viviana: coming up on "bloomberg best," the stories that shape the week in business around the world. earnings reports come fast and furious with big tech and european banks leading the way. to come tot people twitter once a month, we have failed. >> they are just minting money. viviana: deutsche bank and commerzbank and their merger talks. samsung puts its full on hold. >> this is a reputation and pr marketing nightmare. viviana: the u.s. clamps down on iran. >> the hardline no waiver was a

surprise. viviana: u.k. banks brace for breakfast it. financial regulators speak exclusively about how to manage the transition. toit would be a big mistake lose contact and isolate ourselves. on the: economists state of global growth. >> we do not see signs of problems. >> if the fed did not do what it did, we would see panic in the bond market. viviana: it is all straight ahead on "bloomberg best." viviana: hello, and welcome. i am viviana hurtado. this is "bloomberg best," the most important analysis from bloomberg television around the world. lookgin with a day by day

at top headlines. monday, an outpouring of shock and empathy after deadly bombings on easter sunday across the south asian nation of sri lanka. deadliestasia's terrorist attacks in years has shattered the calm in sri lanka. more than 200 people have been killed. devastation, coordinated explosions on easter sunday. churches, the prime minister says he will have to look deeper into this. he says authorities have received warnings but little attention was given to the warnings. the priority is to ensure sri lanka is not destabilized. >> we are prepared to take all measures necessary to make sure they are wiped out in this country. >> those measures include a

nationwide curfew. social media access has been blocked. the impact is on the economy. they are forced to take a loan from the imf recently. investors have fresh memories of a country plagued by civil war. viviana: the u.s. is increasing pressure on iran, oil rising to its highest in six months. waivers allow buyers to import iranian crude. was the market anticipating this? >> absolutely not. food prices were climbing, everyone thought there would be no waivers. then last minute trip comes out with waivers and surprises everyone. nobody knows what will happen. the hardline no waiver was a surprise. >> how might iran react? >> i do not think there is much

they can do. removing the waivers means that 2 million barrels will go away. maybe not all of it, but for now the problem is it will be offset by production in the u.s. people think saudi arabia will and i suspect there was negotiation ahead of that. does the president know that the waivers means oil prices will go up which he has ranted against? >> indeed, his message is saudi arabia will help mitigate that pressure and replace the barrels that the sanctions will take out from iran. it is clear saudi arabia has no plans to flood the market. they will help but they will be

cautious, and they want to see reduction in iranian exports. it may be the market will be tight. up the seeing prices last couple of days. ,> shares of twitter rallying hitting their highest since july. twitter announced earnings topping ejections and reporting strong user growth. an increase in monetize a ball -- monetizability. >> twitter has stopped doing monthly active users, that famous stat we use, and they are monetize users, people who log in every day. they can be advertised towards. >> we have been sharing a number extra early, which was monthly active users. if people come once a month, we

had failed, we are not delivering. we want people to come every day and keep coming back to find out what is going on in the world. decisive record. lease -- credits credits of thel ubs calls one worst environments in recent history. >> three years of deep cuts, it is important to be stable. restructuring there may be upside for us. we may take market share and equities is strategically important. >> take market share from who? >> we do not mind. >> european banks? >> we are strong in the

americas. results does not mean we have solved every problem. facebook jumping in late trade after reporting better first-quarter revenue, but it is facing legal costs, regulatory threats, and privacy concerns. the overall picture for facebook looks strong. could we say they had been able to move past negative headlines? >> if you look at the fundamental growth, it was a strong quarter on every metric. one big concern, facebook's future growth is dependent on stories, advertising and pricing is lower than it used to be. this quarter showed they can manage it this transition well. that gives confidence and their

ability to drive revenues with this transition. ubs isy is a big story, switching expectations after a dire quarter from its wealth management division higher than estimated. >> the second half of march, market conditions and investor relative tohanged last year. >> barclays earnings were missed. we are speaking exclusively. choppiness around equity capital markets, and m&a activity around the world. breakfast, it has put a lid on capital market activity, dealmaking more broadly, and it is hard to see a change in that soon. >> deutsche bank and karma spark -- commerzbank are ending talks.

time envisage over industry consolidation will take place in europe, and deutsche bank wants to be part of that. the timing and the specific form remains to be seen. >> was this a deal that ever made sense, looking back at it now? >> it depends on whom you ask. berlin was not behind this deal. problem was for people outside of the banking, 30,000 to 40,000 job cuts does not work well especially for people at this income level. in terms of internal people, we were told it really was too costly, too complicated, and did not create the kind of economic synergies they would have hoped for. >> amazon reported quarterly profit that exceeded analyst estimates.

focused on cloud computing, advertising, and other higher-margin businesses continues to pay out. amazon narrowed its loss on operations which narrowed profits. outlook for the second quarter is less stellar. income guidance and revenue are light. what you make of the quarter? >> the upside is because they generated 43% margin and cannot spend all that money. they have $25 billion of gross profit and managed to only spend $20 billion of it. that is the story. they have run out of things to spend money on. they will build fulfillment centers but that will not grow material year-over-year. money.e just minting >> chinese president sheeting pang did more than deliver a the globale took

spotlight on his speech in beijing to deliver a powerful message that china is ready to take as it moves toward a trade deal with the u.s.. looking to get an advantage on trade. >> china will not pursue yuan depreciation that harms others. this is something that you and .n. isplaining -- the u complaining about. it is interesting he made a point to say these things at a speech when he knew everybody would be listening. will be this year's largest ipo? is helping to raise $9 billion and ending for an 80 billion -- >> giving what has happened with lyft, it makes sense for them to

go with conservative valuations because there is no path to profitability for this company. a company withto negative margins, you know when you hit a billion dollar revenue they will be profitable. they are right to leave some room for the stock to go up once it prices. still ahead as we review the week on "bloomberg ceo's of united airlines and honeywell say how they see the economic picture. what wrecks it means for global banking. through we are plowing -- >> if you look at this year, we will have three potential major launches. viviana: this is bloomberg.

♪

viviana: this is "bloomberg best ." hurtado.ana we continue with the week's intriguing earnings reports. let's start with boeing. uncertainty clouds the future. we know the concerns that meyer the company. -- we know the concerns that mire the company. >> boeing has been on the upper end up at the top of its game. it was the largest u.s. industrial company. it has changed the ground for boeing. it was interesting to see the

stock reaction, shares were edging up higher. the shares have held up well which is a reflection that they have a strong backlog. it is not easy for customers to jump to airbus. longer term, it will be fine. >> first quarter profits beat estimates, but warned of a shaky market in china. it seems as if management is too clear about future guidance. .> we saw this last year all the jitters across the industrial sector. points in theied global macro economy. that is not what you want to see with a capital goods company. up inventory to get ready for the selling season. they do not see a alarm bells.

if you are an investor there were worrying signs, and there were quite a few of them. claimed an end to sustainable profit. the company began with a loss of a half billion dollars. are these results shocking or just a surprise? >> i am going with shock. if you look at the top line number or profit figure, it is a surprise because the company said sales fell. day said there would be another quarter of loss. -- they said there would be another quarter of loss. at this stage it is hard to give credibility to projections, they have been wrong so many times. it is a shock for investors, and you have to think the goodwill for musk is starting to run thin.

pastofits at ford blew expectations, the stock jumped $10 in the after-hours for the first time in eight months. the ceo's says results were driven by its core business at home. >> north america is a pillar for wascompany, what we saw strong positive net pricing. costs were up a little bit. we had good leverage, we got positive contributions from the ranger. and america's best-selling van. it was broad-based within north america. >> microsoft reported profit and ,ales that beat estimates massive cloud computing deals. >> stellar earnings across the board.

looking across numbers, it is a true testament of a strong corporate environment. 1.9%.a-cola shares are up north american volumes were down for a second straight quarter. you do get a boost from higher pricing, but i am curious how can sustain higher pricing to maintain margins and profitability. >> the north american business was a little softer in the first quarter, but it should be seen in the context of the later timing of easter which tends to affect the business, and a bit of negative whether in the first quarter -- a bit of negative the first quarter. the u.s. had a solid quarter.

last year was an extraordinary year based on commodities and of tradefic situation in the u.s. we continue to focus on value for the consumers. they will only be willing to pay the price if the brand and product is the one that works for them. plotting a faster course, the drugmaker raised its profit margin and beat estimates. >> we have 26 potential blockbusters in late stage development. in our industry, you have to make the best of your innovation power. we believe we have that innovation power. if you look at this year, we have three potential major launches already approved in quarter one. and we have five or six major

readouts this year. all of that puts us in a good place. big focus. a chevron beating estimates while exxon stumbled. let's start with exxon, big myths. >> earnings came in at $.65 versus estimates of $.72. daily production fell below 4 million barrels. the refining business is the weakest part today. chevron missed daily production estimates. they saw results less than expected. the outlook for the refining business is better into the second quarter. bank has released

results this morning after pre-releasing numbers yesterday. germany's biggest lender has cut its 2019 sales saying revenue will be flat. credit loss provisions will remain in the mid-teens if deutsche bank does not embark on another merger. have had five turnaround plans in the last three years, this might be number six, a morning. if you cannot do a deal, you need to get back to the hard work of trying a new strategy. ♪

viviana: you are watching

"bloomberg best." i am viviana hurtado. bankinght look like after brexit? the ceo seen as the front runner to defeat mark carney at the bank of england, he discussed the consolation of challenges banks and financial regulators now face. question in the period since the financial crisis a decade ago, what has happened is a global initiative to build stronger regulatory foundations. there is no question brexit will not impact on that global, which is right because financial markets are global. prerequisite for whoever wants to be the next bank of england, they should have regulatory experience? delicatelypent years

steering around those questions. what has changed is that the bank of england is an important regulatory response, the bank i joined in the 1990's have responsibilities. it is appropriate the central bank should have those responsibilities and i am a strong supporter of that. >> how can you regulate banks in britain if you are not in agreement with european regulators on various issues? all, we work closely with european regulators. my guiding principle on this since the aftermath of the referendum, i became chief executive the week after the had theum and experience leading up to the referendum. mistake to a big

lose contact, to isolate from our regulatory counterparts but particularly our european ones. one of the ironies of brexit for me personally, i spent more time post-referendum. losee not going to contact. that is important because we have much business to do together, we want open markets, and as regulators to support that is to have strong relationships. all our actions are designed to achieve that. viviana: coming up on "bloomberg best," more of the week's top business stories. a bidding war breaks out, and a new ceo takes over at kraft heinz. more compelling conversations, a top candidate to leave the european commission offers bowl

thoughts on trade and competition. bloomberg. ♪ moving is hard.

no kidding. but moving your internet and tv? that's easy. easy?! easy? easy. because now xfinity lets you transfer your service online in just about a minute with a few simple steps. really? really. that was easy. yup. plus, with two-hour appointment windows, it's all on your schedule. awesome. now all you have to do is move...that thing. [ sigh ] introducing an easier way to move with xfinity. it's just another way we're working to make your life simple, easy, awesome. go to xfinity.com/moving to get started.

>> welcome back to "bloomberg best." this week, corporate earnings were in focus. robust results are easing concession returns. bloomberg television to discuss the overall economic outlook. let's start with the honeywell chairman and chief executive. vonnie quinn asked if he is worried about an impending slowdown. ♪ >> no, not really. as you saw in the long and short cycle businesses, we had a very strong quarter. 40% long cycle oriented, so i'm very confident that short cycle

has done extraordinarily well. if we don't see any signs of problems, we are planning cautiously for the second half. short cycle can turn very quickly. so far, so good. >> are pmi data missing something? >> there could be segments that continue to grow. all industrial companies aren't the same. we have a different mix between short and long cycles. we can't always compare that broad-based industrial indices. >> all four segments of honeywell seem to be doing well. what most concerns you for the rest of this year? cycle,ously the short particularly industrial solutions. we did see some level of d stocking, but we expect that to dissipate. we are still planning for q2. but we are planning on recovery in the second half of the year. we have a couple minor trouble

spots, but overall, the business came in very strong. ♪ >> i'm curious what your view is on the economy right now. lots of anxiety about whether there is a slowdown. what are you seeing right now in terms of recreational travelers, domestic business travelers, and the global business situation? it feels like a lot of the weakness is more on that. >> there is a lot of different viewpoints. our view of the future is fairly limited. we are not long-range forecasting. our demand is close in. the insight that we do have is relatively strong compared to where we have been. we had a very strong year last year, and we provide the fact that we will grow the top line and deliver financial. we stuck to that guidance. ♪ was also a policy

topic of much conversation this week. theomists are assessing decision to pause tightening trajectories. goldman sachs goes a step further. , he claims the central bank is delivering the most accurate take on the economy, but now outside forecasters are closing the gap. he explains on "bloomberg daybreak: america's." ♪ from thending on data 1980's and early 1990's has been that the fed really outperformed systematically, and recently there's less of a difference. >> does technology play a role? do forecasters have more access to data more readily? >> that makes the difference is one potential contributor, as well as learning the structure of the economy. you average out some errors. if you look at the consensus,

one person being wildly off on a particular theory has less weight. >> does also make it appear like the fed is reacting more to market conditions than it is? >> one implication that it has is that when the fed lowers its view of the economy, it may be sends a dovish monetary policy signal. more ascan take this just a change in the policy outlook. it is something that should boost financial markets, maybe not as much as a sign that they have private information about the economy, and we should all get more bearish about what's going to happen. for me, that is the main implication. if you think the fed looks at the same kinds of things we all look at, and we are all in a similar position in terms of probability of getting it right, if they get more dovish we should respond to that policy signal and get nervous about

something we didn't know. ♪ >> the fed have done a beautiful job bringing interest rates to where they are now, which is why they can take this resting period, as it were. u.s. inflation rate is around 3%, so if the fed didn't do what it did, and the rate stayed close to zero, inflation close to 2%, i think we would have seen a panic in the bond market and a lot of problems, because people are realizing the fed could go for abrupt tightening, which yellen warmed so many times. but because they took this very difficult step, tightening when inflation was not obvious, now and inflation25% is around 2%, no one is panicking, which i think was a beautiful job.

that allows the fed to wait and see what happens next. ♪ week, the leading conservative candidate in next month's european parliament elections officially launched his campaign. he hopes to replace jean-claude juncker as president of the european commission. in an exclusive conversation in athens, he said he would like the eu to treat china more as a partner than a competitor. he also emphasized the need to reshape the bloc's trade relationship. ♪ >> for my part, it is a party of trade. we go for the trade agreements with japan, with canada, always a party of trade. trade, both sides of public development. and on the chinese side we should be in favor of trade, but the option remains for what is going on in china.

they define key industries, especially in the traffic field, and you must allow companies to grow and to establish something that gives you the chance to compete on a global level with big companies from china. that is why i think we have to change the competition law to allow for the future. generally i'm a friend of competition, but in special markets, you need to understand that competition legislation must also adapt at the global level. >> so you would agree with relaxing, perhaps, some of those rules when it comes to antitrust and competition in the national interest? > >> it must be in the european interest, that is clear. i love and enjoy competition, it is good for us as consumers. but on the global stage, europe

must define our key industries, what we see as future markets, and we have to defend them and create global champions.

♪ this is "bloomberg best." let's continue our global tour of the week's top business stories. in japan, the central bank reaffirmed its long-standing commitment to stimulus. ♪ itthe bank of japan says will keep interest rates extremely low through at least the spring of 2020, saying it won't hit 2% inflation target for another three years. >> i don't know whether the market took any notice, we didn't see that much movement in the yen. -- itea that inflation

will take a long time to get back on track. thing,ink that's the they said they would keep accommodative policy until the spring of 2020, but did anyone think they would track it? they didn't. yes, they have changed in the language to make it more specific, which is nice, but they didn't really change anyone's expectations. and japan has this consumption tax which could be quite significant, another reason why the market didn't expect anything from monetary policy. ♪ petroleum has made whichr bid for a narco, has just now confirmed the receipt of the proposal, saying that the board will carefully review the proposal. >> going back two weeks, they made the announcement that they had reached an agreement by anadarko. we confirmed reports that occidental did also express an

interest at a higher per share offer that has been rebuffed. if occidental had come out in inn public, and it is honors arcos court. >> we feel very strongly as we've looked at on a darker that they have incredible assets, and combining their assets with our assets further enhances our dividends and production growth. ♪ >> president donald trump has said he will not nominate herman cain for a seat on the federal reserve board. in a tweet the president said this. "my friend herman cain will not be nominated for the receipt of the federal reserve board. hermann is a great who truly loves our country." kane has said he didn't want to go through the arduous vetting process. when he has made it? >> it doesn't look like you would have, and that is why he was able to get through it. for republican senators had said

they would vote against him, 53-40 seven margin puts him below 50%, he wouldn't have been confirmed by the senate. that was a message the republican senators, who had not vetted him when he said he's the man i want to nominate, the vetting process is proving to difficult, particularly with the sexual harassment claims against him prior to his presidential campaign. ♪ >> samsung will delay the release of its foldable smartphone until at least next month. reviewers have found defects in the $2000 phone. the flaws include some displays ripping off the phone. >> it seems like we are finally moving on with the exploding phone. how much damage will this do to their reputation once again? prthis is a reputation and a marketing nightmare.

quite frankly this thing should have never been announced until it was ready. it is utterly shocking to me that it has come this far without employees raising the issue for the launch to be postponed. companies are supposed to have quality assurance tester is an all sorts of things in place to avoid specific situations like this. ♪ china people's bank of has adjusted more than $250 billion of liquidity into markets via a targeted medium from london facilities. it reflects an effort to support an expansion in credit while trying to avoid building up for the financial bubbles. tacos through this particular operation. i think it is only the second time ever we've had one of these. what exactly is the rationale from the pboc? >> this comes on the heels, of course, of the statement from thepolitburo, in which

market interpreted signals from china that they will dial back the stimulus, and seeing that big stockmarket rally. what authorities look like they are doing is try to dial back the expectations of stimulus, going away from the universal liquidity injection to more of a targeted injection. we are going to get those one-year funds at 3.15%, and we spoke earlier this morning to mark cranfield, who said this is not the big bazooka of an official rate cut. the amount is not necessarily a game changer. ♪ >> we are waiting for south korea's finance chief to hold an emergency meeting after the economy shrank the most in a decade. we know the government has been spending a lot in order to support the economy for 2019, up 10% from their original members. why is none of this helping? >> it is certainly something of a wake-up call for the debate of

the local economy, and here we have one of the key bellwethers for the world economy going through a rough patch. it is mostly due to the slump in the technology sector, the export of semiconductors. there's also a slowdown in china and weaker global demand. there is also slowing domestic business investment. all that combined is weighing on south korea's economic growth. there's a view that perhaps things will pick up in the coming months as china's stimulus helps boost business investment. it does indicate they have a bit to go yet. ♪ >> a new ceo. invevcoming chief of ab will replace bernard heath. they are looking to break out of a product slump since buying unilever. anheuser-busch, another 3g company.

not a totally unexpected pick. he has been there six years as global chief marketing officer selling beer and now he will try to sell auster meyer deli meat, and the question is will he bring a new strategy. the outgoing ceo has had a hard time with craft, mainly because they haven't had to buy something since unilever fell apart. the real question we will have to look for is whether he embarks on a new strategy. ♪ >> the new indictment accusing nissan's former boss of redirecting millions from the company to his personal accounts may not only extend his time in detention but threaten to undermine his arguments that he is a victim of corporate intrigue. these charges are quite different from the previous ones. we are talking about real embezzlement here. >> the nature of the allegation is quite different, in that initially we were talking about

situations that could be described as poor judgment or exceeding his authority in some way or taking advantage of his position, whereas this would look much more plainly, like as you say, embezzlement and fraud. >> a japanese court has confirmed that they will be granted bail of ¥500 million and could be released today. >> this would be the second time that he has been released on bail. this could be a sign that the prosecution is quite confident now that they have the documents they need to proceed with this case. another interpretation that is equally valid could be that they have given up on trying to compel a confession. ♪ >> it has been a peaceful leadership transition for ukraine after the most popular comedian got the presidency in the last landslide victory. extended to 4%s in three months, the fourth best

performance of the world against the dollar. investors are on the lookout for what policies will be. what do we know about this comedian? what do we know about how he plans to govern? >> good morning. you are right, the campaign was very light on substance. what we do know is that he has made it known that he is pro-europe and wants to continue ukraine's cooperation with the imf, and his main message was he wants to stamp out corruption. that was the biggest issue for ukrainians in this election. in terms of policy details, policy specifics, we don't know much, and we will be waiting with interest to find out about his exact plans as he builds out his team and as he makes it known how he wants to govern. ♪ u.s. economic growth

accelerated more than expected in the first quarter. were inventories that offset the slowdown in consumer spending. are we taking from the second half? not. are and we are the real question is do we see the consumer come back? does consumer spending fall? there was a feed over from december. was the wasn't week inventories and trade numbers. we saw the biggest change since 2013 from those, because what happened was companies bought stuff ahead of the trade wars and stockpiled it. we should see those subtraction growth in the second quarter, but we will see if the consumer comes back and offsets that. ♪

♪ if you come inside the bloomberg, this is the function that shows the oil curve. the green line is where we were a month ago. where we are now is the orange line. this is the reading we've seen over the last four weeks. how much higher we expect markets to be in the short term. >> about 30,000 functions are on the bloomberg. we love sharing our favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful. it leads you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. ♪ worst, beijing's air quality looks like this. was013, the air quality deemed unhealthy or hazardous for over half the year, peaking in beijing at 35 times the world

health organization's recommended limits. it was so bad that the premier atlared a war on pollution china's annual high-profile national people's congress. 2019,ears later, in march as the premier again opened the meetings, the smog outside was still 10 times worse than what the who defines as healthy. even as china cracks down on pollution like never before, the country remains one of the world's worst polluters. this is your bloomberg quick take on china's smog. u.s. is theok the world's biggest source of greenhouse gases in 2006, helping put the globe on a path targetsunited nations aimed at stemming the rise in the earth's temperature. >> the cheap power from coal, cheap factory production powered by coal, has helped china turned

into this economic giant, that has helped produce cheap goods for the rest of the world and help drive the world economy. so when the sense, chinese people are paying a tax and breathing this bad air for the benefit of consumers all over the world. more than estimates one million chinese die from dirty air in 2016. another study puts the tally even higher, at 4000 deaths per day. pollution is said to have been the main cause of social unrest in recent years, with social media helping to amplify complaints. on china's twitter like online platform, people blame factories for polluting the air, in the government for not doing enough. in february, 2015, a chinese investor and journalist publish a self-funded documentary about the country's air pollution problem. more than 100 million people watched before it was banned

from chinese video websites six days after its release. shortly after the president promised to publish polluters. the government spent billions tightening environmental regulations, scrapping coal-fired power plants, and switching millions of homes and businesses from coal to natural gas. >> the regulations and policies have worked. the state department monitors the air around the beijing embassy, and recordings show 2018 was the lowest level in a of 2017in the winter was one of the best as far as air quality goes. it is not perfect but it is much better than the 2013 pollution problem. >> china is now the world's biggest investor in green energy. it spent over $100 billion in 2018, which was 56% more than the u.s.

initiatives have included supporting the electric vehicle industry by providing subsidies for ev buyers and helping build out infrastructure that allows electric cars to drive in charge around cities. china,ales are huge in it's the biggest market in the world for electric vehicles. it is not just cars. electric buses are huge deal in china. >> china is betting big on solar energy as well. in 2019, over a third of the world solar panels are estimated to be installed in china. but the war on pollution promises to be a long one. decades of breakneck economic growth has turned china into the world's biggest carbon emitter, and it is still going to depend on coal for years to come. ♪ >> that's just one of the many quick takes you can 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's all for this week's "bloomberg best." thanks for watching. bloomber this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

♪ emily: i am emily chang in san francisco. this is "bloomberg technology." slack is going public through a direct listing. new details are out. why the company is taking this nontraditional route. plus, intel tumbles, the latest sign the rebound in semiconductor stocks may be over. we will hear from the ceo. amazon attempting to narrow its delivery window to one day for prime