>> coming up on "bloomberg best," the stories that shaped the week in business around the world. the fed takes centerstage with a dovish hike, maybe not as dovish as the markets hoped for. >> somewhat tighter financial conditions are not bad. >> it's really facts and circumstances, meeting by meeting and meeting. >> central banks of japan and england stand pat on policy. italy's budget concessions pass muster with europe. >> as the more moderate people have won this battle. >> softbank's i.p.o. sinks in its first day of trading. china celebrates 40 years of

reform with a message of resistance. >> very few mentions of the private sector or market forces that have come into play in china. stumbled,ets exclusive insights as to what's ahead. >> if you look at the indicators i have historically used in my business, they're not quite red yet but they are definitely amber, setting off warning signs. >> all straight ahead on "bloomberg best." ♪ taylor: hello and welcome. i'm taylor riggs. this is "bloomberg best," your weekly review of the most important news and business alan news -- business analysis of the world of business. let's start with a day-to-day look at the top headlines. on monday, u.k. prime minister theresa may resumed her quest to

bring a brexit deal over the finish line despite opposition from parliament. >> statement! the prime minister! >> theresa may has pushed back at the idea of holding a second brexit referendum after e.u. leaders failed to provide leeway to make her deal more attractive to lawmakers in the u.k. clearly, she is going to push back against anything that's not her deal but you would expect her cabinet to be on the same page. does she have detractors in her midst? >> wouldn't that be a revelation, the splits in the british cabinet, the whole of the government has been divided about this issue all along, as we know. strong reports over the weekend about this movement for a second referendum gaining traction may's cabinet.

she's been forceful in rebutting this saying the vote was taken in 2016, it's a betrayal of the british public if we try to undo that. but i think it's undeniable over the last few days and weeks as it is clear she is not going to get this vote passed, her deal will not be approved by a second referendum remains one of the only options out there. >> my right honorable friend, the leader of the house, will set out business on thursday in the usual way. i can confirm today that we intend to return to the meaningful vote and debate in the week commencing seventh of january and hold the vote the following week. >> s&p 500 closing at the lowest level since 2017, more than 500 points lost in the dow jones industrial average and volumes

up 30%. >> this is not tied to fundamentals and hasn't been for two months and what i think we're making the mistake is to create narratives out of thin air to say, today it's a recession and two months ago was the fed and before that was bank -- before that, it was faang stocks. there's a variety of things that might be contributing to this but recession, i think we're stretching it. >> chinese president jinping xi says he's willing to push ahead with china's reform and opening up economic strategy but warns any path of reform will only be coming from within the country. >> no one is in a position to dictate to the chinese people what should or should not be done. >> there were business executives and investors we have been talking to leading up to this speech who were hoping, or hanging to a slim hope that maybe president xi would use this as an opportunity to

outline structural changes to the economy, lowering trade barriers around the markets here but that didn't happen. what he did was spend his speech recapping historical achievements from 1978, the start of this reform period, and emphasizing the role of the party. very few mentions of the private sector or market forces in play in the last four decades in china. nothing in the speech addressed the concerns from trade tensions and domestic economic pressures china is under. >> the european commission will not be imposing penalties on italy over its budget. rome and brussels agreeing on a 2019 deficit and lowering italy's growth target. >> finally the e.u. has figured out, let's defuse this because you don't want a battle you can't win but i think the key issue is that reduced growth rates in italy are not enough. look at what the i.m.f. european

commission are saying about next year. 1%, that is in that good. >> when you look at the power brokers, it is the more moderate people that want this battle. the prime minister, guiseppe conte, who is politically independent, and the finance minister, tria, and the market didn't trust what he said but he has had the final laugh. it's a similar number to the one he proposed and the more skeptics, they've had to back down so that would be the highlight here. david: president trump has not been shy to provide his views on what the fed should do. tweeting just yesterday that the fed should be careful not to make another mistake, warning of further reductions in the balance sheet, after earlier saying continued rate increases would be wrong. >> fed officials raise the target range for their benchmark 5% and 2.5%ween 2.2

and interest on excess reserves go up as feds try to keep a lid on the effective fed funds trading range and now saying the committee judges some further gradual increases in the target range for the federal funds rate will be appropriate. calls for only two moves next year. >> the policy will change if incoming data materially change the outlook. >> powell put the put away or he restruck it lower. >> markets looking for a more flexible fed, a more "we feel your pain" kind of fed. >> we have had a down day, collapse in the market. off by 39 if not 40 points, the s&p 500 down 1.5, nearly every industry group in the red. we've seen $350 billion wiped off of the s&p 500 in market cap. >> clearly the markets were

hoping for a bit more and they -- and a bit more feeling of love from the fed but i think the fed has done the right thing, looking at the macro economy, the economic outlook. the fed can't respond to every time the markets are moving one way or the other. david: we now are waiting for the bank of england decision which is out and surprise, surprise, they kept the rate at .75%, the asset purchase target at $435 billion. not a big surprise. >> if you look at what the bank of england is looking at in terms of the economy, you might have thought this would be a meeting in normal times where you might prepare investors for another rate rise at some point in the next few months. although inflation was lower than expected, they're bringing the implications of the budget we had earlier in the year which is going to be more expansionary for next year so fiscal policy is going to be supporting the economy. wages picking up slightly faster than the bank of england policymakers thought but everything on hold because of

the endless back-and-forth over brexit and lack of clarity on what happens in the end of march. >> u.s. stocks sinking today, hitting sessions lows, in part because of the rising threat of a government shutdown, a partial shutdown but shutdown nonetheless. >> this was really unexpected. everyone thinking this was a done deal and in the g.o.p. conference this morning, it fell apart. the president made it very clear he will not sign a continuing resolution that doesn't include wall funding. >> we're going to work on adding border security to this keeping , the government open because we want to see agreement. >> from the beginning of the year, markets kept shrugging this off. what some are saying is different is the fact that you have so many uncertainties that when you pile this on and especially when one of the uncertainties is surrounding global growth and potential for a slowdown, then anything can tip you off. >> u.s. defense secretary james mattis will retire at the end of

february, citing differences with president trump. he made the announcement in a tweet. we had that letter from the secretary of defense himself laying out the reasons he's leaving. what were the key takeaways? >> the key takeaway was that general mattis said he had a strong belief and respect for u.s. alliances and clear-eyed vision of u.s. strategic competitors and malignant actors in the world and he said that was formed over a long, long career, working in those areas and he said that the president deserved someone whose views were more aligned with his. most recently, the announcement by the president that the u.s. would be withdrawing completely from syria, that caught him and other -- caught mattis and other national security officials by surprise and now there's word that the president is considering a full withdrawal from afghanistan.

we have no idea yet where trump will go for his next defense secretary. vonnie: republican senators are meeting with president trump at this hour with washington on the brink of a partial shutdown. kevin: earlier today, president trump tweeting out that democrats whose votes we need in the senate will probably vote against border security and the wall even though they know it is desperately needed. >> the discussion has become about the filibuster in the senate because that's the only thing keeping the senate from passing the measure that the house passed yesterday which would fund the government for two weeks and includes $5 billion the president requested for the wall. the reason that can't pass the senate is because he needs nine democrats on board to get rid of the filibuster. the suggestion was to get rid of the filibuster. mitch mcconnell is not ok with getting rid of the filibuster. >> it looks like we're heading towards a partial government shutdown at midnight tonight. the senate is voting on a

procedural motion to move to the government funding bill that includes $5 billion for the president's wall money. it will fail to get 60 votes in the senate. the question then is what republican leaders do and what the president is willing to accept. taylor: still ahead, as we review the week on "bloomberg best," an exclusive conversation with stan druckenmiller, alan greenspan, and bill dudley. up next, more top business headlines. a new intelligence report on political meddling reveals that instagram may have more influence than facebook. >> the russians were able to grow to tens of thousands of followers, hundreds of thousands of followers. taylor: this is bloomberg. ♪

taylor: this is "bloomberg best," i'm taylor riggs. let's resume our global tour of the week's top business stories in saudi arabia where the kingdom came out with its budget for 2019. >> saudi arabia's spending will hit an all-time high in the coming year as the government extends handouts to cushion the impact of rising costs and keep the vision 2030 program on track. the budget includes a cost of living allowance. it will total almost $11 billion. the kingdom is struggling over falling oil prices and anger over the murder of journalist jamal khashoggi. >> if you look at oil revenue and projections, they imply an increase of oil revenue from 2018 to 2019. given that brent crude oil averaged $72 a barrel this year, that implies they are assuming $80 a barrel in their budget in

2019 to meet revenue targets. that is optimistic to say the least. the government cannot have their cake and eat it. they have a choice to make. they could either stick to spending plans and all revenues might disappoint in which case the government would miss its deficit target of 4.2% of g.d.p. the other option it has, it's basically it commits to its deficit target of 4.2% of g.d.p. and adjusts spending to accommodate the recent decline in oil prices in which case the government will miss its growth forecast of 2.6% of g.d.p. growth in 2019. >> w.t.i. closing below $50 a barrel for the first time since october last year, down again this morning, amid fresh concern that production cuts announced by opec and allies won't be sufficient to prevent a new supply glut.

is this a sign that opec and allies are losing control of the market? >> the saudi energy minister said many in the shale patch would be thanking him because that would be supportive of prices. that isn't filtering through to the market now. they're really only doing about a third of the market. their influence on the market has declined over the years and we're seeing it coming through now as they need to rely more on russia and as they battle this wave of shale coming on. >> the i.m.f. has approved billions of dollars in aid for ukraine as the eastern european nation looks to stabilize its economy and pay back debt. president poroshenko said the decision would strengthen the stability of the ukraine. the bailout comes after the country imposed martial law in some regions following its conflict with russia. previous payments were not forthcoming because reforms took

too long to be delivered. are you confident reforms can be delivered this time? >> we are grateful they have supported us once again and i think we have delivered quite a lot already. we have adopted the budget for 2019 which is a good fiscally prudent budget with a deficit as low as 3.28% and i think we are on track on the reforms will be in this program that will cover us for 2019 and we're also open, green light to other confessional lenders to continue cooperating with ukraine. >> from russia with like. a report commissioned by the u.s. senate intelligence committee shows that russia's most effective tool for spreading propaganda and affecting voters is instagram, not facebook. >> people have been boycotting facebook, talking about how they are quitting the platform

because of russian disinformation but instagram got more engagement, according to these researchers with the report commissioned by senate intel. this is stunning because of how instagram works. it's not a viral network the way that facebook and twitter is. but on instagram, you can build a very defined community within an interest group so on instagram there were black activism accounts, feminism accounts, lgbt, veteran accounts, that the russians were able to grow to tens of thousands and hundreds of thousands of followers and really get a lot of traction in those deep groups. >> steven mnuchin saying that washington and beijing will meet in january to negotiate a broader trade truce following a series of phone conversations in recent weeks. the treasury secretary says both sides are determined to resolve differences. >> according to mnuchin, the

u.s. goal is to have an enforceable agreement put on paper by march 1, the deadline for the truce agreed to at the g-20 summit. there are two factions in the white house. some china hawks have questioned whether or not the u.s. can count on any agreements made by china about economic reforms, given the experience of past administrations. but mnuchin told bloomberg today in an interview that whatever is agreed to will include enforceable measures and firm deadlines for steps to be taken. >> as widely anticipated, the bank of japan made no policy changes at its final meeting of the year, maintaining that 10-year yield target at about zero percent. the policy balance rate at minus .1%.

>> i think the decision by the bank of japan was no surprise. inflation is nowhere near their inflation target so they had absolutely no other choice and of course now with the fed sounding a little bit more dovish, i think that gives -- vindicates the decision by the bank of japan. we probably have to wait until the new fiscal year starts on april 1, if they make a policy change. i don't think there will be changes before that. >> the united states has accused two chinese nationals of coordinating with chinese security officials in a decade-long campaign against dozens of companies in the united states and abroad to steal intellectual property and other data. what do we know about these charges? >> we know their computer -- they are computer intrusion conspiracy charges and essentially what the government's saying here is that for 12 years, a couple of hackers who were tied to the

chinese government, were infiltrating both u.s. companies and u.s. agencies and in the process, stealing all sorts of intellectual property and other data from these companies for a long period of time. ♪

taylor: you're watching "bloomberg best." i'm taylor riggs. investors around the world this week were watching the federal reserve with keen interest. billionaire stan druckenmiller went to a step further. the duquesne family office founder co-wrote an op-ed in the wall street journal urging the fomc pause rate hikes. he explained his position in an

exclusive interview. >> if you look at the coincident economic indicators which i wish the fed did, they look at lagging indicators. if you look at the coincident ones, they all look quite good. gdp has a three handle. if you look at the indicators i have historically used in my business, they're not quite red yet but they are definitely amber and they are setting off warning signs. eric: what do you see? >> the best economist i know is the inside of the stock market and i'm sure you heard harrick and i heard in my economics one class the stock market's predicted nine out of the last five recessions. i will say that's better than the fed. they've gone 0-9. the best economist i know out

there is the inside of the stock market. so the fed, when they look at the stock market and they look at financial indicators, probably is just looking at the s&p but the decline in the s&p, which is funny, when i was preparing for this interview, it was 10. it's now 13. is a bit of mirage because if you look inside the stock market, the cyclical elements of the economy, particularly the front-end cyclicals, show a completely different picture than the defensive parts of the stock market. eric: stocks that's more sensitive. >> to the economy. so auto stocks are down 30%. they're not 10 or 11, they're down 30. building stocks are down 35%. banks, which you would think might be a symbol of credit or something else, are down 25%. the russell 2000 is down over 20%. retail equities are down over

20% so how in the world could the s&p only be down 10 or 11 when i was looking at these numbers? it's because utilities, staples and pharmaceuticals, which are economically defensive, are actually up. and this is the same situation i used cycle after cycle so that's one of the things. the inside of the stock market, which is the best economist i know and which i've used every cycle when i have invested, is saying, there's something not right here. taylor: that interview took place before the fomc's rate hike announcement on wednesday. coming up, interviews with former fed officials alan greenspan and bill dudley after the decision came out. plus, bank of america c.e.o. brian moynihan weighs in with his perspective on the fed and the economy. >> we're more worried about the factors outside the system. stock market prices.

taylor: this is bloomberg. ♪

♪ taylor: welcome back to "bloomberg best." i'm taylor riggs. this week marks the one-year anniversary of peak bitcoin. on december 17 of 2017, the cryptocurrency climbed to its all-time high value of just under $20,000. this tuesday, it was trading just over $3500. that is when erik schatzker sat down with an exclusive interview with michael novogratz, who runs the cryptocurrency marvin bank galaxy digital. he thinks the worst of the rout is over. ♪ >> for the next foreseeable future we will be between $3000

and $6,000. if you plunge through 3000 they worry, but i think we are close to the end of the downside. in the last few days we have seen big capitulation both in price and from take spokesman. brian kelly, who was a big advocate of crypto, turned bearish. those are usually good signs that the end is close. >> as you know, a number of people in the community say the cost of that coin simply has to has tocost of bitcoin rise because now it is trading thousands of dollars below the cost to mine. what is your view on that? >> not necessarily true. mining cost depends on a lot of things, how cheap you can get the electricity. there are some places where electricity is cheap. it is how efficient your chips are. a lot of the mines are breaking even around 3000, so we really haven't pushed through that pain point yet. >> you have come around to this idea that there is something different, maybe even special,

about bitcoin relative to the other large coins, at the very least. this store value idea, elaborate. >> there are 118 element on the periodic table. only gold has real store value. the rest is to use. we buy aluminum to make cars and tinfoil hats. but gold is valuable because it's valuable. you could put all the gold in olympic swimming pool and have value. all the gold that has ever been mind can fit into two olympic swimming pools. you could put it in the middle of central park as an art piece. that is worth a trillion dollars, which makes no sense.

♪ taylor: let's return now to one of the central topics of conversation, the fed. among the most informed reactions to wednesday's rate decision came from to a longtime fed officials, former new york fed president bill dudley spoke exclusively with bloomberg on thursday, and former federal reserve chair alan greenspan spoke with tom keene and scarlet fu on wednesday, moments after the decision. they discussed the political environment and the pressure it is exerting on policy. ♪ >> i'm very much concerned about the political system. i was in the u.s. for almost 20 years. i've never seen anything remotely close to what we are observing today, and i think the economic outlook is being significantly affected. >> in your generous time with us this afternoon, chairman greenspan, let's pause on where we are in american political system.

do you find a permanence to the populism today, or do we rebound out of this administration, whether it is one term or two terms, back to a more traditional political system? >> well, let's remember what caused the populism, what causes populism throughout the world, when the growth rate slows down. when the growth rate slows down, you have a very strong political response and a group of people who come on the scene saying we feel your pain get very considerable attention. remember that populism is not a philosophy like communism or capitalism or socialism, it's a cry of pain. people say help us, we are hurting, and someone comes along and says i have the solution.

that person, historically, has always been very affecting. in gaining public office. >> i know you don't comment on any current fed chair, but i was wondering if you would indulge a hypothetical. what would you have done, what would you do, if the president was tweeting at you, and there is political interference, the public rebuke? >> we should explain, the tweeting is social media, i know you're not doing this at home, but always messages we see from president trump. this is not william mckinley martin, is it, mr. greenspan? >> no. [laughter] the president and all other political figures have a right to state their opinions. as you know i was in government for almost 20 years and i don't remember a single instance when a political figure, president or

otherwise, argued in favor of the fed raising rates. i had innumerable cases of the opposite. ♪ >> and of the day, what is the fed's outlook for growth? what is the consequence of that outlook for unemployment, what is the consequence of the decline on prices? what the fed is saying in their forecast is that they still think, despite the selloff in the stock market, the slowdown, that the economy will grow and above trend pace next year. >> what would you say to people who may be don't understand what you just said? is there a point where a stock market selloff, that says we better pause? >> absolutely.

>> absolutely. if this went on much further for much longer, interchanged the fed's view about the outlook -- the fed is looking at the stock market and financial conditions broadly, but also at the economic news. they need to see payroll employment gains of about $100,000 per month. they've been seeing gains much greater than that. their view is the economy is growing at above trend and we have a tight labor market, we need to slow the economy down. tighter financial conditions aren't a bad thing, they are a necessary thing. >> if you were at the meeting yesterday, would you have voted for the rate hike, and can you tell us what your thought was when you left and what it would be now for looking at 2019? >> i don't remember what it was. i was pretty much in the consensus. 2018 i think most people saw

three or four. the fiscal stimulus is starting to change, yesterday they thought there would be three but they did for because fiscal policy was more stimulated than expected. next year, two or three seems most likely, but it all depends on the economy and on how the outlook changes. if the stock market were to keep going down, i would definitely pause. but they don't know what's going to happen. part of the problem we have is that markets want the said to -- want the fed to say how it is going to be, but there is a lot of uncertainty about how markets in of uncertainty about how markets will reform, how the economy will react, how that will translate to pressure on resources and into inflation. the fed can't be more certain than what we have about those things. we have a lot of uncertainty about those things. ♪ taylor: >> capping a week of exclusives on wednesday, david westin sat down with brian moynihan in new york. they went straight to the subject of the feds read on the economy and its policy outlook.

♪ >> they were clear for months, saying that we have a view of where is the rates are getting more neutral, and accommodative economy are taking accommodation out and we think that raises 2.5% or 3.5%. so of course they would be more cautious. i had a wise economics leader a few years ago say everyone looks at the dot plots and gets excited, but you have to think of a person climbing the mountain. the question to me is where is the next -- not that they have some view of 17 meetings down the road, that plays out. great structure was right, that sort of plays out. but a lot of the path work was needed early on to say here's where we are going.

now we are there and it is back to the handhold. chairman powell said it is data dependent, if unemployment stays as tight as it is, if wages continue to grow. if conditions are still at 2% plus then we will still tighten. on the other hand they brought their estimate down. 2/10 of a percent. we did the same thing today. we are more worried about the factors outside the system, the stock market prices. all the geopolitical stuff. when you get to neutral, that means it is facts and circumstances, meeting by meeting, as opposed to we are trying to get the past back. the balance sheets are the same thing, and frankly they haven't had that much impact on rate structure. rates are not tied because the

fed is liquidating. they are basically lower than when they started speeding up the process. it's an interesting time. they can't know because their data dependent. ♪

♪ taylor: this is "bloomberg best." i'm taylor riggs. let's continue the roundup of the week's top stories in business and finance, starting with more trouble for goldman sachs in the scandal involving malaysia's state fund, 1mdb. ♪ >> malaysia has filed criminal charges against goldman sachs involving what it said were false statements made in relation to 1mdb's sale. goldman sachs says it will vigorously defend against the charges. how big and how bad could the

charges be? the amount that the fines could amount to, are really large. >> the file on its own is really large, but there's also the risk of reputational damage to goldman. we spoke to a lawyer in singapore who said that the risk is also to goldman as a financial institution in the eyes of regulators worldwide. the attorney general in malaysia has gone very hard, saying that goldman has fallen short of any funder. fast short of any standard. -- short of any standard. in terms of the standards in the compliance. ♪ >> shares in softbank domestic telecom business has tumbled on the first day of trading, shares fell more than 14% in tokyo, the biggest decline for a major debut in japan since 2014,

and this was the biggest ipo in japan of all time, raising $23.6 billion. why did this huge and highly anticipated ipo fumble so seriously? >> well, for one, it's not supposed to be this cold this time of year, so you could call it a cold reception. some people are calling it a soft opening. market conditions in the year where we keep talking about tight dollar liquidity, an ipo this large and put into the market that's probably what's , going to happen. another thing that has boggled a lot of people -- and keep in mind, 90% of this went to retail investors. institutional money was largely kept away because we were buying a company whose profit outlook wasn't as rosy as the dividend yield it offered. just a combination of factors. ♪

>> glaxosmithkline and pfizer have agreed to combine their consumer health care businesses in a joint venture, to be controlled by the u.k. company glaxo, creating the biggest supplier of over-the-counter medicines in the world. breakdown this deal for us. it's huge, obviously. global locations, who gets what? >> glaxo gets the lions share, 58% of the joint venture, pfizer gets the rest. investors are saying it is probably because they have that perspective of the ipo three years down the road. this is essentially a split up into the consumer business and the medicine business, vaccines and that kind of stuff. >> and the near term, we are contributing significantly larger cash flows from the joint venture, continuing to fund on priority on the pharma pipeline, and we also give visibility to

the eventual separation post integration, and as we've made further progress, that will allow us to reset the balance sheets of two companies to focus u.k. base, one pharma in vaccines, very much a on the -- very much haste on the science of -- very much based on the science of immunology, and one new world leader in consumer health care. ♪ >> a profit warning from britain's aphis. it tumbled as it lowered its 2019 sales growth outlook lower , at the open by 38%. why is it suffering given that it was the retailer that was on it for so many years? >> that's right. they are claiming a few factors, the first is that consumer

confidence has slumped, not just in the u.k. but also in france and germany. we introduced black friday in the u.k. and it is spreading across europe and that has got consumers addicted to discounts, which affects consumer confidence. ♪ >> hitachi is buying a majority stake in the power grid division, beginning at $11 billion. they plan to return up to $7.8 billion of the proceeds. does the deal look expensive? is that what we will see in the share price? >> abb shareholders like this because they have wanted to get rid of this business for a while. the deal is on the expensive side if you consider the running cost, acquisition cost, all the costs that will come over the next couple years. on top of that, the option

hitachi has a predefined option, all these things are going to start weighing on the way this deal -- what happened to the stock prices over the next couple years. one of the big things for abb -- they have had a knack for investors on their back, so investors will cheer the disposal regardless. >> more bad news for facebook. the district of columbia's attorney general has just filed a lawsuit against the social media giant for granting cambridge analytic access to user data without permission. a relatively small number of users affected. do we think this could just be the beginning? >> absolutely. the company is already being scrutinized by the irish data protection lawmakers in the eu, scrutinized by lots of attorneys general around the country. if more of them height of -- type up to bring charges against

facebook it could be a very , difficult position for them to be in. sheryl sandberg earlier this year showed up at the meeting of attorneys general to give a talk about facebook and privacy. just a drumbeat of news about how facebook has been flouting what they have promised consumers. it has been too much too little, , too late, and this company is under the microscope now. ♪ >> first china, now qualcomm. another legal victory in germany in its patent fight against apple. a court in munich says qualcomm can block sales of some iphone models, but the band won't start immediately. qualcomm accused apple of infringing on its patent. china said it would ban sales of certain iphones. what makes this ruling in germany significant is that we are talking about hardware, not software. >> absolutely correct. the idea being that if it is

software, you put your programmers to work, rewrite the code, everybody gets on with their lives. here it is related to hardware, which implies that if you are not successful on appeals you have to put new parts in, which creates a lot more troubles. ♪ >> carlos ghosn vale hopes have been dashed by a charge of breach of trust, aggravated breach of trust, according to the prosecutor's office. >> what do we know? >> prosecutors have re-arrested carlos ghosn on suspicion of breach of trust. this is a surprise for us. many expected him to be released today, which is why we are outside with many media crews at the detention house. the next time he could be released at the earliest is december 31.

we just got a copy of the prosecutor's arrest warrant and insights he allegedly transferred investment losses on derivatives to nissan to inflict financial damages, estimated around ¥1.5 billion. ♪

♪ >> stewart wallace on his left

arm has a tattoo that says "opec go on." this pie chart shows production . this itty-bitty one down here. >> 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. quicgo. it will take 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. ♪ >> it has been a long time since electric vehicles had anywhere near the market share of the internal combustion engine. today it is still not even close. in 2017 electrics made up 1% of worldwide auto sales, lead governments have always had an outside influence on the auto industry, possibly even more so than car companies. so get ready for a lot more electric vehicles.

since electric vehicles create about one third as much carbon as those running on gas, countries like norway, france, and the u.k. have already made deadlines. but china is making the biggest push, in part to tackle the air pollution choking in cities. >> china is the biggest market for electric vehicles, and there are programs in place for consumers, which make them more affordable. there's also a place in china where automakers are required to make electric vehicles. >> electric vehicles have come a long way. the tesla model three can travel 310 miles on a full charge, which is only slightly less than the range of a traditional sedan. >> a few years ago, it meant buying a different car. now there are ones you can buy at a comparable cost to mid range vehicles. be cheaper than

internal combustion cars by 2025 thanks to falling battery prices. there are hurdles, like charging. it takes 30 minutes to recharge the tesla to drive another 170 miles. still, many are forging ahead. volkswagen says it will spend $81 billion to develop electric versions of all models by 2030. next year, volvo will begin facing out use of gas only cars. >> many have already unveiled plans to make larger, luxury cars. they don't want to be left behind. >> china about 60% more cars in 2017 than the u.s.. thanks to its size and growing wealth, china can speed in --hcam succeed in designing china can succeed in designing great electric vehicles and could become the choice of the 21st century. ♪ >> 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 taylor riggs.

this is bloomberg. ♪

carol: welcome to "bloomberg businessweek." i am carol massar. this week's special issue focuses on businesses and workings and industries on improving what they do. and it is the end of an era at goldman sachs. we take a look at the legacy. but we start in the economic section this week. many experts ared