best,ing up on bloomberg the stories that shaped the weekend business around the world. p.m..k. has the new he says he is the man that can eu. britain out of the >> it will be a very tall order for boris johnson to deliver. u.s. stocks down again, but the path remains elusive. police and protesters clash again in hong kong. u.s. authorities plan an antitrust as growth in the eurozone shows signs of further

shrinking, they make a key decision on stimulus. >> the european central bank has one way to go and that is lower when it comes to rates. , how fasts reports and furious. >> we have been successful. the teflon company. , the week's top interviews. >> small probability it could be dangerous. >> what is happening is not entirely driven by brexit. >> it is all straight ahead on bloomberg best. hello and welcome. this is bloomberg best, your

weekly review of the most important business news and interviews from bloomberg television around the world. let's start with the day by day look at the top headlines. monday, optimism grows on signals that the u.s. and china might be preparing to restart trade talks. could beiations restarting soon after a number of goodwill gestures by beijing over the weekend. that is according to chinese media. looks likeare seeing , they are about to start buying again, soybeans and possibly some pork and other agriculture commodities. that is goodwill measures if you will, but we should not take that to mean a deal is suddenly at hand. major tech companies paid a visit to the white house to

discuss the economy and status of the u.s. and on while way -- huawei. what was the outcome of the meeting? >> according to the white house, the ceo of the company expressed report -- support for national security restriction for huawei. they also asked for timely decisions on when there would be exceptions to that. we still don't know how the companies are making distinctions between what the national security risk is and what isn't. boris johnson will be the next prime minister, promising to take the u.k. by the u.k. outn deadline -- of the eu by the halloween deadline. >> we are going to take advantage of all the opportunities. majority a razor thin behind me. it is going to be a very tall

order for boris johnson to deliver. >> the only way i can see this if he canugh is persuade the european union to thenmething which she can sell to his party as removing the backstop. this is the brexit deal they don't like. my mental image is a very small jungle ina dense which he is trying to land a large plane. >> trade officials fly to china on monday for face-to-face talks in may. there for talks about china. cautiousness? >> i would be very cautious.

this is the first talked since announcing the temporary truce in the trade war, but administration officials have been cautioning not to expect a whole lot. it is something of a breakthrough. closingve equities right around session highs and it all changed just before 2:00 p.m. >> nothing like a sprinkling of earnings to help galvanize the risk. bank, germany's biggest lender lost over 2 billion euros in the second quarter. it dropped to 12% in the second quarter and again underperformed its biggest u.s. rival. theith the execution comes recognition of the steps we have

taken. this quarter, we are recognizing about 3.4 billion in costs, so we get a good portion of the accounting impact already behind us and the balance of the year we are working to take restructuring charges in the second half as we execute on the restructuring. >> facebook out with second-quarter earnings, proving again the company can grow. just hours after facebook announced a settlement with the federal trade commission to end a probe in the companies privacy policy and practices, the company confirmed it is now being investigated on antitrust as well. with all of these controversies and scandals, how did facebook keep the key beating the odds?

>> every quarter, i say the same thing. they have been able to grow revenue and user base despite mounting challenges and this quarter, more of the same. thehey keep raking in dough, they are brilliant advertising platform, especially for smaller businesses, there is not another place to go word else -- results can be achieved. that is a great thing for the but long-term, is a going to affect them? -- absolutely going to affect them, no question about that. >> boris johnson has wasted no time in shaking things up. the former home secretary making a big promotion for the home office and another one has been made [inaudible] >> this is essentially him doubling down on his brexit commitment.

him shaping a cabinet that will help them deliver brexit. >> he is bringing alongside all those people who were rebelling against him. remember, he has to have every single one of them in order to get a deal across, so it will not be incredibly challenging to do that. >> the ecb is dovish as the central bank issues a rate cut and lower inflation's. necessaryinues to be to ensure financial conditions remain very favorable and support the expansion. >> he made it clear the european bank only has one way to go and that is lower. he also made it clear they will look at all [inaudible]

he did not give any details on qe2 or elaborate much on what it could look like. of course now, we will look at a situation where they will be speculating the entire summer of what will happen. how big is the rate cut going to be and do we actually get other policies? by theet clear guidance rate cut? >> google having a bounce back quarter. top analysts estimate that hasle's phone operating [inaudible] thehey were able to stop decelerating for the first time in year. i think the story remains from the last quarter which is that the digital advertising is more significantly competitive and it

is a year ago. obviously, facebook and amazon being the new entrants, the third-largest that is out there to put the dollars into, so i think there is more competition and that is what is feeding this new normal that they were going to expect when you look at google's ranks going forward. >> amazon fell after reporting a lower than expected forecast. they say they will continue to improve topline growth and delivery. >> spending is back at amazon. they told us they will spend some $800 million on trying to today delivered pledge into a one-day delivery pledge and it is going to continue at least for the next and to try to

increase the speed of delivery in the core retail business. u.s.mobile has won the approval of the merger with sprint. does it mean they can go ahead with the deal? >> pretty much. they still have some steaks they ,eed to be in front of, but yes it is a momentous occasion for the two country -- two companies five years in the making. >> we see who can provide the best 5g. we feel very confident combined we will be able to do that , it is sprint spectrum called the mid-band combined with t-mobile gives us the ability to build an advanced network, so there will be some great competition and i think the big beneficiary of this will

be the american consumer with more choices and better prices. >> u.s. growth slowing in the first quarter, but not much as analysts expected including pushing gdp growth to -- >> business investment taking it on the chin of an escalating trade war. i would be more encouraged if we were looking at diversified growth, meaning contributions from exports and a whole array of categories, but that wasn't the case. it is consumers going it alone which would be good enough to territory, but certainly would be much more encouraging in you see a bunch of contributions. -- and you see a bunch of contributions.

>> and assistive conversation with alan greenspan, plus bank brexitand governor says is not britain's only economic problem. >> what we are seeing is the business growing. this is bloomberg. ♪

best.s is bloomberg the earnings report could be heard loud and strong this week. >> ubs saw a revival in his

fortunes in the second quarter after what sergio armani called one of the worst starts to the year in recent history. record profit and wealth management business and a stronger performance have helped them pose the highest net income in almost a decade. it is a strong one, but that does not make us complacent about the environment. the investment banking activities and the revenue pressure is there. we are acting from a position of strength and a position in which we constantly look to improve our business and it is not one of the initiatives that make a difference. we also need to take advantage of our position in the market. second-quarter profit hit by cost cuts along with a

restructuring. the bank reach an agreement and the lender is also closing hundred -- 140 branches. >> they have delivered the strongest performance in years, reflecting the progress we have made in our digital transformation. it is clear they are changing and customers are channeling more and more than through the physical distribution network and we have to continuously adjust through the new way of the relationship. >> they have reported the slowest inflows in at least seven years. switzerland's third-largest bank

missed its medium-term goal from 4% to 6%. >> from the core wealth management is this, particularly from asia to the middle east. you are right we had some outflows and we are within the target range. and look at margins have an they have -- we accident from better markets and i think it is important going isward that the cost program on track. manager said 4.2 billion euros in inflows in the quarter, so it was actually a big bright spot for deutsche bank, the parent company and the asset management business says -- has really turned around 700

billion euros in asset management. what is going right for dws? >> we have a diversified and we can respond to our clients needs and we see strong inflows with alternatives in particular. shares of coca-cola of 5%, posting their biggest gains in four years, pushing close to a record. the beverage giant got another boost. i want to ask you about the north american unit. we did see a little bit of a weakness. are you losing sales in north america and what to do about that? >> when you look at the north american business, we have a strategy we have been pursuing which is driving engagement with consumers and one of the legs of that is using smaller packages

where we are looking at transaction growth, even if it means less volatile. we would like to see the volume increased and the strategy is really about expanding and creating value and growing the revenues and i think the sign of it working is you will see more households buying more of our products in the households in the u.s. going up. we are seeing the business growing, yet the report going down. tumbling of tesla are and double-digit losses down 11%. reported ac carmaker larger than expected loss and is cutting capital expenditures. the company pushing ahead with expansion in china. at least they cap their forecast for delivery. >> they also kind of walked back from the idea of making profits

in the third-quarter and later this year, but we see from the results the model three sells for less than the model x and now the makeup of the company is one where it is selling three to four times model threes and the margins are really under pressure. volkswagen fell 8.1% on fading demand in key markets come a but the world's biggest carmaker is sticking to its full-year outlook. >> sales being down, we have still been able to grow operating profits. we have to ben is successful with the pricing and we are forecasting a potentially and have second half to stick to our guidance for the full year. >> the suns troubles are far

troubles -- nissan's far from over. what is the issue with the jobs cuts plan? sales,an see from the the way that incentives were being used, especially in the u.s.. i think some job cuts are necessary and the problem is where the cuts are located. far, north so america, the talk of indonesia as well, to some extent as japan. the japanese operation is about half of the revenue in the mix.l next -- global ♪

you are watching bloomberg best. all eyes will be on the fed next is expected to cut rates. this week, alan greenspan spoke exclusively with bloomberg and said an insurance cut could make a lot of sense. certain forecast have four more negative effects than , yous, so in that sense will act to reduce the risk of those types of events and that

is a valuable thing to do. i remember on a number of rates notwe cut wasuse we thought it probable or necessary but the probability of what would happen if it indeed it happen was very events.elative to other small consider there is a probability of events that can be dangerous, it pays to see if fend itsend it off -- off. [no audio] growth as slowing global . remedyr rates help or

slowing growth? something i recall being very active. not.might and they might i don't feel like in another ,tself it is a reason to act but there is a relative trade oaks to this day. up, more news investor business and finance. congress works out a deal to raise the u.s. that feeling that no one is very happy with. the former bank of england governor is that up with the battle over brexit and he says -- itws why it is been

has been dragging on. >> the parliament has voted for nothing. >> this is bloomberg. ♪

♪ welcome back to "bloomberg best." week, the new nass textile stock exchange opened in china, market, thetar first day for a training frenzy as 25 companies that made their 140%,rose an average although the exuberance faded a bit as the week went on. selina wang, with the china renaissance group at the launch of the new exchange, and asked how this new stock menu will distinguish itself. ♪ -- it's allfferent about the sponsorships. neednot about whether you

a certain requirement, at the end of the day. us, with a lot itchinese tech companies -- is quite interesting. >> how much do you see this shifting the balance of listing from new york in hong kong to mainland china? the u.s. is still a very attractive place given the opportunity to raise u.s. dollars and get capital control. >> i think these are different markets. they'llng kong, china, have a different focus. company,e a large cap the u.s. is a perfect home. broadestt liquid, capital market in the world. it hasng, obviously, connections to the china

markets, and if you are a company with unique business model, hong kong is probably your topic. and if you are hard tech semiconductor, china is probably the best choice. it isur perspective, always good to have more options. i think eventually the chinese tech companies entrepreneurs -- they will group toward different selections. ♪ >> the u.k. has a new prime minister, but it faces the same question it did before boris johnson took office on wednesday.what will happen to britain's economy as it headed towards an uncertain voice from the european union? former bank of england governor mervyn king tells bloomberg how the country might use fiscal and monetary policy tools to meet its challenge. ♪ >> in terms of the macroeconomic response, if there were a

weakening of the u.k. economy, and i think it is important to make clear that what is happening to the u.k. economy is not entirely driven by brexit. one of the great mistakes of the past three years amongst many commentators is just to assume that everything that's happening in britain as a result of brexit. it isn't. we are part of a bigger world economy which itself is slowing. other parts of the world -- europe, the united states -- are thinking about how much policy space they have. i think we have quite a lot, if it were thought to be appropriate to ease either monetary or fiscal policy. but that is a judgment to be made by the respective authorities further down the road. it is there if we need it, that isn't the big challenge. the big challenges for parliament to come to a view as to what we are going to do, and so far the thing that matters more than anything else is that parliament has voted for nothing. it has voted against everything, voted against remain, against h

different varieties of brexit, against the no deal brexit. it hasn't voted for anything. that is the source of the deadlock in which we find ourselves. >> so what is the solution? on the demand side of things, you can say that demand is impervious to monetary policy, that it can't stimulate demand, but that's the global economy slowing argument. on the political side of things, we know the u.k. has already entered a technical recession. what is to be done? can the boe do anything by using? >> greater cooperation within the world economy -- i think the federal reserve is quite likely to ease monetary policy, to see continued growth in the u.s. the bigger problems i see lie within the european union. they are exporting deflation to the rest of the world. they have a very large surplus.

the trade surplus of china has for the moment disappeared, is the big issue on the international front. the issue is the current account surplus of the european union. i see no prospect of them being willing to face up to tackle that for some considerable time. ♪ >> if trade tension is the leading downside risk for markets, geopolitical shocks are certainly close behind. this week kevin cirilli sat down with the u.s. secretary of state, mike pompeo, one of the world's most influential actors in diplomacy and foreign policy. they had plenty of hotspots to discuss. ♪ ofiran has this long history lying behavior. our mission is that when we came in to create as much stability in the middle east as we could. we watched iran engaging in this behavior, we had a terrible deal that the previous administration had entered into, which had is one of its major side effects creating enormous wealth for the leadership of the islamic a public of rorem.

-- islamic republic of iran. we broke out of the deal and put pressure on the regime and are forcing them to make tough decisions about how they're going to behave. >> would you go to tehran? >> if that's the call. >> when you appear on television? >> i would welcome the chance to speak directly to the iranian people. i've talked about this before. hedrives around new york, speaks to the media and talks to the american public, gets to put iranian propaganda into the american airwaves. i'd like a chance to go, not to propaganda, but speak to the iranian people about what it is there leadership has done and how it has harmed iran. theithin the last 24 hours, north koreans have fired a new short range ballistic missiles. how does this impact denuclearization talks with kim jong-un? >> president trump has been incredibly consistent. we want diplomacy to work. we want chairman kim to deliver on the promise he made, which was that he would denuclearize.

i was there they day they signed the document. i have the chairman tell me this half-dozen times. there is a negotiated solution to this. we look forward to the opportunity and the chairman told president trump you would send his working team to negotiate with hours. >> next week, right? > a couple weeks i anticipate. more important than the date, two weeks or four weeks or six weeks, to make sure we have enough conversations to be productive the teams get together, that's the real objective. if it takes us another two weeks or four weeks, so be it. ♪

♪ is "bloomberg best." it's continue our global tour of the week with the top stories in business, finance, and politics with a victory for the ruling

coalition in japan's upper house election. ♪ >> japanese prime minister shinzo abe has won the upper house election but has fallen short of a super majority that would have let him push through his revised constitution. triesoes that mean if he to move ahead? >> it's another mandate as he attempts to become the longest-serving japanese prime minister. by november he will be the longest in modern history. but he also solidifies his mandate to push forward with the sales tax increase. he may not have gotten that super majority to push forward for the constitutional revision, but at least he can have the next three years or so until the next upper house election to sway the lawmakers and move the ball forward on what he calls his mission, and that is to , tose the constitution

basically legalize in the constitution the self-defense forces, which is not in place right now. ♪ >> let's focus on turkey. the nations new central bank governor delivering the biggest interest rate cut, 17 years of putting the president's policy goals into practice. he has a different view of economics than many of us. he believes that high rates contribute to high inflation. how much pressure is he going to put on the new central bank governor to deliver a series of rate cuts? >> the president thinks that if turkey lowers interest rates, inflation rates will fall. that's an unusual view on how the cost of money in the cost of goods interact with each other. how far he will go i think will depend on how the lira reacts. he may have certain ideas about the economy, but he's a pragmatist, and he will look at how the lira reacts, how it is

taking a toll on the rest of the economy, including inflation and unemployment. ♪ >> germany's industrial crisis seems to be getting worse. manufacturing fell to its deepest slump in seven years as trade tensions we can demand abroad, with levels on the rhine river taking their toll. >> it shows the hopes that a rebound in europe, that weakness -- unfortunately it isn't going to happen. the germinating fracturing sector has jumped from 53 to 43 in 18 months. it's not all about china, it's not all about the trade war, this is a real change in the economy and it is showing the business model is not working and even though things are on the fiscal side, the main engine growth is the real problem. ♪ >> oil has defended gains as

tensions in the persian gulf remain elevated. u.k. demands the immediate release of the senate impair a which was seized by iran in the strait of hormuz on friday stop prices elevated by 1.5% this morning. what is iran doing to try to find markets for its oil? in the midst of the sanctions from the u.s. and others, it is proving very difficult. >> we are watching the tankers move out of iran fall, they are moving largely to the east, and we are seeing them enter in buyers take chinese that oil and should they have access, that the u.s. could attempt to seize or take sanctions. but they are not sitting still. they are shipping that oil and trying to get it to market. >> the european governments have agreed to assemble and people mission to provide safe passage for ships through the persian gulf. >> i don't think it is

surprising that the u.k. is going to its european allies and asking for help, and that they would join in an effort to try to make sure that the strait of hormuz stays open, limiting iran's ability to disrupt it. the u.k. seems to be very keen to separate itself from what the u.s. president is doing. jeremy hunt was quite clear about that, saying they are still sticking to the policy of wanting to ensure that a nuclear deal continues, and they are not aligned with president trump on his policies. ♪ >> president trump announced a bipartisan deal to suspend the debt ceiling and boost spending levels for two years. this of hurts the risk of damaging payments default. trump praised the deal on twitter, calling it a "real compromise." n, or is it a real compromise?

>> it's a compromise in the sense that they needed to get this done so they all gave in and nobody is really happy about it. conservatives think that there was too much given away. progressives don't like that they didn't get enough domestic spending. this will spend the annual deficit above $1 trillion likely next year, which makes budget hawks very unhappy. ♪ >> the u.s. department of justice is poised to open a broad interview into big tech, putting alphabet, amazon, apple, and facebook in the spotlight. regulators are looking specifically at whether u.s. tech companies are so big, they say and for competition. it is ratcheting up pressure on tech giants already facing scrutiny from europe to capitol hill. >> i think what we are looking at here is a complement to an actual task force that the federal trade commission announced a couple months ago. the ftc and the doj, they share antitrust oversight.

i think we are looking at the complementary task force, which is especially interesting to me, that the doj and ftc have split up the companies. the doj would only be looking at google and apple. now it seems like they will he taking something much more high-level that could be doing criminal referral to other parts of the agency. they could be working with the ftc, and some of these companies could be facing scrutiny from both agencies. to pay aok has agreed record $5 billion in fines to resolve u.s. investigations into years of privacy violations. this is a big slap in the face to face book, but does actually change anything regarding facebook suture policies? >> i don't think it does. the decision here from the ftc andses a $5 billion penalty some restraint on the business going forward but not likely

anything that will change its core business model. ♪ >> warmer special counsel robert mueller finally testified on capitol hill, but democrats hoping for a jumpstart on their case against president trump were largely disappointed. >> mueller never went beyond the report. he declined to even read from the report, which would have given the democrats the soundbite that they were looking for. there was no new news here from his testimony. his answers were very short. they were very terse. it is likely that the battle lines that existed before he arrived at the capital are still there. ♪ >> chinese government offices in hong kong have condemned what they call the seizure of the building by pro-democracy protesters. police fired tear gas to disperse a group that had targeted the office after people mass marched on the city streets. six straight weeks, and now there's a liaison office. why is an important at this

point in time? >> this is the chinese liaison office, the nondescript building in a nondescript part of town, but some other radical protesters contend that this building is ground zero for beijing's influence peddling and attempts to interfere with the one country, two systems system, which is supposed to keep hong kong demonstrations separate from that of the rest of china. in a residential part of the new territory, they are finding order around the same time, a group of organized pro-government demonstrators attacked people who looks like protesters on the metro. disturbing,w, darker part of the protest taking place in hong kong. ♪ >> activist investor carl icahn

is stepping up his attack in the letter to shareholders, saying they rush the deal to take over anadarko in order to stop occidental being taken over. >> essentially what carl icahn is trying to do is get for board members on the board and he has to go through this convoluted process, he has to get a record date and get shareholders to support his effort to remove and replace those directors. >> this is a good example of somebody that goes in and does this deal in a panicked way over a very short period of time and spends billions of dollars of shareholder money overpaying for it. board really does not hold the ceo accountable and i think the chairman has a lot of power. they are both greatly

involved with the way they conducted this. ♪ >> softbank has announced it is launching a second vision fund, this time worth $108 billion. we know about this second fund? >> we know it will be named sensibly, vision fund 2, we know softbank will contribute $38 billion. quite a bit more than what they put in originally. it is in line with what we have are hearing, that they looking to take a much more active role in controlling stake in the fund. so far only softbank has committed the money that there's a list of companies that have signed a memorandum of understanding and it is all new names. apple and foxconn have signed up for the second fund although we don't know how much they contributed. the deal andled launched a whole vehicle will about two years ago, so it would

be interesting to see if they will come back for more. ♪

♪ designed for the tech startup got off to a positive start on monday, might be downplaying it a little bit, if you take a look at that performance. on their first day, all 25 stocks rose on their debut, some seeing double digit if not triple digit, when it comes to that stock price. we put it all on the terminal for you. >> 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, qic go.

it will lead you to our quick takes, where you can get important context in fast insight into timely topics. here's a quick take from this week. ♪ ♪ ofchina's spies have a lot attention recently thanks in part to political intrigue tensions between china and the u.s. many of those spies work for the country's main intelligence agency, the ministry of state security. 2018, one of china's top tech executives was arrested in canada on a u.s. extradition test. soon after, agents abruptly detained to canadians in china. then days later, the u.s. publicly named two of their alleged assets as part of their sweeping indictment involving hacking on a global scale. the series of events has people asking, what exactly is the mss? this is your bloombergquint take

on china's elusive spies. ♪ >> compared with the u.s., the mss is something of a mashup. it conducts intelligence operations abroad like the cia, counterespionage at home like the fbi, and cyber snooping like the nsa. >> when you hear the details of how the mss operates, you think it wouldn't be out of place in a spy movie. the number of employees is classified in the exact locations of its headquarters is unknown. it is a nondescript building in beijing. it doesn't have a public website or press office. what's clear is that the mss keyed to president xi jinping's efforts to tighten control over security. it's head is next police chief who helps direct nationwide anti-graft campaigns. national security law extended the mss's power to outer space in the deep sea as well as the internet. >> the mss benefits from close

ties between the state in chinese tech giants like baidu and alibaba and tencent, all of which have the ability to mine personal data. other departments are required to cooperate with the mss and provide support for its activities. >> the mss operates secret detention facilities within china and is known for his harsh treatment of dissidents. for example, the blind civil rights lawyer was under house arrest for 19 months before he fled to the u.s. embassy in beijing in 2012 and eventually moved to new york. >> the organization has developed a reputation, and that is based on how much power it has and the vague limitations on that power. violations ofged their basic rights well in the custody of security agents, and some have talked about daily six-hour interrogations, not having access to lawyers, or confinement in cells under lights that never go out. >> media reports have noted some key mss victories, including the

possibility that they monitored president donald trump's calls made on unsecured cellular devices. there was also a report that the mss had dismantled cia operations in china over several years, killing a dozen or more of the agency sources reportedly in one of the worst u.s. intelligence breaches and decade. >> this isn't an organization that is completely immune to the global microscope. a senior mss officer was arrested in belgium and extradited to the u.s. in 2018 on charges of conspiring to steal trade secrets from top aviation countries. but you have to remember, this is still an organization that is very powerful. that was reportedly the very first time a spy for the chinese government had ever been brought to america to face charges. ♪ >> 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. thanks for watching. i'm juliette saly. this is bloomberg. ♪

♪ >> this is bloomberg technology. a deal that reshaped the entire wireless industry. in the future of 5g, the justice department gives the thumbs up on t-mobile's acquisition of sprint. apple will not be exempt from china tariffs. president trump pushes the company to move production to the u.s. france moved to tax with the biggest tech company -- tax the biggest tech companies. the s