." marketskling global continue to show volatility, conversation on bloomberg television turned to growth and the outward impending recession. manager imf deputy david lipton who shares his insight with bloomberg surveillance. david: we have many risks in the global economy. we will surely have another downturn. is it a garden-variety downturn or another more serious crisis like we've had before? what we do now will determine

what we do later. there is so much technology with new technology -- we can only read those opportunities if we work together. speakimportant that we about that and we have a broader understanding of the situation. >> what are the chances of the downturn or the beginning of a downturn in the next 18 months? what role does the u.s.-china trade tensions play in this possible downturn? it is very hard to know exactly when downturn will come and what will be the precipitating cause. history tells us there will be another downturn. we have to realize that national policy responses maybe a little less potent this time. monetary policy doesn't have room because interest rates are still so low. as the policy doesn't have as much room as before because that's -- debts are higher. in many respects, we may not

have the strength to respond like we did before. it is really important like we've been saying at the imf to fix the roof while the sun is shining. to try to put off the downturn and make sure it is not a severe one. that future is not deterministic. it is in the hands of policymakers. >> the u.s. economy, we believe clearlyas china, to avoid a recession, i think the market until recently had been complacent. the deceleration growth will be marked by periodic billips. ,ith fiscal policy running off trade war tensions high, and the fed being left accommodative with each passing day to all of for modestts up disappointment and growth in 2019. >> you accept -- expect the fed

and markets to not capitulate? >> there is talk today that he federal reserve may pass raising rates this month. i think that will be a mistake and i don't think the federal reserve will ultimately do that. the burden of proof is high not to raise rates but the long-running thesis was that the federal reserve is not going to raise rates above 3% which means to rate hikes in 2019. would be inthat march and june. that could change the timing, but we could believe the federal reserve is appropriate. the table not proceed in the plot that we have been anticipating today. former u.s. treasury secretary jack lew offered another perspective on the global economy. with particular attention to how policy in washington may affect the and spill over to assess around the world. he spoke in the by -- in dubai.

growth don'tnd time-out, but they don't go on forever. with the policies that make it difficult for growth to continue. whether it is deficit policies in the united states at a time of economic growth, trade wars that are man-made problems. i think you see a lot of uncertainty and disruption put into an economy that is already late in a cycle. >> the debt is something that is blowing out. $1 trillion is with the cbo predicts.

jack: if you look at the deficit and accumulated debt, we spent time stabilizing things. we went from 10% of gdp to 3% of gdp. stabilized in the mid-70's. we are putting in place policies that are driving it to hit 100%. that is a mistake. when a business cycle ends, there is a need for governmental intervention. and if you already spent your fiscal resources during growth, you don't have the resources to spend when you need to stimulate the economy. willost of the debt squeeze out other important things. there are a lot of things like infrastructure, research, and development that would help the future. we use the word bond vigilante is him when we talk about italy, greece -- what is the risk of real activism or indigestion in the u.s. bond market with issuance at this level? is thehe u.s. market most liquid market in the world. brexit you really believe that? -- the issue is

access. a flight to safety is towards the dollar. i think the price will go up. interest rates will go up. the spread between u.s. and other yields is actually ahead of fed policy. i think that the idea that the u.s. can't borrow is not the right way to think about it in the short term. the right way to think about it is, if you are concerned about trade deficit, when you spend more and borrow more, the trade deficit goes up, not down. plus, our ability to invest goes down. pioneer paul jones shared the stage with another legendary investor and event hosted by forbes and the nonprofit just capital.

quinn that high market volatility next year may not be good for investors who hold long-term positions. that markets are highly volatile. i can easily see a situation in the where all of deleveraging we have experienced over the last month and a half, the last four months or five months, all of that deleveraging gets reinvested back in the market. often, it is the relative game. there is a point in 2019 where markets are up on the year and it will be a day to squeeze. all of that deleveraging we have seen is going to go back in the market. 2007 is a great example. the last height was in 2006. the economy was falling apart

and the stock market did great all the way until october. can we have a scenario like that again? i think it is possible. are you doing macro trades were keeping some powder dry? >> i think we will be in big trading ranges, just having and holding static positions. this is a better time to be a traitor than to just hold. i don't know if we're going to have a huge amount of trends. it just could be an enormously volatile period with a lot of back and forth. juliette: now for another bloomberg exclusive. tom mackenzie spoke with chairman and ceo of xpeng motors, a chinese vehicle company that delivered its first commercial model this week. going up against tesla, and forth.

do they see themselves in direct competition with tesla? be able tot we will better compete in the next couple of years. customers will benefit from competition. tom: is there risk of overcapacity in china's electric vehicle market? will there be a point where there is rapid consolidation? see a process of consolidation in two years or more and i think this will lead to bigger companies. tom: is the financing more challenging for a company like yours? a bunch of free capital out there and investors need to look for large and stable investment opportunities. we are seeing many investors that are interested. they are more cautious than before. tom cole and they were

considering cutting the terror from 14% to 15%. do you lose an advantage. he: protection can benefit us in the short term. ♪

juliette: this is bloomberg best. let's resume the roundup of the week's top business news. uber becamealley, the latest ridesharing company to begin the journey towards an ipo. uber has joined its rival lyft,

admitting a filing confidentially last week and the sec. when do we expect it to go public? when do we expect the companies to come to the market? >> uber had talked about the second half of next year. uber is makingd acquisitions in the scooter field. in the spring of 2019, and they take a message of a slow interest rate environment. the ridesharing, ride-hailing, the strength and growth of their uber eats business. things perhaps unanticipated could delay filings. >> uber selected morgan stanley to leave the initial public offering which could be the biggest listing in 2019. this is a victory for morgan who is the go-to guy for silicon valley firms.

>> that is exactly right. ingan stanley helped uber the ipo perspective and it has really been the main bank in the room. michael grimes is sort of the key banker there. for morgan big win stanley, getting uber ready for what could be this $120 million ipo next year. >> tencent music has risen on its trading debut in the u.s. a series ofafter negative headlines, a lawsuit, and a two-month delay threatening to dampen the mood of investors. >> they had a less than ideal ipo pricing, but how do they debut go? >> 24 hours ago, we learned it would be towards the lower end of $13. but when it started trading on the new york stock exchange, to much fanfare, as is always the case, it popped to $14.10 write

at the open. it did meander a little bit lower but closed smack on $14 a share. that is a price jump of about 7.7%. billion, it raised $1.1 versus an expected $1.2 billion. it still valleys the company at just about $22.9 billion. and they sold 82 million american depository receipts. >> qualcomm declaring a win in a chinese court, the ongoing legal battle with apple. it is no banning the sale of many recent iphone models in china. tech giant says all models will remain available. the companies locked in an ongoing dispute over licensing fees. how serious is it for apple to have this injunction in place in china?

>> this was the tactic all along, to get the injunctions to iphone look as though sales were production would in some way be restricted. this is the first type of this kind of ruling we have seen. we don't know the exact extent of it yet. this is not the kind of headline that apple investors want to see. >> a fan on the sale of some models force it to settle with qualcomm despite the fact that they are thinking of settling, they are asking the court to reconsider. what is next? publicly, apple has not indicated what it will do. it has made statements to the office it. here are legal documents, an application for filederation that apple and mandarin to the china courts

handling this matter, indicating that it is a possibility if the injunction is not overturned by the government. rising trade tensions between the u.s. and china have apple suppliers and for some unfavorable scenarios. it could mean moving production out of china is tariffs rise to 25%. president trump told the wall street journal that terrorists could be slapped on smartphones and laptops aid in china. what about the likelihood of moving production out of china? what would it look like? >> it does not appear to be very likely. on how get more clarity long this administration will last. the next administration, will they continue these terrorists -- tariffs. there are plans a, b, and c.

our colleague reports that right now, terrorists are -- tariffs are 10% on iphones. if discussions begin of a 25% then that is where they are might be some contingency plans going into effect. >> google's ceo faced the house judiciary committee earlier today where lawmakers asked us to growing distrust of the tech giant. the possible release of a the enginersion of in china. walk us through the long list of complaints they are throwing against google. the search engine in china is just one possibility. exchanges might be the most significant development that came out of this entire hearing. outceo refused to rule launching a search engine. he got multiple questions and went back to the same response

and never directly answered the response about having conversations with officials in the chinese government which i think is significant. scandal, a formal gosn, butt of not just they are part from entering homes around the world. what is happening here? >> the indictment allows prosecutors to formally lay charges against carlos ghosn as well as greg kelly and nissan. open up the book that you will find some things. they apparently have been because none of the formal indictments have come through, he is eligible for bail.

ghosn about allegedly misrepresenting his pay over different time periods. that would prevent any bail from being issued or granted to carlos ghosn. >> activist investor elliott advisors have taken a stake [indiscernible] the company has lost market share and underperformed its peers. what have we seen and heard in terms of elliott? >> the activist campaign has been announced, and between the flavor of the month and flavor of the year, something after something with elliott, right? he has been so activist. a company that has been pretty dormant the last few years. a number of smaller deals, but nothing significant. i think he is trying to shake up the tree and boost value, for

sure. >> germany is said to be intensifying efforts to try to fix deutsche bank. it may include a merger with --do we know what is happening in frankfurt? watching what is going on in frankfurt. they are concerned about the situation at deutsche bank. in the past, they have had a very hands-off relationship with the bank and unhappy during helping it. -- and are now considering helping it. for example, a change to the tax code is what we have been told could help pave the way for emergence at some point. ♪

wax you mentioned sterling and this bloomberg function on the terminal showing how volatile it has been. overwhelm youo with this graphic but what it shows is demand for sterling is exceeding demand for sterling calls at the rim area on this curve. there is a weaker pound over the next six months. juliette: there are 30,000 functions on the bloomberg and we enjoyed showing you our favorite.

maybe they become your favorites. here is another function you will find a use for. will give you insight into timely topics. >> income inequality. a very disturbing trend toward rising income inequality. >> income inequality is the phrase of the moment. every region in the world has seen the income gap grow that fuels populist political movements in places like italy, mexico, and the u.s. wider inequality is generally seen as bad but debates about equalizing the income about if it helps the poor. income inequality is incorrectly used as related ills like poverty or class division. while the issues are

intertwined, the term itself simply measures the gap between rich and poor. after the great depression, the share of national wealth fell, but since the 1970's, it has been growing. the average yearly income for the poorest households grew 12% to $12,943 from 2007 to 2016. the wealthiest 5% saw their average income increased 31% to $375,088 a year. 39th mostanks unequal. china has a wider gap. president xi jinping has dedicated billions of dollars to tackling the disparity but continues to be cost by rapid urbanization. >> researchers can link rising inequality to negative outcomes. instability,ical slower wage growth, reduced investment.

>> is also thought to create longer commutes and higher divorce rates. >> inequality isn't necessarily a zero-sum game -- zero-sum gain. it shrunk stock portfolios of wealthy americans and reduced inequality, but the poor do not get richer. >> the worries about rising anduality are overblown inequality can act as an incentive to innovate, take risks. >> there is cause for optimism. despite widening inequality, peoplean one billion have been lifted out of extreme poverty. juliette: that was 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 juliette saly. this is bloomberg. ♪

♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, apple's stock hits a seven month low. more analysts joined the core of skeptics warning about the -- the chorus of skeptics warning about the prospect for iphone sales. we hear from one who cut his target. 2018 was a year of techlash. what does 2019 have in store? we will look at the possible big tech trend in the year ahead. amazon whole foods splits up

with ins c