♪ >> coming up, the stories that shaped the week in business around the world. trade tensions take center stage as tariffs escalate. >> they are trying to do it in a way that says tit for tat. >> it speaks to how deep the gulf is becoming between the countries. >> it's impossible to trade and invest on the back of what trump says. >> data from china shows economy losing steam. conflict the rep in the middle east. >> tensions are rising in the region. >> earnings reports add details

to the global picture. >> a very good set of results. >> the company was at rock-bottom. >> investors assess the risks of rising uncertainty. >> it's getting difficult to find good yields in these markets. >> markets can't tell whether we are near a solution or whether there's an impasse. >> the u.s. and europe have trade issues to iron out. >> something quick, easy, mutually beneficial. >> it's all straight ahead on "bloomberg best." ♪ abigail: this is your weekly review of the most important business news, analysis, and interviews from bloomberg

television around the world. let's start with the daybreak a look at the top headlines. markets raonic is the week began with investors wondering how china would retaliate to the u.s. escalation of tariffs the previous friday. it wasn't long before they found out. >> china is striking back. tariffs on some u.s. goods starting june 1. president trump warned china that retaliating would only make matters worse. he also tweeted that china had a great deal and backed out. >> they are talking about raising tariffs, some going to 25%. others going up 10%. they are trying to do it in a way that says, tit-for-tat. we are not going to beyond what the u.s. has done, but we are not going to do nothing. we were talking a year ago about a trade war. that was nothing. this is the real thing starting to happen now. >> we are hearing from inside the negotiating room. for people close to the negotiations, there's been a breakdown of trust on both sides. that is what is leading to the escalation here.

that is why we don't have a deal. that's why we don't have any further talk scheduled. that's why things are going to get uglier from here. >> we are down 2.4% in the s&p 500. we have not seen this in september. nasdaq hasn't seen this kind of day since december 4. >> this is something that everybody has dreaded. it has finally hit the market that this is a real issue for the economy going forward. >> the u.s. is raising new tariffs against china even as president trump says he will meet the chinese president next month at the g20 summit. they have released a list of $300 billion in products to be task -- tax. what happened? is it a miscommunication from the trump administration? how can economists and markets make sure this doesn't happen again? >> it's impossible to trade and

invest on the back of what trump says. he's a talk show host. it's a path that you don't really know. as an economist, the path is not a good one. it is about trade tensions. >> the president within the last hour tweeting, china will be pumping money into their system and probably reducing interest rates is always in order to make up for the business they are in will be losing. if the federal reserve did a match, it would be game over, we win. in any event, china wants a deal. that is uncertain, particularly when i talked to sources in the business community here. they say that china could be just playing a long game. trump tweeting, the u.s. is going to be able to outlast the chinese because we have a bigger economy and the damage to their economy will be greater than to

the united states. he's right about the fact that the u.s. has a better -- bigger economy. the damage to the u.s. economy will be less of a percentage of gdp. china is also trying to fight its own slow down and has been lowering rates. they haven't done anything in response to the trade war lately. the u.s. economy at this point seems to be in a sweet spot. >> china's economy moving down a gear in april after that rebound we saw in march. even before president trump's latest tariff increase. policymakers respond. what are the key takeaways? >> graham data for the month of april. the number we saw in april year on year, 6.1%. that was down from 6.3%. industrial production, this will be in focus in terms of the trade tensions. the number came in at 5.4%, well below 8.5%. retail sales, very disappointing in terms of the growth there. we saw 7.2%, the weakest growth for retail sales in china since

2003. 7.2%, down from 8.7%. >> if you look through the key metrics, you see government spending in driving investment more so than the private sector. more broader weakness than was initially anticipated. this was during the trade trees. it was ahead of last week's resumption of the trade war. the feeling among economists is that the challenges will only get greater from here. >> president trump plans to lay imposing auto tariffs on europe in six months. is the impression that this is delaying the inevitable? is this indicating that those tariffs won't ultimately be imposed? that is what the market is trying to figure out right now. >> you are right. that is the big question we are looking at right now.

an important thing to keep in mind, even when the section 230 q investigation was first announced, the markets and analysts understood that this isn't just a natural thing that's going to lead to tariffs. it's also the opening salvo in negotiations. this is a way to bring everyone to the table. whether tariffs will come, it's up in the air. at least now that six-month approval will put a lot of people into the second camp you mentioned. they will say, maybe these tariffs won't come after all. >> what a comeback it has been since this morning think to a couple of reports that the president is not going to rush to employers -- impose auto tariffs. >> it seems to be working well. >> people are thinking this could be the start of durable. people are anxious and jittery. no one has declared this as clear. no one thinks this is the start of anything. nobody is willing to put faith in that. >> in the last hour, we've

reported that the trump administration has some caveats on that pause in tariffs. that is simply that it is going to order in negotiation over the next 180 days with the aim of getting the eu and japan to limit their exports of autos to the united states. that is likely to deflate a little bit of the good news around the delay we are expecting on auto tariffs. >> the united states took action yesterday that could stymie the growth of telecom companies in the united states. the chinese government condemned the move. is this about something more fundamental? at least on the u.s. side.

>> in fact, china has pushed back against that very point. they say they don't accept what is being framed on the ground of national security interest. they don't accept the idea that export controls. they said that they will resolutely defend their companies and the object two countries unilaterally abusing their law to apply sanctions. there's not much of a middle ground when it comes to this issue. it does speak to how deep the gulf is becoming between both countries. >> this feels really political rather than economic. it feels really political rather than security orientated. >> we don't know what the security implications are. the ministration has said that huawei is a potential threat because they can use backdoors to spy on americans. the administration is not explaining what the threat is or how that information is derived. it does feel more political. the chinese seem to be taking it that way. >> we think there is a significant danger to national

security and to our foreign policy of the existing situation. if there becomes a different situation, obviously we would be fact-based. i don't mean to imply that this is intended as the beginning of a negotiation. >> you have the dow, the s&p, nasdaq in rally road. the rebound extending to a third day. >> monday was brutal. we spent the rest of the week since then raising money. >> in the u.k. now, labour party leader jeremy corbyn says compromise brexit talks are over. negotiations with theresa may's conservative party have gone as far as they can. may hoped to reach a deal that would ensure passage in parliament.

lawmakers already rejected her brexit agreement three times. >> if there was any hope at all that may might just squeak her brexit deal through parliament next month, there wasn't very much, those hopes are now killed off by corbyn walking away. now we are focusing on the leadership race. as of early next month, theresa may will step out. over the summer, we will have a leadership race in which the candidates will be setting out what kind of brexit they want. right now, the options for brexit are blown wide open. perhaps you are looking at a general election down the line. >> china overnight sent word that it is under no pressure to come to the trade negotiated table with united states. there's a sense in the markets right now, they are getting used to the idea that this is not going to get resolved soon. is that the sense in washington? both sides settling down to it -- for a long slog.

>> there's a sense that a deal is not anywhere close. if the two leaders do meet at the g20 in the end of june, the best we can hope for is another truth -- present big talks. big news. just announced, an agreement between the u.s. and canada and mexico to lift steel and aluminum tariffs. in return, those neighbors will lift their retaliatory tariffs which have had a lot of american farmers hard. also agreeing to withdraw their challenge to the united states steel and aluminum tariffs at the world trade organization. that's a real dialing down on the more -- north american front. abigail: still ahead as we review the week, an exclusive conversation with john williams from the new york fed. >> the tariffs is like a negative supply talk -- shop. abigail: the ceo of unicredit

explains by -- why european bank consolidation is a challenge. highlights from another whirlwind week. this is a more demanding environment. abigail: this is bloomberg. ♪

♪ abigail: this is "bloomberg best." earnings were in focus for investors this week with chinese tech giants tencent in alibaba among the companies in the spotlight. >> earnings, alibaba and tencent, appeared to be holding up the site -- despite the trade

tensions. there are concerns. what are the key takeaways? >> for the most part, the bottom line for both companies, we are good. there are concerns at tencent. let's look at alibaba first. sales topping estimates. rose to 13.6 billion u.s. dollars, nearly 2% above the estimate. what they have done domestically is overhauled their traditional search to include shopping recommendations based on user preferences. it expects sales in the 2019 fiscal year to jump at least 33%. 2019 was a blip for tencent. they had a big drag because of the government moratoriums on new gain issuances. that really is their main profit driver, gaming.

net income was better than expected. 17% rise. many investors zeroing in on the disappointing 60% rise in revenue which was the slowest pace on record. >> is first loss since going public in 2005. the search company is grappling with rising cost and slowing sales and weakening economy. >> the search engine business -- trying to migrate to the new development, new businesses have proved more challenging. when you talk about all the artificial intelligence, we have been extremely vocal as management. it is not generic in the return. the revenue that was expected, there's nothing wrong with changing. we have to share more with other segments. we have not been able to make some position into those other segments. >> walmart earnings out this morning. sales rose 3.4%. the best first-quarter in nine

years. it was a good set of results. earnings per share be by 11%. margins were in line. investors were focusing on the net expectations here in the u.s.. more than 50% of revenue is sourced in the u.s.. the other side of things is general merchandise. a lot of that comes from china. there is a concern there. the cfo did say today, increased tariffs mean increased prices. >> nissan forecast annual operating profits, low even the most pessimistic estimates. >> today, the ceo told us that the company was at rock-bottom at seeing those results today. they are having to address a range of operational issues. their model lineup is quite still, quite old. a number of models are unsellable.

they have been chasing market share by using discounts. these are the types of things they need to address in the next two or three years going forward. >> we've got the abn numbers. they posted worse than expected, 20% decline in first-quarter profit. negative interest rates in europe. brexit preparations weigh on income. that's lower than the average estimate. take me behind the numbers and describe the quarter to me. >> we are making good progress on our strategy in a more demanding environment. you highlighted profits down 20% from q1 last year. q1 was really a very strong quarter for private equity gains in our business. if you look through all that and the levees we played in q1, our return equity is around 10%. that's an hour range of 10-30%. lastly, our capital remains strong. we are feeling strong lid and

executing well in this more demanding environment. >> the giant investment business saw assets grow to a record. they added 18 billion euros in the first quarter, reversing outflows at the end of last year. uris -- it has been seeking to revise growth by exploring deals. it is pushing into growth markets in asia were it trailed many of its european rivals. what is your outlook for inflows versus outflows? >> what we are seeing right now is also positive developments. in the last six weeks, we had 10 billion of additional inflows. for the time being, we remain positive on the developments. the core asset is really the strength of the performance to the customer. as long as the performance is going to be so strong, we are counting that the inflows are going to remain strong and healthy. >> german -- the drugmaker said sales will grow by up to 5% this year.

first-quarter sales numbers rose in line with analyst expectations. how far ahead of the other parts of the businesses is the life science story for you? what is so exciting about life sciences? >> we have a very good market dynamic in life science. it is fueled by strong demand and anti-bodies and the biologics market. the volumes are growing. asia shows a lot of dynamics, especially china. overall, we can see almost no weak signals in the life sign -- science markets. this is true for asia and all other markets. >> cisco is out with bullish sales and profit forecast for

the current period. concern over global growth. >> the new tariffs that were announced and activated are now in the guidance for this year, right? >> that's correct. >> the prospect of even more tariffs, how you factor that in? >> if we moved to the next wave, there's a lot of discussion out there from experts who are much smarter than i. what would the impact be? it would be clearly across multiple industries. the way we would deal with it, we will execute the way we know how to execute. if they begin to become more of a reality, our teams will continue to work on mitigation strategies to do the best we can. >> nvidia beating some of the estimates. a pretty low bar for investors. they are cheered on by what appears to be a work through of some of those inventory issues

that have plagued the company before. it seems like a relatively encouraging sign. >> it's a big site of relief for investors were looking for nvidia to return to its old paradigm. we seem to be working through inventory. it was an in-line quarter with earnings leverage. solid, good, big sigh of relief. that's how i would phrase it. ♪

♪ abigail: welcome back to "bloomberg best." how is the federal reserve factoring in trade tensions into its projections for the u.s. economy? this week in zurich, the fed president addressed this issue in an exclusive conversation with bloomberg. >> i do think of the tariffs as a way, it's a negative supply

shock. it has a various effect on the economy. it affects inflation. it will boost inflation over the next year. it affects demand and growth in the short run. it also has negative effects on the value chains in our economic system. thinking about that question, we just have to keep assessing, evaluating, what are we learning from the data? also the broader set of developments we're seeing. i don't think there's any specific point. it is just assessing where we are in inflation in terms of our goals, if we need to get inflation back to 2% and keep it there. at the same time, making sure we can sustain the economic expansion as long as possible. we need to assess and evaluate. >> how big a boost in inflation -- back of the envelope, we can't be sure. how much could this boost u.s. inflation this year? >> it's hard to know. based on the research that has

happened, they have been looking at this. we can get 2/10 on the inflation rate over the next year based on what has already been announced. if there were further escalations in terms of tariffs, those effects will get larger. you are making the right point. this starts affecting consumer prices as tariffs are applied more broadly and consumers start seeing it in terms of prices they are paying at stores. that is a significant effect. it will be part of our analysis in watching how the economy is doing. abigail: coming up on bloomberg best, more compelling conversations about trade. the u.s. china dispute will have a big effect on emerging markets. the eu trade commissioner says if trump imposes auto tariffs, europe is ready to respond. consolidation makes financial sense but for -- hurdles to abound. this is bloomberg.

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>> this is "bloomberg best." trade concerns dominated discussion on bloomberg television this week, with guests approaching the topic from every angle here's a sampling of the conversation, starting with mark mobius, who was asked where investors should look for yield at a risk off moment in the market. >> at the end of the day, it's the emerging market space, where we have yields and it is in those most risky countries, whether it be turkey or argentina, that is where you are going to get yields. but unfortunately it's also allied with a lot of risk. -- aligned with a lot of risk. it is getting hard to find good

yields. >> it seems like in southeast asia, if you have china data rolling over, how do you buy southeast asia? >> exactly. if you look at the trade in asia generally, the biggest trading partner for most of those countries is china. if china is going to be importing less, all of these countries will be hit. we have to be very cautious in looking at each and every country and their companies to see whether they will be affected by the situation in china. >> give us a sense of the timeframe you think about when you are investing, in particular when it comes to the china-u.s. trade dispute. when it goes on indefinitely, are there opportunities in southeast asian countries where there could be supply chains that are altered? >> we are looking at places like vietnam, like bangladesh, where a lot of the chinese manufacturers are moving their productions.

you get a very interesting situation where, ok, exports of low-cost goods from china to the u.s. are going down because of the tariffs, but that is being moved to these lower-cost countries. >> what is the u.s. trying to signal to china? >> i think the problem, vonnie, is that we can't tell. that may be a negotiating tactic. sometimes it is smart not to signal where you want to end up. but i think we are in a situation in which there's multiple agendas, so we have what i call a decoupling, people decoupling from china. the national security issues are probably similar in directionality. then there's a rather large group of people, a bipartisan group, that once the playing wants the playing field to be level. the trump administration negotiating team, as far as i

can tell, they haven't signaled what they put on the agenda. they can't tell whether we are near a solution, whether there's an impasse, or someone. -- or so on. lonnie: -- >> would you say that signaling has broken down at this point, and if so, what do you do to restore that? >> well, part of the answer is you wait. the betting odds are still probably correctly saying there is a bunch of difficult issues but they will get to an agreement, it will be better than what we've got now. but it is a breakdown of signaling. the only qualification to that is that the people who do bargaining theories say sometimes it's a good idea not to tell the other side where you want to end up, and i think president trump is probably good at that aspect of negotiating. >> in may of 1930, 1000

economists wrote an open letter to a president hoover, urging him to veto what now we know is the smoot-hawley tariffs. the president claimed he knew more than experts and ignored the overwhelming preponderance of advice he was getting, signed the law into place, and made a garden-variety depression into a great depression. there's a lot to be learned from history, and we are in danger of repeating the same mistakes we made back then by a president who refuses to listen to any -- expert opinion. >> do you see any study, anything in your studies, that the legislative branch can nudge a well-meaning president away from elizabeth the first economics? >> look, the congress right now is in the rare agreement of

bipartisan support to bash china. republicans and democrats alike are applauding the president, and they don't agree on almost any other issue that's on the legislative agenda right now other than to blame china for the problems, in large part, in the u.s. that are of our own making. >> unicredit ceo jean-pierre moose ta sat down with bloomberg to discuss the challenges facing european banks. he told francine lacqua that mergers might make sense for the sector, but it is unlikely that many will happen. >> mergers in europe would be very difficult to put together, because there's a lot of things which need to be followed. first, they need to be controlled, execution, risk, and governance need to be appropriate.

there will not be many measures in the foreseeable future. >> domestically and cross-border? >> domestically and cross-border, yes. >> where does that leave the banking landscape if you don't have much m&a? because of rates, because of a lot of the banks not having a clear plan of what the tenures will be like, it will be tough. -- they will become in 10 years, it will be tough. >> it is interesting to be a european bank. you mentioned negative interest rates, which are a consequence of low growth. that being said, european banks can reach decent profitability by going slightly at the speed of european growth, transforming their activities in their networks and managing risk properties. we will have decent growth, probably lower than what we see in the u.s., but the banking sector in europe is very interesting. >> staying with europe,

president trump has signaled he will delay imposing tariffs on autos, but the long-term trade forecast remains cloudy. earlier in the week, the eu trade commissioner spoke exclusively with bloomberg and said if the u.s. eventually announces tariffs, europe is ready to retaliate. >> we would have to. we are already preparing a list of possible items that will be on that list. the moment it is official, if it happens, i still hope we won't, we will publish that list and do the final consultations. it will happen quite rapidly. >> one of the things that the u.s. administration always says is they want to focus on the big agriculture deal between the eu and u.s.. your mandate makes it clear that it should be indoctrinated. how do you square that when they are saying they will only have a mandate for limited sectors? >> the easiest way to square that is to do what we decided to

do in july of last year, a limited but still meaningful trade agreement on industrial goods. we also discussed some regulatory reform, making it easier for companies to get their products qualified on each other's markets, and that could be done very quickly if we decide to do so, and that builds trust, and then who knows what happens in the future? that is what we have a mandate to do. it does not include public procurement by america, the jones act, which would be difficult for the u.s. something quite easy and mutually beneficial. ♪

>> you are watching "bloomberg best." let's resume our global tour of the week's top business stories with more geopolitical

turbulence rattling the middle east and disrupting oil markets. >> saudi arabia says two of its oil tankers were attacked while sailing toward the persian gulf. the kingdom's state run news agency says they were damaged as they were approaching the strait. this adds to reason -- regional tensions. but no one has claimed responsibility for the incident. do we have any idea of who is behind the attacks? >> we don't yet have any idea who's behind the attacks. some uae officials are coming out and saying they have their suspicions, and there is federal investigation going on into the attacks. the idea is that something with iran, versus saudi arabia or the uae, but we don't have any evidence of that. we often see low-level incidents, the geopolitical risk for the region. we are seeing it filter through into oil, which is up, and regional stocks, which are down.

>> saudi arabia shut its main pipeline after pump stations were damaged. >> tensions are certainly rising in the region, and these attacks we saw today are contributing. what exactly happened was that the saudis have said that explosive drones flew into their airspace and attacked two pumping stations on the main pipeline that carries crude oil, up to 5 million barrels per day, allowing them to export from both coasts. they had to shut down the pipeline, in saudi arabia was quick to blame iran. >> crude prices have dropped as an industry report points to a jump in u.s. stockpiles, countering supply risks in the gulf. meanwhile the international energy agency has revised down the forecast. >> it is the first downgrade we've made for several months, in the downgrade is fairly

-- and the downgrade is fairly modest in reaction to some slightly weaker than expected data. we are not talking in terms of the amount of shock, and we don't see that on the horizon. we remain relatively confident that demand growth for oil in 2019 will remain relatively robust. >> oil is on its biggest winning streak since mid-march, that as tensions flare up in the middle east after saudi arabia accused iran of ordering a drone attack on fuel stations. this is set to dominate discussions when opec and its allies meet this weekend. >> the iranians have repeatedly said they don't want a war, they are not preparing for one. they said they don't want to escalate tensions. it is not something they want. they said this repeatedly. >> this meeting coming up will be highly focused on iran, the one member of opec who is not there. but people are also looking at the fact that we don't have a deal between beijing or washington, and also u.s. shale. it's a tight rope on where we go

with the oil price depending on short-term demand and supply issues. >> saudi arabia and argentina may seek billions of dollars flowing into their stock market as the msci announces the list of securities it is adding to its benchmark. in terms of saudi, this is a pretty important step for them when it comes to diversifying and modernizing the economy, isn't it? >> absolutely. this has been one of the key things that the beijing shift has been pushing for, has been wanting to do, to protect that more modern image. they wanted to attract foreign funds into capital markets, and the oil price is very unlikely to ever sustainably hit the sort of $100 per barrel levels that would bring the days of easy

money for the saudi arabian kingdom back. they actually kind of need the kindness of strangers now, of getting msci inclusion as an absolutely vital step in the process. >> fidelity is cutting out the middleman when it comes to dealing with wall street short-sellers. they are bringing their stock lending business in-house. obviously the curiosity is whether this is just a cost-saving move, or if there is something that benefits them by doing this. >> it could help increase the returns for fidelity funds that lend out securities, or it could help boost revenue for fidelity itself. it kind of depends what they decide to do with the savings. there are a couple other advantages as well. there is an informational advantage that will let them work more closely with the broker-dealer representing them,

since it is an in-house broker as opposed to goldman. >> disney steps up the fight against netflix. the entertainment giant will take full control of hulu in a deal with comcast, valuing the streaming service at more than $27 billion. >> disney is making a big bet on streaming. they already launched espn plus and will launch disney plus and put all their great content there. now they are consolidating ownership and control of hulu, and they are making a big financial bet. hulu is valued at about $15 million, just a month ago when disney bought at&t. now they are going to value this thing in five years as $27.5 billion, almost double. it is betting that once it has full ownership of hulu they can grow the business. >> pakistan has secured yet another imf loan to avert an economic crisis, its 13th bailout from the fund since the

1980's. this one is worth about $6 billion. the prime minister opposed the idea before taking office last year and initially sought help from saudi arabia, the uae, and china. is this really enough for pakistan to revive? it did get money from some of those other countries. >> if you look at pakistan's foreign exchange reserves, it's about $9 billion. but if you look at their neighbors, they have about $30 billion. clearly it may not be enough, and it has been getting money from loans from china, the uae, saudi arabia. for foreign investors, the key question is how does pakistan reform the economy to assuage all the concerns that investors have all over the world. money may not look in but it depends on the pakistan leadership in trying to turn around the economy. >> bayer is slumping, losing a

third lawsuit over claims its round up weedkiller causes cancer. this seems to be raising the prospect that bayer will be willing to settle instead of going to court. >> it puts a lot more pressure on them. there have been three cases that went against them, and this is the most devastating of the three. a huge dollar figure of more than $2 billion attached, the husband and wife together both suing. a lot of pressure on them to settle after this, and of course the amount they will have to settle for would grow. >> wall street is pointing fingers over cooper's ipo. -- uber's ipo. morgan stanley's big bet is scrutinized after a tumbled in the first two days of trading. it was a little bit of bad luck, the selloff that we saw globally. at the same time, could the

banks have done more? >> that is certainly the question investors are asking now. uber and all the banks are saying what you said, that this is about the market. but at $45 per share, we are down significantly from that price, and investors are asking could the banks have done more to stabilize the price, could they have done a better job? a lot of investors are in the red, especially investors who bought in 2016, including morgan stanley. they purchased at $48. could have it in that high anyways at this point? >> volkswagen is reviving plans for an ipo of its truck division just two months after shelving the idea due to poor market conditions. the share sale is likely to be the biggest ipo in all of europe this year. the total valuation could reach 30 billion euros. why now? if you push off the ipo a few months ago on market condition concerns, why now in the middle of an escalating trade war and

after an uber ipo that really disappointed investors? >> most important point for us is that they make the decision. i think it is a perfect combination, but they will be always there. we are very happy that we have the decision, and now we can go further and develop our strategy. >> volvo cars has signed a multibillion-dollar electric battery deal with leading asian manufacturers, one in china and one in south korea, who agreed to supply the carmaker. they want half sales to be fully electric by the middle of the next decade. >> we are not alone going electric. this is the main thing. we need to secure that. i think we have been discussing and negotiating for a long time, and we have been very clear in

our strategy. i think we are good partners to them. they know we are serious. they will go electric. we need them also, not just to get the volume, but to have them as development partners, because there's a lot of things going on in the chemistry to have the next generation of batteries. this is a really strategic move for us. it will be the most important component of the future car. >> 13f filings are revealing the latest trends among hedge funds after a dramatic three months for markets. some of the ones we go to first are berkshire hathaway, the major ones. >> some of the highlights, if we look at berkshire hathaway, we knew he was investing in amazon, but the new information is how big is his position? we now know it is $860 million. he also increased his bets on j.p. morgan chase and southwest

airlines. and if we look at tiger global, it's more than doubled its stake in facebook as of the end of the first quarter, it held about $1.5 billion worth of stock. and this was one of the biggest hedge fund managers, and they doubled on facebook. then we saw some change in the chinese stocks. alibaba was a mixed bag. viking and low pine also hold. -- loan pine so -- sold. ♪

>> i have pulled up the cny here, one measure of the chinese currency, and this is the correlation function.

it shows correlation, the week chinese currency. you have things that are positively correlated and negatively correlated. but i want to show you the equity markets most impacted by the chinese currency. >> you can check out the factors to watch on your bloomberg. there is. normal people asking for the -- more and more people asking for that function. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites from bloomberg television. maybe they will become your favorites. here's another function you'll find useful. it will lead you to our quick takes, where you can get important context in fast insights into timely topics. here's a quick take from this week. >> in china, people use mobile services owned by alibaba and tencent to do almost everything. to chat, shop, send money to each other, and even to make purchases and physical stores, and the country is becoming

cashless. so here's the scary thing for american finances. the banks never get a cut. in fact, many chinese don't even have bank accounts. china is among the growing number of countries showing that payments can happen cheaply and easily without banks or credit cards. in contrast, u.s. consumers still rely on banks for most of their purchases. even mobile payments made through apps like apple pay, uber, or venom, are tied to cars are tied to cards or bank accounts. that ties up to a feast of fees for many of the companies that handle and process payments. for a typical $100 credit card purchase, $97 between five cents goes -- the rest is split between issuing banks, payment processors, and card networks. those small slices at up to billions of dollars for banks every year. if apps were to grab market share in the u.s. at roughly the same rate as they have in china, banks would lose a projected $43

billion in revenue from one of their most profitable businesses, and that's not the end of it. they also generate revenue by dispensing cash and administering checking accounts. if payment apps were to replace paper money and offer alternatives to regular bank accounts, as they increasingly have in china, other sources of income could take a hit. checking accounts alone generate $3 billion in bank fees in the u.s. whether you have access to a bank or not, being able to make and receive payments through your phone is an obvious advantage. at alipay and we chat, they have demonstrated it. that is the challenge facing traditional banks. as the evolution of mobile payment systems gains momentum. >> 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 all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. this week

i'm abigail doolittle. this is bloomberg. ♪

♪ haslinda: from the pagodas of -- and the high-rises of singapore, from what were the killing fields of cambodia and what is -- to the pulsating heart of jakarta. >> out of 640 million people, you have you have 300 million muslims, 120 million christians, 150 million buddhists, taoists, confucian nests. ists.nfucian haslinda: thailand, malaysia, the philippines, and vietnam. asean is one of the world's most complex regions. >> we have such huge diversity, and such an ability now to create connectivity. haslinda: asean has a combined economy the size of india. the opportunities are massive, but so are the challenges.