♪ taylor: coming up on "bloomberg best," the stories that shaped the week in business around the world. financials in focus as four of the biggest u.s. banks deliver. goldman asee at better than expected fixed income beat. >> the markets are having an issue. taylor: another report sends shockwaves through washington. congress and the public get more detail on the mueller probe. a.g. barr: the special counsel did not find any conspiracy to violate u.s. law. >> right now, we are already seeing some of the edifice built around the attorney general starting to crumble. taylor: a raft of data shows

chinese data on the upswing. >> it seems like oil indicators are pointing in the right direction now. taylor: president trump keeps applying verbal pressure to the fed. the catastrophic fire in one of europe's most cherished landmarks. the u.k. has extra time for the brexit impasse. chancellor philip hammond believes theresa may will see it through. >> as far as i know, she doesn't have any intention of leaving until that deal is done. taylor: auto executives at the shanghai motor show discussed the road ahead for the world's largest car market. >> i am optimistic that the second half of the year will be a better have. -- a better half. >> the energy segment is growing at a very fast clip. taylor: it is all straight ahead on "bloomberg best." ♪ taylor: hello, and welcome. i'm taylor riggs. this is "bloomberg best," your weekly review of the most important business, news, and

analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. u.s. bank earnings were in the spotlight all week, starting monday with goldman sachs and citigroup. ♪ vonnie: citigroup and goldman sachs reporting earnings this morning. citi's bond revenue trading posted a surprising jump. goldman's equity showed a sharp decline. let's start with goldman. its revenue structure has been quite static, and if you got such a static revenue structure, you can't afford a 40% drop in something, can you? >> part of it is the environment. it was a very strong quarter a year ago. goldman had a really strong rebound in the first quarter of 2018. if you look at this quarter, pretty much across the banks we are seeing decline. we did see at goldman a better-than-expected beat in fixed income trading. we saw the same at citigroup. however, both coming in a little bit weaker on the equities side.

the thing with both banks, even though they beat the earnings side of things, revenue is probably about in-line with some of the key businesses, perhaps a little bit light in some other businesses, but really the beats driven andes and tax , that is why investors might not be giving them as much credit as compared to if it was a big revenue boost. >> a major fire devastating the notre dame cathedral. french officials say so far the source of the fire is unknown, and no injuries have been reported. what is the latest on what can be salvaged? >> it is not good news. the fire it is not under control , and you probably see from the is right at the two bell towers. they have got some of it out, but a lot of it is something you can't move. there's chapels and frescoes and statues in there, and obviously those things you can't move out. officials are saying they are not 100% sure they can save the cathedral.

should one of the bells fall in one of the towers, it could take the whole tower down with it. that would mean for the whole structure of the building. we are still at a very perilous stage. this is not over. guy: french president emmanuel macron has vowed to rebuild notre dame cathedral. the cathedral was devastated by a fire last night. money is pouring into rebuild the cathedral behind you. that learned this morning the founder and ceo of lvmh is

donating millions. apple and tim cook will be donating money to support the rebuild of the cathedral notre dame that suffered this fire last night, took out two thirds of the roof and the spires. money around the world from global business tycoons is flowing in. it is also helping to support emmanuel macron, who last night said they want to rebuild notre dame, and they will. it is the destiny of france and the destiny of their people. guy: bank of america reporting record profit on the back of its consumer unit, despite a 30% drop in trading revenue. retail lending carried the bank. however, stocks trading down. net interest margins, the fading influence of the rate rises, i think a factor behind this. >> the markets are having an issue with bank of america not because of bad results but because of guidance for the rest of the year. we are really talking about, this is really the last hurrah quarter with the fed rate hikes being on pause. executives on the call this morning said that the net interest income, the difference between what the banks are paying out to depositors and what they are making on loans, it is going to grow half as much this year as last year. that is still an up arrow, but it is half as much.

>> china's gdp grew at 6.4% in the first quarter with stimulus measures providing support. the economy has proven unexpectedly resilient with the march factory output jumping more than 8% year on year. retail sales rising strongly. >> there's always skepticism and healthy skepticism when it comes to china's data and whether you are getting an accurate read on what is going on. the bigger picture is that it is hard to ignore the trend. it seems like all indicators are pointing in the right direction now. we are seeing retail sales holding up quite well despite the backdrop of the trade war and negative sentiment. consumption is doing well. industrial output really surged, and fixed asset investment is also picking up. now there are seasonal effects , behind this and it doesn't necessarily mean this momentum can be held up, but all indications are that china's economy is finding its own feet . it is being helped by domestic demand rather than the external story, and that probably bodes well.

if a trade deal can be negotiated in the coming weeks and months, that would remove another hurdle to china's economy. david: morgan stanley shares rising in premarket after the eps and fick revenue -- fic revenue beat estimates. alison: it is a little bit light, but almost a rounding error, so i might call that about in-line. that is what we saw across the banks, slight misses on most banks. we are going to be looking at deposit pricing at morgan stanley. we've seen pricing coming up on the wealth side, and deposit growth as well, but the trading business, the equity trading business, they earn more from that business, along with goldman, then any of the other global peers. shery: we have been told senior u.s. and chinese officials are planning more trade talks to reach a deal by early may. what is different this time from

the many times in the past we were close to a deal? >> so many times. it does seem like we are in the last leg now of these negotiations. we have more of a timeframe, it seems, according to our sources in the u.s. we are at a point now where we are expecting mnuchin and lighthizer to be here in beijing again the week of april 29. liu he toe expecting fly to the u.s. the following week. after that, we are expecting a deal to be announced when liu he is in washington. what we are then expect to see is the two presidents will go to a signing ceremony somewhere -- we don't know the location yet -- towards the end of may, and president xi and president trump will sign off on this deal in may. there are still big question marks over the question of tariffs to what extent they will , be rolled back. we still have reporting

suggesting the u.s. has asked china to shift retaliatory tariffs away from agricultural products onto other goods so they can sell this as a win to u.s. farmers. but yes, more details on the timeframe. we are now, it seems we are getting closer to that endpoint. david: there's only one thing going on in washington, and that is to do with the mueller report. attorney general william barr holds a news conference today at 9:30 eastern time, and will release a redacted version of the mueller report around the same time. a.g. barr: the special counsel not find any conspiracy to violate u.s. law involving russian linked persons and any persons associated with the trump campaign. so that is the bottom line. >> barr was hired for this moment, to bring some gravitas to the podium, or at least attempt to move on and put this behind them. pres. trump: i'm having a good day, too. it was called no collusion, no obstruction. [cheers and applause] vonnie: the report has now been handed to congress and is also on the department of justice

website for public viewing. a lot redacted, but a lot does point to the fact that this isn't over. matt mueller found at least 10, : i think we have counted 11 instances where the president could have been construed to have been trying to obstruct the probe into the russian interference and his campaign's involvement. some of those instances are pretty damning for the president. >> right now, we are already seeing some of the edifice that was built up earlier this morning by the attorney general starting to crumble. this is a very damning assessment from mueller that he didn't have the confidence to clear the president. i think this explains why the attorney general wanted to get out in front of this. it undercuts immediately the stance the president has taken. kevin: the president getting support from key allies that he needs, including the republican national party, which has released a statement virtually

, completely saying that this exonerates the president, and that it is time to move on. democrats, including 2020 presidential candidates say not , so fast. they want to see bob mueller testify on capitol hill. taylor: still ahead as we review the week on "bloomberg best," u.k. chancellor philip hammond shares his thoughts on brexit negotiations and the future of prime minister theresa may. plus, socgen's chairman speaks exclusively about the challenges facing european banks and the quest for economic growth. >> the problem is how you coordinate all these countries to have a fiscal boost in case things get worse. that is the big question mark. taylor: and up next, more highlights from a week full of earnings reports. l'oreal's numbers suggest luxury is alive and well in china. >> for beauty products, luxury beauty products demand is very , strong. taylor: this is bloomberg. ♪

♪ taylor: this is "bloomberg best." i'm taylor riggs. earnings season shifted into high gear this week. let's take a look at some of the prominent companies reporting, starting with entertainment powerhouse netflix. shery: netflix slid in late trade after delivering a disappointing forecast for the current quarter, with domestic growth slowing to a trickle. are investors right in being concerned despite the beat in subscriber numbers? >> i think this is a bit of an overreaction. i don't really see disney being a huge competitive challenge to netflix.

i think they are going to be more complementary. the interesting thing about netflix, if you look internationally, it is the fact it has very strong growth. they are building a larger and larger library of non-english speaking content. they are being smart about extending the reach of content and extending what they are doing. i think the reactions we saw were a fear that the forecast was a little below what people thought, maybe because of this competition. probably more likely because of the price increases and some of the churn we see, but i still think there's good opportunity. david: johnson & johnson shares are rising in premarket after the company beat expectations for both earnings-per-share and revenue in the first quarter. this was driven mainly off of your prescription drugs. is that fair to say? >> i think the balance was heavily weighted toward the prescription drug side, but medical devices also had a beat. we are very optimistic about the continued cadence of improved growth we've had, and we are looking forward to 2020 to be at market performance or better. but prescription drugs did

perform very well across all of our therapeutic areas. immunology, oncology, neurology pulmonary hypertension. , not just for the short-term data also for the long-term, we had significant improve will during the quarter as well. matt: roche is raising its outlook. the drugmaker sees sales rising by a mid-single digit percentage during this year as new medicines for multiple sclerosis and breast cancer help offset pressures on older treatments. analysts say it is rare you normally have enough confidence to raise your outlook after the first quarter. why this year? >> we started very strongly into 2019. the strong growth is entirely driven by our newly launched medicines. that is the reason why we have raised the guidance now for the full year to the mid single digits.

>> l'oreal got more revenue from asia than from western europe for the first time last quarter, surging demand for luxury products from the world's largest cosmetics maker countering the drag of a slower chinese economy. >> for beauty products, for luxury beauty products, demand is very strong. the growth that we had in the first quarter was at 32%, 33%, which is exactly the reason we had this year. we see a very strong appetite of chinese consumers, young chinese consumers, and i think that is one of the secrets of the reason of the boom. very young consumers, women, millennials, are really jumping on the products. >> rio tinto has slashed its guidance for shipments for

the next quarter after various natural disasters, fires and the like. what is the outlook for the rest the rest of the year for iron ore? >> the outlook from here on in, they are saying there's going to be continued disruption, flagging that there may be some lingering impact into the second quarter. that is because the recovery efforts are slow progress and have also been hampered by a second, weaker, far less serious, but another tropical cyclone that formed off the region, and your guidance for shipments through 2019 have been cut as low as 333 million tons. if it did hit that low-end, that would be lower than the amount shipped in 2018, and this just adds to that bearish sentiment around supply in the iron ore market. shery: blackstone reported quarterly earnings today.

its assets topped $500 billion. they announced they will convert into a corporation from a publicly traded company. the ceo stephen schwarzman saying the change provides a new opportunity for the company. stephen we've handicapped : ourselves with our corporate form. by changing just the form, we will pick up another four and a half trillion, doubling the amount of money that can buy our stock. shery: how big of a deal is this conversion? >> it is pretty big. they made it difficult for the long-term investment community. a lot of my long only clients could not get around's the -- around the k-1's. they weren't in the index. this is really a game changer. blackstone is going to open up to a lot of passive owners, so it really is a big deal. matt: it was a strong start to this year for europe's biggest consumer brands. nestle reported its best first

quarter since 2016 as customers kept buying, despite rising prices. unilever beat analyst estimates on underlying sales, helped by a positive performance from its home care business. we are concerned about the economic picture in europe even more than we are in the u.s. nonetheless, global growth is slowing, and yet it looks like consumer staples companies are able to keep selling their goods with pricing power. >> yes, i think what we are seeing here is clearly some improvement in pricing as we recover cost inflation, particularly in the u.s. the western european market remains pretty deflationary. we are seeing a tough retail environment in germany, france, even somewhat in the u.k. overall it is really the emerging markets boosting numbers today. vonnie: pinterest and zoom video shares start trading, those ipos priced after the market close

yesterday above their valuations. what were these pricings like, how do you anticipate they will go today? ipo closed around $19 a share, which would put it below its last private round on a market share basis. there's a lot of enthusiasm around zoom. zoom's financials look great, whereas pinterest has been on the scene for a long time and does not look like it is going to be the next facebook. it is trying to be its own thing, but investors don't seem to understand it as well. emily: do you see profits coming soon, and when? or is your focus going to be more on investing to grow the top line? >> we are going to continue to invest for the long term. we have shown really good margin improvement over the last few years, but my eye is always on what is going to make pinterest great three years, 10 years from now. that is going to be how we continue to run the business. we are really excited to see it keep growing. ♪

♪ taylor: you're watching "bloomberg best." i'm taylor riggs. how serious is europe's slowdown? that was the topic of much discussion this week as investors watched for encouraging data points and ponder a gloomy forecast. in an exclusive conversation with "bloomberg daybreak: americas," societe generale's chairman and former ecb member shared his views on the european economy. lorenzo: it is not that bad in the sense that growth has been revised downward, growth projections. there's no recession overall. it is just like in the u.s., growth is not as expected and not picking up, so interest rates remain low, at zero or negative.

we need more investment, private and public. i think europe compared to the u.s. has room to maneuver on the fiscal side because debt is going down, deficit is going down. the problem is how you coordinate all these countries to have a fiscal boost in case things get worse. that is the big question mark. carol: one thing people have been talking about is how detrimental negative yielding and negative rates have been to european banks. can european banks be successful with a negative rate regime? lorenzo: if rates were at the same level as in the u.s., we would be as profitable as u.s. banks. we have negative rates instead of 2% rates in the u.s., and we contribute every year to the single resolution fund, which has been built up. the sum of negative rates and these contributions is about 15 billion euro.

every year, the banking system is giving up, basically. they call this a tax. if taxing banks is the best way to stimulate the economy, congratulations. [laughter] now they have to take the decision. if i look at japan, if i look at switzerland, they have tiering which reduces the negative impact of negative rates on the economy. so i think that is something we have to look at. they take the decision, we don't. carol: bloomberg is reporting that ecb officials lack enthusiasm for this tiering plan you are talking about that could potentially mitigate the effects of negative rates on the banking system. in light of that and what you call a tax on the financial system in europe, many are expecting more consolidation. is consolidation a good or bad thing for you? i'm thinking of, for example, deutsche bank and commerzbank.

lorenzo: again, if i look at the u.s. as a model, i think where the u.s. was 30 years ago and even 10 years ago, you have seen this consolidation happening. together with the creation of a capital market which is deep and liquid, which is helping the banks, i think we need to see that in europe, too. consolidation may be within the first stage within borders, and then cross-border. we need to create european banks that compete with u.s. banks on the same level. taylor: coming up on "bloomberg best," more compelling conversations. u.k. chancellor of the exchequer philip hammond discusses the chances of a compromised solution to britain's brexit stalemate. plus, a conversation with blackstone's stephen schwarzman, and kkr's henry mcvey explains why he thinks china is on the verge of an economic rebound.

>> some of the stimulus they did, monetary as well as some of the supply side is starting to work. ♪

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♪ taylor: welcome back to "bloomberg best." i'm taylor riggs. last week, the european union granted the u.k. a six-month extension to reach an agreement on a brexit deal. talks between the government and the opposition labour party are set to resume next week, even though neither side has much room for compromise on the key issues that divide them. bloomberg's francine lacqua spoke with britain's chancellor of the exchequer philip hammond at the world bank imf spring meeting in washington on whether he supports a permanent customs union if that was required to bring a deal across the finish line.

chancellor hammond: we've gone into these talks on the principle that we agree with the labour party that we need to leave the european union and end freedom of movement, but beyond that, we haven't set out red lines. we are prepared to discuss anything they put on the table. we know this is one of their public demands, a custom union. it is not what we set out to deliver, but we are prepared to discuss all of these things with them. just because they've put it on the table doesn't mean we are going to accept it, but we are pretty talk about it. francine: but personally, would you accept it? chancellor hammond: i am a member of the government. it is about the government's position, and we are prepared to talk about it. francine: a lot of markets wonder if theresa may will go, whether theresa may will go. is it better for her to stay beyond the extension now that you have it until october 31? chancellor hammond: the prime minister has said she will leave once she has done the deal and taken us out of the european union.

as far as i know, she doesn't have any intention of leaving until that deal is done, so she is a person with a strong sense of duty. she feels that she has a duty and obligation to the british people to deliver brexit. she would certainly want to make good on that obligation. taylor: this week, the shanghai auto show brought together leaders from auto companies around the world, and they had much to discuss. there's the recent sales fall off in the world's largest car market, as well as signs that china's electric vehicle industry is approaching a bubble. bloomberg's tom mackenzie spoke with several executives about their outlook and concerns, starting with volkswagen's ceo. >> we are very strong in china. we have got 18% market share. we are here for 20 years. we really want to use the momentum of china to become more tentative and the rest of the

world. tom: we've seen 10 straight months now of falling sales across the auto sector in china. when do you think that starts to turn out -- around? sense thatou get a it will bottom out? >> we have seen two quarters with declines. also, i have to say i am quite happy with the developers from our viewpoint because they could defend our market position. in the first quarter we could increase our market share by one percentage point, losing a little bit of volume, but gaining market share. we are not too scared about china. we hope that the negotiations between the u.s. and china, the situation can change rapidly. there is a huge demand still in the market. the economy is basically in sound condition. also, the stimulus should work with a reduction of about 3% for cars, it should have an effect

on the market. i am quite optimistic that the second half of the year is going to be the better half. >> auto sales decline is something that is quite significant, i would say. however, what we see at the same time is that the energy vehicle segment is growing at a very fast clip. every month see year-over-year growth of about 80% or so, so that is very impressive. tom: how does it play out? are you looking at companies being wiped off the map, or are there going to be partnerships with oems here in china tying up with some of the startups? how do you think that plays out longer-term? brian: i think it will happen in various ways. we are seeing players slowly fading away, which means they will slowly disappear without funding, without product, and cannot get to the market on time. simultaneously, there are players that will look for

strategic tieups with oem's to become maybe the new energy arm of some of those oem players. we see that happening with some of the tier two or three players. i think the market will evolve and a number of places that ultimately will be left to compete will be very small. taylor: global investors are also hoping the chinese economy starts hitting on all cylinders after data this week shows government stimulus is starting to take effect. an end to the trade war with the u.s. would certainly strengthen the outlook. a kr head of global macro and asset allocation henry mcvey is optimistic the two sides may come to a deal and he explained to erik schatzker what that new trade relationship might look like. henry: i think the u.s. will keep the $50 billion they originally put in place, in place. i think there is a chance they roll back 200 billion. i think president trump needs some growth going into 2020.

i think it also sends a nice sign. but in my 20 plus years of going to china, it goes back to something we talked about two shows ago, which is that i think there is a divide. the china-u.s. relations related to things like technology is more structural, i think it will affect supply chains. the way people think about expanding globally, asia becomes more regionalized. america becomes more regionalized. europe will be somewhere in the middle. that is not insignificant for europe. europe gets 49% of its gross gdp from exports. you saw them, as china slowed, they really slowed down, too. and so a lot of our focus in europe is really around finding industries that can go beyond that global slowdown being forced upon them. that has led us to technology in some areas and consumer experiences. erik: if i understand you correctly, the chinese economy, the slow down has bottomed.

henry: i think it has been arrested. i think there is a clear message from being on the ground in china that the stimulus they did, both monetary and some of the supply side, is starting to work. erik: when does the impact of -- when is the impact of that stimulus felt in places like europe, in the consumer or manufacturing? henry probably the third : quarter. erik: that much of a lag? henry i think there is a bit of : a lag. unlike in the past and it was just pure monetary stimulus and we had a more immediate spike, i think this will be much more gradual. i think that is important consideration, which is nominal gdp in china has gone -- when you have a fixed investment economy, you can grow 15% to 20% nominally. today it is a service economy with a demographic in their face and i think you grow 8% to 12% nominally, and that is just north of 6% real gdp. taylor: also weighing in with insight on the global economy and markets with stephen schwarzman of blackstone, who spoke with bloomberg's jason

kelly. jason: you have a bunch of portfolio companies that give you a window into how the consumer is feeling and ceos are feeling. how are they feeling? where are we in the u.s. economic cycle? stephen: we are pretty close to full employment, so that means there's more money going to consumers. consumers are still confident and active. the tax bill is a real shot in the arm, if you will, for capital equipment with the depreciation schedules. we have slowed down a bit from where we were. the current estimate is around 2.5%. for u.s., we've got good growth. in china, unlike people were thinking -- i was there about three weeks ago talking to people. they just reported somewhere around 6.4%.

to the extent of those numbers are absolutely accurate, i can tell you from being there that people are not worried the way they were two or three months earlier. jason: are you worried about a u.s. recession in the next year or two? stephen: i haven't been, and i was somewhat alone in the fourth quarter. i don't know why. there was this huge drumbeat. we didn't see it with our companies. about 200 companies in that part of the business at blackstone. no ceo thought we were going into a recession. jason: and they remain confident. stephen: yeah, they remain confident. it is not as good as it was a year ago, but it's got a good footing at a lower growth level. ♪

♪ taylor: this is "bloomberg best." i'm taylor riggs. let's resume our roundup of the week's top business stories with the sudden resolution business -- sudden resolution in the business dispute stories with between apple and qualcomm. emily: apple and qualcomm agree to end a $2 billion legal battle over licensing fees. >> it is not a surprise they were eventually going to go down this road. apple was denying it was nearing a settlement, whereas qualcomm has been talking up a settlement for months now. they both benefit. apple now has a clear path to releasing new iphones and ipads next year in 2020 with those faster 5g networks to be compatible with those, and qualcomm sees its business model being certified and vilified here with apple being in agreement with them by settling, so to speak.

guy: president trump renewing the attack on the federal reserve, tweeting that the stock market could be as much as 10,000 points higher if it weren't for the fomc. does the united states have anything to worry about when it comes to fed independence? ian: not in the near term. the fact that trump is tweeting about undermining fed chief powell does not actually lead to change in his orientation or action. i do not think people around him believe that. michael mario draghi on saturday : said it is disturbing that the united states would be attacking its own central bank. he says, "i am certainly worried about central-bank independence, especially in the most important jurisdiction in the world." people are concerned that if these tweets start to have an impact on market psychology, it could interfere with the transmission of monetary policy because the markets might not

behave in the way the fed wants them to. jonathan: larry kudlow, herman moore are still being considered for the federal reserve board. reports that the administration is talking to a number of candidates. kevin: conservatives here in washington, d.c. such as the heritage thought foundation are very much still backing stephen moore, who has deep ties to the conservative ideology. people like art laffer are still backing stephen moore, in particular. they are saying he is someone who is more of a policy wonk and crafted in the vein that would add a sense of seriousness that is differentiated from someone like herman cain. if you look at herman cain, his chances of being senate confirmed are increasingly not there. the math is not working for him. let's take a look at the senators opposed to that. senator lisa murkowski, mitt romney, kevin cramer, cory gardner.

for herman cain, a difficult path forward, but for stephen moore the chance is still there. , david: we have the u.s.-japanese trade negotiations starting. do we know what the united states wants out of japan? >> we want to get this done and dusted soon because president trump has had a problem with part of his base, and that is the farmers who have been hit as a result of the trade wars with china. with japan, it is really a tale of the consequences of the president's own decision. by pulling out of the transpacific partnership early in his administration, he left the lucrative agricultural market open to improved access for countries like australia and new zealand, and meanwhile the europeans have moved in and signed their own trade deal with japan, which took effect february 1.

a lot of people in the farm sector in the united states want to see something quick. jonathan: germany's economic forecast was not terrific, 0.5% now forecast for 2019. a wake-up call for the german economy. 0.5%, but to put this in context, you need to go back a year ago. the german government expected growth of 2.1%, so clearly it is a massive revision. what you see here, each is very significant is that none of the , tailwinds they were counting on, china, turkey, the emerging markets, have actually helped. what you see is that exports in -- and the car markets are under pressure, but of course for europe in particular, the big question has to do with fiscal stimulus. are we going to see germany spending money to grow? until now, they have been reluctant to do that. >> congressional democrats are ramping up their investigation into president trump's finances and any dealings with the russians. they have issued subpoenas to deutsche bank and other financial institutions. deutsche bank has been

cooperating. what is the panel looking for specifically? marty it is looking for any : indications that deutsche bank inappropriately helped donald trump out of financial difficulties in his real estate dealings before he became president, plus anything else that may lead to questionable behavior in the campaign of 2016. eric trump immediately came out with a tweet blasting the committee for this, what he considered to be a "political witchhunt." the democrats have to be careful they don't overplay their hand. matt: we've heard this described as a friendly subpoena. is this a problem for the bank? >> they've actually wanted to cooperate for a long time, but given the constraints on talking about a client relationship, especially one that is as important and sensitive as this one, they never were able to cooperate. now that they've been served a subpoena, it is a legal requirement for them to cooperate and hand over those documents.

i think for them it is sort of a relief. they want to put this behind them. they want to get these documents to the democrats, to the house, and wash their hands of the story if they can. >> a shakeup at jp morgan. jp morgan has named marianne lake the ceo of consumer lending. she was previously the cfo. -- piepszak. sick it always begs the question, are we grooming a successor to jamie dimon here? could one of these females be the next in line? >> this is the really big question because marianne lake was widely seen as somebody, one of the top candidates to be the potential successor. this definitely puts another woman in the pipeline. both women are the same age,

actually. jennifer piepszak has been at the firm for more than two decades. it definitely puts somebody else on the bench, but draws questions about who will really take the top seat at the end of the day. guy: -- shery: 190 million voters in just six hours will cast their ballots as indonesia hosts the world's largest single day election. how significant is this election? haslinda: it is significant because the country's unity is at stake. it is not about the economy. the two sides do not differ very much in terms of economic policy. front and center, this election is political identity, the religious identity of the country. this is where the country is split right down the middle, between moderate and conservative islam. what is important is unity. whoever wins this election will need to bring the country together, and that in itself is a huge challenge. >> the indonesian president set to claim a second term, with unofficial counts showing him taking a significant lead.

his rival is disputing the results, claiming an internal exit poll shows he has more than 55% of the vote. this feels like a replay of five years ago, but what happens from here? >> from here it is about healing the country. we talked about how the country has been divided because of religious issues. right now, the priority is to get everybody together to be united. that was precisely the message wijojo set forth to the country when he spoke after the elections. however, it is a mandate for him to go on with his reform agenda. also, it is an endorsement of his economic policies, which he has implemented so far. he has not claimed a victory. he has said he will wait for the official results, which will come by may 21. vonnie: the ultimate personal and professional comeback, tiger woods won his 15th major title, his fifth green jacket at the masters sunday.

yesterday's win was also a major boon for the few sponsors that stuck with tiger through the downs. nike and tailor-made, maybe even for adidas, this is a massive story. >> the one company you associate with tiger woods and you have back to 1996 when he turned pro is nike. they stuck with him through personal and injuries. back in 2008 when tiger won his last major, nike made his clubs and has balls and was the brand on his bag. they do not do that anymore. tiger had to go elsewhere. tailor-made makes his clubs. bridgestone makes his ball. if you are nike, the fact that tiger returned at the pinnacle of his career wearing that red shirt, that is perfect. ♪

♪ matt: i have the earnings analysis chart from the bloomberg terminal on my screen. in terms of a surprise compared to what the analysts had been estimating, it has been a pretty poor season. >> we wanted to highlight a brand-new function on the bloomberg, a fresh look at etf's in europe. taylor: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you'll find useful, quic , where it

will lead you to our quick takes where you can get important context and fast insight into timely topics. here is a quick take. >> we are entering an era where enemies can make it look like anyone is saying anything at any time. >> jordan peele created this video to demonstrate how easy it is to put words in someone's mouth. butot everyone bought it, the technology behind some frauds is improving. as worries increase about their potential for harm. this is your bloomberg quick take. deep fakes, or realistic looking fake video and audio gained popularity and developed as a way of adding mainstream actresses into porn scenes. they remain easy to find. they are named for the algorithms that make them possible. they input real audio or video of a specific person, the more the better, and the software tries to recognize patterns in speech and movement, introduce a

new element like someone's face or voice, and a deep fake is born. >> it is actually extremely easy to make one of these things. there were just some breakthroughs from academic researchers who work with this particular kind of machine learning in the past few weeks, which would drastically reduce the amount of video you need to create one of these. >> programs like fake app need dozens of hours of human assistance to create a video that looks like this rather than this. in august, researchers at carnegie mellon revealed software that accurately rendered not just facial features, but changing weather patterns and flowers in bloom. this advance is not yet available to the public, but with increasing capability comes increasing concern. >> this is kind of fake news on steroids, potentially. we do not know of a case yet where someone has tried to use this to perpetrate fraud or an information warfare campaign or, for that matter, really damage

someone's reputation. but it is the danger everyone is really afraid of. >> in a world where fakes are easy to create, authenticity also becomes easier to deny. people caught doing genuinely objectionable things could claim evidence against them is bogus. fake videos can also be difficult to detect. researchers around the world and at the u.s. department of defense have said they are working on ways to counter them. deep fakes do have some positive uses. take a firm that creates digital voices for people who lose theirs from disease. >> each synthesis is the artificial production of human speech. >> there are also applications that could be considered either good or bad, like the many deep fakes that exist to turn as many movies as possible into nicolas cage movies. >> oh, hi, mark. taylor: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis 24 hours a day.

that will be all for "bloomberg best" this week. thanks for watching. i'm taylor riggs. this is bloomberg. ♪

♪ emily: i am emily chang and this is "the best of bloomberg we will speak to the ceos of pinterest and zoom. plus, a global legal battle that has dragged on for years is over. apple and qualcomm have settled their differences at least for , the next si