♪ kailey: coming up on bloomberg best, the stories that shaped the week in business around the world. >> so the noes have it. >> theresa may heads back the brexit drawing board. >> i don't know where this takes us. this is incomp at the present time chaos. >> wall street has plenty to die just as a parade of u.s. banks marches out earnings reports. >> the banks were not able to make loads of money off of those short spells of volatile fifment

>> there is nothing to get excited about one way or the other. >> the standoff defense in d.c. the government shutdown continues on. a maker merger creates the world's largest mining company. car makers come together at the north american auto show. >> i think the business is going to be solid. and with investors heading on the feesd every word. charles evans shares exclusive insight. >> i don't think there is any hurry. also wouldn't want to make a mistake. it is all straight ahead on loomberg best. >> hello and welcome. this is bloomberg best. let's start with the day by day look at the top headlines.

a big week for u.s. bank earnings began with quarterly results from citigroup on monday. citigroup of course kicking off a week of big bank earnings. the company was saying on the analyst call that the trading environment has improved a little bit. some of the concern was the headline number and the revenue was off 21%. remember citigroup and the other major five banks lost $200 billion in equity value in the last three months of last year. they sold off quite a little bit. there is a little bit of room to rise after that. another good thing about citigroup is that loans came in at a pretty good place which signals a pretty healthy environment. the c.f.o. mentioned there would not be real troubles until end of this year should trade continue to weigh on economic growth. john a.: missed big.

wells fargo seeing a decline in revenue due to shrinking loan balances. >> john a.: the quarter was fine. nothing to get excited about one way or another. a big miss. jamie alluded to the fact they made up half of that in january. the key issue for wells fargo tso something that the asset cap, something the federal reserve put in place february last year. management is talking about operating underneath that cap through end of 2019. >> with the asset cap in place a year ago, there were a coup things we described at the time to make sure there was plenty of head room underneath the asset cap. inefficient users of balance sheet. we took down our balance sheet to below where it was at the end

of 2017 more deposits have into money markets. onpoorlt finally gets a vote theresa may's plan to leave the european union. >> in talking about how much is she going to lose by? some analysts talking about 200, 250 votes. that would go down in history as one of the worst defeats for a government in at least a century. others saying it might be less. if it is less, what is her plan b? that is what we want to know. does she have a big plan? does she come up with something radical? i need a little bit more time to negotiate concessions.

>> the ayes 302. the noes to the left, 432 so the noes. have it. the noes have it. >> it is clear that the house oes not support this deal. >> this is a catastrophic defeat for this government. the house of commons has delivered its verdict on her brexit deal and that verdict is absolutely decisive p.m. >> the most important issue facing us is the government has lost the confidence of this house and this country. therefore mr. speaker, i inform you, i have now tabled a motion f no confidence. >> i don't know where this takes s. in many ways, it would be just

as unfathomable if she had lost by 50. it is hard to see how these party also resolve the vegas. >> a calm about it all. i think it takes away the option of crashing out. hey have to delay. the prospect s of a second referendum rise. the pros spect of no brexit at all arising. this is incompetent chaos. >> >> i think city j.p. morgan set the tone. investors were not surprised montholdman had its worst since the financial crisis. investors seemed to look past that thing.

they took advantage of the merger boom we saw last year and then for b. of a. it was a consumer business. >> the ayes to the right. 3067. he noes to the left, 325. so the noes visit. >> the house has put its confidence in this government. i stand ready. i stand ready to work with any member of this house to deliver on brexit and ensure this house retains the confidence of the british people. >> theresa may is going to first of all speak to colleagues across the house to make sure she is clear on what will deliver. the exit settlement. and make sure we go back with a clear -- the right approach. i think it is really important now. we have limited time. we need to use that time to secure the type of agreement

that will protect our economic interests. >> bloomberg sources stay e.u. told may she must madically rethink her red lines to reach an agreement. >> how open is the e.u. to extending the article regardless of what downing street has to say about it. >> deal or no deal, the u.k. will lever march 29. that's it. they sound very deaf represent to that. they say -- deverts to that. extending that period sts inevitable at this point. >> it has been a week of big earnings for wall street banks. results from morgan stanley this morning falling short. once again bonds, trading revenue at the bank plunged 30%. banks are saying because of volatile fifment in this case it was down 30%. i thought volatility was good for traders. >> that's right.

we have been hearing this. that means in the fourth quarter we had a few persd of really sharp sudden moves that didn't really sustain price volatility but happened and were gone. the banks were not able to make loads of money off of those short spells of volatility. they wanted prices to move around on a sustained basis. not too much. not for too brief of a period. we saw that equities trading dependent do very well either. really the bond trading results for the worst on the street. we are going to look to see if they can improve on that as things improve this quarter. >> theresa may has refused to budge on her red lines on brexit we understand. is puts her in a political stalemate with jeremy corbyn. >> i she heads to brussels to seek further insurances with the european union. how important is it to you to avoid a no-deal brexit?

to avoid a so-called hard brexit? >> it is important for us but not important enough in order to -- the union and. -- i think it is very clear. many other things we can do. they have to consider. they have said no to that deal and now they have to come up with a new proposal. that is not our concern. >> the u.s. treasury is denying reports -- pushed for lower or even no tariffs on china. they had claimed that trump administration officials had been rolling back duties to calm the markets and ease, lubricate those trade negotiations. >> when it comes to the trade talks, where do we stand now? >> seems like at least trem

preparely, the markets are buying into the idea that the trump administration could be softening its stance. we have a denial from the u.s. treasury department. steve mnuchin has long take an stance of caution when it comes of tariffs.tion they are talking a hawkish stance on china. he will be the one talking to china's vice premiere when he heads to washington at the end of the month and then of course it could go through trump and as he views things at that time. >> china seems to be offering a path. china would be reducing its trade to 2024. last year that stood at $323 billion. >> the u.s. exports in 2017 a

record $150 billion to china. that was a record at the time. how you get from the u.s. export side to meet this kind of demand from the chinese is a big question. whether that capacity exists in the u.s. economy, which as we know is running pretty hot. we have some time ago in these negotiations. we'll see where we go. this is another sign both signs are negotiatorsing constructively and that they -- it is a lot of momentum towards a deal. >> still ahead as we review the week of bloomberg best, an exclusive conversation with charles evans. plus cisco c.e.o. gives a view from the tech industry on the u.s. trade war with china and coming up more over the weeks top business hention. the chinese begin to take bolder steps to shore up a sagging economy. >> they say they will be outlining measures to support

the auto industry.

>> this is bloomberg best. let's continue our global tour to have top business stories in china. the latest indication of an economic slowdown. both exports and imports falling from a year earlier. was a it a slowdown because of the trade concerns? >> i think the key takeaway is amount and domestic slowing global demand. it is hurting the export sector. it is not expected to turn

around any time soon. this is the latest reading on the chinese economy. industrial profits, retail sales. factory profits. the broad story now is softer as 2019 gets underway. >> on a larger stale to help support a slowing economy. senior economic policy officials say policy will remain flexible and challenges facing the country become more complicated. those follow weak data that we have gotten. >> the p.p.o. saying monetary policy would remain prupet but flexible. they would try to ensure there is a reasonable amount of liquidity in the system. we have seen measures to make sure there is additional liquidity being pumped into the bank. they will be outlining measures to support the auto industry. of course we have seen auto sales last year falling for the first time in almost three

decades. exactly what those measures will be we have yet to find out. also going to step up measure to support household appliances. we have seen tax cuts for perm income. that has kicked in. it is at the corporate elle. they are going to targeted smaller and medium sized businesses as well. >> some of china's richest are scrambling to protect their fortunes from the new tax policies. hey transferred funds into fundst last year. >> trying target the rich to pay for some of these tax cuts for those on low incomes and five businesses. we have seen four billionairesst have put aside and transfered about $17 billion of wealth into offshore family trusts. moppings them by the way is the

chairman of sunac holdings. the major chinese property developer. he transferred $4.5 u.s. billion to a family trust. also one of china's richest women made a transfer around the similar amount. he problem for china's billionaires, there is no guarantee you put the money in a trust the chinese tax man can't get to that anyway. >> the chairman of huawei has broken his silence that his company helped beijing spy on western governments. what is he hoping to achieve here and what did he say? >> it is interesting. he is quite recluse i. a former p.o.a. guy. the chairman and c.e.o. of this company and rarely talks to foreign media.

it shows the significance of h spat obviously with his eldest daughter in legal trouble in canada. on one hand he called donald trump a great president and they have to take a wait and see approach. he said huawei is only a sesame seed in the trade conflict between china and the united states. >> u.s. prosecutors are said to a criminal case against huawei for allegedly stealing trade secrets from business-mile-an-hour partners. >> this is a significant escalation and it comes after a series of steps that have been taken both in the u.s. and in europe. the company is effectively equipment using its in u.s. telephone networks and the trump administration has been pressuring the european allies to do the same.

the u.s. is trying to clamp down on huawei which it regards as a potential security threat. the u.s. -- the company denies this but the u.s. contends its equipment could be used to spy on americans and that it is -- it has direct ties to the chinese government. >> president trump's nominee for u.s. attorney general asserted independence from the white house today. william barr told member s of the judiciary committee he believed russia tried to internear the 20 16 election and that the special council's investigation is not a witch-hunt and jeff sessions was right to recuse himself from that. regarding bop mueller's investigation. he left the door open to still

have oversight over mueller's investigation and also floated a very notable piece of information in saying that he would not commit to fully making public bob mueller's investigation and he himself might submit a sebt draft to congress to review and said he would recuse himself from the at&t -- he previously served on time warner's board. >> the longest government shutdown in u.s. herself has entered day 28. president trump and house speaker nancy pelosi are engaged in a bitter tit for tat as the impass drags on. he denied pelosi a plane to advise it troops in afghanistan. there are president's acting budget director put out a letter instructing all government agencies that no u.s. travel

from the u.s. government should be used during the partial government shutdown for any congressional delegation, congress a.m. delegation trip. ow the back and forth, the bickering, it illustrates there does not appear to be any significant progress being made on this partial government shutdown. ♪

♪ >> you're watching bloomberg best. on the heels of dovish comments by federal reserve chair jerome powell, officials continued to stress the need for patience when it comes to rate hikes in 2019. we spoke with chicago federal

reserve bank president charles evans. >> the economy is doing well. we saw a lot of strength in the december employment report. 312,000 jobs created. you're exactly right. i went in thinking that you know, 2018 -- we're about -- after the rate increasing in december, we're about 75 by sis points from being at a -- just a little bit restrictive. it is almost neutral. a little bit restrictive. that is the setting that i would say we could sit at that rate for quite a while until we see the economy decelerate the trend. inflation hang around 2% . the unemployment rate still continue to be good. so timing is not really a big deal because even if we were to increase rates in june, you have june, september, december. a lot of this is the timing. i don't have any rate increases

slated for 2020. if it happens in 2019. if it happens in 2020. with all of the uncertainty with other things going on. europe softening a little bit, i think we're actually well positioned to sort of assess how the data are coming in. whether or not our business contacts see things proceeding a little bit differently than the national data. i think we can be patient. >> the thing that really seemed to shift at the very end of the year was the big falloff in stocks. i'm wondering, is, you know, was that what really precipitated this sense that we now need to communicate to the world that we're on pause. we're going to wait and see now. because the evidence until then was not new and yet there does seem to be a shift now as get into 2019. >> you have to ask yourself what is it that the markets are seeing that we may not be putting as much weight on?

you want to ask that question. maybe they are taking onboard data that they have seen before we have really assess it as being on the softer side. another factor is markets may have been slower to truly assess the deacceleration to growth towards trends. it may not be that different of an outlook than what we had. they are assessing it differently. that is a benign interpretation. i think that puts us in a situation where if i'm comfortable with the funds there is no hurry. we can look at the data coming in and be cautious. >> still to come on bloomberg best. more of the week's top business news including earnings from netflix and a tieup of two big gold companies. more compelling conversation. we talk about trade wars in tech. >> it is difficult to understand how to do it surgically so i

have to do it with brute force. >> this is bloomberg. ♪

>> welcome back to "bloomberg best." detroit was the place to be this week for global automakers, as the city hosted the north american international auto show. new models were introduced new partnerships announced,, and there was plenty of opportunity to discuss headwinds in 2019. david westin sat down with seven top executives to discuss the state of the industry in their companies, starting with the ford president and ceo, jim hackett. >> i want to tell you, i'm not happy about ford's performance. that should just be said. i knew it was going to be a difficult year because of the age of a product. we are moving from the oldest

product line in the industry to the most refreshed, 75% of the products, all-new in the next two years. that is going to be really important. you put that against what kind of market we expect, i think the auto business is going to be solid. the economy itself has signals that create uneasiness, but i don't think there is anyone who would say we are in any kind of recession right now. >> so when it comes to the economy, what affects your business? is it sentiment overall? concern about training complex? what drives your business? >> sentiment is a big deal, because people want to believe their jobs are safe.

interest rates can matter because of the changing profit of the vehicle. but i think it is right now -- things are firing on all cylinders in our economy but for political strife over policy and some of the trade issues. we have had great employment, 4 million jobs have been created with this current administration. i think it is worth stepping back and saying it's in pretty good shape and it can run for a while like that. >> how does trade affect vw america? >> it used to be a simple business, now you have all these macro issues, particularly trade issues. i think on the trade front, the big issues -- the first is the usnca. we have put what this means for us, and i think we are in relatively good shape. we have a plan for mexico and chattanooga, and the big thing we are looking at is the labor value contest. we have five years to comply and i think we will put together a smart strategy. with regard to tariffs, not very big for volkswagen, since 96% of

our volume comes from the north american market, produced locally. we have smart solutions, but like anything, you have to be prepared. >> from car talk in detroit, we turn to a conversation about bicycles in shanghai. a chinese bike sharing startup backed by jack ma is considering an ipo. the company says it is well-positioned to dominate the sector as financial woes mount at competitors. we spoke exclusively to them. >> hello bike has been the number one in this industry since april, 2018. our daily rides are equal to the combined rides of other competitors. put simply, we take half the market share. >> what is your strategy for monetizing what is essentially a capital-intensive business?

>> relying on the revenue from daily rides is enough, and we have proven this. in over 100 cities we break even from the daily rides. >> what are your future funding targets and what do you see your current valuations sitting at? >> in the short-term, we don't have fundraising plans, as we are very well-capitalized. if needed, perhaps in six months, we might consider a new round of fundraising. we are valued at around $5 billion right now. >> there has been some speculation that softbank might be looking to invest in your business. is that a conversation you've been having? have you at least entered into discussion with softbank? >> we had contact with softbank, but there's no substantial development or anything that gets us closer to a deal yet. >> is an ipo an eventual objective for the company? what kind of timeframe that we

looking at? >> we will definitely go public at the of the day. we don't have the timetable yet. our business is still rapidly growing. when the time for an ipo comes, i believe our company will be valued at tens of billions of dollars, much more that it is now. >> the u.s. and china are preparing for further trade talks in the coming weeks. one of the major points of contention, china's policies on technology and intellectual property. this week's cisco system discussed trade technology and national security, and how he sees the ongoing disputes between the world's two largest economies. >> what we do creates this flat world that we live in. fundamentally the technology we have built has created a flat world, and now we find ourselves with lots of conflicts around the world. the geopolitical dynamics are complicated for all of us. companies are trying to figure out, how do ideal with this

with this -- how do ideal technology i deal with this technology change that is occurring so rapidly. frankly, it is very difficult because governments around the world don't have the expertise inside the government to be able to regulate or determine what they should do. what that leads us to our very binary decisions. it's difficult to understand how to do it surgically, so have to do it with brute force. >> you are in a position to understand something that we don't. how much of the u.s.-china trade dispute when it comes to technology is trade, and how much is national security? we hear for example, that the huawei situation is important. >> i get the same information you guys get on this issue. in general, there's aspects of intellectual property, there are aspects of trade deficits, there is the view that this 5g buildout is critical to every country's future, and there's this competitive race going on

around the world. i think it's a bit of all of that. my hope is that we can get to a place where we can all move forward in a way that lifts the global economy and allows us to take advantage of the technology. what it can do not only for business -- we are at a point in time where technology can help solve the biggest problems of the world, and that's what we need to be focused on. >> it was hank paulson who referred to the possibility of an iron curtain of technology. being imposed between china and the united states. if that happens, there's a binary alternative -- but if that happens, with that hurt or help cisco? is china a frienemy? >> we have great relationships, and our business, while small, has been growing moderately over the last few years. if that happens, it is just bad. we need to figure out a compromise position to help both countries get to what they are trying to get to without

breaking down the fundamental value in the first place. ♪

>> this is "bloomberg best." let's resume our run-up of the week's top business stories with a surprising turn of events in european banking. banco santander canceled plans for appointing a new ceo. >> banko santander has reversed course on the next chief executive after standoff over tens of millions of dollars. the move comes just four months after his appointment was announced. how unusual is it that there is a fight like this?

>> i have to say that it is a bit of a shocker, and it's also a huge surprise. at the heart of it seems to be a dispute over $50 million of deferred bonuses. ubs is sticking to a hard-line, look, we will not pay you for joining a competitor, and santander -- it's not something i've seen recently. >> netflix announced it is raising its prices for the first time since 2013. the streaming giant the shares hit the highest in nearly three months, this bodes well and many people like the fact that they can pay even more for the costlier content. >> netflix is flexing its pricing muscles. it goes to show that netflix is really confident in its subscriber trends and content slate for 2019. at the end of the day, it's a compelling price value proposition.

that is what netflix believes and that is what most consumers are seeing. this really does remain one of the cheapest alternatives for entertainment out there today. >> netflix tumbling in the after-hours session after delivering a mixed report, suggesting that the company's unprecedented spending spree may not be paying off. or not as quickly as expected. >> give us the pluses and,, probably the minuses. plus is that subscriber additions were higher than people were expecting, and netflix, which is more than 20 years old, added 29 million customers. a pretty a -- a pretty astounding rate of growth. the downside is the revenue came up short. they now generate more than half their customer base from asset. the profit wasn't what people wanted because of how much they are spending, especially now that they are spending more on original movies.

that's more capital intensive upfront, where tv can spread out the cost. >> bloomberg sources say apple was planning to cut back on hiring for some divisions after a miss for the revenue forecast. >> apple tried to put a positive spin, saying that the iphone sale decline would help them innovate. what exactly did they say? >> so this is from sources inside apple. apple didn't come out and say this, they didn't respond to our request for comments, but we are told that with a meeting with employees, tim cook was asked if there would be a hiring freeze in place to offset the slowed iphone sales and reduce revenues. he said a hiring freeze wouldn't be the solution to the current problems. instead they would reduce hiring in some divisions, excluding the hotter markets like artificial intelligence. >> tsmc underscores the

deepening slowdown in both iphone sales in the global economy. taiwan semiconductor manufacturing -- what does this dismal outlook mean for china and for apple? >> it's not good news for apple. tsmc, apple is their biggest customer. tsmc designs chips and makes them on apple's behalf. when they are forecasting in this march quarter that their numbers will not be as good as expected. there's a certain read across to apple,. given the tribulations that they have had in recent months, there might be a dual effect, exacerbating the problems. >> consolidation is the global gold mining industry.

newmont mining will announce a merger valued at $10 million. they are paying a percent premium based on the weighted average share price of the last 20 days. this comes only three months after we saw them moving to buy randgold resources. does this mean we will see more m&a in the industry? >> that's the expectation, especially since they will be shedding the assets. they are looking at the $1.5 billion of assets, and people are thinking that the next two deals -- people will be buying of this asset. >> may have some good, complementary assets that fit well within our portfolio. we have four operating regions, and we will go through and assess and decide which operations we will continue to work with on the value versus risk basis, and look at our own, reshape that portfolio in target -- and target a gold producer that will be set for the next couple decades. >> snapchat's parents says the

chief financial officers leaving eight months after taking the job. this is the latest in a number of executive defections, where shares sank in late trade. >> what prompted stone to quit? >> the company isn't saying exactly what prompted him to quit, but they are saying what it is not about, and i have this memo from evan spiegel to his employees. he says his transition is not related to any disagreement relating to our accounting strategy, management, operations policies, regulatory matters. or practices, financial or otherwise. basically he's making all the regulatory commentary he needs to make to not spook shareholders, however they are spooked. the shares are down more than 8% in aftermarket trading. >> drano is set to be ready to replace the chairman and ceo, carlos ghosn. board members are saying the decision needs to be made.

carlos ghosn failed in his latest efforts for bail and remains in a tokyo jail. what do we know about his intentions at this point? >> he pointed to the right word, urgently. this is a company that has been operating with an interim ceo almost for two months now. they have to get someone in place who can take control and have the full authority to operate this company. it's a global business very complex,, part of the three-way alliance with other automakers. there are a lot of big decisions any to be made, so they need -- there are a lot of big decisions that need to be made so they need some sense of permanence. they have stood up for him in the past. they did not initially agreed to oust him as nissan had done. they are only now making the decision to hold a board meeting at which they will name a replacement for him. >> after a catastrophic three months for pg&e, the company says it will be filing for bankruptcy in california.

>> is it certain they will file for bankruptcy? some politicians in california thought this was a threat on the part of the utility. >> pg&e has been accused a couple times in the past of crying wolf on bankruptcy and using the threat of bankruptcy to get concessions out of state politicians. but the filing they issued today with the securities and exchange commission looks like this is the real deal, and argues that they concluded they have no choice but to file for bankruptcy. it spells out that they may be facing more than $30 billion in wildfire liabilities. there's always the possibility there would be more this year that could be tied to their equipment. they see chapter 11 is the only viable path forward towards resolving the problems they have. >> tesla says it will be cutting 7% of its workforce. does this come as a surprise? i thought they were stepping up

to make sure they could make enough model3's. >> we heard elon musk the last couple quarters build this case that tesla is at a turning point, where they are going to be able to make money going forward. they will make money and generate cash. he has been very confident on both those points. i think the street was not long for the ride until the last quarter when the results came out and surprised everybody. this is a dramatic shift away from that, where he is talking about the road ahead being difficult. we started the year with the company cutting prices to partially offset the tax credit in the u.s., dropping by half. this is a company that still is not in the clear after what was an insane 2018.

bogle, theel -- jack man who founded vanguard and virtually created the world of passive investing, passed away yesterday. a host of financial luminaries poured out their praise, among them, david solomon of goldman sachs, howard marks, sallie check, and -- kraw check, and charles schwab, saying that they stand on the shoulders of jack vogel. >> the financial industry has lost the legend and investors have lost probably their best advocate. what he did, i think, is hard to understand today, because we are so far removed from the 1970's and what investing was like. imagine making a portfolio of individual stocks almost at random, and here's a guy who comes along and says, own as many stocks as you can that represent a broad swath of the market and leave alone, pay as little as possible, never look at it again, and when you wake up in 50 years you will be rich. that sounded revolutionary in those days.

i'm sure of it. ♪

>> let's take a look at the description page here on the uti crude and talk about the leverage, the contract, and the trading mechanics. >> the first thing to look at the leverage, about $5,000. overlay that with the contract, that's about 10% leverage, that is what is standard in futures. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you are -- our favorites. maybe they will become your favorite. here's another function you will find useful.

it will lead you to our quick takes, where you can get important and fast insight into timely topics. here's a quick take from this week. >> china spies have a lot of unwanted attention recently, thanks in part to political in trade tensions between china and the u.s. many of those spies work for the country's main intelligence agency, the ministry of state security. in december, 2018, one of china's top tech executives was arrested in canada on the u.s. extradition request. soon after, agents abruptly detained two canadians in china, then days later, the u.s. publicly named two alleged assets as part of a sweeping u.s. indictment involving hacking on a global scale. the series of events had people asking, what exactly is the mss? this is your bloomberg quick take on china's elusive spies.

>> compared with the u.s., the mss is something of a mash-up. it conducts intelligence operation abroad, like the cia, counterespionage at home like the fbi, and cyber snooping like the nsa. >> when you hear the details of how the mss operates, you think it wouldn't be out of place in a spy movie. the number of employees is classified, the exact location is unknown. it is thought to be in a nondescript building in beijing. it does not have a public office or website. >> what's clear is that the mss is key in xi jingping's efforts to tighten control over security. the head is a former police chief who helped direct the nationwide anti-graft campaign. in 2015, the national security law extended the mss's power to outer space in the deep-sea, as well as the internet. >> the mss benefits from close ties between the state and

chinese tech giants, all of which have the ability to mine for small data. other government departments are required to cooperate with the mss and provide support for its activities. >> the mss operates secret detention facilities in china, and is known for its harsh treatment of dissidents. for example, the blinds civil rights lawyer was under house arrest for 19 months before he fled to the u.s. embassy in beijing in 2012 and eventually moved to new york. >> the organization has developed a fearsome reputation, based on how much power it has on the vague limitations. detainees including foreigners have alleged violations of basic rights while in custody, and some have talked about daily, six hour interrogations, not having access to lawyers, or confinement under lights that never go out. >> media reports have noted some key mss victories, including the

possibility that they monitored president donald trump's calls, made on unsecured cellular devices. there was also a report that the mss had dismantled cia operations in china over several years, killing a dozen or more of the agency's sources, reportedly in one of the worst u.s. intelligence breaches in decades. >> this isn't an organization that is completely under the -- this is an organization that unseen by the global microscope. a senior officer was arrested in belgium index related to the u.s. in 2018 on charges of conspiring to steal trade secrets. but you have to remember, this is still an organization that's very powerful. that was reportedly the very first time a spy for china's government had ever been brought to america to face charges. >> that was just one of the many quick takes you can find on the bloomberg. you can also find the metal of her.com, along with all of the business news and analysis 24 hours a day.

that will be all for "bloomberg best" this week. thanks for watching. this is bloomberg. ♪

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jonathan: from new york city for our viewers worldwide, i'm jonathan ferro. "bloomberg real yield" starts right now. coming up, the mood music improving. china said to offer a path to eliminate the trade imbalance. -- the trade balance. the junk-bond market might be rocking, but issuers are slowed to join the party, and the government shutdown entering uncharted waters, with seemingly no end in sight. we begin with a big issue -- the mood music looking a whole lot better. >> recession is not on the immediate horizon. >> recession probability is very low. >> we are expecting unemployment to remain low. growth