♪ emma: coming up on "bloomberg best," the stories that shaped the week in business and around the world. it's a brand-new year, but many issues sound familiar. negotiations in washington over a government shutdown, concerns in china over an economic slowdown. >> both the private and official pmi are purely in contractionary territory. emma: apple rattles investors with its revenue forecast. >> we've been anticipating this for the last few months. this was bound to happen. reporthe u.s. jobs leaves policymakers more secure. >> 312,000 jobs added to the u.s. economy in december, smashing expectations. >> for the fed, this is "i told you so." >> there is too much gloom and

doom. i prefer boom. emma: how should central banks react to all this incoming information? two fed presidents share exclusive insight. >> my own view right now is we should be patient. >> the economy is going to be tell us, right, we are going to be looking at the data, assessing information. it will tell us if we are about right or if we still have more to do. 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 important business news, analysis, and interviews from bloomberg television and around the world. let us start with a day by day look at the top headlines. the tradingy of

week was also the last day of 2018, and despite to the partial government shutdown creating uncertainty, there were signals from the white house that sparked some optimism. alix: there is signs of easing trade tensions between the u.s. and china, as an american delegation gears up to travel to beijing for talks. president trump sees big progress. what do we know so far, kevin? >> but talks are back now. quoteent trump tweeting "we are now approaching key dates including week of january 7, when the u.s. delegation travels to meet with chinese officials and this will be the first face-to-face encounter since president trump and president xi agreed to a temporary truce on december 1. all of this comes as the government is still remaining partially shut down and a new democratic house takes over on

thursday. >> stocks have fallen across the globe. our 2019 first trading debut futures suggest declines will continue. this as the kaizen and ihs reported another week reading for chinese factory activity. we got weak data monday and equity markets went higher. investors chose to focus instead on trump tweeting around the possibility of trade tension resolutions. today is different, though. markets really jumping on this weak story. >> what we are getting is a complex of things. both the private and official pmi are in contractionary territory. they both capture a broad cross-section of china's manufacturing sector. the interesting thing is that last year, the trade war did not have much of an impact. due to frontloading of orders and the like. the real impact is expected to be felt over the coming months. these pmi's drive home the importance, for china at least, i'm getting the deal with the

u.s. on the trade tensions, because if they don't, this negative sentiment will linger, and in fact, it is expected to worsen. >> u.s. congressional leaders and president trump have failed to strike a deal to end a partial shutdown of the federal government, now in its 12th day. >> our question to the president and to the republicans is -- why don't you accept what you have already done to open up government? that enables us to have 30 days to negotiate for border security. >> if the incoming house democrats are choosing to stage a political sideshow rather than doing the hard work of helping to govern the country -- in in other words, a total nonstarter. >> out of today's meeting, what was accomplished, if anything? >> welcome a pretty much nothing other than a little bit of talking and some are doing. democrats say they are offering the white house and republicans a chance to hammer out a deal on

border security. it will be somewhere less than probably the $5 billion that trump is demanding, perhaps more than the $1.3 billion democrats are offering, but they say they want a month to do that. trump, at least, is saying no, he wants it now in this package. it could go on for days. it could go on for weeks. alix: apple shares halted in after-hours trading as the company announced it has cut its revenue forecast for the current quarter. apple ceo tim cook released a letter to shareholders minutes ago revising revenue guidance to $84 billion, down from a range of $89 billion to $93 billion that the company had originally projected. cook writing that the vast

majority of the shortfall happened in china with lower iphone, ipad, and mac sales than anticipated and fewer iphone upgrades worldwide. >> we have been anticipating this for the last few months. this was bound to happen, the culmination of the general market slowdown in china, growing trade tensions between the united states and china over the trade war and the impending tariffs discussions. we have signs from inside apple that iphone sales are not as strong as anticipated. we reported a few weeks ago that they had an internal "fire drill" as one person described it. so this is not surprising, especially combined with all the supply-chain evidence we have been seeing out of asia over the last few months or so. david: the markets are the story of the day. with equities falling yesterday after the bell on bed revenue news coming from apple, and then continuing to slide today, when ism numbers came in surprisingly soft. >> we are getting a bit of a double whammy. because as we saw the s&p 500 and markets falling across the board last month. we had investors continuing to say, the economy looks good and earnings should largely be strong. well now, you are doing with these ism numbers that fell by the most since 2008.

yes, they are still above 50, in expansionary territory, but they are coming down. so that kind of put a wrench in the whole "the economy looks good" story. at the same time, you have apple cutting its revenue outlook, that begs the question, does this mean we will see other companies ringing down earnings outlooks as well as you get further into the earnings season? >> there we have the closing bell. the s&p 500 off by 2.6%. web in$500 billion terms of market cap. biggest fall since september 2014. we've seen significant volatility in the nasdaq once again today. apple dragging down tech stocks while bad economic data as to those concerns. delta airlines adds to apple's woes. >> it does seem like for the first quarter, we will have a slew of companies talk about nondomestic weakness. the question of how much domestic weakness is there is i

think the big question. we have gotten a long way to now after today, pricing in considerable weakness coming in from overseas, in particular from china. we started out with fedex a few weeks ago, it sort of continued on today, and we had the ism survey in the u.s. deteriorate pretty quickly. so i think the question investors will really be asking now is, ok, we know the international economic environment is pretty weak. how much of that is going to become problematic for the u.s. economic outlook? how much weakness are we going to import? jonathan: payrolls blowout. u.s. employers adding the most workers in 10 months as wage gains accelerate. >> 312,000 jobs added to the u.s. economy in december, smashing expectations. >> look, from a fundamental perspective, this is a great jobs report. you have a lot of jobs being created. you have higher wage growth, and importantly, you are attracting more people back into the labor force, so there's very little not to like from an economic perspective. for the fed, this is "i told you so."

the fed will think "i told them so. ," the labor market is in good shape, therefore i should maintain my rate hike expectations, and i should keep the balance sheet on autopilot." >> i know this has been a gloomy period. i know people are concerned about the stock market. corrections come and go. nobody particularly likes it, but there you have it. there is no recession in sight. there is too much gloom and doom. i prefer boom. vonnie: you are listening to federal reserve chairman jerome powell with former reserve chair janet yellen and ben bernanke live, and i think it's fair to say that the powell put is back in the markets. chair powell very, very careful to say that the data this morning doesn't raise concerns about too high inflation. >> the fed chair was able to

point to this morning's job report and say, you combine that with the strong consumer spending resort in december and of jobless claims and it is clear that the hard data shows that the economy has momentum going into 2019. we expected it to slow. it is not going to slow that much. we are not on guard. we are not on a preset course. all the things he has said before. all the things he said in december, but he went a little beyond it with his when statement about the fed being patient, when he said that with the muted inflation readings we have seen, we can afford to be patient, and that is kind of a signal to the markets that perhaps the fed is in pause mode. right now, it is exactly what they wanted to hear. emma: still ahead, exclusive -- as we review the week on "bloomberg best", exclusive conversations with the presidents of the dallas fed and cleveland fed. plus, ubs chairman axel weber speaks exclusively about the future of banking. >> what will get disrupted is banks that have in their

business model a court model -- a core model that has no distinguishment. emma: up next, more of the week's top business headlines. brazil swearing in a new president who must win back investor confidence at home and abroad. this is bloomberg. >> foreign investors have been very get -- about bolsonaro. local investors are very excited. this is bloomberg, ♪

emma: this is "bloomberg best." i'm emma chandra. let's continue our global tour of the week's top business stories in italy, where political squabbling and weak growth are keeping europe's third-largest economy in a state of instability. >> italy's parliament has approved a revised budget for 2019 amid opposition complaints it was dictated by the european union. the country's populist government had originally vowed

to push through costly campaign promises, including a universal basic income, but under a deal struck with the european commission last week, italy lowered its planned budget deficit from 2.4% of gdp to 2.04%. the budget looks like it has been settled, and i guess that means everything is cool in rome. >> not really, matt. that is the problem. in fact, the growth for next year has been ratcheted back according to the latest projections. there's also deep rivalry within the coalition government. now matteo salvini, one of the >> deputy premiers, gave a very important newspaper interview that was published today. he said he does not see any danger to the italian government coalition in the coming months, so what happens after the coming months?

>> italy's manufacturing pmi came in at 49.2, better than forecast by economists, but still below 50, so in contraction territory. is this the latest sign that europe's third-largest economy is on the brink of yet another recession? the president critized the budget. for ramming is spending plan through without any debate. >> i strongly hope that the parliament, the government, and political parties can find a way to hold a constructive discussion on what happened and ensure adequate debate in the future. >> the populists, they just want to get more votes, so the head of the league, right after the speech on the 31st, made a speech of his own, which is unprecedented, saying that he thinks the big thing will be european elections in may and he wants all the populists of europe to unite and win them. the italian papers are saying

that he might even want to be the leader of the european populists. he keeps making speeches like we need to take europe and change it from the inside. so this is all going to come to a head as we move on in the new here. -- the new year. 2019 looks to be an exciting year for europe and for italy. ♪ emma: wild moves in fx this morning happened, sending investors scurrying for answers. the australian dollar plummeted in what trader said was an apparent flash crash, triggered pricing.thmic platform what do we know so far about what happened this morning? >> absolutely. what a way to start the new year. traders and fund managers from all the way to new york to sydney to singapore are pointing fingers everywhere. fin liquidity has definitely been pointed to as one of the major culprits. at about 9:30 a.m. sydney time, traders are saying that there were large orders to sell the theralian dollar and hedge

euro, particularly against the yen. another thing that is on everyone's mind is apple and their lower revenue outlook. that is another reason why people are looking to bad news as a reason to pile into the yen. >> jair bolsonaro has been sworn in as brazil's president. he promises to tackle rampant crime, corruption, and economic turmoil in a wave of nationalism that is sweeping the country. >> [speaking portuguese] we have in front of us a unique opportunity to rebuild our country and to rescue the hope of our compatriots. i'm sure we will face huge challenges, but if we have the wisdom to hear the voice of the people, we will achieve our goals. >> it's a good day for the market today. the market is outperforming -- the currency is outperforming, but foreign investors have been

olsonaro.tish about b last year was terrible for foreign inflows into stocks, and local investors are very excited and very hopeful that he is going to do the pension reform, deregulate the economy, cut down on red tape, and get the economy to grow again. foreign investors less excited for now, kind of waiting to see what happens. >> president trump says he is looking forward to meeting again with kim jong-un in a tweet early this morning. he said kim realizes north korea has great economic potential. >> it was in response to the north korean leader's new year address where he affirmed his willingness to meet with trump and also warned against further sanctions. >> trump wants kim to give up some of his nuclear capabilities before sanctions are lifted, so this has been the impasse for a while.

they are doing a little dance at the moment. kim is not ready to pull the plug on his new detente. he's not ready to start firing missiles again because if he does that, he undermines the rationale for lifting sanctions in the first place. >> opec production plunged the most in almost two years in december, even before the deal to cut oil supplies started. according to a bloomberg survey, output fell 530,000 barrels a day to 32.6 million last month as saudi arabia throttled back production. iran was targeted by sanctions, and two of the biggest libyan ports were shut down. how much further does opec have to cut before it reaches its planned pledged reduction? >> even though opec came up with the biggest cut in two years,

they still have about 650,000 barrels to go, so we have seen saudi arabia trim about 400,000 barrels in this last month, they will probably go another 400,000 barrels in january. at least that is what the minister has repeatedly said, so it looks like opec will reach its pledge cut in january, which is when it is supposed to start ifs the other countries -- the other countries actually join as well. we saw iraq and the uae increase production slightly to get to an extra couple of barrels -- to bash but it looks like they will get there. >> china's central bank acted to release cash into the economy and support growth by cutting the reserve ratio for banks, or it will by the middle of january. why did the pboc do it again, and why now? >> they did it because obviously, the economy has been slowing. everybody, has seen the headlines about apple cutting its revenue projections, which they blame largely on china.

there has also been the manufacturing gauges going into contraction. i would also mention that today's move is slightly different from the one last year because this was an overall cut for all banks, versus earlier, they did very targeted cuts. in thell go into effect on two stages. one, 0.5 percentage points on january 15 and another .5% on the 25th. ♪

emma: you are watching "bloomberg best." i'm emma chandra. as 2019 begins, european banks are stuck in a bear market, prompting many institutions to change their strategies and reevaluate their business models.

bloombergs francine lacqua spoke exclusively with ubs chairman axel weber about the future of banking in europe. axel: i think the industry is in the middle of a transformation already. the first 10 years after the financial crisis largely saw a reregulation of the industry, and many, including ubs, have changed their business model. we were among the first. over the next 10 years, there will be different trends that will shape the industry. technology is one of them. overall, the business model will in my view, be challenged by disruption, and the question in the future will be -- can incumbents, like ubs, raise to the challenge and basically transform themselves rather than be disrupt it. we have seen disruption in the industry and technology is a key driver for that. i think banks will continue to face challenges, so i think we will rise to the challenge. we will basically adopt what is

good through financial technology. the business model will change, a will become more technology-driven. it will become even more client-centric because the main beneficiary of the technological disruption will be the clients. francine: but how will the big banks not the disrupted, not get left behind or become obsolete? axel: the banks that will be disrupted are the banks which have been their business model a core model with no distinguishing. many banks like ours focused on one business area -- i wouldn't say niche because we are the largest player in the world in wealth management, where content matters, and content will matter even more in the future. the client experience will change through technology. clients are getting more educated about financial markets through technology, they are more risk-sensitive and they have different interactions with the banks through technology. banks that will assimilate that

willtheir business model continue to provide content and be industry leaders. francine: do you think ubs can serve as a blueprint? axel: not necessarily because i would not want everyone to move into wealth management, and nobody has the core strength in the home market that we have. it is a small home market, but it is a very lucrative market. also, because of the small size of our home market, we were a at swiss banks, to be international. and at the moment, i think that helps ubs. francine: what of the risks associated with wealth management, especially wealth management for very high net worth individuals? axel: we are seeing an opportunity there. if you look at what we recently announced on our investor day, current trends in the markets will continue to produce one byproduct of this qe and monetary policy easing that is unwarranted, and in my view undesirable, and that is an increasing difference between the best performing in the economy and the least performing. so, inequality is going to rise.

it will continue to produce a very high income and very high wealth in many of the affluent thes of our societies, and middleman will continue to feel somewhat left on the sidelines. that will continue to offer opportunities for large banks who can basically focus on the wealthiest of their clients than on the most affluent -- and on the most affluent of the society, and ubs is one of those banks. emma: you can see more of that interview on the current edition "leaders with lacqua" on bloomberg television. and at bloomberg.com. coming up, more on the outlook for u.s. banks for 2019 as well as the global forecast for oil. plus, exclusive interviews with two federal reserve bank presidents. robert kaplan of the dallas fed says he is ready to pause rate hikes while economic conditions come into clearer focus. >> my own view is that we should not take further action on interest rates until these issues are resolved for better or for worse.

emma: this is bloomberg. ♪

>> this is bloomberg best. marketsce and global are signs of the coming growth slowdown have many investors hoping the federal reserve will hit pause on rate hikes. michael mckee sit-down exclusively with two regional bank presidents. to get perspective on how policymakers are taking current conditions into account. let's start this conversation on thursday with the head of the dallas fed, robert kaplan. there is only one question that matters to the market appeared has it been long enough, deep enough, severe enough that the fed has to react? >> let me answer it this way.

there is three big issues that i see reflected in the markets that are consistent with what i am seeing in the economy. decelerating, interest sensitive and economically sensitive industries are showing weakness. financial conditions have tightened. are affectingsues the markets. they are also affecting my thinking about monetary policy and it will take some time to see the depth and breadth of those three issues. my own view is we should not one any further action interest rates until these issues are resolved for better or for worse. i would be an advocate of taking no action. for example, in the first couple of quarters of this year.

u.s. me my base case, my base case be take no action at all. that could change if things improve. my own view right now is we should be patient and give some time for the economy and to watch how the situation unfolds. michael: do you think the markets know something the fed has not seen in terms of what will unfold this year? robert: i don't know about that. i think we have been watching this very carefully. i watch the markets very carefully. others at the fed watch this carefully. we have been trying to balance tight labor market, strong trying to meet our dual mandate. i think it is critical in the job i am in two page close attention to what the markets are saying. it is important in that what they tell us about what is going on in the economy and also some of the market forces including financial conditions can spill over. andtighten the economy cause growth to slow.

it is critical that we are very attuned to it. michael: do you see that happening now? robert: it may be happening now. yes. credit spreads since october have widened substantially. have not had a high-yield issue for the last number of weeks. i think history has shown us and shows me that when you see that kind of action it tends to it is prolonged, could lead to a slowing of the economy. we got an estimate for gdp growth in 2019 as a little below 2%. you have been hearing me say older in 2018, while 18 would be strong, we think fiscal stimulus, the effect that it will plane into 2019, the impact of the fed rate increases will take hold. in thect some slowing 19. that slowing is even a little greater than what we have expected. i am watching this carefully. michael: did it change or

forecast? robert: our forecast has come down a bit. we were close to two. by 2020 we would be trending back down to the potential about one and three quarters. our 19 forecast has come down a little bit. it has been affected by some of these issues i just talked about. global growth decelerating, economically sensitive industries. credit see going on with spreads and the shape of the yield curve is another thing i watch for. all those things are affecting our forecast. that we ares basically at our goal right now. we will see it kick up or down. that would not bother me either way. i think our site has to be on the dual mandate calls that we have. right now, i think we are in a good spot. right now, it is calibrating our policy to that picture of the economy. i don't see anything that is

compelling that it will take off too much, nor do i see that inflation will go down too much. i think we are in a good place on both the in inflation side and have labor market be strong and going to work and wages going up. does that suggest you are at neutral now and you will not raise rates anymore? loretta: my view is that the economy will tell us when we are neutral. we are in the range of neutral now. the fed projections go from 2.5 to 3.5. we are about there. the economy will tell us. we will be looking at the data, assessing conditions. it will tell us whether we are out right or whether we have more to do or not. makeis the way i will approach and policy going forward. look at the data, assess conditions, to our forecast. and think about what is the right policy to have. maintain our goals. michael: government shutdown,

big deal in washington, on the news networks, in cleveland? loretta: i think it is a big deal in that it adds to the air of uncertainty about policy and policy making. in that sense, it is something we have to think about when we are thinking about where businesses are going. in terms of the actual day-to-day impact on particular businesses, no. for the people who are getting a paycheck and have to think about that, i think it is a big deal. it is something that we should try to move beyond if we can. what central banks do in your head is one of many factors that could affect economies and financial markets around the world. volatility of the toward the close of 2018 and will be under particular scrutiny in 2019. let's begin with the outlook for oil. been on a wild ride

in 2018. three months ago, $100 oil was rife. few weeks later, crude plunges into a fair market. prices are down to approximately 40% since early october. the key factors that are driving the level of volatility that we are seeing in oil prices. more recently, it seems to be about global growth. there are many factors to choose from. >> two main factors. on the supply side, saudi arabia and russia. the three largest countries by production in the world. they have reached record high volumes. when you combine this with the demand side concerns of rising concerns of global growth slowing through 2019, this has created an overwhelmingly bearish sentiment. we still remain cautiously optimistic. this is largely due to opec production cuts.

that is 1.2 million barrels per day. we see that as gradually rebalancing the oil market through the first half of 2019. >> if i look at the previous year for oil and gas companies, they were down big time. i wonder how well the european oil companies are positioned for continued low prices in 2019. >> you are correct in that it was a difficult year. late in the year for many of these companies. i would point you more to their financial frameworks at a position they are moving into 2019. is important to friend this in the context of the 2014 oil downturn. these companies are arguably in

one of the best positions possible, given the current environment or they have brought down the breakeven cost. they are still investing, with much leaner capex. they are using a more disciplined investment criteria for new project approvals. see positive free cash flow generation at $60 per barrel. we see dividend programs as safe and even share buybacks are ruling in for many of these companies. of thepean banks are one worst performing sectors in the stoxx 600 this year. deutsche bank is among the biggest losers and each has grappled with legal troubles and changing management. we are focused on deutsche's here. the new low. are they at all better off now that we have had this year of new lows and legal fees and turning revenues? >> i think, i mean, in terms of

starting 2019, this is trading eight times one your forward, at the beginning of this year, 10 to 11 times. a lot of the instigation has been settled. the moneyn scott and laundering is a big one overhanging that. the banks more generally. as a position to start the year, i would much rather be where we are. revenue expectations have fallen quite rightly and will keep falling. valuations are somewhere where prices, expensive, albeit capitalist more difficult to identify. matt: are the european banks in a worse position than u.s. banks? more positivel estimations for the u.s. economy -- nexts you have got year, plus you got animal spirit to seems stronger. is that the case? >> yes.

is a simple answer. our biggest problem is brakes and topline income. you look at mortgages in the u k, france. a horrible place to be. massively competitive. look at some deleveraging going on. you look at the nonperforming loans that the banks have to continue to shred -- shed. story.ot a positive at best, we are talking two to 3% topline growth for the sector. that may be too high. we need provision charges to stay low. credit to deteriorate quickly. emma: what are your top surprises for 2019? >> the fed does not raise rates at all. 15% fromt appreciates its opening. are two majorose

ones. fed not hiking has actually been built into the market at this point. does the market stay in this direction or do we see some kind of a shift in at locations before the fed? >> the fed not hiking right at the beginning of the year is called an m parker. doing no increases all through the year, i don't think that is in the market. surprise notable from your point of view is no recession before 2021. >> how do you feel about tech post the apple story today? i think apple is a little different from tech. apple is a hardware producer. tech today is mostly software. is a sadhe apple store story. i don't know what is going to turn it around. i don't know how it will affect

the other paying stocks. they are going to have good earnings. facebook, google, will have good earnings. toss? brexit now a coin >> yes. one of the surprises on brexit, i said that there won't be any deal as of march 29. parliament will ultimately decide to have another referendum. when they do, the british voters and britainremain will become -- will remain a part of the european union. ♪

emma: this is bloomberg best.

the week's top business headlines. 2018 was an up and down year for tesla appeared on the first trading day of 2019 the company found itself right back on the roller coaster. elon musk is starting off the new year on a familiar note. one of uncertainty. tesla shares plunged on the first day of 2019 after the company unexpected we announced it is cutting prices on all of its electric cars in the u.s. by $2000. this after delivering fewer sedans than expected in the fourth quarter. marcus to the numbers. >> deliveries were not a huge mess, less than expected. that caughtg everyone by surprise is the price cut. if there is demand why they cutting prices? what is the reservation number? >> what is your read? >> very similar. the production number was a

disappointment to when you're in a grilled space, even with their production issues, investors want to see you exceeding those numbers. what is called a 1% miss, that is a little bit emphasized when you are in a growth phase. carmakers out with u.s. auto sales for the month of december. falling 8.8%.ales estimate down by 6.2%. what do you see in the latest numbers? gm had theirll, quarterly numbers out this morning. they were down. forced down more than expected. chrysler had a good month. hit did not quite expectations. only toyota has hit expectations. the market is not seeing a great look ahead for autos. 2019 will be done a bit from 18. which did not finish on a high note. we will definitely see a pullback this year. that is what investors are reacting to. we will not see growth in the u.s. market. which is the most profitable market for all of the car companies should there is no

rescue from china coming. you put all that together, the shares are not doing so hot. >> a megamerger on the second day of the year. billiond to buy for $74 in a cash and stock deal. why does this make sense? the market seems to be a little skeptical. >> absolutely. it is interesting the -- because the deal came minutes after there was an analyst call saying it seems unlikely that the deal will happen. we definitely get the sense that it is a lot about the cancer crocs. drug, evenlling though it is going off patent soon, seems to be one of the draws here. a few of the other companies are rising in the markets on the thought that there could be more deals of merging in the sector. there was a lot of skepticism on the end of last year on whether victim and a will continue. scaredseem a little about that. this is interesting.

second day, a mega-farm a deal. college football won't go dark now on new year's day. disney and verizon narrowly emerged in the full-day blackout of college for ballgame tomorrow. a multiyear agreement. what was the deal that got made? >> it did not quite go down to the wire, the you -- deadline was today and they wrapped it up yesterday. they still need each other. even with everything that is going on. all the angst about ratings for sports. verizon still needs espn on its tv subscription. disney still gains to be out there. its profitimmed guidance for 2019. cutting its estimate from 727 million pounds to 723 million. you would not expect it, shares are up. it reported a 1% gain in christmas sales.

next has kicked off the retailer recording season with what seemed to be a dismal announcement. why are investors happy and buying the stock? >> is only a slight reduction. mores due to selling low-margin products. also selling more online, which had higher cost. it was not because consumers were not spending or because there was a rash of discounting. all in all, it was a pretty decent performance. not for sale. mark zuckerberg has not pulled a single share of facebook. my understanding was that these transactions were scheduled in advance. what happened here? >> he said that he would sell 35 to 75 million shares of facebook stock. he has only sold about 30. sometimes these planned trading plans can have limits on them.

they won't sell automatically. that could mean that he cut it off because he saw that facebook had declined so much. more than 30% since then. he could think that maybe he would get more bang for his bucket fields onto it longer. if he holds onto it longer. ♪

this you take a snapshot, -- united states sector, the only thing still weak can expectations. the labor market and the household sector. i would say both of those are lacking indicators. emma: there are about 30,000 functions on the bloomberg. we are waiting to show you our

favorite on bloomberg television. maybe they will become your favorite. here is another function you will find useful. q u i t go. you can get important stock insights into timely topics. here is a quick take from this week. >> china wants to grade 1.3 billion people based on how good or bad of a citizen they have been. pointingf china's plan to the black mirror episode where everyone gets rated in their daily interactions. >> you want a cookie with that? >> sounds awesome. >> in china's version, you are acquaintances -- your acquaintances will grade you. alreadyn cities are testing different systems with the government they need to create a nationwide network by 2020. this is your bloomberg quick take on what china is calling its social credit system. the plan was first outlined in

this witty 14 government document where the guiding ideology of the social credit system is described as keeping trust as glorious and breaking trust is disgraceful. >> the government is filing a bit of a domestic problem. trust has taken a hit. the country is separate from rampant corruption, financial scams, corporate scandal. they are filing this new system as an attempt to raise standards and uphold basic laws and restore the public trust. >> local trials are covering about 6% of the population. has beenthe network used to blacklist millions of people for doing things like looking flights and taking high-speed train trip. variesizens are judged from place to place. or-- donating blood volunteering work is seen as pro social while violating traffic laws counts against someone standing.

cell phone usage while driving or walking dogs without leashes hurt your credit rating. byr score can be boosted helping the elderly or protecting public property. >> the government plan is that those deemed untrustworthy will -- even a single step. denied basic services or stop from borrowing money. it could end up restricting your employment opportunities. in some cases you might not be able to stay in a fancy hotel or buy a house or luxury car. or send your kids to a private school. >> even foreigners are subject to scrutiny. visas or residence permits being denied or revoked. it is unclear how the program will work nationally. unsurprisingly, technology has helped to make it all possible. have madea advances the cap a collating fact databases of information on civilians much easier. regional officials are now set -- studying how they can use

facial recognition technology to identify jaywalkers or cyclists who run red lights. >> there are doubts that china will be able to combine a diverse local network into a universal system. so far, the reaction to the trials have been mixed. of the system within china has been pretty varied so far. of educator elites support system see it as a means to promote honesty in a society rather than as a private -- privacy violation. >> criticism has been harsher overseas. rights groups see it as a sinister move to expand the states already tightening control over china's people. emma: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com. 24 hours a day. that will be all for bloomberg best this week. thanks for watching.

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♪ jonathan: from new york city, i am jonathan ferro. bloomberg "real yield" starts right now. ♪ jonathan: coming up, chairman powell adjusts his tone, prepared to be flexible and patient. a blowout payroll report. u.s. employers adding the most workers in 10 months. having to whipsaw the treasury market, sending yields higher across the curve. we begin with the big issue, a monster jobs report. >> this is a great jobs report. >> it is a wild report. >> it was a blowout. >> it is basically telling you