♪ >> coming up, the stories that shaped the week in business around the world. trade tensions take center stage as tariffs escalate. headlines and markets moving every which way. >> 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 this week the edge 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? >> grim 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. since about may of 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. -- truce. 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. -- something 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. saying we urge the u.s. to stop erroneous practices. 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 why european bank consolidation is a challenge. next, highlights from another whirlwind week >>. we are making -- >> 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. china's biggest online 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

stale, 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

-- solid 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. europe 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. it is a sign businesses are still spending on their computer networks despite 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. ♪

>> this is bloomberg best. i am abigail doolittle. trade concerns dominate the gustssion this week with approaching the topic from every angle. here is a sample of the conversation with mark mobius regarding where investors should look for yields. it is in the emerging markets we have better yields. it is in those most risky countries where dass whether it be turkey or argentina, that is where you get yields. unfortunately it is aligned with risk.

it is getting difficult to find good yields in these markets. seems like part of the sales six months ago is southeast asia but if you have run a data rolling over and trade, how do you? the trick, theat biggest trading partner for those countries is china. if china is importing less, these countries are it. we have to be cautious in looking at each and every company and those countries to see whether they are affected by the situation in china. sense of the timeframe you think about when you start with investing, particularly when it comes to the trade dispute. if this goes on indefinitely, -- forthe opportunities example southeast isn't where there may be supply chains that are altered? this places like vietnam, places like bangladesh, where a

lot of chinese manufacturers are the moving their production -- are moving their production. you have an interesting ofuation where exports low-cost goods from china to the u.s. are going down because of the tariffs. that is the move to these lower-cost countries. what is the u.s. trying to signal to china? selle problem is we cannot . that may be a negotiating tactic . sometimes it is smart not to single where you -- signal where you want to end up. we are in a situation where there is multiple agendas. .e have a decoupling people want to decouple from china. national security issues are similar in the directionality. there is a large group of people, bipartisan group that wants the playing field to be level, the cheating the stop and so on. and the trump administration and

negotiating team as far as i can what theyot signaled put on the various parts of the agenda, so part of the problem with markets is they cannot tell whether we are near a solution, whether there is an impasse and so on. signalingou say the equilibrium has broken down and what do you do to restore that? >> part of the answer is you wait. and sort this out. the betting odds are still probably correctly that there is a collection of difficult issues but will get to an agreement. it will not solve all the problems but better than what we have got now. it is the breakdown of a signaling. the only qualification of that is the people who do bargaining say sometimes it is a good idea not to tell the other side where you want to end up and probably president trump is good at that expect -- i expect of negotiating. 1930, 1000 economists

wrote an open letter to president hoover, urging him to iso what now we know tariffs. the president then like the president today 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. so there is a lot to be learned inm history and we are danger of repeating the same mistakes we made back then by a president who refuses to listen to any opinion. any study --e anything in your studies that the legislative branch can nudge a well-meaning president away from elizabeth the first economics? now is in a rare

agreement of bipartisan support to bash china. republicans and democrats alike are applauding the president. they do not agree on any other issue that is on the legislative agenda now other than the blame -- to blame china for the problems in large part in the u.s. are of our own making. unicredit ceo -- the unicredit ceo sat down with bloomberg. he told rank seen lacqua murders might make sense of the sector but it is unlikely anyone happen. >> it will be difficult to put together a lot of things which need to be followed. capital needs to be watched and

execution needs to be proper. this is domestic and cross-border? leave the that banking landscape if you do not have much? because of rates, because of a lot of banks do not have a clear plan of what they will become in 10 years, it is tough to be a european bank? >> it is interesting to be a european bank. you mentioned negative traits, which are a consequence of of locals. it is being said banks are speed of going at the --, controlling activities and networks and managing -- probably lower than what we see in the u.s., but the banking sector in europe is very

interesting. pamela: president trump signaled he will delay imposing tariffs on autos but the trade forecast remains cloudy. earlier, trade commissioner cecilia marsala spoke with bloomberg and said if the u.s. announces tariffs, europe is ready to retaliate. >> we would have to. we are preparing a list of possible items that would be on the list. if it moment, this is happens. i hope it will not. we will publish the list. rules, to thehe final consultation. >> one thing the administration always says is they want to focus on a deal that is not quoted in their trade negotiations between the eu and u.s. it should be -- how do you square that for your own mandate for limited sector? to describest way

that circle is to do what we decided to do in july last year. limited but meaningful trade agreements. regulatory corporations. it is easier for companies to get their products qualified on each other's markets. that could be done quickly if we had to do so. then there is trust. then who knows what happens in the future? that is what we have a mandate to do for the future. it is not do agriculture, which is difficult for us. the jones act would be difficult but the u.s., but something quick, easy and mutually beneficial. ♪

pamela: you're watching -- abigail: you're watching

bloomberg best. the top stories with more geopolitical turbulence rattling the middle east and disrupting oil markets. >> saudi arabia says does go of its oil tankers were attacked while sailing towards the persian gulf. the news agency posted as they were approaching the straight, this as regional tensions as the u.s. creates pressure on iran but no one is taking responsibility for the incident. do we have any idea of who is behind this? >> we do not have any idea who is behind the attacks. some officials we have seen coming out saying they have their ideas, they have their suspicions and there is a federal investigation going on into the attacks. the ideas that it would be -- something -- it would be iran. but we do not have any evidence of that. we often see low-level incidents that is the risk, that is the

geopolitical risk of the region. we see it a little bit and to oil, which is up and regional stocks are down. damaged.e is >> tensions are rising in the region and these attacks that we saw today are contributing. what has happened is the saudi's have said explosive drones flew into their space and attacked pumping stations on the main headline that carries crude oil, up to 5 billion barrels a day from the west and east of the .ountry from both coasts, they had to shut down the pipeline. saudi arabia was quick to bring -- blame iran. >> crude prices have dropped. counter supply risks in the gulf. the international energy agency has revised down. to 1.3 million barrels a day. >> is the first downgrade we

have made four months and the downgrade is modest in reaction to slightly weaker than expected data. shock and talking in we do not see that on the horizon. we remain confident that demand growth oil in 2019 will remain relatively robust. winnings on its biggest streak since march. tensions flare up. saudi arabia accused iran of ordering a drone attack on stations. this conflict is set to dominate discussions when open it meets this weekend. >> the iranians said they are war buthey do not want are prepared if they are attacked. they do not want to escalate tensions. it is not something they want and they said this repeatedly. >> this meeting coming up will be focused on iran, the one member of opec not there. people are looking at the fact we do not have a deal between beijing and washington.

what does that mean for global growth? weaker demand. it is a typo of where we go. saudi arabia and argentina may see billions of dollars flowing into their stock market as in the cia announces the list of security citizen adding to its benchmark its. 30 stocks from saudi arabia and eight argentine securities will join me in emerging markets stocks. a close of trading on may 28. this is a pretty important step when it comes to diversifying economies. >> this is one of the key themes that the beijing shift has been putting four, has been wanting to do. they want to protect the modern image. they want to attractive foreign fund into their capital markets. the oil price is very unlikely to ever sustainably hit the $100

that would bring the days of easy money for the --di arabia and kingdom back saudi arabian kingdom back. getting msci inclusion is not an absolutely vital step in that process. 's adelphi is cutting out goldman sachs as a middleman when it comes to dealing with short-sellers. the money manager is bringing its lending business and house. the curiosity is this is just a cost saving move -- is there something informationally that benefits fidelity? >> it could help increase --urns as to various ability fidelity funds or it could boost revenue for fidelity. it depends what they decide to do with the savings. there are a couple other advantages as well.

with thes work closely broker-deal representing them since it is an in-house rocher as opposed to goldman. disney steps up the fight against netflix. the giant will take full control of comcast. disney is making a big bet on streaming. they launched espn. -- espn plus. later they are going to launch disney plus. they are consolidating ownership and control of hulu. they are making a big bet. hulu was how you'd at the dean billion dollars a month or so ago when disney bought at&t stake. now they are going to value this --five years time at 27.5 $27.5 billion. once it has full ownership of hulu, it can grow the business. this is the countries 13th

lapse since the 1980's. this one is worth $6 billion. a prime minister opposed and initially thought saudi arabia and china -- is $6 billion enough? it did get money from other countries as well. --if you look at it foreign-exchange reserves, it is $9 million. clearly, it may not be enough and like you said, it has been getting money from loans from china, saudi arabia. now for the foreign investors, the question is -- how do markets form the economy to us was all the concerns? the money may not look operative. it depends on leadership in trying to turn around the economy from where it is.

buyer is something after a dressing down in the courtroom. the courtroom said it lost a third lawsuit. pay a been ordered to billion dollars in damages. this rating the project that buyer is going to settle instead of going to court. >> it puts more pressure on them. there are three cases that have gone against them. this is the most devastating of the three. a huge dollar figure attached, it was a husband and wife together suing in this case. a lot of pressure on them to settle after this. and the amount they will have to settle for potentially would grow. wall street -- abigail: wall street is pointing fingers at ibm. ok, it was not luck.

this a lot we saw globally, but at the same time could the banks have gone -- done more? >> that is the question the banks are asking now. from5 a share, we are down that price. investors are as ink, could the bank have done more to stabilize the price? could they have done a better job anticipating it needs to be lower than where it is. a lot of investors are in the red, especially investors who bought in 2016 which includes morgan stanley's own clients. they purchased $48. news reviving plans for an shelvingmonths after the idea due to poor market conditions. biggeste was not the ipo in europe. the total valuation could reach 30 billion euros. why now? if you pushed off the ipo a few months ago on market condition

concerns, why now in the middle of an escalating trade war and uber ipo that has disappointed investors? >> the most important point is it makes the decision through ipo. it is a perfect combination. there are securities in the markets but they will be always there. and now we can go further and develop further. -- signed a multibillion dollar electric battery deal with leading asian manufacturers. lg kim and south korea have agreed. we are not going electric. this is the main thing. we need to secure that. we have been discussing and

negotiating for long time. we have been very clear in our strategy. has helped us. we are in good partners with them. they know we are serious. we are going to go electric. we need them also, not just to get volume but also to have development partners because there is a lot of things going on in the chemistry to really have the next generation of that. a strategic move for us. it will be the most important component of this car. findings are out revealing the latest trends after a dramatic three months of markets, security are berkshire hathaway, some of the major ones. >> if we look at berkshire hathaway, we need -- we knew avenue rose was investing in amazon. we know it is a hundred $60

million. he also increased his boss on jpmorgan chase and southwest airlines. it is more than doubled stake in facebook. now it holds as of the end of this quarter, $1.5 billion worth of stock. and the one capital. the biggest hedge fund mantras of last year are also on facebook. that is one of the most popular stock. it changed in some of the chinese stocks. alibaba, a mixed back there. ♪

>> one measure of the chinese

currency and this is the correlation function. csnd is the correlation on the bloomberg. you have the things that i've positively correlated and negatively correlated. i am going to show you the equity markets that have been most impacted. sb on yourcheck out bloomberg. there it is. people asking for that function for the screening some of their stocks. 30,000 functions on the bloomberg and we always enjoyed showing you our favorites. here is another. our quick lead you to takes which will be due to fast intakes from timely topics. here's a quick intake. >> in china, people use mobile services used by alibaba -- owned by alibaba.

shop, send money to each other, even make purchases. the country is becoming cashless. here is the scary thing for american finance. the banks never get a cut. in fact, many chinese do not have bank accounts. china is among the growing number of countries showing payments can happen cheaply and easily without banks or credit cards. contrast, u.s. consumers rely on banks for most of their purchases. even mobile payments made through uber and then mel are tied to users cards or bank accounts. that it's up to a feast of these are many of the companies that handle process payments. for a typical reticle and purchase, $97 $.25 goes to the merchant and 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 china, they would salute $43 billion in revenue from one of their most profitable businesses and that is not the individually a banks generate revenue by dispensing cash and administering checking accounts. if payment apps were to replace paper money and offer alternatives to regular bank china,s as they have in other sources of income could take a hit. checking accounts alone generate $3 billion in banks in the u.s. whether you have access to a bank or not, being able to bank -- make a receive payments through your phone is an advantage. the challenge facing traditional banks as the evolution of mobile payment systems gains momentum. ♪ was one of the many quick takes you can find on bloomberg. you can also find them on bloomberg.com along with business news and analysis.

that will be all for bloomberg best this week. thanks for watching. i am abigail doolittle. this is bloomberg. ♪

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itself started in 1927. the minibar has the same thing in it. it is pringles. >> we figure sooner or later the government will say that is a balanced meal. >> when i checked out, they want my credit card again. >> they should not need that unless there is something deeply suspicious about you. >> will you fix your tie please? >>