abigail: coming up on "bloomberg best," the stories that shaped the week in business around the world. this bombshell sale has investors buzzing. >> right now we have orders standing at $75 billion worth. >> a lot of investors i'm talking to have questions about how real that order book was. abigail: the brexit click finger will last a little longer as the eu grants the u.k. longer time to seek a deal. >> a long delay or short delay, somewhere in between. abigail: trade tensions rise again as the u.s. and europe trade terror threats. >> it is under pressure, and

europe needs to negotiate. abigail: uber officially files for an ipo. and downside risks ahead for europe, while the fed shows rates can go either way. >> they were not nearly as dovish as some in the markets anticipated. abigail: the imf flashes its global growth outlook. christine lagarde puts the forecast in perspective. >> the outlook at the moment is moving from what we assumed would be a synchronized growth to what looks like a synchronized slowdown, at the moment. abigail: it is all straight

ahead on "bloomberg best." hello, and welcome. i am abigail doolittle. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews. let's start with a day by day look at the top headlines. on monday, investors watched with intense interest as world's most profitable company took orders for its debut bond sale. >> saudi aramco has received orders worth $75 billion for its debut bond sale. the deal is one of the most anticipated of the year, showing investor hunger for high-quality credit after major investors briefly shunned the kingdom after the killing of journalist jamal khashoggi. >> right now we have orders

standing at $75 billion. that order book continues to build. yesterday we were talking about saudi aramco selling $10 billion worth of debt, but now people are talking about at least $15 billion. that is the whisper number. meanwhile, all of that demand is really starting to feed into pricing. that is where we are seeing amazing stuff. on the 10-year portion, we have initial price guidance around 125 basis points over equivalent u.s. treasuries. so that would be a yield of about 3.75% versus the 3.74% on offer for the saudi sovereign. when the deal actually prices today, it is very likely the

aramco bonds are going to come in inside the saudi sovereign, something we very rarely see in capital markets. >> saudi aramco issuing $12 billion of bonds in its unprecedented debut. we have heard all sorts of superlatives. what does it say about the amount of demand that we saw for this versus what they came to market with? >> it was an incredible amount of demand. you have to sort of ask yourself how this all came to be. so you have these banks that have a real vested interest in seeing this go really well, so they drummed up a lot of demand. but you have two different buyer basis. it is effectively sovereign credit in a lot of ways. you have emerging-market

sovereign buyers, and investment grade credit buyers who see this as a cheap exxon and are clamoring in, and that is how you get $100 billion in orders and yields that are lower than the sovereign credit spread. >> the u.s. is proposing tariffs on a host of european goods, including helicopters, seafood, and cheese. this is in response to harm the white house says is being caused by illegal subsidies to airbus. the eu says it is prepared to retaliate over similar aid to boeing. this is $11 billion. it is a hefty number, but not

huge. what will be taxed? >> this will be about aviation, aircraft components. this affects the entire supply chain, but also cheese, wine, and luxury goods. the europeans were not expecting this. it is a very, very difficult time for them politically because of brexit uncertainty, the european elections, but also from a macro perspective, the european economy has slowed. that is clear as day, and they don't know what to do. >> under pressure, and there is a visit on the chest of the eu to negotiated. the parliament has expressed itself against negotiations under pressure. >> the eu is preparing retaliatory tariffs on the u.s. over it subsidies to boeing. meanwhile, the china and eu have prepared a joint statement over president trump's america first rhetoric. >> the statement did not come together easily, but it did come together in the end. but it comes at a pivotal moment for china. any edge that a country can get over another in trade negotiations with china looking

little stronger economically right now, having allies, that gives it a leverage point in these talks with the u.s. vonnie: america's biggest banking executive testifying on capitol hill before the house financial services committee. a decade after the financial crisis, congress gathering seven ceos from the biggest banks with the title "holding megabanks accountable." what was the purpose of this hearing 10 years on? it feels like there might be something else in the offing for these lawmakers. kevin: rub looking venture republicans are scratching their heads. they are a bit unsure about the purpose of this hearing because there is no major piece of legislation that is being discussed on this. from the democratic perspective, they say this is a long overdue hearing. but the overwhelming theme, from jamie dimon to david solomon is that the banking system from

their perspective is safer. this as economic forecasters are raising concerns about the looming potential for another recession. >> crisis reforms have made banks much safer and sound are in three important areas -- capital, liquidity, and resolution recovery. >> there are discussions about very specific things that washington can do to police the banks in a smarter way. and it was very clear, in the tone from the committee, that they don't want these things to get much bigger or expand into new products at a time when they were just about ready to. >> the fed release minutes from its march meeting. policymakers last month grappled with "significant uncertainties and persistently low inflation." if you look at the minutes, they were not as dovish as some in the markets anticipated. they were looking for another clue as to how long the fed would keep rates on hold. instead, we got fairly straightforward things to worry about set of minutes, and no real justification for why they did what they did and changed their view, except they did. they put everything on hold. the markets still pricing in some rate cuts. the members of the fed saying

they are open to raising rates again if they have to or want to. they were putting everything on the idea that that we have risks on the horizon, and until we know what happens with those risks, we are not going to move. >> britain and the eu have reached a late-night compromise on delaying brexit. the divorce is now tabled until october 31 with a progress review in june. but first, theresa may must sell the extension to u.k. lawmakers, despite telling them that a delay of any kind would be unacceptable. >> this is not a long delay or short delay. it is something in between. it is not what anyone set out to achieve. it is a delay of six or seven months until the end of october. halloween, as people have noted. it is important to not lose sight of what has happened here. we have a no deal brexit looming tomorrow. it is also flexible, so it means the u.k. could leave before the end of october if the u.k. is able to get its act together and approve the legislation that would be necessary to do that. towards the end of may, european elections and the u.k., to get this extension, has had to promise it will participate in those if it cannot pass a withdrawal agreement in the first few weeks of may. at the moment, that looks a long shot, but never say never in the brexit story. >> one of the most anticipated bond deals of the year.

now, saudi aramco bonds are sinking for a second day. the oil giant sold as much as $100 billion in orders early this week. what does it tell us about the significance of that ostensibly massive order book? does that tell us that number does not mean very much? >> a lot of questions about how real that order book was. the thinking goes that if you are seeing these bonds sink on their second day of trading, potentially there weren't $100 billion of orders for $12 billion in bonds. it does not really bode well for some of the underwriters that put together this offering. >> uber has officially filed for ipo. the s-1 registration was made public after the market closed wednesday, giving the potential public market investors a first

look at crucial information in the business. uber's offering is expected to be the largest u.s. ipo this year and among the 10th largest of all time. >> it is a big deal. it feels like a moment we have all been waiting for for a long time. one of the surprises -- one thing that jumped out at me was how much a ridesharing business this still is. the vast majority of revenue comes from ridesharing and the business is concentrated in north america. another thing is how much the s1 focused on ethics, arguing that uber is a conscientious company, from when they earned a less than stellar reputation over ceo travis kalanick. vonnie: big banks kicking off earnings season. wells fargo initially surprised with its best first-quarter profit in five years. since the call, sentiment has turned negative. two things on the call got the wind out of investors' sails. >> number one, the net interest income guidance, they are guiding down 2% to 5% this year. the second thing, which i would say is not surprising, but they did let go of any kind of

guidance related to the asset cap. the last guidance they had given was that it would be through the end of 2019, suggesting it could be as early as 2020. i think that a lot of people think that is really going to be pushed down now. abigail: still ahead, as we review the week on "bloomberg best," christine lagarde explains the imf's gloomy global growth forecast. fed governor lyle brainard shares perspective on monetary policy. plus, bob iger discusses disney's big bet on streaming. and up next, more of the week's top business headlines. fighting in libya is just one of the factors threatening to push up the price of oil. >> we have a spot price for the zero to three month crude at $75. abigail: this is bloomberg. ♪

abigail: this is "bloomberg best." i'm abigail doolittle. let's continue our global tour of the week's top business stories. in frankfurt, where the ecb kept rates unchanged in its april meeting. jonathan: the balance of risks. >> the risks around global

growth outlook remained tilted to the downside. on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism, and vulnerabilities in emerging markets. jonathan: your take from draghi? >> boring meeting. i can't find another word for it. boring news conference. a repeat of what we have had the last two months, acknowledging the downside risks, leaving the cards open, and making us understand he has some ideas, and it takes time to get the governing council around. that is about the reserves hearing. >> benjamin netanyahu looks set to secure a fifth term as prime

minister in israel. this despite a bruising election campaign against his chief opponent benny gantz. with his right-wing allies, benjamin netanyahu has a clear path to forming a governing coalition. give us the key takeaways for a global audience on this vote? >> last night was a good night for prime minister benjamin netanyahu. while his party seems like it will end up tied with his top

rival, his party actually gained seats compared to its current standing in parliament, and most importantly, his right-wing allies had a good night. most of them will cross the threshold to enter the next parliament, which was a key fear. that gives him a key path to forming another coalition with his right-wing and religious allies, and leaving him poised to having a fifth term as israel's prime minister. vonnie: australia heading to the polls. elections have been called for may 18. that date was announced by prime minister scott morrison, who is hoping to win what looks like an unlikely third term at this point. how much of an uphill battle is this? >> it is certainly going to be a challenge. they are behind in the polls now, 47% to 53%, and his party has been behind in the polls for a number of years, and has been governing minority for quite a while. the government is in an unusual position.

it will have to win seats to get back into power. now, scott morrison has held off as long as he could before announcing this. we all kind of knew it was going to be may 11 or may 18. really, he has been hoping voters will forget all the dysfunction of the last few years. so there are a lot of problems for scott morrison here, but there are narrow treacherous paths to victory, and you would not rule out a comeback. >> they call it the second libyan civil war, as rebels advance on the capital of tripoli even as the united states urges a political resolution. >> there seems to be an intensification of fighting around tripoli. at the same time, the internationally recognized government has been moving more men towards tripoli to try to push back forces. >> oil extending its rally to a five-month high today as major producer libya fights back against rebels advancing on the capital tripoli and raising concerns about supply

disruption. how close are you watching the situation out of libya? >> well, we are watching north africa very closely because we see what is unfolding in tripoli and algeria. it is a minor supply risk at the moment, but we have a spot price for this zero to three month period of time of $75. it looks like that will be easily reached. >> the u.s. and china seem to be ever closer to that trade deal with treasury secretary steven mnuchin saying "they have pretty much agreed on enforcement procedures." he says they will open offices in each country to ensure the other lives up to the terms of any final deal, including binding pledges that would trigger retaliation if anything is broken. are we really near a deal? >> we have been saying for a long time that enforcement would be a key test for this deal. the pledge to open enforcement offices in both the u.s. and china is a firm step towards that. the u.s. would give china until 2025 to live up to some of the commitments there, and then you would have an enforcement office in china and the u.s. to make sure both sides are living up to the deal. that is taking one part of the

enforcement uncertainty off the table. so yes, this absolutely moves us closer to a deal. >> china's foreign currency holdings rose for a fifth month as lower government bond yields in developed markets lifted valuations. this paints a picture of stability, but can it last? >> there is obviously a pricing effect on this. actually, it helped offset the political situation, but the big picture is that china's reserves are on a pretty good streak at the moment. they are in a pretty stable period. we know they are holding well after a choppy ride last year. compared to where we were a few years ago, when china had to spend down its reserves and capital had to leave the country, we are nowhere near those conditions at the moment. reserves are comfortably over 3 trillion. that remains quite intact. >> consumer confidence surged in march on rising food prices. what is the key takeaway? >> it is about the full price component within consumer prices. you take out consumer energy, and that is what the central bank will be focused on.

factory prices came in line with expectations ticking up at 0.4%. you have seen commodity prices slightly higher, so an uptick in producer prices. good news, at least around the edges of corporate profitability. that reduces the concerns about deflation, which is something that will be squarely in focus as well. watching producer prices going forward. >> the world's biggest election is underway. 900 million indians begin voting today across 20 states and a democratic exercise which will take a full six weeks to complete. in his battle for a second term, narendra modi squared off against the leader of the indian national congress. >> 900 million indians will decide the next five years. these elections will take place over seven phases starting today until the 19th of may. the results will be out on the 23rd. it is a humongous exercise. it involves millions of people across the country. >> controversy over president trump's picks for the federal

reserve board. at least four republican senators -- mitt romney, lisa murkowski, cory gardner, and kevin cramer saying they would vote against herman cain. he now lacks republican support if democrats unite. stephen moore also getting congressional push back. >> appointing a political person, appointing people based on their political views can be detrimental to the organization itself, the central bank and their credibility. and it could be detrimental to the markets. so it could create some instability if they bring somebody with political views and they just start making decisions, trying to make decisions based off that. ♪

abigail: you are watching "bloomberg best." i'm abigail doolittle. this week, the international monetary fund cut its outlook for global growth, citing a bleaker picture in major economies.

it now sees the world economy expanding 3.3% this year, down from the 3.5% it projected in january. imf managing director christine lagarde fleshed out those forecasts in an interview in washington, d.c. >> at the moment, it is moving from what we had assumed would be synchronized growth roaring a year ago to what looks like a synchronized slowdown at the moment. and we are trying to understand the root of that and identify the policy mix countries can apply in order to go back roaring growth, which we are still hoping for in 2020 because we believe that while this year will be at 3.3% global growth, next year we are forecasting 3.6%. >> lower for longer for monetary policy. how much of a concern is it that they will have to roll back? >> they will probably have to do that in a very gradual way. gradual is a word we do not like to apply to fiscal policies, and when countries have to make an effort, they really should do

it. but monetary policy, in our view, in many countries should remain a commodity. we welcome the ecb and the fed's recent decisions. when growth picks up, went -- when they are delivered, they have to look at the balance sheets and start dealing with it. >> how dangerous is this monkeying around, for lack of a better word, with the fed? >> international banks have to cooperate on the issuance of data. they have a mandate which was given to them constitutionally or by laws made in other countries. their mandate is going to be either price stability and unemployment, price stability only, generally around 2%. but they have to rely on data, on numbers, on hard data that

they collect with enterprises, corporate, households, in order to find out what will be best to deliver on that mandate. i think it is a healthy, almost sanitized approach that will give them credibility, and that will help all economic agents anticipate what will happen and as a result, what they can do. how they can invest, how they can organize themselves. abigail: coming up next on "bloomberg best," more compelling conversations. mark gilbert of standard life aberdeen on the saudi aramco bond sale. fed governor lyle brainard, and nominee stephen moore and bob iger on the launch of disney's streaming service. plus, pgim's david hunt is bullish on emerging markets regardless of how u.s.-china trade talks play out. >> our view is we probably will get a deal, but they won't matter much. abigail: this is bloomberg. ♪

abigail: welcome back to "bloomberg best." i'm abigail doolittle. time now to revisit some of the week's top interviews. we got plenty of investor perspective on saudi aramco's $12 billion bond sale. here is manus cranny speaking exclusively with standard life aberdeen's martin gilbert at the bloomberg invest conference in abu dhabi. >> it looks as if it's gone really well. it has been phenomenal. >> as an investor, you seen plenty of bond issues. would you say this is something to buy more of in the secondary market on the reading of the data that you have? >> i suspect it will be too pricey in the secondary market.

but i don't know. if i say to a fund manager to buy something, he sells it, so -- [laughter] they will probably buy now rather than sell. >> you think you could cheapen up perhaps and the second market. >> i'm not sure. i think the demand is so massive that from what i read, it will go well. >> ok. is this a seminal moment in saudi as a turning point in the saudi story? the aramco, sabic, and you can tack on the bond story. it is a big beast in the market. is it a pivotal moment? martin: yes. aramco is clearly a very powerful company. definitely, the way this has gone must be a real boost to their ambitions for aramco. abigail: one of the world's largest asset managers is urging investors to bet on emerging

markets. in another exclusive conversation, pgim ceo david hunt told bloomberg why he is steering clients in that direction. david: we look at where long-term growth is, and we absolutely believe that the emerging markets are where most of that growth will come over the next decade. so i spend quite a bit of time in asia, and we absolutely are investing across the region. and we think that most investors are not exposed enough to asia and emerging markets more generally.

>> long-term growth, sure, in emerging markets, but we have to get over some very high short-term risk with the u.s. and china, with the trade talks. larry kudlow said things are getting closer and closer, but we really haven't gotten a big break just yet. what are you looking for here? david: so the coverage of the china trade talks does represent a high drama television show. there is an enormous amount to discuss whether we get a deal or we don't get a deal. our view is we will probably get a deal, but it won't matter very much. most of the work that is going on around tariffs is a very small part of the overall economic relationship between the u.s. and china, so we think it is highly unlikely that they really come to grips with the issues around technology, around the support for state owned enterprises, and about the opening of the markets and cross-border m&a. and those, in many ways, are the most important issues to get addressed. so we hope they get a trade deal, but we also hope they use that momentum to pivot more fundamentally to these tougher long-term issues. abigail: the fed's march minutes showed that there is some uncertainty among fomc members about the central bank's plan to stay flat on interest rates, and

whether the next move should be a hike or cut. john keane caught up with one of those voters, fed governor lael brainard at the imf world bank meetings in washington. tom: are we going to give up our 2% rate on inflation? are we going to have a theoretical change to a new disinflation? lael: we are extremely focused at the federal reserve on ensuring that inflation stays anchored at 2%. so if you look at the way that the committee has responded in recent months, with a wait and see, the pause on rates, the very flat path that is projected now in the median snp projections, that is all a recognition that we are very committed to achieving and sustaining that 2% core pce inflation goal. it has been a big concern of mine and it will continue to be. here we are with employment consistently performing very well, and yet wage growth is very muted and overall inflation is till not consistently getting around that 2% target, so we are going to be patient. tom: william lee of the milken institute is one guest today who says he has never seen it like this. the polarity of market economists over one rate rise -- the parlor game -- two rate rises, or one rate cut, two rate cuts. it is great division. give me the why on that. why are we having such a polarity of market economists? lael: i can't speak to market opinion on this. what i can do is talk a little bit about how i see the outlook. you know, the modal outlook is

actually coming in about how i had expected over the last two months. we have some reassuring data on the labor market. payrolls are growing about 180,000 per month over the past three months, which is a solid pace. that means we are continuing to see growth above potential, slightly above potential. but we've got downside risks come and policy uncertainty has been a big source of downside risk over the last several months. some of those seem to be dissipating, but some of them remain. abigail: plenty of discussion this week about president trump's two presumed nominees for open seats on the fed board. one of those candidates, stephen moore, told bloomberg's "daybreak america" what he believes he can bring to the job. >> i will bring a new perspective. one of the objectives i will have, one of my missions, is to open up the fed. i'm going to run on an agenda of transparency, openness -- why

shouldn't bloomberg and c-span and others be able to cover everything they do? why does there have to be this temple of secrecy? i want openness on the fed. i will challenge one continental idea and democrat the fed, vucevic is wrong. i will challenge one idea that is an democrat the fed and i think is wrong. that's that growth causes inflation. the fed is afraid of growth. there is growth phobia over there, and i think they are wrong. david: one of the main questions is the independence of the fed. you've not made a secret that you support president trump's approach to growth. you have written a book about trump and his organization, and is it justified to be somewhat

concerned that having you there would undermined the sort of -- undermine the sort of church and state distinction between positive alignment and the federal reserve? stephen: i'm not at all embarrassed or apologist for what i've done for donald trump. i mean, donald trump had a phenomenal record on the economy. i'm one of the people that put this agenda together.

but i am independent of donald trump. i disagree with some of his monetary policies. i've been a vocal critic of the steel and auto tariffs. i think he should be much tougher on government spending. i'm an independent voice. i'm proud of what we've done. i think that's a credential for me. abigail: this week, disney held its investor day, and the spotlight was on its highly anticipated suite of new streaming services. emily chang got more detail on the company's plans directly from ceo robert iger. bob: i think making them available on a new technology platform, on a technology platform that is simply more modern and i think growing in popularity at a price that makes sense, with a user interface that is beautiful, that's why we

feel confident this is a product that people will sign up in droves to have. emily: you have said you will likely bundle disney plus, espn plus, and hulu. when and what will drive that decision? bob: i think you can figure that we will bundle espn plus and disney plus fairly soon. i do not know, i don't have an exact date. we're launching disney plus in november. hulu, we still have minority partners. everything we do with hulu has to be done with them in mind. so bundling would be something that we might take to the hulu management and the board, but it would require the approval. but we think there will be consumers that want all three. eventually, we want to make it possible for consumers to buy all three. emily: will you be attempting to buy all of hulu? bob: we'll see. we've been in conversations with both partners about that possibility, but it is still a

little early to speculate. emily: you didn't give up some partnerships with netflix as a result of -- you did give up some partnerships with netflix as a result of pursuing the streaming service. you mentioned some of your distribution deals. you talk about roku and sony. you didn't mention apple or amazon. why not? bob: the app will, in all likelihood, be available through traditional app distributors. apple being one of them. so i'm fairly certain that if people want to buy the app, sorry -- subscribe to the app, that's a better way to put it, that they will be able to do so through apple in the itunes store. other platforms could be the traditional cable distributors, who also sell apps. ♪

abigail: you're watching "bloomberg best." i'm abigail doolittle. let's resume our roundup of the week's top stories in business and finance with one of france's largest banks announcing plans to significantly shrink its workforce.

vonnie: the latest round of bank job cuts are coming in france. the bank says it will cut 600 jobs around the world. the ceo is looking for ways to cut costs. 1200 positions at the banking and investors solutions division -- the trading activity -- about 750 jobs disappearing in france. is there any geographic relevance to where these jobs are going? >> they are trying to to cut some overlap in the international consumer business

as well, but as far as the trading site is concerned, it is a pullback from rates. from credit. from prime services. that's what they are signaling. vonnie: deutsche bank and commerzbank are said to be facing skepticism from members of the ecb in whether a combination puts the banks on a kind of safer footing. what is the ecb concerned about? stephen: they are concerned about this big bank. deutsche bank is the biggest investment bank in europe. combining it with commerzbank, another sizable bank, would create the fourth largest bank by assets in the euro area. and they want to make sure they don't get any bigger problems on their hands. they're always concerned about that case when they would have to wind down a bank. and a bigger one is usually more difficult to wind down. they just want to make sure it's safe. they want adequate capital buffers. they want to see a good business model before they will say yes, we can go ahead with this deal.

>> the latest attempt to revamp its international business was falling flat with investors who have been downbeat on the stock relative to global peers. why is the latest cost cutting effort fallen so flat with investors? >> it has been about a week since nomura made the announcement globally, and the stock has fallen about 3% since then. the price book ratio is only about half the value of those assets, which is the biggest deferential with its peers in 20 years. so clearly, investors are not impressed with last week's announcement. what they are looking out for, at least the analysts we have spoken to, want to look at the pace of the job cuts and the cost cuts, and how it's going to affect revenue. >> the slowdown in the world's largest car market is showing no signs of easing off yet. auto sales in china continue to decline last month, dropping 12% to just under 1.8 million. even though we have seen a bottoming out of some of the chinese numbers, maybe a bit of an improvement in some aspects, certainly when it comes to this data point, we are seeing things deteriorate. >> the uncertainty in the chinese economy definitely crimping consumer sentiment and especially in the auto space. in fact, the passenger car association of china said in the first couple of months of this year, car sales were the only consumer product segment that

saw declines in sales. so something is definitely going wrong. we have a change, of course, in tax policies, and import tariffs, and that has dampened car demand. vonnie: tesla shares are down 3% on demand concerns. and word the company is tempering expansion plans with panasonic on the gigafactory they have pumped so much money into an the past two years. >> i think it's a case where these are two companies who have spent a lot of money on this facility for years. after the performance of the first quarter, you have to take stock of are those investments we plan to continue to plug into this plant, do those make sense? we had a real serious falling off in demand for the model s and model x in particular in the first quarter. the model three did not live up to the performance it had to close 2018. you have a case where these companies are sort of taking stock and taking a breather here before they decide to go further with more investment. vonnie: pinterest is hoping to raise almost $1.3 billion in its ipo. the company is starting a roadshow to pitch to investors. this is the maker of online inspiration boards. >> right. vonnie: how much can it monetize that? it is clearly doing pretty well in advertising so far, but is it really worth $15 to $17 a share? something like 70 million shares in an ipo? >> expectations have certainly come down over the past couple of years. part of the story here is that pinterest had raised a $12 billion valuation, and now it seems like it will be a $9 billion company. so expectations have fallen. and i think part of the challenge they are alluding to is whether they are going to be comparable to a social media company. the amount they can get investors to buy. the story they want to tell, versus sort of an unfavorable comparison to social media companies. i think that will be a big challenge for them.

>> amazon may be listening in to you as customers talk to your alexa. sources say the company has a team that monitors voice recordings captured in echo owners' homes and offices. let's talk about the creep factor here. why they listening in? >> amazon needs an amazing amount of training data to make their service better. like google's voice activated software and apple's they rely on a ton of information on how people speak and they feed into this great big system that comes up with answers to your questions. somewhere along the way, somebody has to annotate that data. what did the person say? was this word correct or this word incorrect? it is trained on this giant pile of data, and humans are doing some of that listening and transcribing behind the software. >> the u.k. is joining a growing global backlash against technology companies. prime minister may's government is proposing fines and bans if

social media platforms they fail to curb illegal activity. >> a year after the cambridge analytica scandal broke, the governments are getting to a point now where we are sort of seeing some specific laws that are likely to go into effect, not just in the u.k., but australia has already passed one. new zealand is talking about it. canada as well. it is sort of standardizing an interesting legal position, where these companies would have a sort of statutory responsibility to protect their users, rather than the world that they've always operated in, which is oh, we are just a platform, and what users do to one another on our platform is not our problem. >> shares of wynn resorts fall the most in two months after abruptly ending talks to buy crown resorts for $7 billion. the casino operator blamed what it called early disclosure of preliminary discussions.

as soon as we learned about it, it was basically off the table. the reason wynn would want in with crown is they were a bit more spread out. >> they are 75% in vegas. the idea is they would diversify in asian exposure. it would also involve them getting involved in japan, which is another attractive asian gaming market. >> lg&h shares surged after what analysts are calling exceptional performance and first quarter sale. they seem to do well in every front. the only real area of concern was the watches and jewelry? >> that is true. you saw that growth was very strong again for yet another quarter, and this is at the same time that investors have been very concerned about a slowdown in china. the slowing economic growth in china really hit sales at apple, at bmw, and there have been a lot of profit warnings in recent months. so the fact that luxury fashion

is still doing well was a really positive signal going into the reporting season for the whole industry. >> agreed to buy anadarko for $33 billion. it's a giant bet on shale and lng, signaling the future of big oil over the coming decade. walk us through what this means for your permian development and assets over the next five years? >> we have a very confidentially position with anadarko in the permian. over 75 miles of continuous acreage that runs across the delaware basin, which is really the core of the permian. this will allow us to bring some things we have become very good at, factory drilling and the surface infrastructure, downstream integration to a larger portfolio and we saw this command is wealthy advantage. it brings together two very nice assets and makes our permian position even better. ♪

>> i want to show you this. gc3d is a function on the bloomberg, which is pretty cool. i have put in the u.k. sovereign curve here. you can kind of take a look. one month out to 50 years. and i put it year to date. you can see how the rates have come down, especially on 10 years down to 1% even on gilts. abigail: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. we hope they become your favorites. here's another function you will find useful -- quic . it will take you to our quick takes, where it will give you fast insight into timely topics. here's a quick take from this week. >> let's say you've given up your law-abiding lifestyle to pursue a life of crime.

you've just made your first big score, perhaps from selling drugs, taking a bribe, or other corrupt acts. you can't just spend it or deposit it in your bank account without attracting attention from authorities. that pesky money trail may serve as evidence of the crime you committed, so you need to get that dirty money clean. there are three steps to any money laundering scheme. first up, placement. where funds are moved from direct association with the crime, then layering, or disguising the money trail to foil any authorities, and finally, integration, where the funds are once again available to spend without worry of being caught. so what are your options? one option is forming a shell company. fairly easy and there are plenty of law firms that can help. it should take them only a bit longer than signing up for a new email address. they might turn to historic tax havens like switzerland, or states like nevada. once the shell company is set up, make up some fake transactions for goods and services that you paid for with your dirty money. suddenly, that dirty money looks legitimate. it helps to find people in banking who don't care if you are a shady client. after the fall of the soviet union, launderers found out weak

spots through europe where oversight was poor. billions have been funneled through places in cyprus, malta and estonia and latvia. if you prefer to use the stock market, you can try a technique called mirror trading. in this method, you use your money to purchase shares, then you sell shares worth the same amount somewhere abroad. the trades functionally cancel each other out, but you have success we turned your rubles into clean euros. a same method is the back-to-back deal. where a russian takes out a loan in one country, say austria, that is guaranteed by a deposit of dirty money back home in russia. she then defaults on a loan, the bank in austria seizes the russian deposit, but she still ends up with the proceeds of the loan, no strings attached. or maybe you'd like to visit casinos.

another method of money laundering is mixing dirty money in with clean. cash businesses like restaurants and casinos are particularly attractive to launderers. you can make a few small wagers, then cash everything out as winnings. finally, there is smurfing. you will not need anything blue to get your green. with this one, you hire a bunch of associates called smurfs, to individually deposit small chunks of the large haul you are trying to cleanse in different accounts in different places. u.s. banks are required to report any transaction over $10,000, so you might need to find a lot of smurfs. so as you can see, there are lots of ways to launder money. unfortunately for you, there are no guarantees that you won't get caught. abigail: that was just one of the many quick takes you could find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis, 24 hours a day. that will be all for "bloomberg

best," this week. thanks for watching. i'm abigail doolittle. this is bloomberg. ♪

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