into yr ouvoice remote and see how you can have an even better x1 experience. simple. easy. awesome. >> coming up, the stories that shaped the week in business and around the world. >> the no's have it. deadline,ked at the the u.k. government pulls out all the stops to get brexit through. >> >> today, i am taking action. >> data from china surprises to the upside, while prospects brighten for a trade deal with the u.s. president trump: this is the grand daddy of them all. >> not done, there are issues remaining. >> bitcoin shows resurgence. blackrock announces an ovehaul.

the latest jobs report sheds light on the state of the u.s. economy. >> investors can relax. this is a buy stocks report. >> bank santander rolls out a new business plan. >> we will invest $20 billion over the next few years on technology and digital. >> and twitter's ceo speaks exclusively about the challenges facing the tech sector. >> there will not be any one party responsible for fixing this. >> it is all straight ahead on "bloomberg best." ♪ emma: hello and welcome. i am emma chandra. this is "bloomberg best." your weekly review of the most important business news, analysts, and interviews from bloomberg television and around the world. let's start with the day-by-day look at the top headlines. on monday, investors braced for a busy evening of brexit votes in parliament, but while they

waited, an unexpected dose of good news came from china. ♪ >> china's economy is showing signs of stabilization after the latest manufacturing pmi numbers showed the biggest month-to-month increase since 2012. run us through these numbers. what is the key takeaways? >> when you look at the new export orders and orders rebounding. the highest in six months. that is a clear indicator of future activity. it shows demand is picking up. it is a good sign for key trading partners for china. if you consider what is happening with the pmi, the backdrop being a stabilizing business sentiment, the rally on the stock market, and the prospect for trade agreements, it points to the idea that china's factories are heading in the right direction. there are unknown variables in this debate, too.

>> u.k. lawmakers are taking control. mp's debate for the second time -- brexit plans for the second time today after theresa may's plan suffered its third defeat. >> we are counting down towards april 12, the new cliff edge for a no deal brexit. the u.k. has until been to explain to the eu whether it wants a long extension, which would mean participating and -- in european parliamentary elections, or whether it is prepared to leave without a deal. or wants another option. >> members of parliament have begun voting on several brexit options. it seems the momentum seems to be building for the softness of the divorce model. >> it is the second motion, motion d, which seems to be gaining traction. >> the no's were 276, so the

no's have it. the no's have it. the no's were 292. the no's have it. >> sterling has fallen as they fail to agree, rejecting all options to replace theresa may's deal. the stalemate leaves up prime minister with no clear idea what to do next. prime minister may: today i in taking action to break the logjam. i am offering to sit down with the leader of the opposition and to try to agree a plan that we would both stick to to ensure we leave the european union and do so with a deal. >> i think finally she has decided the only way to break this impasse is to reach out across the aisle and come up with an agreement that both sides of the house of commons can agree with. basically, i think she has reached the end of the road with her own conservative party.

remember, she has agreed she was step down after the brexit process has been completed. in some ways as soon as this happens, she is done. ♪ >> there are signs the u.s.-china trade talks are edging towards a deal. the vice premier is in washington. how close are we to a deal? >> there are some things to be worked out, but we are getting some insights into where the talks are going. among them is a deal for china would get until 2025 to implement certain parts of it, including commodity purchases and allowing u.s. companies to wholly owned their subsidiaries in china. the u.s. side is eager to get a deal. the big question is how comprehensive it will be. ♪ >> the u.k. parliament has moved to block and no deal brexit before midnight. lawmakers voted to seek an extension and rule out leaving

without a deal. it passed by one vote. brief us about the possibility of a no deal. >> the chances have diminished massively. we are now faced with the options of theresa may's deal, delay, and the idea of a general election still kicking around. >> you have to imagine the dynamics. they are opposite each other. they barely talk. they don't like each other. one of them once a general election to depose the other one. they are stuck. >> president xi jinping saying china and the u.s. have made substantial progress in trade talks, calling for an early conclusion to these negotiations. >> those comments come after president trump talked up and very monumental trade deal. despite admitting there is more work to do before the accord can be signed. president trump: it is a massive deal, could be one of the -- i guess it is, if you think about it, one of the biggest deals ever made. there can be a deal like this.

no matter where you look there can be a deal like this. this is the granddaddy of them all. >> there are thorny issues remaining. let's not think this is done. there are thorny issues remaining. but this is good news if you're looking for a deal. the signs are getting from china and the u.s. are very positive, saying there has been progress made. xi is calling for additional leadership to drive a deal even quicker. the u.s. side is saying four to six weeks for something before a trump-xi signing meeting. there will be something announced when there is a deal done. that is where we are headed, so four to six weeks is our timeline. ♪ >> breaking news on brexit, theresa may has written to the european council president to request a delayed until june 30. may sights talks with jeremy corbyn aimed at breaking the brexit impasse has the reason for the postponement.

-- as the reason for the postponement. if you don't have a deal and tell now, why would you get one by june 30? >> you hit me out of the blue with june 30. that sounds weird. obviously the eu elections, i can't imagine why the eu would agree with that unless we can -- unless there is a clever wrinkle which means weekend -- we can pretend it is the 23rd of may. it seems to me or we are, the likelihood of a longer extension has risen a lot in the last week. >> this is the nightmare scenario in brussels, to get stuck in a cycle where the u.k. every two months decide we don't want to no deal brexit, but we have not figured out the answer. we need more time. can you give us some? this is something the eu does not want to be trapped into, but it is difficult because nobody here, in particular the germans, don't want to be blamed for a

no deal brexit. ♪ jonathan: u.s. hiring rebounding more than forecast in march, relieving some concerns following a weak february. break it down, mike. michael: investors can relax. this is a buy stocks report. it is a leave your bond broker on hold kind of report. 196,000 jobs is a big rebound from february when we saw 33,000 created. that is a revision up from the 20,000 initial print. unemployment stays at 3.8%. any disappointment might be in wages. they were only up a 0.1%. paper 2% annual rate. -- 3.2% annual rate. larry kudlow: this is similar to what happened last year. you had a weak first quarter. we have had weak first-quarters, bad seasonals for years, but then the economy snapped back. we got 3% growth. it is a repeat and i like it very much, and i think president trump's rebuilding of the economy from the supply side with tax cuts and deregulation

and trade reform, i think we are still very much in play. ♪ emma: still ahead, as we review the week, bank santander explains its business plan. plus, an exclusive conversation with jack dorsey, who says regulation can be a good thing for tech companies. and up next, more of the week's top business headlines. chinese bonds get a game changing boost as they gain inclusion in a global index. ♪ >> this is the seal of approval for china's efforts to open up onshore bond markets. emma: this is bloomberg. ♪

emma: this is "bloomberg best." i am emma chandra. let's continue our tour. in australia, the government unveiled its budget proposal for 2019. ♪

>> here in australia, scott morrison is hoping the tax cuts announced will help sway voters in the upcoming election. the government projected the first return to surplus in the budget in more than a decade. it should hand morrison more ammunition ahead of the vote, expected in may. is it going to be enacted? >> that is the key thing. normally the budget has a majority and it gets past and on we go. this year, there as an election to get out of the way first. yes, it is possible that it will never be enacted. the treasurer did announce in parliament that the country will return to surplus in 2020 and received applause when he announced australia was "back in black." it does contain tax relief for smaller companies, middle income earners as well, so an

election-year budget. >> one of the biggest concerns for voters and the reserve bank is the impact on the property market on spending and the ability of voters to go out and consume. given the tax cuts pledged in this budget will take years to roll out, is there more immediate way we can look at this budget as helping voters in the economy? >> our plan for income tax relief is part of a broader national economic plan. it is not just a cash handout. it is part of the national economic plan to make the country stronger and ensure hard-working families have the right incentive and encouragement to work hard. indeed, it builds on the $144 billion of income tax relief we announced in last year's budget. and subsequently legislated. this is the next installment. ♪ >> president erdogan's party has lost control of key turkish cities in a series of local

elections. turkey's opposition has taken the lead in istanbul and ankara. how would this change president erdogan's policies? will he become more populist or do more for the economy? >> this vote, president erdogan was not on the ballot box, but what was significant is the fact it is the first election where turkey changed from a parliamentary system to a presidential one. it was a test of president erdogan's popularity. what we need now are economic reforms. that is what investors are looking for. there are some economist who say he will go towards populist policies instead in order to get short-term economic gains. ♪ >> the chinese financial markets are taking a big move towards internationalization today with the inclusion of onshore bonds in the bloomberg barclays index.

a disclaimer, bloomberg is the parent company of bloomberg news and owns the index. you hear all these analyst notes about this is the game changer. how much money are we talking about when it comes to flows coming into china? >> the most important implication of this bond inclusion is that we will see a lot of passive inflows to china for all those following this index, and that will trigger active inflows. a lot of foreign investors in the market are not asset fund managers. they are mostly sovereign wealth funds and central banks. this is part of efforts to open up onshore bond markets. we are going to see more institutional investors in this market, which means china's credit ratings and liquidity proms will be solved as more investors come in. ♪ >> the imf and wto are increasingly pessimistic about global growth. they are warning momentum has been lost since the start of the

year. the wto cut its trade growth projections to the lowest in three years, citing the rising impact of protectionism in the trade war. it is the second consecutive year they are paring back those expectations. >> absolutely. we are hearing from the imf likely to cut its growth forecast again. christine lagarde saying it has weakened more since its last update. she says we are in a precarious position for the global economy. global growth has lost momentum. the wto also slashing its outlook for growth to the lowest level in three years. it will slow to 2.6% world merchandise trade growth according to the wto. and 3% in 2020. ♪ >> today we have seen data showing german factory orders drop by the most in a decade. the german government slashed

their own forecast. a bloomberg report says the italian government will do the same to it economic projection. half of the growth has been exports to china directly or indirectly. it will be several months more until we see a pickup in the chinese economy. that means the european situation remains dull on the economic side. >> you remember the enormous pressure untying assets because the government promised the european commission they could 1% and wouldomy keep the deficit below 2% of gdp. we understand the government will change and will cut the forecast a 0.1%. the italian economy will not grow in 2019, and the deficit will go up to 2.4%. ♪ >> on to india, the central bank

has delivered a back to back interest rate cut. this is to support the sluggish economy before national elections kickoff. the repo rate was lowered by 25 basis points to 6%. when you look at india, in the vote, it seems polling and early investigations point to the fact that there could be a rejection of the established political class. how true is that? >> on one hand, there is a serious debate on jobs in this country. there is another equation with the data on growth has been in question her. india has cut interest rates and cut the forecast, and more importantly, cut the growth forecast by 7.2%. >> political party comes to power, it will be faced with a slowing economy and a serious jobs crisis. ♪ >> president trump intends to

nominate herman cain for a seat on the federal reserve board. that is according to people familiar with the matter. what are his qualifications? >> he does have some qualifications. perhaps more than stephen moore. he was a business executive. you mention his experience with the kansas city fed. those are generally honorary positions were local business people are on the board and tell members of the fed what is going on in their businesses. it has nothing to do with monetary policymaking. ♪ >> the j.p. morgan chase ceo warning investors to get ready for more wild rides ahead in his annual letter to shareholders. he wrote, the fourth quarter of 2018 might be a harbinger for things to come. he has usually been bullish, particularly this time last year, so quite a change in tone. >> definitely. jamie dimon talks about how

amazing the economy is doing. this is one of the first times we have seen him to say maybe a recession is not coming, but we want to be sure we are paring -- repairing -- preparing for one and things ahead don't look as great as they did this time last year. ♪ >> the president of the united states once again calling for the fed to add more stimulus. president trump: the fed should drop rates. i think they really slowed us down. there is no inflation. i would say in terms of quantitative tightening that it should now be quantitative easing. >> why on earth with the fed be cutting rates? >> that is a good question. if the fed is cutting rates and an economy growing above trend, payroll above trend, and inflation moving sideways, in fact, wage inflation, while march was a little bit off the recent peak, the broader trend is accelerating. the fed could risk throwing

gasoline on to a campfire. that being said, they have to keep their ear to the markets and the yield curve in the economic data and be prepared that may be that will be warranted down the road, but that does not look like the case based on what we are seeing in the jobs report today. ♪

emma: you are watching "bloomberg best." i am emma chandra. this week bank santander announced a new business plan, pledging to cut one billion euros in costs and ramp-up investments in digital technology over the next four years. the bank's executive chairman discussed the strategy and some of its recent challenges with bloomberg's francine lacqua.

>> we will invest $20 billion over the next few years in technology and digital. it is about $5 billion total per year. of that, $2 billion is in digital. to run the bank, transform the bank, so it is a healthy ratio. in terms of scale, we are up there with the biggest bank in the world, so forth or fifth in the u.s. depending on how you measure that, so we have enough scale to invest, which is one of the ways we are aiming to work more for countries like the u.s. or other countries where we don't have the profitability we want, so we will really take advantage of our size globally. francine: your current chief executive, i asked you in february, is he here to stay? does he have the confidence of everyone? will it be settled legally? >> i think we are moving forward. the team is very comfortable.

we have a talking here yesterday -- top team here yesterday. we now have the rest of the group. he is a good leader. we work great together. we have an amazing team. we are very optimistic about the future. francine: what happens about brexit? have you considered the worst and are you ready for it? >> we have been working to ensure our customers, retail customers, and the bank in spain, retail customers, small customers, small companies, big companies that we are ready to serve them. i can tell you we are ready and they can trust the service will continue whatever happens with brexit. francine: will it impact if there is a no deal brexit? will it impact operations in europe? >> we had to do some adjustments, but not as much as others. for us, the rules have been more onerous in terms of costs. we had to move a few people, but not many. francine: your decision on coco

bonds cause some waves. bring us back to that decision. >> we said we would take all stakeholders into consideration. that is what we did. it was the first time since they were issued that the economic rationale made sense. that is what we did. we have flexibility and will have flexibility in the future to do it or not. we believe we did the right thing. ♪ emma: coming up on "bloomberg best," more of the week's top stories. it was another soft quarter for u.s. auto sales. carlos ghosn faces another legal setback. plus, more compelling conversations. the metlife outgoing ceo says the company pushing back against regulation, but jack dorsey said government oversight can have its benefits in an exclusive interview, next. >> there are things like that

gdpr that have been net positive for our platform and the industry in general. emma: this is bloomberg. ♪

emma: welcome back to bloomberg best. i am emma chandra. a social media platforms resolute hate speech and fake news and privacy, the ceo's of the biggest tech companies are coming to see the benefits of regulation. the twitter cofounder and ceo jack dorsey added his voice to the growing chorus of support for government oversight as he spoke with us in an exclusive interview. ♪ >> generally i think that regulation is a good thing, it is a net positive and our role as a company should be about

educating. helping regulators and legislators understand what is happening with technology, trends that we see, how our system works and the job of a regulator is to make sure protection of the individual and a level playing field. as long as we are working together on that, it has good outcomes. i generally think there are pr, a netke gd positive for our industry and platform with more clarity around privacy and more clarity around how data is being used. and typically a service like ours, our terms of service are hard to read and hard to follow and not necessarily the most customer focused thing. gdpr put a stake in the ground to bring out some elements and i

think that is a net positive. there is more room for that and but they will not be any one party that is responsible for fixing this. weight on one entity, whether a corporation or entity -- individual or government will not work as we have to think about it differently. we have to think about it as a desire. we have a desire, our purpose is to serve the public conversation and incentivize an increase conversation. for that we can look much deeper , what we are incentivizing and the foundational nature of the service and making sure we are not incentivizing behaviors that would take away from that. today there are areas where i think we are. those are the questions we are asking and it will lead to fundamental shifts and how the service works and how people

experience it. ♪ from an embrace of government oversight to the exact opposite, this week on bloomberg television several guests took issue with policy moves from washington, specifically regulatory overreach and the fed. let's start with the outgoing ceo of metlife who told erik schatzker that company should assert their rights and pushback against regulations they consider excessive. crisis there was light regulation and parts of our financial system, in particular in banking and shadow banking. we saw it go hard the other way, less overweight and we can adjust things later but the problem is you may be out of business before you adjust things if you do not push back. that was our decision. erik: where do you stand in the debate over interest rates right now? the president and other people

want interest rates to be lower but low rates are terrible for the insurance industry, not imagine anybody else in the business of saving, like pension funds. >> there has to be balanced, very high interest rates would not make sense in a low inflation environment like today but rates are extremely low on a historical basis in terms of basic returns over the 10 year treasury and basic returns for the 10 year treasury compared to the underlying growth of the economy. rates are low and it hurts industries like life insurance and savers in general. i understand the arguments in favor of progrowth and lower interest rates but there is a trade-off and find the balance is important. ♪ >> you have to take your clue from the on market, do not follow stocks. i think chairman powell coming into office they have to get used to the power of their voice. you are right, in the fall they were too strong and too worried and suddenly they reacted and

backed off. i think they should consider tightening later this year. they should be back to data dependence, something we have set for decades and they need to go to the debt and wait to see the economy. the bond market is expecting them to ease this year which is crazy to me. i think they will be neutral to tighten later this year depending on how strong the economy is. >> a massive move, would you be a seller at this stage? >> we are worried about the german interest rates and japanese interest rates. i am old enough that when i went to college the rates could not go negative here we are with consistently negative rates in germany. i am worried that is signaling a recession, particularly in germany and probably will affect france and the eu. come alle underweight sovereign debt outside the united states, and very worried. we will watch brexit. without question.

♪ withvid westin said down the starbucks ceo who discussed his company's rapid expansion into china. he sees opportunity to continue the current growth many years into the future. >> we can do that at least for decades. it will go beyond my lifetime. >> the demand is there? >> it continues to grow. the chinese consumers are culturey tea drinking who have been introduced to premium coffee and we will build on that new -- and at 600 stores a year in china, i think we are over 3500 stores today. million people in china in the middle class and that will double over the next few years. they are consuming more coffee.

that will continue to grow. over the next three years, we will move -- we will build starbucks into 100 new cities in china that we are not currently in. every one of those cities is larger than the population of los angeles. we will be building new stores in china for decades. ♪

emma: this is "bloomberg best." i am emma chandra. let's resume around the oil giant saudi aramco opened up its books in preparation from a bond sale with eye-popping data. >> aramco is the most profitable company on earth, according to

surpassed u.s. giants apple and exxon mobil. had a netys aramco income of just over $110 billion last month, they gave the oil giant the fifth highest investment rating. >> aramco income last year was around $111 billion, well ahead of apple and other oil company -- companies like exxon and royal dutch shell. another interesting point is that aramco has been rated as the same level as the saudi sovereign and the next question will be how investors are looking at those ratings and how they want to price aramco compared to some of the saudi sovereign issuances over the past couple of years and we should start to see that develop over the next few days as aramco 's bonds roadshow goes on.

♪ >> unicredit is waiting with a tie up between the biggest banks in germany failed according to the fc which says the lender is preparing a rival bid for commerce frank. why would unicredit go for commerce bank -- commerzbank? >> they do have a big bank there. the german subsidiary is one of the biggest banks in germany and adding more size to that makes sense in a market that is andntially over banks taking up another bank and adding it to your network does not make sense. the question is how much is it possible? it is difficult because of national regulations. that is one obstacle. ♪ islike rock is -- blackrock

massive, how do you realize something that big -- reorganize something that big? >> they are making moves in alternatives businesses, the group they have been trying to bolster over the last few years and we reported earlier they had the first close on a private equity fund with $2.75 billion in the first close and they change the head of that union and elevated an executive named jim barry who was head of their real assets. they made it clear they're trying to go more local on the ground, elevating people in regional places to say, we know we need growth outside of the u.s. and in europe, and definitely wanting clients to feel our presence one-on-one. giving more power on the regional level. ♪ >> another gloomy quarter for most of the auto industry as carmakers reported u.s. auto sales. honda was the shining store with a 4.2% increase.

what do the march sales tell us about the state of the auto industry and economy? tough competition or something more? >> tough comps, general motors had a big sale in march of last year that artificially put sales up. it made these numbers look weaker by comparison but still talking about march being down after the first two months were down, a lousy first quarter to put it into perspective. this is after last year. they pulled out a lot of the stops with rental car sales to stay even with 2017. we are on this walk of the market getting softer and softer. ♪ >> turning to tesla with shares of the electric car company tumbling after they reported a record decline in deliveries during the first quarter. a sharp fall in deliveries --icating less than demand

less than expected demand for the model three. video, -- a big deal. to the courtroom showdown in manhattan, the tesla ceo arrived in the u.s. district court. he argued he recklessly tweeted destin -- they argued he recklessly tweeted of information. how did the judge listen to what was put in front of him? >> she had dirt to throw at both sides, she was a little bit critical of the sec which was interesting. interesting. was she told them to come to an agreement and come back to her with something they will be ok with. ♪ >> the drama around the embattled carlos ghosn arrested

again -- corrupted again with prosecutors arresting him again on fresh allegations he used funds for his own purposes. he dismissed it as outrageous. where are we? >> forget about the battle for control of the companies which is over and this is a battle of control over the fate of carlos ghosn, whether he will spend many years behind bars or not. it is a battle of control of the narrative. he scheduled a press conference in tokyo one week from today to tell the truth from his perspective. the now prosecutors and nissan giving a step back on carlos ghosn, re-arresting him on new charges of aggravated breach of trust, these stem from allegations of illegal payments they say of upwards of 5 million u.s. dollars to a distributor in oman and lebanon. a lot of different allegations

which carlos ghosn has vehemently denied. ♪ havehiopian authorities issued their report on the last month crash of a aircraft and say the pilots follow their safety procedure and calling on the manufacture to view the control system. >> we had a press conference where the authorities outlined their initial findings. they were clear that in their opinion the pilots of this airplane did everything they should have and follow the towing procedures that were not -- boeing procedures but did not save the flight. the authorities recommended that boeing review its flight control software and the aviation authority to do the same, that is a process already happening. ♪ >> on its second day of trading, fallen belowave the ipo price and investors say

it could be an ominous sign for others going public and bringing questions about their growth for jeffrey. >> amazing -- growth trajectory. >> expectation setting has fallen away from them. clearly the market just has not been as enthusiastic as they had hoped going into the pricing. there was the initial superhigh opening price and it just fell from their as people are looking at the company and trying to figure out what multiple should it have and how do you think about a company that is a story-based narrative. >> a small nightmare. for this company for the red carpet is rolled out to drop the second day, the big issue is profitability. ♪ ipo, the shares jumped in his debut after raising $1.1 billion in the second largest u.s. initial

public offering this year. >> dave rose the size of the offering twice and it jumped in early trading by more than 25% and now trading steadily. it is just day one. days, itext couple of is a positive start. ♪ >> bitcoin at its highest level since november, about $5,000, the move brought to an end three months of calm in the virtual currency market. what sparked the rally? >> bitcoin is the immortal undead, everything -- every time you think it is that it jumps back again. nobody knows what triggered it overnight. cipro are talking about closing their futures contract which reduces the amount you have to short. people are talking about the

rewards next year and ahead of that you have seen a rally. there is a bit of that but it is a mr. and. -- it is a mystery. these are self perpetuating things. >> the chinese internet giant tencent has completed the biggest dollar bond offering in asia this year, they sold 6 billion bond beating the $3 billion bond sale by china earlier this year. they have more than $20 billion of cash, why did they need this funding? >> the first part is tencent has about $3 billion in bonds coming due and using the new money to rip a old money is very apparent option. and the funding costs overall is lower now because the treasury yields have come down. it is a good option for tencent to sell.

it paid about 30 basis points more than the 10 year sold last year. overall, it is a big deal for investors. other than the 10 year trench, which is about $3 billion, half of the overall sale, there are more -- there is a five-year, seven year, and 30 year, and a five-year floater. ♪ >> another facebook fiasco, researches found millions of user data accessible on the amazon cloud computing services. this was after they were under fire for the cambridge analytical scandal claiming user information exposed. data was in aer place it should not have been of user found tropes data publicly available on amazon server. found a mexican

media company which had 540 million different users, data exposed, you mail addresses, names, contact information. any third situation, an app developer exposed 22,000 usernames and passwords. all of this basically in plain sight. >> mackenzie bezos saying she has finished dissolving her marriage with amazon ceo of bezos and -- jeff beezus and she is giving him interest in washington post and blue origin and 75% of their amazon stocks and voting control of her shares. what is this telling us about jeff beezus control over desk jet paid -- jeff bezos control over amazon? >> he did not exert voting control over amazon, he owns 16%

of the company and there were questions when they announced they would get divorced over what would happen, what his wife push for a seat on the board and this answers that, jeff bezos has full voting control over his stake that the couple jointly owns and he will keep ownership of three quarters. ♪

terminal and add your voice to the debate. you can message your comments to the tv game. about 30,000 quotients on the bloomberg and we enjoy showing you our favorite on bloomberg television. maybe they will become your favorites. let's wrap up this edition with the malaysia scandal as the former prime minister facing 42 criminal charges related to his role in the affair and his trial began this week. perhaps the first of many around the world. there is the explanations of the issues behind the investigation. >> it was supposed to be attracting foreign investment but instead it sparked embezzlement and money laundering investigations across

at least 10 countries. a search for missing money. 2009arted in 20 that -- and the funds early initiative included buying privately owned and a new financial district and kuala lumpur. when it in -- when it approved better and borrowing and was $12 billion in debt. investigators are trying to figure how money flow through. and illegally into personal accounts. the u.s. just its permit said more than $4.5 billion went through a complex set of transactions and shell companies. billion passed7 through the company and one of its units. they are charged with criminal breach of trust and money laundering involving related funds of the company. he denies any wrongdoing. goldman sachs is facing criminal charges with prosecutor seeking fines of more than $3 billion.

malaysia says they represented how the bond sales to the company totaling $6.5 billion could be used. knowing the funds would be misappropriated. goldman sachs denies it and says it will be grossly defend itself. hiding, kissedin of leading a small group which diverted money into personal accounts designed to look like legitimate businesses. some was kickbacks to officials. they have been charged with money laundering and extent you and authorities looked at his assets including a luxury on. -- luxury yacht. >> keep watching bloomberg television for continuing coverage of this important story and you can learn much more about this at bloomberg.com where you can find all the latest business news and analysis 24 hours a day. that is all for bloomberg best this week. thank you for watching.

i am in by john doerr. -- i am emma chandra. this is bloomberg. ♪ eó2w

♪ carol: welcome to "bloomberg businessweek." i am carol massar. jason: and i am jason kelly. we are joining you from bloomberg's headquarters in new york. carol: economists have had a hard time forecasting recessions. jason: and japan schools the world on how it a wealthy nation can maintain its superpower status. carol: and the greatest delivery