juliette: coming up on "bloomberg best," the stories that shaped the week in business around the world. trade tensions escalate. beijing demands respect from the u.s. after talks collapse, and trump threatens to implement tariffs on mexico. josh: part of the uncertainty that we have here is that no one really knows what the parameters firm deadlines are, what the criteria are and what to expect. juliette: the chairman hints of rate cuts to come. touchdown in london, president trump does a three day visit to the u.k. as his trade policies feed growth anxiety. the battle over big tech, silicon valley is targeted over antitrust.

we will bring you exclusive interviews from influential investment figures on the current challenges and opportunities. leon: we are 10 years into an up cycle. so at some point, the music is going to stop. bill: i don't think we will see a major chinese company go public in the u.s. for the foreseeable future. stephen: we are playing with a risk, which isl often difficult to trade through. juliette: we sit down with the pboc governor ahead of his meeting with secretary of the treasury steven mnuchin. yi gang: our policy for further hikes in tariffs or the escalation of trade wars, our policy toolkit is ready. juliette: plus, an exclusive interview with dallas fed president robert kaplan, and why he says it is too early to make a judgment on a rate cut. mr. kaplan: should we be adding stimulus to the economy? that is a question we are

asking. i am open-minded about it. i think the risk to the downside in the last five or six weeks has increased. juliette: it is all straight ahead on "bloomberg best." ♪ juliette: hello and welcome. i am juliette saly. this is "bloomberg best," your weekly 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. the week began with china demanding respect. beijing released a white paper on the trade war, calling the u.s. "greedy." meanwhile, president trump tripled down on tariffs, leaving china, india, and mexico to figure out their next move. ♪ haslinda: china says it is willing to work with the u.s. to end the trade war, but blamed president trump's administration for a collapse in talks.

vice commerce minister says there was no backtracking on beijing's part during the negotiations. wang shouwen: [speaking chinese] translator: it is just discussions. it is just an agreement, there is no backtracking. during the negotiations, everyone often says nothing is agreed until everything is agreed. haslinda: it does look like china is laying the blame on the u.s. and demanding respect. tom: absolutely, playing the blame game. as the u.s. is as well. the u.s. were the ones who said china walked back on commitments. in this report, the white paper published on sunday, you rightly say, the chinese are taking a swipe at president trump saying that his policy measures and the response from d.c. would not, quote, "make america great again." they talked about the need for the removal of all tariffs. as well as the u.s. should dial back its demands of chinese purchases of u.s. goods. the gap between these two sides

as far as closing the deal or getting back to talks remains far apart. francine: when you look at trade, if trump goes after mexico and says, i am ok with the tariffs if nothing changes, does it postpone almost automatically the truce with china? leslie: well, he is clearly putting himself in a situation where there is a lot of pressure to solve really complicated things. not only do we have mexico, we have china. he is now talking about iran. those are three major sets of talks to be pursued by the administration, which is not particular good for negotiations. if he pursues this, and that is a big "if," i think people think he will walk this back, in large part because there is so much pushback domestically on the president. it diverts his attention from china. it is less likely we will see any deal in the short term with china, given that the president is now really fighting a tariff war on two or three fronts. ♪ david: everyone is waiting for chairman jay powell to indicate anything about cuts. i have not sure he confirmed

there would be. but he did not seem to discourage the markets if you look at what is happening on the 10 year. michael: all is good now. jay powell to the rescue. did not promise rate cuts. but in his speech, he said that the fed would act as appropriate to sustain the expansion, whatever happens. and for those wanting a fed rate cut, they took that to mean exactly that, and the fed does not know what is going to happen going forward. but just the reassurance of the fed understands what is happening in the markets was enough to turn investors sentiment, at least for today. [bell ringing] scarlet: it is all on jay powell. or a big chunk of it. joe: jay powell is a big thing. the conciliatory tone of mexico and perhaps some optimism that that will not spiral out of control helping the market. i think with powell, the key thing is not so much that he is signaling a rate cut, but that he is attuned to the downside

risks. he somehow managed to thread the needle of moving closer to the market view, while saying that everything is fine with the u.s. economy. essentially, if you hear whatever you want, there is a bullish message, whether you are bullish because using the economy is on track, or you are bullish because you think the rate cuts are coming to bail you out. shery: more now on the impending tariffs on mexico. we just learned that talks ended without a deal. we are now seeing reaction in the markets. u.s. futures falling 0.5%. the president is not around, he is in europe at the moment. but there were still high expectations from the mexican side that they could come to an agreement. josh: yeah. i think part of the uncertainty we have, that no one really knows what the firm deadlines are, what the criteria are, and what to expect. so the mexicans had hoped they could get a deal to avoid the 5% tariffs by monday. they still have time to do that.

today's meeting ended without a deal would not be fatal in that regard. we have mixed views as to whether that is possible, how serious donald trump is. the president tweeted that there was no bluff here, that he is willing to go through with the tariffs if they don't get something done with regards to mexico along the border. but a lot of analysts seem to be looking at the mexican comments, including from the president, saying that they are optimistic that they can get something done in time so the tariffs don't come in on monday. guy: the european central bank leaving is inflation forecast for 2021 unchanged. but president draghi noting in his initial briefing that the council is standing ready to change that thinking. mr. draghi: the governing council is determined to act in case of adverse contingencies and also stands ready to adjust all its instruments as

appropriate to ensure that inflation continues to move towards the governing council's inflation aim in a sustained manner. guy: the market is pricing in cuts by the ecb. draghi did not deliver. did he underdeliver today? john: i would argue that he was broadly online with what we expected, but clearly the market may have been looking for a little more. it is quite hard for the ecb to surprise too much, given they have limited room to maneuver. you get the sense they are trying to keep their powder somewhat dry for when they might actually need it. they are definitely looking at contingencies, thinking about how they can ease, but i think they are reluctant to pull the trigger too quickly. annemarie: do you think the ecb

is doing enough? fréderic: i think so. i think there was not any specific surprise in the comments, a slowdown, but a relatively modest slowdown. probably, the ecb will keep its rates as they stand currently. no surprise, financial conditions remain exceptionally good. david: we will find out later today where we are with jobs in the united states. let us put up what we are expecting now. although, this has been tempered a bit by the numbers. michael: the story here, not many jobs, not much which pressure, just 75,000 jobs created in may. march and april were revised down to 75,000. so no new jobs created, which means no wage pressure. average hourly earnings up just 0.2%. so the annual pace of wage gains falls to 3.1%. unemployment unchanged at three point percent, 3.6%, although one falling to 7.1%.

nothing unusual in the numbers, more people hired than losing jobs. but no big drops in the labor force. alix: money floods in coupons, particularly on the front end, as yields drop like a stone. it feels like the overwhelming feeling is that we will have more cuts from the fed. subadra: the curve is still steepening, which is what you would expect if the market is trying to communicate its expectations for a fed rate cut sooner rather than later. constance: let's say the fed cut rates in june or july. if we get increased tariffs, is that enough to save the economy? i think that is a big question around that and i think there is a strong possibility that it is not enough. shery: vice president mike pence says the administration still plans to impose tariffs on mexico next week, with no agreement on halting the flow of migrants. vp pence: the tariffs are going to be imposed on monday. we have made that very clear to the mexican delegation. but discussions will continue in the days ahead. david: we have the threatened tariffs being talked back and forth about mexico.

what effect is that having already on mexico and markets? damian: the u.s.m.c.a. was a done deal. the fact of the matter is it is being reopened for none economic reasons. the trump administration is effectively using tariffs as a weapon. so this kind of a big deal. it leaves a residual of uncertainty going forward on anything the trump administration says or does. so i think markets are starting to come to grips with that right now. te: still ahead as we review the week, the view from bloomberg invest. interviews from influential investment figures on the current challenges and opportunities. plus, we speak exquisitely to dallas federal reserve president robert kaplan. and up next, more of the week's top business headlines. the battle over big tech. the doj and ftc split up the job of monitoring tech giants, with fears of a breakup in regulation whipsawing stocks. this is bloomberg. ♪

♪ juliette: this is "bloomberg best." i am juliette saly. let's continue our global tour of the week's top business stories. u.s. antitrust officials and lawmakers targeting silicon valley's biggest names for a drawn out fight with the government. caroline: alphabet, facebook, apple, amazon even tumbling today as the companies appear to set u.s. antitrust probes after the u.s. justice department and the federal trade commission team to be splitting up oversight of the technology giants. is there an argument in general that apple is in some way anticompetitive? dan: this in some way a shock to investors. even though alphabet as well as

wasbook and others, it viewed that apple -- they were not going to go after. this was a got punch to investors at the exact time you didn't need it, given the china worries as well as other demand issues that have been haunting apple stock. i think part of the problem that i think apple is facing, as well as other tech players, is, what is the ballgame rules? the rules? is this a baseball game where you start running in the first, or the third? i think that is the frustration in terms of what they do, in terms of strategic moves, do they try to keep it close to the vest? i don't think this will change their business models. but i don't think this was something even in cupertino they were expecting. i think the timing is surprising. guy: president trump holding up the prospect of a big trade deal with the u.k. he did so during a joint press conference with the outgoing prime minister theresa may. that was a really well-behaved

press conference. we always kind of hold our breath. we never quite know what will happen. no fireworks. margaret: he didn't really say anything that crossed that line , but people were looking to see whether he would cross the line. he was, if anything, extremely polite and gentle with the outgoing prime minister. he talked about what an honor it had been to work alongside her, how she might not get as much credit as she deserves on brexit, which contradicts what he said only a matter of days ago. i think he felt there wasn't it was important to leave the final meeting between the two of them on a higher note and maybe some of the powder for later. there were a couple of things that got everyone's attention. his saying that the national health service should be part of a discussion on trade, everything should be on the table. and he sent pretty clear signaling to mexico back home.

but if anything, with may, he was restrained and far more courteous than we have often seen him be. guy: theresa may has resigned effectively as conservative party leader today, marking an end to a tumultuous three years. tina: i suspect whomever is the successor to mrs. may will have a pretty short-lived premiership. why? because, as you suggest june, the british parliament has found itself unable to agree on the brexit results. in terms of the support within the conservative party from brexit and certainly those who will choose the next conservative leader, it remains strong, but the parliament can't get there and the clock is ticking. the french president does not want to extend beyond october 31. that means the risk of a no-deal brexit has gone up. and we have seen the conservative party candidates actually campaigning on no-deal brexit.

there is talk of dissolving it in order to just fall over the cliff. markets don't think that will happen, but i think the next few months will be pretty bumpy, and that means to me a new general election here in the u.k. emma: oil prices tumbling today. take a look at this, we are off lows did see those brent crude fall below $60 a barrel for the first time since january. still, prices trading at their lowest since the beginning of the year. u.s. petroleum stockpiles grew by some 22 million barrels last week. in close tomost enclosed 30 years. we also saw u.s. crude production hit a record. all that sparked a selloff but has seen wti tape into a bear market. we are looking at a chart from the recent high set just a few weeks ago in april, down more than 20% since then. sarah: the price action in oil today was brutal, essentially ending in a bear market.

22% from those april high levels. and it is this scale. when you look at total petroleum inventory, so it is not just crude oil, it is also refined products. so, gasoline as well, claiming climbing 22 million barrels last week. the data goes back to 1990, this is the most ever. it is not just the stockpile. you look at u.s. production, that also hit a record. we also saw imports from other areas of the globe rise as well. so it just comes back to the fact that, if you were already worried about the demand picture, especially as it relates to u.s.-china trade, well now, we could be facing a supply issue in the u.s. as well. not a supply issue in that there isn't enough, but that there may be too much. tracy: fiat chrysler has confirmed it is withdrawing a proposed merger with renault, a deal that nissan was firmly against. the french carmaker wrapped up a late-night board meeting with, again, no decision. and that prompted fiat to walk away. is the dream of this particular

grand alliance firmly dead? stephen: it is looking clear that this is dead. i'm not going to say that final, but we are getting signs that this is definitely not a good process, if you want to call it that, towards a deal. in china, you say, "tie guay "too expensive, walk away." as a negotiating tactic, walking away in this sense could be the final nail in a deal, which perhaps a few days ago seems like it was heading toward a preliminary agreement at the renault board meeting. but they had two late-night sessions at the renault board meeting that did not end with a vote on either case. and we are seeing now that the fiat chrysler executive team is pointing the finger of blame for all this falling apart on the french state government. "it hasthe statement, it ha become clear that the political conditions in france do not

currently exist for such a combination to proceed successfully." fiat chrysler saying, no, the deal is done. francine: looking at the d-day commemorations, 75 years since d-day. with president trump addressing the crowds gathered there. to put it into perspective, the sacrifice in normandy, 75 years of european freedom and prosperity. tom: the two presidents walking down to the cliffs above omaha beach. and truly extraordinary. what is so amazing is those of us with a collective memory of ronald reagan in 1984, and our time has moved on, over 40 years. truly extraordinary. as the two presidents try to understand the sacrifice that was given. ♪

♪ juliette: you are watching "bloomberg best." i am juliette saly. fed officials descended on chicago this week with investors looking for signals of possible rate cuts. we sat down exclusively with dallas fed president robert kaplan at the conference. he told us the central bank is on high alert as a result of trade tensions. ♪ mr. kaplan: i think it is early to make a judgment on that. we are going to be very vigilant about understanding these heightened trade tensions, see if they feed through to the economy, most important they, see if they persist. and so i think it is too soon, though, to make a judgment as to whether we might or might not take an action. i would rather be patient and here and let events unfold a little more. michael: investors have priced in three rate cuts. and wall street economists over the weekend basically joined the consensus that you are going to cut rates.

you have been in the watch-and-wait camp. what would tip the balance for you? when would you think that you need to make a decision? mr. kaplan: i would need to see some evidence that there is a further deceleration of the economy. we expected that growth would slow from 2018-2019, what we are are still growing above trend. we still see a tightening in the labor market. and our dallas term mean, which is our measure of core inflation, is now at 2%. we think we will end the year around 2%, so i would need to see some evidence that there is a worsening in those trends. we may well see it. i am on watch as to whether we see a further deceleration. but that is what i am watching for. michael: but the data are lagged. cost-benefit, what is worse? cutting too early, or waiting too long? mr. kaplan: so it depends on where you are in the cycle and what our stance is. my own assessment of our stance is we are in the neighborhood of neutral right now. so if we were to cut, that would

a judgment that we should add stimulus to the economy. that might ultimately be a judgment i need to make. but if, on the other hand, you have a restrictive stance, and you decide to cut, that is something different. or if you are highly accommodative, it also is a different judgment. but right now, we are pretty much at a neutral setting. inand the question is, should we be adding stimulus to this economy? that is a question i am asking. i am open-minded about it. i think the risk to the downside in the last five or six weeks has increased because of these heightened trade tensions, so i am watching it very carefully, but that is a judgment and a the question i will be asking. michael: they say that the federal reserve decides when to raise rates, but markets decide when you are going to cut them. how much pressure do you feel from markets right now? mr. kaplan: i have spent my entire career in the markets, as you know, and i have learned that markets can change on a dime.

for example, there has been a dramatic change in the markets since may 1, or approximately may 1, the last five or six weeks. and as we have seen, you could see a dramatic change in a different direction over the next five or six weeks. for example, what is happening to the treasury curve is very much in response to heightened trade tensions. some of those tensions could be reversed in the next several weeks. so i have learned to watch markets, but i don't want to over read or overreact to what they are saying, because they can change on a dime. ♪ juliette: coming up on "bloomberg best," recession risks on the horizon. apollo global management ceo leon black sees a downturn after the 2020 u.s. elections. and blackrock's jonathan gray sees progress ahead on trade. plus, we speak to goldman sachs cfo stephen scherr from the european financial conference in paris. stephen: it is a market trading more on political risk than it

is trading on a macro risk. juliette: this is bloomberg. ♪ the latest innovation from xfinity

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>> this is "bloomberg best." figures gathered in new york this week for the bloomberg investor summit to discuss the challenges and opportunities posed by a rapidly changing financial landscape. here's what they had to say about the current investing climate. >> you essentially have this unbelievable economic machine in china and a great rising power, economically and geopolitically, with the relative gap in global influence and economic impacts between the united states and china closing very quickly. there's lots of historical precedent for the dynamics of a

rising power -- >> many of which have not ended well. >> many of which have not ended well. graham allison is a well-known political scientist who has political scientist who has written about this trap, the likelihood of conflict in this circumstance. if you think about the u.s.-china relationship, more so now than ever, that would be the defining bilateral relationship of our time. the people in this room, that will be the defining relationship. and it is going to be difficult to manage because of different views of the world, different ways to think about running a country, and the dynamics between the two. that's the headline, and whatever happens in the near term of the trade negotiations, it will take place within that arc of a very challenging relationship that could be, on one hand, strategic competition, of the other hand, could be much more combative. >> if people have confidence

that tomorrow things will be better, then they will make capital expenditures or hiring decisions based on that confidence. if they feel very uncertain about the future, they tend to pull back. i do think the tax cut last year was helpful in building confidence, and i think now there's more wariness in terms of what's going on. i will say this -- i still think as it relates to the u.s. and china on trade, ultimately there should be a resolution because it is in both parties' interest, there is a recognition of a rebalancing that should be taking place. this is really about the pace and extent of that rebalancing. i do think the technology side of this is harder to resolve. we may end up in the bipolar technology world. >> to that point, rebalancing is one thing, but it feels like on the tech side we are looking at decoupling in a lot of ways. you work at a place -- your boss, steve schwarzman,

intimately involved in china, a confidant of the leaders of both countries. u.s. and china. how worried are you about that decoupling? how worried is the firm? >> everyone recognizes the parties have moved apart in the near term, and i think everyone is disappointed that has occurred. but i think there is a sense that it is in the collective interest of both parties to come back together. that is why in terms of trade and reciprocal openness of markets, i think progress will be made. i think the technology is just tougher. >> we are 10 years into an up cycle, so at some point the music is going to stop. and at the same time, we have an administration, like them or not like them, but they have done a pretty good job in extending

economic growth and consumer confidence and kept inflation down, and therefore it is very hard to say whether we are going to have another cycle with interest rates where they stand now and with the growth and inflation numbers where they stand. we might. it probably won't be until after the next election, but that's not that far off, so the key is to be prepared. we go through hundreds of credits in the industries we like, and study every part of their capital structure and at what prices we want to start buying, and you are right, we have had the benefit of 30 years, 29 years of doing this, and so we do have a lot of conviction and it is a very useful as a value investor pathway to finding great value.

>> we have raised our bar in terms of the kind of returns we expect. we think valuation should compensate us for a riskier environment. the fact that we have connected all the dots around trade tensions and potentially a technology cold war between the two countries, economic growth will be impacted. it may not be as fast as we have seen. it was already slowing down in china, but we may see a bit more. >> do you need more of what buffett would call a margin safety? >> we had an investment meeting with our china team yesterday, and they were hitting the pause button in saying we want to see a little more cushion on valuation, we want to see private markets adjust a little bit more to reflect the reality of this realignment. private markets tend to adjust more slowly than public markets due to new information, so we are watching it pretty carefully. >> this is a standoff that has turned into a retaliatory tit-for-tat.

what if -- and it's not a crazy suggestion -- the trump administration were to cut china's access off to wall street? >> it would have severe implications. but if we look at two seminal things, i think alibaba is seminal. i do not think we will see a major chinese company go public in the u.s. for the foreseeable future. i think there will be going public in hong kong. >> you don't either? >> i don't think it will. i think what will happen is the hong kong exchange change their roles to be much more flexible for biotech, which is an important sector for them, but the government in china strongly encourages chinese companies to go public in hong kong. closer to home. more under the control of the chinese government, although to

a degree independent. but very accessible to global investors. but i don't think they want to do is cut off access by global investors to their most exciting parts of their economy. >> and now for another bloomberg exclusive. we sat down with pboc governor ahead of the g20 in japan. we spoke to him about u.s.-china relations ahead of his crucial meeting with treasury secretary steven mnuchin. >> the trade war would have a temporarily depreciation pressure on the renminbi. but you see after the noise, the renminbi will continue to be very stable and relatively strong compared to emerging-market currencies, even compared to convertible currencies. it's a very strong currency and i'm very confident the renminbi will continue to be stable, and

more or less equilibrium level. >> is there a redline for the yuan? >> i don't think this is an important question. because, you see, on the numbers, it is smooth and continuous. i don't think allowing this mathematical scale any number is more important than the other number. it continues and is smooth, and this is a totally market-driven, determined by market supply and demand. the central bank of china is already pretty much not intervening the exchange market for a long time. i hope that is the situation we will continue, not to intervene. a little bit of flexibility of the renminbi is good for the chinese economy and the global

economy because it provides an automatic stabilizer for the economy. it adjusts, and balance of payments is along the line, and also the people's expectations will be along the line. i would say a flexible exchange rate regime is a very good arrangement we will continue to have this market oriented mechanism. >> if we find ourselves in a position where we see tariffs imposed on all chinese goods to the u.s. market, there may be some retaliation from the chinese side, that will lead to a slightly softer, weaker economy domestically, then a depreciating renminbi. >> for us, i think -- actually, i see a lot of resilience and

robustness of the chinese economy. the renminbi is a stabilizer for adjustment and also for balance of payments. and our policy for further hikes in tariffs, for the escalating of the trade war, our policy is ready. our fiscal policy for this year is tremendous. we have tremendous room. . if something bad is happening, our monetary policy could act in the right direction. they have plenty of room in the interest rate, plenty of room in requiring reserve ratio, and also for the physical monetary policy toolkit where the room for adjustment is tremendous. and as i said, also, we are

ready for the negative impact on employment. and if people are getting unemployed because of the trade war temporarily, maybe for six months or longer, they make sure that they have unemployment benefits to raise their family as well as send them to vocational school for the job training. >> goldman sachs hosted its 23rd annual european financials conference in paris this week. we asked the goldman cfo how the bank is navigating this uncertain business climate. >> it is a market that is trading more on political risk than it is trading on macro risk, and that's a difficult market for any trader to trade through. you see it obviously in your preamble in the context of what the ecb and central banks are

doing, and there's the overlay of tariffs, whether it involves china or mexico. we are playing with a lot of political risk, which is often difficult to trade through. >> what does it mean for your business? how do you adapt to this ever-changing politics? do you need to diversify? do you need to change your business? >> i don't think you need to change your business. i think the mark of any good trading business has the ability to be agile, the ability to respond to a different set of circumstances, and ultimately to be responsive toward clients. we are in the end intermediaries of risk, and that changes based on political and economic circumstances, and we stand ready as we have heard a long, long time to intermediate risk among our clients. >> talk to me about the credit card tie-up with apple. is it actually going to make money for you? >> it will make money. it's an investment, obviously, in terms of the build. our investment in the product. it's a new product for goldman sachs. but over the long term, we view it as a very profitable business, and the tie up with apple has had a number of

different benefits for us. ♪

>> you are watching "bloomberg best." i am juliette saly. let's resume our global tour of the week's top business stories. blackstone bets $18.7 billion on urban logistics properties. the warehouse is used by amazon and other retailers to fulfill orders from online shoppers. the deal with singapore's gop will almost double blackstone's u.s. industrial footprint. >> this is a company that is now the world's largest landlord, trying to invest money, and they have lots of it at the moment, therefore it is very difficult. is this an indication that blackstone is only going to be looking at massive, massive deals? it needs to get these kinds of deals done and i guess if you

want to invest the kind of money they have got, this works. >> they are sitting on a lot of dry powder. the difficulty is finding assets at the right valuation, that will be good growth stories as we go into an uncertain economic environment. i think this warehouse bet fits into that. this is obviously a very large deal. $17.8 billion. it has made smaller bets. there was a $7.6 billion purchase last year, a $1.8 billion purchase for other warehouse asset. they bought businesses from harvard that fit in this space. that was about $1 billion. you can see piecemeal deals to build up to a bigger overall business, and it has been a great way for blackstone to put their cash to work. >> deutsche bank once again back in the news. the head of the investment bank. we talked about the head of the investment bank last week because at the head of the general meeting. he did not get a resounding vote of confidence from the shareholders.

now the reports are that he is included in this expanding probe. there were rates on the deutsche bank offices because of -- raids on deutsche bank offices because of allegations of tax abuse. he is now reportedly included in that investigation. what role he may or may not have had in that, but garth ritchie is under seizure. deutsche bank is having a really hard time of it. their stock is down. it is really quite stunning how far it has fallen. one of our viewers wrote in and said why aren't you paying attention to the difference between market cap on deutsche bank and twitter? twitter has more than twice the market cap of deutsche bank. who would've thought? >> a big bloomberg scoop, boeing is said to be negotiating one of the largest ever orders for twin aisle planes with china. the deal could include about 187 dreamliner's the 777, the newest and most expensive long-range jets in the catalog. however negotiations could

stumble on the escalating trade war. let's cross to our aerospace team leader who joins us there. this headline is pretty surprising to me. one, you have the continuing trade tensions between the u.s. and china, two, china was pretty active when it came to the grounding of the 737 max 8. how long has this conversation been going on? >> it has been going on for a while, and even though it has been taking time, our reporting suggests that no deal is imminent. obviously the trade tensions are very much weighing on all the discussions. that said, the fact that they are going on at all shows how the u.s. and china are still dependent on each other when it comes to airplanes. you have boeing with the 777x under discussion. that's a crucial market, and china needs all the planes they can get because air travel is growing so fast as the economy expands. >> if this works out, how meaningful will the deal be for

boeing? >> it will be a very big deal for boeing. the first part, they need the business. the second part is that the company is in a huge crisis right now because of the crashes of the 737 max. china, as you said, has taken a very proactive role in grounding the plane and in reviewing what needs to be done to let it fly again. and so landing a big order from chinese airlines, even for a different model, would be a pretty big boost of confidence for boeing. >> not every day you see a stock drop as much as 40%, but that is what we saw with gamestop. here's a company that is still traditionally selling video games through retail channels, brick&mortar locations, while we are living in the world where streaming and online free gameplay through games like fortnight is the new reality. we saw that in the company's financial picture. it is challenged, especially as we see other technology

companies get into the gaming business, whether it is apple or google. this company is trying to cut costs right now, but at the end of the day, gamestop shares have lost about 95% of their value since their peak in 2007. >> google is looking to expand. google has agreed to buy business intelligence and analytics platform looker for $6 -- for $26 billion in cash, -- for $2.6 billion in cash, giving google a new tooling its campaign to sell more cloud storage and software as it has struggled to compete with larger rivals amazon and microsoft. >> there's a lot of pressure on google to do something to expand its size, at least from the analyst community. the investor community. this acquisition was maybe not as big as people were hoping four expecting. this is just an incremental change. it is a product that many google cloud customers were already using, and they will be able to sell them together. >> the bigger ipo of the year is beyond meat, out with its first earnings report since its ipo back in may.

it beat on all the main metrics that investors were looking for. sending the shares and storing in after-hours trading. you can see it is up about 12%. >> if we look at this company, it is up 300% since its debut, and in a way, you can argue it was underpriced at its ipo. given its track record, it's really not something that is outsized compared to what it has delivered. we have seen a pretty rosy performance, rosy results. maybe this is actually what they are worth. they are the most advanced compared to everybody else in the market right now. you have seen them more than you see anyone else. they have somehow managed to creep into your normal burger places where you don't actually think you are having a veggie burger anymore. ♪

>> known as the round hill bit craft, e-sports and digital entertainment etf, otherwise we just call it nerd. because that is a mouthful. two things about this fund that stick out, it doesn't use videogames in the name. we will talk about that later. digital entertainment is what they are going for. also, look at the price. 25 basis points is cheap, but it is only guaranteed for a year. they have the option to go to 50 basis points. they may or may not. we will see, but that's very cheap. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, quic . it will take you to our quick takes, where you can get fast insight into timely topics. here's a quick take from this week. >> let's say you've given up your law-abiding lifestyle to pursue a life of crime. you've just made your first big score, perhaps from selling drugs, taking a bribe, or other

corrupt acts. you cannot just spend it or deposit it in your bank account without attracting attention. that pesky money trail could serve as evidence of the crime you committed. so you need to get that dirty money clean. there are three steps to any money-laundering scheme. first, placement, where funds are move from direct association with the crime. then layering, or disguising the money trail to pharrell authorities, and finally, integration, where the funds are once again available to spend without worry of being caught. so what are your options? one option is forming a shell company. it is fairly easy, and there are plenty of law firms who can help. it should take them only a bit longer than signing up for a new email address. launderers may turn to historic tax havens like switzerland, or places with anonymous shell companies like the cayman islands over the u.s. states of delaware and nevada. once the shell company is set up, make up some fake transactions for goods or services you pay for with your dirty money. suddenly, that dirty money looks legitimate.

it also helps to find people in banking who don't care if you are a shady client. after the fall of the soviet union, launderers sought out weak spots throughout europe where oversight was poor. billions have been funneled through banks in cyprus, malta, and the baltic nations of estonia and latvia. if you prepare to use the stock -- prefer to use the stock market, you can try a technique called mirror trading. in this method, you use your money to purchase shares, then you sell shares worth the same amount somewhere abroad. the trades functionally cancel each other out, but you've successfully turned your ruble into clean euros. a similar method is a back-to-back deal where, say, a russian takes out a loan in one country, say austria, that is guaranteed by a deposit of dirty money back home. she then defaults on the loan, the bank seizes the russian deposit, but she still ends up with the proceeds of the loan. no strings attached. or maybe you like to visit casinos. another method of money-laundering is mixing dirty money with clean. cash businesses like restaurants

and casinos are particularly attractive the launderers. a common scheme is to buy a bunch of casino chips, make a few small wagers, then cash everything else out as winnings, or finally there is smurfing. you will not need anything blue to get your green. with this you hire a bunch of one associates called smurfs to individually deposit small chunks of the large haul you were trying to cleanse in different accounts in different places. but beware, u.s. banks are required to report any transaction over $10,000, so you might need to find a lot of smurfs. so you can see there's lots of ways to launder money. unfortunately for you, there's is no guarantee you will not get caught. >> 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" for this week. i'm juliette saly. thanks for watching. this is bloomberg.

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emily: i'm emily chang and this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up in the next hour, big tech is in the firing line of the u.s. government. alphabet, facebook, apple, and amazon maybe set to face ntitrust probes. plus, scrutiny overshadowed apple as it rolled out its new hardware at its annual conference. we bring you the key takeaways.