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tv   Bloomberg Best  Bloomberg  June 15, 2019 7:00am-8:00am EDT

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nejra: coming up on "bloomberg best," the stories that shaped the week in business around the world. tariff talks drive market sentiment every which way. the white house is at the center of most of the stall. >> he wants the meeting. he wants the meeting. this is really -- >> this is really an attempt to escalate pressure on xi. >> turmoil in hong kong as protests swell and iraq over controversial legislation. >> this crowd is very angry. >> a slew of economic data comes in from china, the u.s., and the u.k. from aerospace to energy, there's a burst of activity in m&a. >> this is good for america and it's good for defense, because we are going to bring unparalleled technology.
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nejra: chinese tech giant huawei stays in the news and remains under a microscope. and saying investors should worry about tariffs, he just doesn't know how much. >> we have not seen tariffs since the 1930's. there is no playbook for this. nejra: and chinese finance minister speaks exclusively with bloomberg about trade challenges. >> we all hope that trade tensions vanish. >> we may combine various monetary tools. nejra: it's all straight ahead on "bloomberg best." hello and welcome. i'm nejra cehic. this is "bloomberg best," your weekly review of the most important business news and analysis from around the world.
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let's start with a day by day look at the top headlines. global markets breathed a sigh of relief on monday after president trump announced he would not impose a set of threatened tariffs on mexico. >> mexico has won a reprieve after donald trump indefinitely suspended his plans for tariffs. trump has also vowed mexico would soon make large agricultural purchases from the u.s. how did president trump follow up on the announcement he is not imposing tariffs on mexico? it raises a few questions. >> after that announcement, he came out and said mexico was going to make some large agricultural purchases, although mexican officials said that that really had not been discussed at the talks in washington. it really was not a side agreement to do so. then sort ofmp amended that, saying at the appropriate time they would be making an announcement about a deal with mexico, indicating it could be on agriculture
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products. >> why are the mexicans denying it then? >> i don't think they will be denying it. >> the timing of this and the fact that the u.s. announced the threat of tariffs the previous thursday, on the same day mexico sent the usmca deal to its senate for consideration raises concerns about analysts -- from analysts about how committed the u.s. is to following through with even the best deal with its closest partner and ally, as in the case with mexico. >> president trump threatening to raise tariffs on china again if president xi jinping refuses to meet at the upcoming g20 summit in osaka. to escalatettempt pressure on xi. the president threatened he could increase tariffs by more than 25% on all of the goods that china exports to the u.s.. that would certainly increased
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tensions. >> he wants the meeting. he wants the meeting. president trump doubling down yesterday. china for their part said in a statement from their china foreign ministry spokesperson, "we have noticed the u.s. publicly stated many times that it looks forward to arranging a meeting between the chinese and the u.s. president on the sidelines of the g20 summit. if we have this information, we will release it in due time." the 40,000 foot level, the level of the two presidents, the most that will be done as they will decide it is worth reopening, but i don't think aside is a very likely place for the details of the 2500-page agreement to be worked out. that needs to be in a conference room with detailed technical people. >> demonstrators here in hong kong blocking one of the main arteries into the central business district as they protest against the government's
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controversial extradition legislation. what is the latest? >> there are tens of thousands of protesters here who have flooded onto half-court road. this is extremely reminiscent of what happened during the 2014 occupy central protest, except there is one big difference -- this crowd is very, very angry. an extremely ominous looking crowd, too. looks like today's color is black, as opposed to the white that was worn as a symbol of justice during the protests that took place in hong kong sunday , when up to one million people came out, although that number is said to be only 240,000, but still, 240,000 is very significant and shows the extent of the opposition to the bill to be discussed later today in hong kong. >> protesters came today wanting this bill, this extradition policy that they very much oppose, to be called off. that did not happen, and they say they are staying until that happens. m they provoked the police --
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and they provoked the police, things are being thrown. they have tried to charge forward, the police responded, as you can see in those pictures, with tear gas, with water cannons, with pepper spray. what is causing this, though, is this extradition policy that is opposed by large swaths of hong kong, including the business community and the legal community, which says that if this is passed, which would allow extradition to china, that it would effectively complicate things that would make it almost impossible to maintain the framework of the one country two systems framework which has allowed hong kong to become today a major international financial hub. >> how do the chinese react next? how do authorities in hong kong react next? >> the leader of hong kong, who earlier today gave a tearful
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interview on tv pledging to commit herself to this law has called for calm. there is a little bit of wiggle room. it is possible that they will pause. >> in my opinion, the best scenario here is for carrie lam to pull this legislation sooner rather than later. and hopefully, from my opinion about beijing, do so before donald trump starts tweeting about it. >> the u.s. navy says two tankers have been damaged in an incident in the strait of hormuz. the operator of one of the ships, which was sailing from saudi to singapore, described the incident as a suspected attack. crude prices jumped on the news. how bad can this become? >> there is already nervousness in the oil markets, so from the point of view of the oil markets, we could see that continuing. obviously, on a human level, this is a big risk. if there are tankers traveling through the persian gulf, the strait of whom -- strait
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it is a huge pathway for all kinds of cargo, but particularly for the world's oil supply, it is a huge risk both to shipping, to the sailors, and then to global oil markets here. >> what happened and what did it do to the markets? >> in the market reactions, oil spiked by a lot. i was surprised he did not spike more. we did see a rally at some point but backed off that. that shows how traders are looking at demand. supposedly there were two tankers that were supposedly attack, with them bursting on fire. you can see that from iranian tv. those pictures are pretty stark. the question is who? >> the united states government things the government of the iranian republic is responsible for the attacks in oman. >> the u.s. released a video they say shows the country was involved. tehran denies the allegation. the country's foreign minister is reiterating calls for dialogue, while u.s. central command sought to calm tensions, saying war with iran would not
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be in our strategic interests. is there any doubt that iran is behind this? >> there is considerable doubt. i think it's not clear exactly what has happened. i think the consensus in washington and it seems london is that iran was the most likely player to have committed this act, but it is still pretty unclear exactly what happened to both of these ships. while the finger of suspicion is falling on a run, and -- on iran and there are good reasons for that, i think we are a long way from knowing what happened here. >> the bond is heading lower. what ramifications will this iran havetension with on the u.s. market? >> iran has commonly been labeled as a black swan potential, a reason for risk. people have been worried about iran for a long time. generally speaking, those worries have not materialized.
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i tend to think these things get overblown because it is iran and you sort of fear the worst, and generally speaking, it does not pan out as badly us some of -- badly as some of the fears and nightmares may suggest. >> we heard from the president himself today. what does that mean for further u.s. response? >> potential additional sanctions. both secretary of state pompeo and president trump reiterating that the u.s. believes the iranians are responsible for the mining of those two tankers in the persian gulf. they are looking to impose more economic sanctions on the iranians to bring them to the negotiating table to try to with draw their nuclear ambitions. nejra: still ahead, as we review the week on "bloomberg best," the boj governor leads the list of exclusive conversations from the g-20 finance meeting in japan. plus, legendary manager paul to
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the jones explains how he is in hising portfolio. and more of the week's top business headlines are president trump presses the fed to bring down rates and the latest inflation data may give them another nudge. >> i think that what is happening is a strong dollar is weighing on the pace of core goods inflation. nejra: this is bloomberg. ♪
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nejra: this is "bloomberg best." i'm a rich a hitch. let's continue our tour of the the cozy top business stories in china, where a feast of economic data gave investors plenty to digest. >> chinese imports perform worse than expected as the trade standoff with the u.s. intensifies. the key takeaways -- >> surprise numbers on the trade
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front out of china. exports up 1.1% in the month of may. we got a drop of almost .4%. that was the forecast, but the actual number was a 1.1% of may. for the month in terms of imports, those slumped 8.5%. again, well off the forecast. at that point, the import number showed weaker domestic demand. the trade surplus, by the way, is about $42 billion. the trump administration is very focused on trying to reduce the deficit it has with china and this at a time when the trade representative is weighing options around the potential of additional terrorist targeting $300 billion worth of chinese exports. >> the pressure continuing to rise in may. the supply shocks pushed up crude cost. >> overall, the consumer price index ticked up 2.7%, in line with the forecast, but again, this is the highest tick up in terms of consumer prices we have seen for 15 months.
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in terms of producer prices, factory gate prices, those softened, .6%, so there is concern, of course, about the erosion of corporate profit, but there will certainly be concerns we could be looking at the specter of deflation for china's factory sector at a time you -- time when you already have pressure from the trade war. >> the impact from the u.s. trade war beginning to show up in some china data here. rising,al production but retail sales was the bright spot, growing 8.6%. what do you make of it? can the pboc and the government support china? >> i think the data came in line with a weakening economy, so i don't think it was a surprise. i think china still has policy room. certainly they can still cut reserve requirements. they are very high, but i don't think they are going to do an all-out stimulus. >> let's talk a little bit about what is happening with the u.k. economy.
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it is not particularly good. manufacturing outputs falling the most in almost 17 years in april. economic growth fell .3% in the last three months. how much of this is a hangover from stockpiling and all those other factors that seem to give the economy a boost? presumably that is fading now? >> exactly right. these are not great figures. 24% in april alone is a fairly dismal figure, so this is largely an unwind of what we saw in the first quarter. we saw a lot of stockpiling men. -- stockpiling then. we had 25% growth in the first quarter, which was more than expected, but now we are seeing that unwind. >> president trump has gone after the fed again, complaining about what he sees as high interest rates, tweeting out this morning saying the fed is really making a mistake, the rates just aren't low enough. could he be right, in fact? there's a piece on the bloomberg
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that says if you look at purchasing power of parity, the too weakctually compared to the dollar. >> what is going on internationally and what is going on with currencies tends not to have as big an impact on the u.s. economy as it does on a lot of others, primarily because most of our economy is not export-based or even import based, as much as the president might like to think so. i think the president is saying these things for political reasons. he needs a scapegoat in the event that the economy does fall down and he wants to blame the fed as opposed to regular cycles, or his own geopolitical issues he creates with all of these trade tensions. 1 trailin -- >> trailing the forecast in may, which might lead for the fed to discuss cutting interest rates. it still looks to me like this is a sign for the fed. what is wrong with 2%? >> the fed talking about
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transitory, or transient factors weighing on the base of core inflation. this transitory effect actually normalized in the may report, but inflation is still quite tepid, so it will become a little bit harder for chair this transitory nature of weak inflation at a press conference next week. i think what is happening is that a strong dollar is weighing on the pace of core goods inflation, and that is what really shows in the overall picture for inflation right now. >> president trump says he is considering using u.s. sanctions to stop construction of the gas pipeline between russia and germany, echoing previous threats about german support for the project. he said he is protecting germany from russia because russia is getting billions of dollars from germany. so is he really upping the ante? >> there are two things owing -- there are really two things
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going on here. one, there is bipartisan support. a republican senator and democratic senator drafted the bill for sanctions, sanction the vessels that are laying the pipework -- this will have a domino effect on anyone else 2rking on the nord stream pipeline. it was supposed to be done by the end of the year, which you mentioned, but looks like it will be delayed. actually, this is the u.s. wanting to get into that market. they call it freedom gas, molecules of u.s. freedom. >> boris johnson took a huge lead in the race to become britain's next prime minister today after members of parliament held their first round of voting. seven candidates will go on to the second round in the quest to succeed theresa may. was there anything in today's numbers that caused anybody to pop? just howthing, it was big the lead was for boris johnson and how that has left
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the rest, if you like, of trailing so far behind. number two at the moment is jeremy hunt, the foreign secretary. he is a continuity candidate, if you like, and i think it is worth pointing out that it could still go wrong for boris johnson. his team are very aware of that. this is tuesday, there will be a candidate with a rich history. another round. this is a candidate with a rich history. tuesday, there will be another round. more candidates will be eliminated, and the final two will go to the conservative grassroots. they love brexit and they are not keen on a no deal brexit. as we go to that phase of the campaign, expect the rhetoric to shift. >> the swiss national bank battles with ultra-loose monetary policy, but the downshift to the global economy and the shift by other banks means president thomas morton is likely to see lower rates for some time. >> if you were to cut rates, would you expect to see pushback from the financial sector? they are not happy now.
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>> it is not our task to make the financial sector happy, it is our task to maintain price stability in switzerland and conserve the economy -- preserve the economy. >> euro area finance ministers are urging italy to respect its debt pledges, adding that verbal assurances will not cut it this time. so it seems europe wants to see more action and less talk. >> that is exactly it. european finance ministers here yesterday agreed with the european commissioner. they think italy needs to do more to bring down that debt pile. and they need to do that quickly to avert the financial penalty that could happen if they do not do that. the italian finance minister believes that there will be a compromise made by the end of the year that can avoid that penalty, but we understand sources close to the italian finance ministry said this does not bring anything new to the table. >> organizers of this week's mass protest in hong kong are calling for more demonstrations on sunday.
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various groups are urging the government to withdraw the controversial extradition bill and hold public discussions. >> i think the key point right now, we are in a bit of a lull towards the weekend and next week. this is the response of the is this community in hong kong, because this is a city of commerce. so you are hearing from the hong kong general chamber of commerce with a statement urging the chief executive to engage in meaningful dialogue with the public. so does that mean the government will change its tone? so far, not yet. ♪
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nejra: this is "bloomberg best." pitch -- nejrahe
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cehic. finance ministers and central bankers from the world's largest economy met in japan this week in advance of the g-20 summit later this month. among the most distant with attendees, the bank of japan governor who sat down for an exclusive discussion with kathleen hays. he says japan's economy is in good shape, despite the pressure of negative interest rates on the banking sector. and he insists he still has policy tools to deploy in the event of a downturn. >> at this moment, the situation toquite stable, but we have carefully monitor the situation if we continue or even if we expand or strengthen further. kathleen: in a sense you are saying you are willing to take rising costof the
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of the stimulus debt if you need to stimulate the economy. >> yes, but at the same time, in order to avoid as much as possible that side effect, we may combine various monetary tools to reduce that sort of dangerous side effect. >> sounds like a very, very interesting recipe you will have to have. big picture, do you still have the capacity to show all those people who say the boj cannot do anything that you can do something big, even something new? >> yeah, i think so. >> what would that be? >> we have four options. the negative interest rate, further increasing the amount of the purchase, and further committing to an
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increase of the monetary base and so on and so forth. so those four options i think we can still utilize if necessary. and how to use and how these could be combined depends on the economy, price, and financial conditions, but yes, like mario draghi, i think we can do these things if necessary. nejra: we will have more exclusive interviews from g-20 finance leaders coming up. plus, more of the week's top business headlines, including apple's backup plan to produce iphones outside china. next, investors already pricing in a fed rate cut, but they could get more than they
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bargained for. -- trades aree trait already in process. the question is how much further they are willing to go. i think they are all going to keep going a long way.
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every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. nejra: this is "bloomberg best." time now to revisit more exclusive interviews from the g20 finance meeting in fukuoka, japan. let's begin with ecb board member and the bank of italy governor, who assured kathleen hays that the ecb would take whatever policy steps are necessary to sustain growth in the euro zone. >> the objective is, in this case, goes hand-in-hand with demand, which is what the federal reserve is pursuing in their new mandate. we don't have a dual mandate, but it is clear that the revival
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of inflation towards our priced -- price stability ability -- price stability measure and an increasing domestic demand go hand-in-hand. >> so as long as the u.s.-china trade war is unresolved, as long as this uncertainty hangs over businesses, consumers, and financial markets, that at the very least the ecb will maintain the current level of stimulus, even if it doesn't take these additional steps to add more? >> i think the stance is very favorable. there is no question. we call for other policies to complement the ecb fiscal policy in this case. fiscal policy, obviously, we know that there are differences across countries, but the countries which have fiscal space, and there are, have been called for helping on the side. the others, it is mostly an issue of composition of public
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expenditures. if things somehow do not go how it is predicted, we will certainly act. there is no question. >> we all hope that the trade tensions will vanish, especially because there is an agreement that could be reached between the united states and china. this would be very helpful. if we look at the growth of the world economy, we see that these pending questions are having a real impact on the development of the world. when this man-made problem could be solved by man, this would be a solution. >> how about italy? it looks like the euro area and euro zone leaders are looking at launching some kind of order against them because they are falling out of compliance on their budget. was that discussed here at the
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g20, and where do you expect that to go? there has not been much discussion at the g20, really, but we talk to each other and we have some experience -- i think it was very wise how the european union acted at the beginning of last year and this year following the regulations and rules that we have, giving italy the chance to adopt to this. i think this will be the way, how we could proceed. >> we are in a difficult moment with our relations with china. we are following, of course, our extradition agreement with the united states in our approach, which as a rule of law country is the right way for us to move forward. we think it is entirely unjust for china to be imprisoning two canadian citizens, and certainly helpful in any way with our ties and
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relationships. >> do you have any indication that president trump's decision to increase the tariffs on china -- have you noticed that china has toughened its stance against canada, less receptive to talk about these important issues surrounding huawei since that happened? >> i don't know if i want to say that i can see cause in terms of that part of the relationship. certainly we have seen some pretty difficult issues -- the slowdown of our canola exports -- that's a very big export from canada to china -- that's a problem. we are obviously concerned that china would expand this action, which would be, we think not beneficial for either of our economies. we are hopeful we can make progress, but we don't really have a path and this entire issue between the united states
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and china is something we will help to move forward. >> canadian finance minister bill morneau was not the only bloomberg tv guest thinking about huawei this week. another says european consumers shouldn't be concerned that a trade conflict and global focus on security will slow down the rollout of 5g technology. he spoke exclusively with caroline hyde in london. >> i don't think on the european level there will be any delays based on the situation with regard to security concerns. i think if any, there might be delays on account of spectrum not being available for economics not making sense. the economicsr not making sense. we have technical solutions should you want to swap out, and they are all doable. >> when it comes to security, when it comes to providers -- it is a relevance, realistic risk
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to have huawei as a provider, don't you think? >> the concern people are expressing is that it will be critical national infrastructure. the focus on security will be there, no matter what. it has to be there. the second is, where is the intelligence network? is it in the core network, at the edge? is it throughout the network? there is no one particular place where intelligence fits. of course, this will be used for industrial networks. then you get all this talk about worries around security, and i think that makes sense. it is going to be critical national infrastructure, you will have industrial 5g networks used for a lot of industries as well as for carriers that will also use networks to deploy for industrial applications. that concern is valid and i think security cannot be an afterthought. >> meanwhile, back on wall street, billionaire macro trader paul tudor jones believes the fed is going to cut rates, and he has a playbook in place for investors, but he is also
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worried that tariffs could tip the u.s. economy into recession. he explained his outlook and his strategy to vonnie quinn. >> there's rate cut 101. long stocks, at least initially, long fixed income, property --rt the dollar come along short the dollar, long gold. that's what you doing to the first rate cut. they are already trading, all of those trades are already in process. the question is how much further past the go into and first rate cut. i think they will all keep going a long way. >> so you think in 2019 we could see 25 basis points to cut? >> so much of it depends on the tariffs, how far we go with tariffs. remember, this rate cycle was cut short. we never really got the rates that we got historically to end an economic cycle. they were cut short because of the tariffs.
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so we really have to see the impact that they are going to have and whether this next round of tariffs gets implemented, that's a huge deal. i would say if they get theemented, if we go to $500 billion, i think certainly that is possible it could tip us into recession. we've never seen anything like this in 75 years. we haven't seen tariffs since 1929. there is no playbook for this. you have this interconnected, global economy, that all of a sudden, for the first time in 75 years, we are seeing free trade, -- free trade not being expanded, but being diminished. we just don't know, because we haven't stress tested the system yet. we just don't know what the impact will be. i am more conservative, so i think it will have a bigger impact economically then what the market thinks. it probably, could possibly push
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us into a recession. ♪
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nejra: this is "bloomberg best." nejra: this is "bloomberg best." i am njejra cehic. still plenty of important business news to review from the week just past, including some major m&a activity. let's start with the deal that combined u.s. aerospace defense two giants. >> united technologies and raytheon have agreed to merge in the second largest defense contract in the western world, second only to boeing. explain why this deal makes so much sense. >> as we see with the planned spinoff of otis and carrier through united technologies and the acquisition here of raytheon, united technologies
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ceo greg hayes is building an aerospace defense behemoth. we estimate combined revenue of about $80 billion next year, which makes it second only to boeing. it is going to be the second largest defense prime contractor to the u.s. government behind lockheed martin. >> what are you going to have to convincing of government and president trump that this is a deal for america? >> there will be three points i would make to the administration. one is this is good for america, good for defense. we are going to bring unparalleled technology. we will also save the government money. we have $1 billion of synergies, half of that goes back to the dod with cost-reduction on contracts. half a billion dollars a year every year. third, we will create a ton of jobs. >> salesforce agreeing to buy tableau for $15.3 billion in stock. it's the biggest deal in salesforce history, and the company's first major push into analytic software. what does it add to salesforce's
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suite of offerings? over $15 billion, and a pretty big premium to the friday closing price. >> tableau is a company with 86,000 customers around the world. it makes business intelligence software. as you said, analytics, but it also has distinction because it is able to visualize that data in a way that's easy to understand. so there were lots of charts and dashboards, and it is something that lots of businesses use. so this is an opportunity to try to show salesforce's customers all of the data about their consumers in an easy-to-understand way so they can make better decisions and then possibly sell more to those consumers. >> agl shares were the focus in australia after they made an offer for the network and data provider. this would be a 27% premium and comes a week after a swedish
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eqt, walked away from an earlier proposal. what is the rationale for agl getting into telecom? >> it's a fascinating move. it's the first one i can think of, an australian energy company moving into this tech space. i think it's an acknowledgment that going forward energy will be increasingly tech driven. what we have documented as well is that they have taken up rooftops as well. it's a sunny country, which has given them access to controlling their own energy needs, and we have the apps in the smart home systems, the treasure trove of data that agl can get access to, which is valuable to them in terms of tailoring their retail offer. what they would get is a broadband based provider that carries that data. the synergies are there. >> alibaba closer to a share sale in hong kong. we learned that it has picked two banks to lead the offer. what more do we know? >> what we have been told is that alibaba could file for a
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secondary listing in hong kong. they have chosen cicc and credit suisse as their lead bank. that doesn't mean they are not talking to more banks and bringing on more at a later stage in the filing process. for cicc, it's obviously a no-brainer, because they own a stake in this chinese firm, and then for credit suisse they were very involved in the 2014 ipo, so very familiar with alibaba's business. >> bloomberg has learned that alibaba has filed confidentially for a secondary listing in hong kong, moving closer to what is potentially the city's biggest share sale since 2010. just run us through what we know now. >> according to sources, they raise as much as $20 billion. may the target has not been finalized yet. but alibaba isn't short of any cash. they had about $30 billion in cash as of march, but it does boost liquidity and diversify funding since they went public in that monster ipo in 2014.
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they have diversified far beyond e-commerce. they are in off-line retail, logistics, entertainment, delivery. that has put pressure on margins, and it could raise funds for this costly subsidy war they are having right now. >> apple is making contingency plans to deal with an escalating trade war between the u.s. and china. foxconn, the iphone maker's primary manufacturing partner, says that it has the capacity to boundu.s. market iphones outside of china if necessary. india, as i understand it, is one of the places, among others. this does not seem to be what donald trump had in mind, that they would simply another. -- simply move from one low cost country to another. >> that's right. thailand is another major location foxconn could move to. this is the reality of the global supply chain for smartphone components. it is a situation where these multinational companies can adjust to what's happening on the ground. i think in particular for
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foxconn and u.s.- bound iphones, it would be quite a heavy lift to get this done, but it would be possible. >> british lawmakers have global andwei cyber security officer, as they considered whether to allow the chinese government to have a role in the next generation broadband networks. what were the highlights of this hearing? >> this is about the ongoing debate about the role they should be playing in the uk's next-generation network infrastructure. there were some very tense moments during this hearing. both parties really grilled this huawei executive, and even accused him of being a moral vacuum when he explained it is not huawei's role to decide what laws are right and wrong, but huawei will follow any country as long as they operate within the country's rule of law. former prime minister theresa may have decided that huawei
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should be allowed to provide at least some part of the uk's 5g network, but there are other candidates that are taking a much stronger negative stance toward it. so it will really be up to the next leader to decide what role huawei is going to play. >> a group of states are suing to block t-mobile's proposed takeover of sprint on antitrust grounds, putting pressure on the justice department as it nears a final decision of a merger of the wireless carriers. what can we expect next? i know we have seen the chairman of the fcc support the deal. >> right. so this is almost unheard of, for the states to move ahead of federal regulators. the company got a big victory last month, when the fcc endorsed the deal after the companies agreed to some concessions. it looked like this may be on the way to approvals, so now with the states suing, it is all up in the air. it is now going to be up to a federal judge to decide whether to block it. >> the 20 year marriage with nissan may be in trouble. the implosion of the french
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carmaker's merger plans with fiat chrysler has brought in the -- brought the tension out in the open. the japanese carmakers reluctant says it is one reason for the -- reluctance is one reason for the deal, and francis finance ministers spoke in tokyo this morning, saying he still sees the verdure is a great opportunity. >> the role of the state as the shareholder is to make sure we respect our priorities, and our priority is to strengthen lte alliance between renau and nissan. >> on one side, clearly fiat is blaming the french government for the withdrawal of the proposal, because the french governor kept on asking for more time to decide, and they thought that fiat it was clearly a sign the french government is in the lt, and seat of renau fiat doesn't want to meddle with the french government. the other side we saw over the weekend, the future of the nissan alliance, clearly the situation at the moment is unclear, and fiat was not back at the table.
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>> elon musk has addressed tesla critics, saying there no problem with demand, and that it is "financially insane" to buy anything other than an electric car. the annual shareholder meeting has now wrapped up, and musk's optimism pushed the stock higher in late trade. what were the key takeaways from the tesla meeting? >> it was an interesting meeting. elon musk addressed the issue of demand head on, assuring shareholders there was no demand problem, that tesla was selling every car they can make, and that this whole idea that demand has slowed or softened is not true. he said that if you are looking toward the future, it would be financially insane to buy anything but an electric car that is upgradable to autonomy, the vp ofe invited technology onto the stage, and sounded very optimistic about progress on the china giga factory as well.
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>> shares of broadcom tumbling in after-hours trading after the chipmaker cut its full-year revenue outlook. it also reported technical revenue missed projections as it continues to be caught in the cross hairs the escalating u.s.-china rate war -- crosshairs of the escalating u.s.-china trade war. almost half of their revenue was linked to china last year, with wildly in particular accounting for 5.3% of sales. how much does this have to do with huawei and china at large? >> this company is in the crosshairs, arguably the best example of a company based in the u.s. that is part of this global supply chain, even stuff they are selling that isn't going into the china market and staying there, coming here is going to europe. this is them saying the worst case scenario is absolutely true, and by the way we have this giant customer that isn't ordering anymore because they can't. >> open for trading at $36 per share.
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it's another leg higher, up 17%, raising more than $1 billion in what was already an upside offering. a very successful ipo. >> they grew by more than $1 billion last year. how do you intend to grow that? how do you intend to keep up that pace? investors will be looking for that. >> our active customers spend more and more the longer they stay with us. our private brands are getting healthier. we have a lot more to do, a lot more customers to add, and really continue the value proposition we've been on. ♪
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>> we have a great function on the bloomberg to show you u.s. financial conditions. that is fcon, which shows you a number of things like the libor spread, the ted spread, and
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swaps in volatility index, the vix, so forth. in fact, it hasn't really tightened at all this year. >> bloomberg map is like google maps, except with all sorts of hydrocarbon information, and it's real simple. iran up here, dubai down here in the corner, and out near oman is a ship bound for singapore. it stops dead in the water, a really serious incident. this is more serious than what we saw in recent weeks. nejra: there are about 30,000 functions on the bloomberg, and we always enjoy showing you are -- you our favorites on bloomberg television. maybe they will become your favorites. here's another function you will , quic . it will lead you to our quick takes, where you can get important context in fast insight into timely topics. here's a quick tape explaining the proposed extradition bill that led to massive opposition protests in hong kong. >> hong kong's government is attempting to pass a law that would for the first time allow
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extraditions to mainland china. the proposal has caused massive opposition and a series of protests. riot police have used tear gas and rubber bullets on the demonstrators. still, the administration is pressing ahead. the bill was proposed by the government in february. it covers mainland china and other jurisdictions that could include taiwan. it was sparked by the case of a hong kong man accused of murdering his girlfriend in taiwan. he was arrested in hong kong and convicted of money laundering, but couldn't be sent back to taiwan for trial because there's is no legal framework to do so. the government says the new law will make sure hong kong doesn't become a haven for future -- for fugitives. but opponents are concerned that it could open the door for anyone, including political dissidents or civil rights activists who might risk being arrested on fabricated charges in hong kong and sent to the mainland to face trial. -- face unfair trials.
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apart from hong kong's citizens, the law would also apply to foreign residents, and even people passing through on business or as tourists. it is one of the latest laws -- latest moves under chinese president xi jinping that is viewed as chipping away at hong kong's autonomy, which guarantees free speech and capitalist markets. this time, protesters are hoping to repeat the success of the demonstration in 2003, which led the city to scrap a national security law and contributed to the resignation of the then-chief executive. but it might also end up the umbrella movement in 2014, which failed to achieve universal suffrage after student-led protests occupied city streets for 79 days. nejra: 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.
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that will be all for "bloomberg best" this week. thanks so much for watching. i'm nejra cehic. this is bloomberg. ♪ the latest innovation from xfinity
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haslinda: the shimmering skyline of singapore, home to asean's financial hub, and one of the most expensive cities in the world. singapore is a place where fervent enterprise meets money. >> frankly, a large part of the ean story is driven by private enterprise. haslinda: singaporean banks are up to 16% of all project related finance in asean. >> the private sector wants something, clearly. the public sector wants something. you must make sure there is the right match. >> if we can combi

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