rosalind: coming up on "bloomberg best," the stories that shaped the week in business around the world. alphabet and apple lead a parade of a-list companies reporting earnings. >> we are pleased with the underlying performance of our newest products. >> the financial returns are not yet where we need them to be. >> globally speaking, we are really in line with the market in these businesses. rosalind: the fed holds in its may meeting and patiently repeats its commitment to patience. >> they are in a wait and see mode, i think, for the forseeable future. rosalind: the bank of england meets as brexit talks continue, the u.s. and china hold another round of trade discussions, and investors digest the latest u.s. jobs report.

>> jay powell was right. >> low unemployment, strong growth, and virtually no inflation, so all those phillips curve models should be buried. rosalind: plus, expert perspective from eminent guests at the milken institute global conference. >> we are 10 years into an economic recovery, and at some point, there will be a recession. >> china has stimulated its economy like they said they would. >> economy is chugging along pretty well. policy is going to be relatively stable. rosalind: it's all straight ahead on "bloomberg best." ♪ rosalind: hello and welcome. i'm rosalind chin, and this is "bloomberg best," your review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. alphabet released its quarterly results after the bell on monday, following earnings from

facebook and amazon the week before. >> google's parent tumbled in late trade after first quarter revenue missed estimates and sparked concern advertisers are shifting spending to digital rivals. sales came in at $29.5 billion, missing wall street estimates of $30 billion. ad revenue did rise 15% from a year earlier, but still down from 2018. how would you characterize the threat of amazon in its digital advertising business? >> they addressed that in the call a little bit. google have said they see digital advertising as a big, green field, and it is true. they are well-positioned and seeing a lot of money moving offline to online. but 15% is a market slowdown. for years, they were known for being able to keep that number above 20% and rising. so that was, i think -- there was no clarity around the earnings call about what their plan is to address that concern.

caroline: apple shares rising in after hours trading. they are up nearly 5% on the company's second quarter earnings report, and the iphone maker continuing its transition to a services company, with revenue in the category reaching a high of $11.5 billion. still, the biggest revenue driver remains the iphone, which saw demand stabilize at $31 billion. >> the iphone business is still huge. every time apple introduces a new iphone, it is going to be one of the biggest products in the world. over the years, they have been very methodically adding these new revenue streams. so think about icloud, and then what was announced earlier this month, a magazine product, tv product, apple built this amazing ecosystem in ios, its operating system, and all these companies started building businesses on top of that. apple is slowly trying to get as big of a piece of that revenue as it can. david: trade talks in beijing wrapped up today, and treasury secretary mnuchin called them

productive. but back in washington, acting chief of staff mulvaney was sounding a somewhat different note. >> at some point in any negotiation, you realize ok, we are close to getting something done, so we are going to keep going. on the other hand, at some point you just throw your hands up and say, you know, this is never going to get anywhere. kevin: bottom line, in terms of the sources i'm talking with, is that both mick mulvaney, the president's chief of staff, and those trade folks are saying the same thing in terms of a timeline, we are going to get some type of answer within the next couple of weeks. white house press secretary sarah sanders, for her part, saying "the discussions remain focused toward making substantial progress on sarah sanders, for her part, structural issues and rebalancing the u.s.-china trade relationship." but sources telling the financial times trump is dropping the cyber theft demands in a bid for a swift trade deal with china. they characterize this as him softening his administration's opening position on what it originally characterised as "chinese government conducted, sponsored, and tolerated cyber intrusions into u.s. commercial networks."

scarlet: we are awaiting the third fed rate decision of 2019, followed, of course, by a news conference from chairman jay powell. officials expected to hold rates steady, but there has been a lot of criticism from president trump to make a cut. >> we think our policy stance is appropriate at the moment, and we don't see a strong case for moving in either direction. >> they are in a wait and see mode, i think, for the forseeable future. i would be surprised if there is much of a move in terms of policy perhaps for several months, unless you see a real change in how the economy is performing. >> i really saw him walk the tightrope there, because we saw the statement that underscored lower inflation, acknowledging inflation is below target. it is. it is something the fed has talked about, and then he walked it right back and said, yeah, it is low. we are worried about it, but we think it is transitory, and he laid out specific reasons why he thought it was transitory. the change in measurement on apparel prices, which could play out over the next couple of

months, and that is why they are not ready to do a preemptive cut on rates yet. caroline: s&p 500 coming off of its record highs to the tune of 3/4 a percentage point. a 22 point move. we had a significant move during the press conference. at one point, about a 30 point move on the s&p 500 throughout the day, but it really feels like the risk off mood caught the market. >> prime minister theresa may and her political rival, labour leader jeremy corbyn, are signaling they may be edging closer to a deal on brexit. theresa may is aiming to wrap up talks next week, either with an agreement or without one. meanwhile, it is super tuesday -- thursday for the bank of england with the rate decision, minutes, and the updated economic forecast, all due a little bit later on. does theresa may actually want to sign an agreement or get an agreement with labour? and is jeremy corbyn even willing to give her that? >> well, that is the question. may yesterday was grilled for a couple of hours by rather skeptical lawmakers. and she spent most of the session dodging questions about a customs union.

she was dropping increasingly obvious hints that she is actually prepared to move towards something that might not be called a customs union. it could be called something else. some new and imaginative terminology. the mood music, if you like, is getting louder, but there could be some kind of agreement between labour and conservatives. >> you had some interesting language coming out of the boe, less hawkish than the markets had thought. it is raising the growth forecast. >> based on the emp's conditioning presumption, the committee continues to judge an ongoing tightening of monetary policy at a gradual pace would be appropriate to return inflation sustainably to the 2% target at a conventional horizon. >> carney came out today and talked a tough game, but the market saw through it really quickly. >> you are absolutely right. he did talk a tough game. he signaled there is one more

hike maybe needed, maybe more, but they also cut inflation expectations. i do not think the fed is confident in their outlook, and that means i don't think many of the central banks are confident in their outlook either. david: there goes another fed pick. president trump announced stephen moore, his choice for the central bank, has withdrawn his name from the nomination process. this news came just a couple hours after moore told us here on bloomberg he was all in, despite the growing senate opposition. >> the situation today, i think is going to be different three months from now when i go before the senate and the banking committee and the full senate. i am not too concerned about this. david: this is to in that a row. -- this is two in a row. the same thing happened to herman cain. at some point, you have to say where is the vetting process? who is reviewing these things before they put names out? joe: in this case of fed nominees, it does not appear

there was much of a vetting process. look, we know with the judicial there was much of a vetting process. look, we know with the judicial nominees, there is a long list of consistent conservative believers that are presented before trump, and trump thinks it is very important politically to adhere to some of these names. it does not appear that is how it works at the fed at all. maybe you read something in the washington journal that he likes, sounds good. yeah, let's nominate him. >> there is a goldilocks jobs >> there is a goldilocks jobs report. 263,000 jobs added in the month of april. unemployment rate falls to a 49-month low. and wage growth is there, but not what we expected. so goldilocks scenario, equities continue their journey higher. >> jay powell was right. he said we should worry about the economy. he clearly said this is not overheating. exactly, this is not overheating. average hourly earnings, 3.2%. that is telling you that this economy is chugging along nicely. at the same rate, unemployment, 3.6%. goldilocks is the best description of this. >> you are getting blowout

numbers on jobs like today. 263 plus. you have blowout numbers in first-quarter gdp. you have a blowout number yesterday with year on year productivity, 2.4%. you know how important that is for the health of the economy, for wages, and for an absence of inflation. let me reiterate that point -- what we are seeing is low unemployment, 3.6%. i think somebody told me it was the best since the late 1960's. low unemployment, strong growth, and virtually no inflation. so all of those phillips curve models should be buried and we should look at a new world. people respond to incentives. that is exactly what is happening right now, and the economy is freer than it has been in 20 years plus. rosalind: still ahead, as we review the week on "bloomberg best," more on the federal reserve policy path from the cleveland fed president, plus, david solomon, steve schwarzman,

and others weigh in from the milken institute global conference. up next, highlights from a whirlwind week of earnings report. it's turnaround is starting to better. >> what we have done is made huge strides forward to re-secure any foundations. rosalind: this is bloomberg. ♪

roslinda: this is "bloomberg best." i'm rosalind chin. let's resume our roundup of the week's most interesting earnings reports. standard chartered is one of many european banks in the spotlight, and they had good news to share with investors. >> standard chartered is buying back ordinary shares for the first time in more than 20 years. the $1 billion purchase plan comes weeks after a settlement between the bank and u.s. regulators over repeated violations of sanctions. is this turning a corner?

how significant is this? >> i am not sure any business ever completely finishes any particular journey, so what we have done is made huge strides forward in terms of resecure in the foundations, getting the business back to growth. the financial returns are not yet where we need them to be, but this last quarter was further evidence that we are making progress down that route. >> santander, spain's biggest bank -- profits beat, and that is as the latin american units compensated for perhaps a more challenging environment in europe. net income came in a little lower. hit by a one-time charge of restructuring in the u.k. and poland. i've got italy coming out of recession, germany under pressure. how would you describe the spanish market to me? >> well, the banking environment in europe in general is challenging, despite which we continued to grow our revenues and we improved credit quality, and were able to cut costs.

ultimately, the market conditions in europe and specifically in spain are clearly weaker than in latin america. we have a very strong presence in high-growth markets in latin america, and that is what what compensated a bit of the weaker performance in europe. >> france's third biggest bank has reported a dip in fixed income sales amid continued trouble in its investment bank. this after announcing it for 500 million euros in cost savings and 1600 job cuts in february due to a slump in trading. >> if you look at globally at the industry, both this performance for the equity side is a bit better than average. the situation in the first quarter in terms of client demand was at the beginning of the quarter the same order of magnitude as last year, in low demand. at the end, we saw prices rise,

so the situation in terms of volatility remains low. that is not positive for those activities, but globally speaking, we are really in line with the markets and big businesses. and the biggest thing for me is that our equities business is less volatile than the average. which shows the resilience of our business model specifically in equity. >> bnp paribas bouncing back. a bid in fixed income, equities revenue slid more than analysts estimated. bearingixed income is the fruit of the changes we have applied. so we have digitalized, created a joint venture capital market to help people. help investors by bringing them together, and we have seen the fruits of that. when we look at equity, equity was a bit impacted by what we

saw in the market at the end of 2018. meaning that customers took some time to come back into the market, and there was a gradual pickup in the first quarter. and when you compare the first quarter with the gradual pickup towards a strong strong first quarter, that is the evolution you get. >> hsbc shares have jumped in hong kong after the bank delivered first quarter profits that comfortably beat analyst estimates. >> we managed to moderate cost growth. down to just over 3%. we are continuing to invest substantially. investment span was up 15% year on year. so it is not a full year. very good start and one quarter. very pleased with the course. >> danske bank says net interest income will be lower in 2019 than 2018.

that is as denmark's biggest bank reports first-quarter income below estimates, and the estonia money laundering case still requires considerable attention. you talk about net income being lower than 2018. what are we looking at, single-digit lower? put some kind of proportion around that for guidance. >> what we basically have said is we expected to be in the same range, given we had volume growth to offset the funding costs. what we are seeing with the danish rate mark being a little lower for longer, we will not get the benefit from that. also, we are seeing that the funding costs have significantly increased here in q1. so we are guiding lower, nonspecific numbers within that range. >> china's five biggest banks have all reported an increase in first-quarter profit, but bad loans are rising too, at the fastest paced since 2017. what can we glean from the

bank's report card? >> we have seen the slowdown in the chinese economy followed by stimulus. that is where we lead to the first quarter. that is having its impact on the big financial companies, namely these big state owned policy lenders, where they have been encouraged by authorities in the government to lend to risky or small to medium-sized enterprises in the private sector. that is being reflected in the nonperforming loans. icbc, the world's largest bank, saw nonperforming loans at $770 million. 5.2 billion yuan, the biggest quarterly increase in three years. this is something they are going to have to tackle down the road in provisioning. david: the pharmaceutical giant eli lilly reported this morning, whileg revenue estimates beating adjusted earnings per share. you are comparing apples to apples. what happened to your revenue growth? >> it was a busy quarter. on the one hand, we are

accelerating the growth of our newest products we have launched. at the same time, cialis, an old standby from lilly, has gone off patent in the u.s. that is a significant headwind. underlying growth for the business was 5%. if we don't include the rate headwind, 7% in volume. almost 5% of growth if you take out cialis. we are pleased with the newest product performance, which makes up about 40% of the company. we are on track to deliver on our midterm commitments, a 7.9 -- 7% compound operating sales growth by 2020, as well as our operating margin goals. >> qualcomm earnings earned a boost from its legal settlements with apple, but investors looked past that. a little disappointed seeing the headwind in china. i want to start with the headwind that is removed after

that payment from apple. $4.7 billion. how much of a headwind is removed given that this is behind us? >> this is a massive one. this is something investors, many of us just did believe was ever going to happen. they also were concerned that if qualcomm was able to achieve a settlement with apple, it would be on apple's terms and come at a considerable discount. that was not the case. apple is getting a similar deal to everybody else, and on a go forward basis, that is really what they wanted to happen, qualcomm. david: general motors is falling after a slight miss on revenue as vehicle sales declined. you beat nicely on earnings-per-share, quite a beat, although some of that, i understand, was a lyft investment. how much was lyft? >> we did $1.41 in eps, which was very much in line with our plan. that did include $.31 from lyft, as you pointed out.

it was a solid result for the quarter, and it sets us up really well for the rest of the year as we continue to expect to meet our guidance. ♪

rosalind: you are watching "bloomberg best." i'm rosalind chin. many of wall street's most powerful players gathered in beverly hills for the milken institute's global conference. and bloomberg television spoke with many of them about issues of interest to investors. erik schatzker sat down with goldman sachs chief executive david solomon, who shared his perspective on the state of the markets and the economy. >> i think throughout the quarter, activity levels improved. we had a little bit of a speed bump in the fourth quarter, risk off. the government shutdown, i

think, contributed to the environment at the beginning of the year. but the underlying economy, particularly in the u.s., has continued to play well. as we moved through the quarter, i think you saw a move back into risk assets. markets have performed well. as you get around the world, the stimulus in china has helped see a little bit of improvement in china. i was in china couple weeks ago. europe, japan lagging a little bit, but the overall package, especially with the pivot central banks made coming out of the end of the year and into the first quarter has been quite constructive for risk assets, and client activity has improved. it is certainly at a pretty nice level at this point. erik: how do you think that pivot and the results it has had in financial markets will affect or influence the way central bankers about policy going forward, for the rest of the year and into 2020? david: i think the policymakers have been clear with their communication in respect to how policy looks throughout the year

and into 2020. erik: but you could make the case that back in october, jay powell might have screwed up a little. david: i think the chairman is doing a very, very good job. i think it is a difficult job. as you look forward, it doesn't look like a lot of policy activity as we head through the rest of the year into 2020. i say right now, the economy is chugging along pretty well and policy will be relatively stable. erik: one of the places you see the impact of stable policy is the credit market. how would you describe the state of the credit market today, david? david: the credit markets are constructive. erik: money is pretty easy. david: money is pretty easy. but when you look at the big bang, the participation of the big credit markets, i don't think there has been a move in credit standards. what you are leading to a little bit is when you get out of the regulated institutions and into some of the shadow banking market, there has been a lot of capital that moves in that direction and less transparency

around that activity, so it is hard to see, but i would say that is an area to watch. erik: do you think it is a problem? david: i do not think it is systemic at the moment, but it is something to watch. when you think about that space, some of the capital is longer dated capital, so it is not money that can run away very quickly. but as those shadow credit markets grow, that will be something to watch and monitor. something to watch and monitor. look, the regulatory environment has pushed more credit lending in that direction, and that is something i think we should spend time focusing on. rosalind: david solomon praised jerome powell and the federal reserve in that conversation with erik schatzker. coming up, michael mckee talks monetary policy with the cleveland fed president. plus, more conversations from rosalind:

the milken institute global conference, so the bells does not think capitalism is broken, but says there are problems the u.s. still needs to fix. >> we are going to make mistakes u.s. still needs to fix. >> we are going to make mistakes in this country. the key is how well we deploy our resources to address our mistakes. rosalind: this is bloomberg. alright boys, time for bed.

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rosalind: welcome back to "bloomberg best." i'm rosalind chin. now, let's revisit more of bloomberg television's conversations from the 2019 milken institute global conference, starting with jason kelly's interview with the blackstone chairman and ceo, steve schwarzman. jason: what is your one big takeaway from china right now? you have invested there and done a lot of philanthropy there, what is the thing people are missing about china? steve: china has stimulated its economy like they said they would when the tariffs when in. i was there three or four weeks ago. the people at the central tank were telling me that it works very nicely, and now you are seeing the result of that, which

is surprise. certain commentators say china's economy looks pretty solid now, in the sixes, 6% growth. i think that would have surprised some other people. did not particularly surprise me. they had the ability in china to really force money into their system, to create growth. they are doing it, and it has been successful. jason: and are you putting more money into china at this point as blackstone or investing more heavily? steve: we just bought a company there. i think china is a harder place to invest for outsiders. you always have to be prudent and thoughtful when you invest. we are looking in the real estate area as well. and it all depends on what happens and what values are.

>> the fundamentals are not improving. but they are not deteriorating as quickly as we might have been worried a few months ago. i think there is some specific situations where we ought to be concerned. france, since november, has been going through a very difficult time with the yellow vests. most market sentiment of concern and questions of where we are going. and of course brexit, which is a never-ending story of brexit or no brexit, which has significant consequences on market confidence. erik: does the yellow vests movement pose a risk, direct or indirect, to your business? virginie: yes, direct. blocking access to inventory, food delivery, destroying

boutiques. but i think most fundamentally, if you leave that aside for a second, which is an issue, but it is how and why it started, a genuine movement all about purchasing power. we have been sort of a gray zone for many years. with a clear loss of purchasing power from some households, that is a major concern. that is how the yellow vests movement started. >> for most of our businesses globally and in the united states, everything feels pretty good. there is no signs in front of us that we will have a recession but no one should forget that we are 10 years into an economic recovery, and at some point there will be a recession. >> what worries you the most in

2019? what are you seeing as any warning signs? bruce: we don't see big issues in the economy out there. clearly, valuations were higher than they were 10 years ago, seven years ago, five years ago, three years ago, one year ago, in the stock market and interest rates look like they are going up, but they do not look like they are going up at current times. those are the things out there that could disrupt the markets. when it happens, how it happens, that and political issues. but when we are investing into long businesses, you generally don't -- as long as you pick good countries, you do not get too concerned with short-term. >> i am a big fan of free trade but it needs to be fair trade. the u.s. has got to have terms of trade around the world that our trading counterparts enjoy. we know this has been very good for the country as a whole,

but it has devastated one town employers where the employer has shut down. and we did not think enough about job reeducation or helping people to move to other communities that would be adversely impacted by free trade. we just didn't focus on this enough. so unfortunately, through history, we will make mistakes for the country. the key is how well do we deploy our resources to address our mistakes? >> what do we do with some of those communities where people have been left behind by the unfair terms of global trade? ken: you try to create tax incentives to bring new employers to the region. if you are successful with that, then that is a win. if you are not, then you are going to have to encourage people to relocate elsewhere. my family through its history moved across the united states in pursuit of jobs, pursuit of opportunities. there is nothing wrong with having to make those changes in

our country, increasing geographical mobility increases the flexibility of our workforce and opens more doors. erik: that is a pretty harsh message for those people in western pennsylvania or indiana, or, you know, in parts of ohio, for example, kentucky, west virginia. it is a really tough message. ken: but i think it is important that we start having an honest conversation within the halls of washington about what we need to do to improve our country. rosalind: the fomc left its main interest rate unchanged this week. fed chairman jerome powell continues to emphasize patience and grappling with conflicting currents in the u.s. economy. on friday, michael mckee spoke with the cleveland fed president and got more insight into the central bank's outlook.

>> i think our interest rate is a neutral rate, in the range of neutral, that is the place for it to be. it is calibrated to where the economy is and we will watch the data and assess conditions going forward. so i think we are in a really good spot in terms of our monetary policy, and yes, inflation is a bit soft, but labor markets are strong and we take a balanced approach and are in a good spot to wait and let the economy tell us how it is doing. michael: has your view of how you generate inflation or the dangers of low unemployment changed as time has gone on? loretta: i have over time lowered my star estimate, those are estimated and the longer we go on with the strength in the labor market, not generating as much inflation pressures as in the past, the more you recalibrate your estimate. but i would not say my process has changed. i still think inflation

expectations being anchored is very important for determining where inflation will go in the future, so that is what i am watching as well. not just the slack in the labor market, but are inflation expectations anchored and what that means for inflation going forward. ♪

rosalind: this is "bloomberg best." i'm rosalind chin. let's continue our global tour of the week's top business headlines in spain, with the incumbent prime minister surviving a snap election.

>> the spanish prime minister will return after the nation's third election in four years. with his left-leaning allies, the socialist leader is close to majority. >> it was a comeback for him. we have seen this time and time again in this political career in spain. can he form a government? he has two paths he could take. one would be to the markets something stable and investors would want to cheer for this, but the problem is, the leader had campaigned on the fact he would not do a deal with sanchez. the second and more likely possible scenario for a government is him teaming up with the antiestablishment party. on top of that, they would not have enough votes, they would have to have a hodgepodge of other regional parties, which would mean reaching out to catalonian nationalists. one thing that you know is we have the european union elections at the end of may, so we will not see a government take shape here for at least a

month. >> china's official manufacturing pmi slipped in april, barely making it above the 50 line. the data is signaling that the economic stabilization seen in the first quarter is still fragile. the factory gauge is still expanding, but at a much lower pace from the chart here in march. it does look like the optimistic, the green shoot we saw last month is starting to wilt. >> i believe that the green shoots will remain, and if there are signs they are fading, they will be reinvigorated because clearly, the number one policy in china is for the chinese communist party to remain in power and maintain social cohesion. the support, fiscal and stimulus support, it is important and i believe it will be successful. david: big news in big oil this morning.

the anadarko board has decided that they will have a conversation with occidental about their bid. they will keep the deal with chevron, but it might be that the other bid is more attractive. what is going on? >> i think the $1 billion breakup fee they are talking about with chevron might also be affecting them there. it is interesting to keep in mind that the occidental ceo said they had made three offers in the past which anadarko has just said no to. it seems like they would be a better fit with the bigger giant that is coming with this offer, even though financially and in terms of cash investors are getting, the occidental offer is superior. >> warren buffett throwing a curveball, looking into that oil merger fight, occidental, chevron, anadarko, berkshire hathaway investing $10 billion in the occidental side of the equation. i thought they had the financing lined up and they told us they had the financing lined up. does this pour some cold water

on that? >> that is what everyone was saying. we thought this was in the bag, this will be more expensive. there is a little bit of surprise there, but to the extent that the anadarko board is considering whether the occidental bid is superior to chevron's, will push them to say ok, we do need to move forward with something with occidental. chevron will have four days to come back and counteroffer. >> bayer's board is standing by the ceo after an unprecedented shareholder rebuke. 55% of investors voted to remove them over a takeover of monsanto which has given rise to a wave of u.s. lawsuits. they also demanded answers over the company's market cap, which has swooned by some 35 billion euros since the monsanto deal completed last june. >> it was a rocky board meeting that went on for 13 hours, and investors eventually voted against the ceo. that is pretty unprecedented

here in germany, when the supervisory board had an meeting -- had an emergency meeting and they really had to do something. they came out in support of the ceo but ultimately we will have to see where the board goes. investors are telling us they want a strategy review, they want them to look more closely at these demands they have, one of them being a potential split up of the company. that is something bayer said they do not want to do or intend to do. >> edward bramson's attempt to get a seat on the board of barclays, did not go well. 87.21% of the shareholders voted against the bramson revolution. is this a confirmation of jes staley's strategy or a sense of, well, we will give the new chairman a little bit more time, therefore edward will have to wait? >> he said the main institutional investors must be willing to give more trust to the new chairman.

to see how it goes in the next few quarters, and then they will decide what to do with the state they have in barclays. so the strategy is changing and now there is new management and a new chairman that is taking over today from the previous one. so yeah, the next few quarters will be very important for the bank. >> boeing is holding its annual meeting today with the recent 737 max 8 accidents taking center stage at the conference. >> we are making progress on the path to certification having completed the engineering test flight of the software and the final technical flight test prior to the certification. >> the ceo there, of course, doing the best job that he knows how to reiterate safety and talking about the software update, while not saying anything about how the original software was flawed by any means, so sort of tiptoeing that line. i think overall, the concern is we're not getting any new information. it is interesting -- there was a

question from one of the shareholders, why haven't you stepped down, given you betrayed the trust of the public and the shareholders? he said our focus is on safety at this point, and really sort of dodging hardball questions. >> the day after the boeing agm, airbus came out and smashed estimates in quarter one. their narrow body of numbers compete with the 737 is back on track and they delivered 126 of them. can airbus take advantage of the problems boeing is having with the 737? >> the problem is the max has been sold out. its production line is full for the next few years, which makes it difficult for airbus to capitalize, because they do not have the space to offer new aircraft. the big question is, maybe with enough pressure from customers, customers who are interested in looking in a potential replacement for the max, whether it could be enough for airbus to increase their production rates

sooner than planned. >> tesla shares rallying on the electric carmaker's plan to raise $2 billion in debt and stock. are these numbers pretty much in line with what everyone was expecting? >> yes, that's right. first, he absolutely strongly hinted this in the first quarter earnings call, when he said it might make some sense. i think what he meant was it makes a lot of sense, and here we are, with $2 billion in capital raised, i think the mix of stock and cash is probably welcome news for investors. but this is something tesla needs -- they have a debt payment due in november and they are trying to get production up and running in china, and they want to do some things in europe and work on the model y, the small crossover suv which will be very important for the brand. so they have cash needs and the cash burn has not been terrific of late. so i think investors are just happy there is clarity and they know what the plan is now.

>> bloomberg has learned the telecom giant vodafone found security flaws in huawei equipment. as long as a decade ago. an initial report from 2009 found 26 bugs in huawei routers, which could have given the chinese company access to sensitive user data. vodafone begin a deeper probe in 2011 and later found back doors were present in the italian fixed access network. >> way back in 2009, when huawei was trying to expand in europe, it landed this big contract with vodafone to supply home internet routers. right away vodafone had problems with these routers and found vulnerabilities, including back doors, that would have given unauthorized access to the customer's home internet environment, computers, and potentially the wider vodafone network. according to the documents, vodafone confronted huawei and asked them to remove the backdoors. huawei agreed to remove them, but vodafone found with further

testing they were not removed. >> a blockbuster weekend at the box office with "avengers: endgame" setting new records, earning $1.2 billion, the first film to make a billion dollars in just three days. it took $330 million in china, setting records there and domestically in the u.s. what is behind these mega-numbers? $1.2 billion. we have never seen anything like it. >> this is the end of a 22-movie franchise disney has been building up over a decade and the expectations behind it, they created compelling characters, ironman, captain america, the incredible hulk, and that will be the last of this franchise. i would be surprised if we did it -- if we did not see more marvel films in the future, and disney has a "star wars" film later this year. so a lot coming for disney. a good time for bob iger, the

ceo. >> commodities are in the red today. oil falling as much as 4.2% to a one-month low. is this a supply issue or more of a demand issue? >> what we saw today was rather interesting. at one point the oil prices were down and the u.s. benchmark was down more than 4%, which if it held, would have been the biggest drop this year. the trump administration has continually said the u.s. will help offset the end of the iran sanctions waivers, and now today we are seeing the effects of what is happening in terms of

this is rrg, this is relative location grass, and you have the relative location graphs, and you have the 10 industry groups and it shows you rotation from sector to sector, which sectors are leaving the rallies.

rosalind: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe you will find a favorite. this function will take you to our quick takes where you can get context and insight into timely topics. here is a quick take from this week. >> decades in the making, quantum computing is the technology that could make today's fastest supercomputer look like an abacus. teams around the world race to build machines with different approaches and while the technology is moving quickly towards reality, it is still too soon to tell when it will get there. this is your bloomberg quick take on quantum computing. the computer you are using now processes information in bits that can represent two-state states, one or zero. quantum computers use quantum bits, or qbits, which can represent one or zero or both at the same time. this is called superposition, they can exhibit entanglement, a state in which a change to one changes the state of another and these properties let quantum computers consider multiple possibilities at once, while a normal computer plugs away at one possible answer at a time.

>> so if we actually figure out how to do these kinds of calculations, we can suddenly solve complex and unfathomably long calculations with a quantum computer that would take a traditional computer, no matter how good it is and no matter how fast it is, thousands of years, potentially. >> there is a lot of hype around quantum computers and researchers continue to make incremental advances. they promise machines that can break the most impenetrable coded messages, more accurately predict weather patterns, and diagnose and treat disease based on a specific patient's body, but there is a ways to go. >> it is difficult to make a physical computer, the hardware for these kinds of things. a lot of the research is in material science, figuring out what is the best hardware to use, and there are a few different options when you talk about a quantum computer. you don't just talk about traditional silicone chips in normal computers. >> manufacturers use tiny loops of superconducting wire or semiconductors, combinations of both, or stranger approaches,

like twisting subatomic particles into a braid and many qubits can only exist under temperatures colder than deep space. a canadian company became the first to sell quantum computers in 2011, although their usefulness is limited to certain kinds of math problems. ibm, google, intel, have all built working quantum computers and microsoft is investing heavily, while china is throwing hundreds of millions of dollars into the technology. >> anyone who knows the promise of the technology can't help but get excited about it, and even if it is many years away and it never works out the way theoretically it could, this is still something people think is worth spending a lot of money on. rosalind: that was just one of the many quick takes you can find on the bloomberg, also you can 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, thank you for watching. i'm rosalind chin. this is bloomberg. ♪