coming up -- how much do these moves have to do with that? >> they do appear to be timed perfectly with that election. relations between taiwan and china has been at deep-freeze for the past years, when beijing cuts off direct communications >> coming up on "bloomberg after the election of the president back in 2016. best," the stories that just thest move is shaped the world. latest measure from beijing around the world. aimed at putting pressure on taiwan and the economy. we have seen an increase in the >> the dial turns about as far number of military patrols around taiwan in this band does to the left or right as it will get. >> once chair powell stepped to look like it is timed to the microphone he sent a less clear message. coincide perfectly with the election in january. ♪ the second round of >> for decades, china has taken democratic hopefuls have advantage of trade. competed, continuing the attacks on may 2, especially towards joe president trump has said we will fix this. >> the powell comments and the biden.

>> they turned him into a no deal bragexit. political piñata and i think the consensus was that the former ofis the busiest week vice president delivered a earnings season with some better performance that in miami. powerhouse companies reporting. >> better than expected cash flow which we have not seen or a 20 plus candidates running for long time. debatent, and the next in the second half of the year exit should pick up. >> we are seeing a little in houston -- the threshold performance art. >> mexico's president speaks increases and it will be more difficult for these candidates to qualify, and that's what i exclusively to bloomberg. he is not about to intervene have my eye on. with interest rates. not justst we are polls factor into whether or not you qualify for the threshold going to see growth but also to develop. >> some of europe's largest and it matters in terms of funding as well. ♪ banks say it is high time or chevron and exxon reporting rates to come up. better-than-expected earnings not just for the future of thanks in part to the permian basin. banks at stake right now. meanwhile oil headed for a week >> it is all ahead on "bloomberg of declines, posting its biggest drop in weeks on the back of best." terror threats yesterday. >> the good news was the production numbers. oath of them are doing better in

the permian where they are focusing a good deal more on big >> hello and welcome. companies that missed the boat, andng in with more money this is "bloomberg best." the most important interviews projections for growth going from bloomberg television around forward. the world. let's start with a look at the overall the revenues are down year on year because we've seen top headlines on monday. chinese authorities in hong kong oil prices drop in the first and second quarters. ♪ finally responded to antigovernment demonstrations going on for eight weeks. after a chaotic weekend of clashes between protesters and police. has called for hong kong to punish those behind the protest. eight straight weekends of demonstration in the city. this appeared to be an attempt to calm some of the fears that have cropped up over the last week that china could move to take more drastic action to calm the unrest we have seen.

people seemed to take a bit more of a breath. they didn't announce any imminent policy change. it didn't appear they were going to. stocks calm down a little bit. this really looked like a move by china to say nothing is coming right now. what this means in the long run for the protest, we don't know. they are still planning to protest in the coming come out and said they think the comments made by china were disappointing. emma: the bank of japan has left butinterest rate unchanged said it won't hesitate to ease if needed. look at those downward forecast. how big were they? 1.0%,.1% this year to that is not a big reduction. how about gdp? through it all, the boj still that theye signaling

see and economy mostly on track. to fiscals passing policy. at this point, the message is the dial is turned as far to the left or right as it will get in there is not much more you can do. shares jumped after hours as its revenue or cast for the current quarter beat estimates. what are the key takeaways? >> apple demonstrated a little bit of growth. it is pretty much flat for the third order. it is barely an all-time record ♪ >> isn't this victory for for the third quarter. that is good news given that powell, because if this is the apple has had a significant worst that the market surprise decline in recent quarters. looks, not that much happened. we saw them pushing the >> we can show how all the narrative around the strength in wearables and services. markets reacted, the dollar goes those two product lines are very much tied to the iphone. up. >> today we are asking the if people are buying fewer iphone these services will not question, will jerome powell work. that is the conundrum in place pull wealthy everything rally? right now. you can join the debate on tv once apple starts coming out

more frequently with designs, . >> there are about 30,000 those two things will mesh functions on the bloomberg and together. we always enjoy showing you are the u.s. have kicked favorites here on bloomberg off a new round of trade talks television, maybe they will become your favorites. in shanghai today. here's another function you'll it follows a three-month hiatus find useful, qic go, which will in renewed accusations from lead you to our quick takes, you donald trump that beijing is trying to rip off america. can get important context and the u.s. president lashed out on fast insight into timely topics. twitter. here's a quick take from this he says there has been a promise week. ♪ worst, beijing's air produceore u.s. farm quality looks like this. in 2013, the air quality was but he ended by saying they just don't come through. >> china says they have come to deemed unhealthy or hazardous for over half the year, peaking the table. obviously they have their own in beijing at 35 times the world redline. health organization's they want the u.s. to come to huawei forwith fou recommended limit. it was so bad that the premier declared a war on pollution had china's annual high-profile national people's congress. example. these are sticking points from five years later in march, 2019, both sides. it would be critical to see what kind of movement comes out of as the premier again opened the meetings, the smoke outside was

these talks in shanghai. withey left early today still 10 times worse than with the who defines us healthy. neither side feeling like they made much progress after president trump set the stage by even as china cracks down on pollution like never before, the accusing the chinese of ripping off the united date. country remains one of the world's worst polluters. the chinese after the fact saying the united states would have to shows siri the and good this is your bloomberg quick faith. take on china's smog. the pressure on both sides to china overtook the u.s. as the get to a deal and hurry up if world's biggest source of you will is not there anymore. greenhouse gases in 2006, the real priority was running helping put the globe on the path to miss united nations through the issues, seeing where both sides are and deciding on targets aimed at stemming the what the past is. rising u.s. temperature. >> the cheap power from coal and they will talk again and meet in early september. the cheap factory production powered by coal has helped china it is on hold. turn into this economic giant it will keep trundling on for that has helped produce cheap goods for the rest of the world another month at least. we are counting down to a and helped drive the world economy. are sense, chinese people decision, investors looking for paying attacks in breathing this the first rate cut in eight bad air for the benefit of decades. points 25, its basis consumers all over the world. >> the who estimates more than one

million chinese died from dirty it ends the balance sheet two aaron 2016 and another study months early. investors may see future rate puts the tally even higher at moves. his reputation of the language 4000 deaths per day. pollution is said to have been the main cause of social unrest in recent years, with social about uncertainties of the economic outlook main. >> they are sending the signal media helping to amplify complaints. that we have more rate cuts to come. on china's twitter like online they will point as they always platform, people blamed do. factories for polluting the air in the government for not doing data dependency is keeping the expansion going. enough. >> we are thinking it in the 2015, a chinese midcycle adjustment policy. and theecision investigative journalist published a self-funded documentary about the countries air pollution problem. more than 100 million people statement that came with it read relatively dovish. once chair powell took the watched under the dome before it was banned from chinese video microphone he sent a less clear message. websites for six days after its release. he walked that back to some shortly after president xi jinping pledged to unleash an extent only to talk about the possibility of future rate iron hand to punish environment or politicals. hikes. >> the dow jones industrial the government has spent billions of you on tightening average climbed the most since environmental regulations, scrapping coal-fired power

january 4, 2019. the second-biggest swing in the plants, and switching millions of homes and businesses from coal to natural gas. dow jones industrial the year. >> the regulations and policies have worked. u.s. state department monitors day, theeing the worst biggest move in the s&p 500's particulate matter in the air in the beijing embassy, and these may 7. recordings show 2018 was the or whats not clear why lowest level in a decade and was met. winter of 2018 was one of the best. it is not perfect but it is much you saw that in bonds and better than the heyday of the commodities. >> the bank of england is 2013 pollution problem. keeping rates on hold. world's is now the risk of aor says the biggest investor in green energy , it spends over $100 billion in no deal breaks it. 2018, 56% more than the u.s. >> u.k. economic outlook will hinge on the withdrawal. initiatives have included supporting the electric vehicle monetary policy will depend on industry by providing subsidies the effect in the supply of the to help build out infrastructure that allows electric cars to exchange rate. >> what you think the next move will be? charge around cities. a rate huike or cut? styles are huge in china. and it's not just cars. >> i don't think he knows, i

electric buses are huge deal in don't think we know. china. >> china is betting big on solar my view is what happens on the exchange rate. energy as well. we have seen sterling we can a in 2019, over a third of the lot -- weaken a lot. world solar panels are estimated to be installed in china. that reduces the likelihood of but the war on pollution promises to be a long one. easing. they are getting it through the exchange channel and increases for decades of breakneck the odds a little bit of economic growth has turned china tightening. offink tightening is a ways into the world's biggest carbon emitter, and it is still going to depend on coal for years. only if the currency fell out of ♪ bed and they have an >> that was just one of the many exchange-rate crisis. >> president trump abruptly quick takes you can find on the escalating the trade war with bloomberg. you can also find them at china saying he would have bloomberg.com along with all the temper percent of tariff on the latest business news and $300 billion of imports that are analysis 24 hours a day stop not tariff. that will be all for "bloomberg best" this week, thanks for watching, i'm emma chandra. president trump: the 10% is for this is bloomberg. a short-term period, i could do ♪ more or less depending on what happened the respect to a deal. >> yesterday, the white house put out a statement that the trade talks in shanghai just concluded were constructive.

for them to turnaround hours later and say we will raise tariffs caught a lot of people by surprise. 500 up by 9/10 of a percent. how a tweet can change all of that. we also have a 626.2 in the doubt. china has taken advantage of stop.orit is time for that to presideto fix this requires determination, i think that is what you saw this morning. trump: until there is a deal we will be taxing the hell out of china. >> if these tweets become policy, taxes will be going up

on u.s. can tumors as well. >> our view is any impact on u.s. consumers is a skill. -- minuscule. we think the burden has fallen most heavily on china. they had to slash prices to offset tariffs. that offsets their growth. of they think in terms american story, our economy is quite strong. in terms of the china story, i think their economy is quite weak. the julyng down to jobs report. 165,000 jobs to be added. added -- nailed it . unemployment changed at 3.7%. >> a lot of ongoing uncertainty. 164,000 new jobs created. that is on pace with the year to date trend.

-- we have been ♪ seeing job growth over 200,000 coming into the year. we are seeing some evidence that companies are getting a little more cautious on both the investment side and the hiring side. i do believe the uncertainty >> i'm emily chang in san they face. francisco. still ahead as we review coming up in the next hour, markets caught off guard by president trump's escalation of tariffs on chinese goods. the week on "bloomberg best" it led to a dismal day on wall much more on monetary policy. street. exit goes president says he will we hone in on the tech sector shift his central bank and go for signs of life. plus shares plummet after square with a dovish flow. the ceos of a major european sells its delivery with bank speak about hedging the doordash. financial sector and the global economy. next, investors spent the week poring through earnings reports. highlights from the results. >> we have a machine writing lots of cash day in and day out. this is bloomberg. ♪

best."his is "bloomberg a whirlwind week for earnings. be closely watched tech, energy, and financial. credit suisse was the first of several major european banks to report. wealthyt suisse has money in theng second quarter. the main trading units also outperformed. an executive and started asking him if credit suisse could compete with american rivals. >> i think in the main businesses where we generally measure, we could come out around the top of the table. that is a good

performance. they have outshone their rivals in fixed-income training. lender is ahead of wall street and european peers. >> we accelerated the cid transformation plan. on that acceleration that we started to see the benefits. has a strong contribution to the first quarter which was confirmed in the second quarter. look in the you second quarter they remain still a bit lackluster. that is the dynamic. yes, we feel comfortable about the transformation. ♪ been estimates with underlying pretax profits in the second quarter. coming in at just over 2 billion euros. it did missed estimates on net interest income.

keep itxpected to still under pressure? pressure but i wouldn't imagine you could call it negative two low interest rate environment given where we are now. we are looking in terms of other strategies to mitigate that particular impact. non-eurozone countries looking thebetter operations in process with customers as well. ure frommore pressed o the savings market. >> china's huawei has reported arise to just over 400 billion uyuan. that is as the privately held telecom giant tried to withstand

u.s. efforts to curb its business. the company says there is difficulties ahead. >> talking about a 23% sales growth which sounds impressive but is down sharply from 39% pace seen in the previous quarter. >> huawei is a private company, it does not have to report financial details the way publicly held companies do. you are seeing a little performance art. huawei is coming out talking about what their financials are. that theyto signal are still growing. they want to continue to supply customers as best as he possibly can at this point. samsung electronics sees a second half recovery in chip the net income numbers beating expectations. a little mixed picture when it comes to mobile numbers and chips. the big story has been the

industry challenge in the chip industry. they have been facing lower demand from these data centers as well as lower demand from the decelerating smartphone industry. we are seeing some shift. things should start to pick up. on the smartphone front facing is aenges and whil huawei double-edged sword. general electric shares rising today after second-quarter earnings topped expectations. the only manufacturer to do better than expected as its long-suffering division showed signs of improvement. this has been a turnaround story. what signs did we get today about turnaround? >> we have heard nothing but bad news out of the power division for two years. minor, modest, organic growth.

better than expected cash flow. they pay down another settlement. they raised cash by selling a small stake. things on both sides are starting to budge to the positive. bucked the trend set by other european oil companies last. reached $8.2ws billion in the second quarter. the highest since late 2017. has the oversupply next year. are you concerned about oversupply? >> we are planning bp around the $55 per barrel. you have big downside issues potentially with venezuela, i ran. now, theemand, right first half of the year a little

bit of softness and demand but it is coming up. hard to predict but we will be fine. hashales quarterly profits missed estimates after the price slump. despite weaker than expected earnings shale will continue the 25 billi dollar buyback program. >> we are seeing signs of the slower global economy, will those things merge into a lower oil price next year? >> there is a number of factors at play. i do not think at this point in time it is the long-term fundamentals at play when it comes to that. it is much more sentiment and shorter aspect of fundamentals. what we are seeing at the moment of the macrog environment. a slowdown, a trade war.

all of these effects have a direct effect on the growth of oil demand. also, the sentiment around it. rio tinto's shares take another hit despite the first half results. and announcing a special $1 billion dividend thanks to a windfall from a rally. we have the machine writing lots of cash day in and day out no matter the market conditions. the outlook is very important. as expected, i have no doubt in my mind they will put it back in play. therefore the demand for steel will continue to be very strong.

♪

emma: you are watching "bloomberg best." this week, bloomberg editor-in-chief traveled to mexico city where he sat down withn exclusive interview the mexican president. he says interest rates in his country are too high. the central bank will stimulate growth. thing is what is to be desired and another is what is possible. i would like the central bank to not only control inflation but to think about growth as well.

we are talking about what the central bank is doing. level and cautious, about inflation. a bad thing. this is not the wrong thing to do. i'm not saying that. it is important to lower the rate to encourage growth. this is an issue i am leaving for the central bank to decide. we are not just going to be able to grow but also to develop. not only growth but development because growth, that is what we have to change. growth is creating wealth. not necessarily distributing wealth.

our administration and settingnt, what it is us up for is distributing income. is scarce.owth there is a better distribution of wealth. there is more well-being. more ofu can find much the interview with mexico's president on bloomberg.com. coming up on "bloomberg best" more compelling conversations. fhe ceos of some o the world's biggest banks way in. singleds like huawei out for sanctions by the u.s.. the chairman speaks exclusively

with bloomberg and says that is backfiring. >> i think the damage to the suppliers is even bigger than it is to huawei. emma: this is bloomberg. ♪

♪ welcome back to "bloomberg best." chinese check giant huawei continuing to deal with fallout of the trump administration efforts to curb its sales. growth slowed considerably in the last quarter. the chairman spoke exclusively to tom mackenzie this week on the shenzhen campus and discussed how the company is restrictions.s. ♪ >> we don't know when the u.s. will make a decision on android and when that decision will come, so we have to make preparations for our products.

we will evaluate our strategy for the overseas market. if we are not able to use android for our new smartphones, we have the ability to develop our own operating system and ecosystem to become the basis for our services to the customers. >> so give us a sense of how fundamentally you have had to change your supply chain to mitigate some of these pressures. have you completed those changes are is there more to be done? entity put into place by the u.s. was disrupted to our supply chain as we had already made plans to use components from the u.s. for our business. had to make adjustments to our supply chain, including our process of purchasing, manufacturing, and delivering products. we will do the adjustments to our supply chain and change to other suppliers and use our own chips for the core components.

damage to the u.s. suppliers is even bigger. we have to increase our workload and manage continuity internally, but the damage to the u.s. supplier is direct as they lose the customer. the u.s. removes while away from the entity, that would be a solution. >> what impact are you seeing for demand for your 5g equipment, given the u.s. pressure campaign on some of its allies around the world to block access? has thisgh the u.s. campaign among its allies, it is up to each country to decide its partners based on its own development demands, telecommunication demands, and carrier infrastructure demands. i think now there might be some impact in places like australia, but there are others who are willing to work with huawei. ♪ >> several of europe's largest banks supported earnings this week. their chief executives spoke

with bloomberg about the larger economic picture and the challenges facing the european financial industry. let's start with the credit him, whoo, to john t said the other central banks have been a drag on the sector. ♪ particularly negative interest rates are a challenge. we have different answers. up transaction revenue is and that has made pressures coming. if you take the case, at strong 20% return on capital, insequentially we are up net interest after a difficult first quarter. estate, andreal

when interest rates are negative and its up real prices is not a bad idea for us -- but that is not a long-term answer, the long-term answer is to work on the political side and we will take some measures which will be detailed, to change our pricing and protect net interest income. fundamentally, net negative -- negative interest rates aren't we hoped ultimately, that will be corrected. reaction.ood ♪ encouraged by the recent communication of the ecb, saying they are considering something like this, because i think they understand that it can impact profitability,

whether it affects the ability to invest. i think the ecb cannot just look at this and should look at , atthing like this countries who have taken similar initiatives. >> so this situation has become counterproductive. >> it's not just a few banks which are at stake. it's a question of the economy. what i do believe is that we are still certainly very accommodative with financial conditions and i feel that even as there is slowdown in the economy it is more related to macroeconomic or macro political but a change of interest rate would deal with that. we will see what the ecb would be doing, what the fed would do going forward, we are confident

we can adapt this environment. >> you think the trade war is a big responsibility to slowdown the global economy. things like the risk of the trade war and exits, which creates uncertainty, and then you have more specific issues which have the automotive industry which is a mix of structural issues and transformations related to climate change, perhaps a weaker market in china. bag, whichd effectively means a slowdown of the economy. we remain pretty positive in france, ine u.s., or china we have 6.2% gdp growth. we see potentially a slow down in 2020. ♪

you worry about the italian bank landscape? is there a plan b? cannot be worried at all about the italian banking situation, it is absolutely under control. there was one remaining part of the story but we found a solution. today it is much better to be worried about other banking german or some others. >> if there is something ugly and the german banking system, what impact sao paulo? >> not all. the real point is that we are benefiting, so we increase the 60 billion euros but what we are seeing is also a move from other

informational players into our deposit scheme. consideredprobably very rich people and it's an opportunity with the big player. ♪

♪ this is "bloomberg best." i'm emma chandra. let's resume our round up of the week's top stories in business, finance, and politics. boris johnson enters his first week as prime minister anything but quiet. the aggressive brexit stands gave a down on the currency. >> boris johnson's brexit cabinet holds its first meeting today. the u.k. prime minister says it will gather every day to make

sure it leaves the eu october 31. gete's been an onslaught of ready to no deal brexit coming. >> that's the key. it is the messaging that is going out, it's a domestic message and it is also a message hopefulu and u.k.'s trade partners beyond brexit. there's a consistency here since boris johnson has taken office, that it will be much more determination to prove that the u.k. is ready to leave in october, other there is a deal or no deal. >> 122 point 58, what a move in sterling, steadily lower and slowly we start to see more and more of a no deal brexit. >> we have gone from a position where we weren't pricing anything to now pricing something -- one of two things is looking more likely, a no deal brexit into general

election, and financial markets aren't better. >> forrest johnson standing firm on his threat of the no deal brexit after it came to its lowest in more than two years. the u.k. prime minister has scrapped the irish backstop and if the pound falls further, could there be a no deal off the table? >> that's the big question. when the market -- the history of flat wednesday and whatnot. according to our calculation there is a threshold, if the pound plummets below 1.19, boris johnson would have to reverse. , and afar his rhetoric lot of what he's doing is proving he's serious about no deal in the only way to do that is to draft the pound down. ♪ hitapan's factories took a on trade tensions in the global slowdown. 3.6%trial production fell

in june from a month earlier. this is the first contraction since march on the year on year basis. reminder, iod think, of the external factors that are featuring japan, global trade has hardly grown and there's no sign it will turn around anytime soon. economists point to the fact that ahead of the new sales tax in october, consumers may go out and buy goods in a rush to avoid the tax, and that will obviously have some kind of support for the manufacturing sector, but nonetheless the external story remains bleak, not just with the u.s. and china, but with japan and korea and the global economy. ♪ merges its drug unit with mylan in an all stock deal, under pressure from pricing in legal headwinds -- do

you like this deal? >> i certainly like it from a pfizer perspective, because it takes a business that is essentially a drag on their earnings and margins, and puts it with another entity. i'm very pleased that they are doing this, this is what they should be doing. >> the big word for this deal is scale, it allows pfizer to put these drugs into a vehicle, combined them with the generic drugs business, and that will have more scale to compete in an environment where there has been brutal pricing pressure. it gives them a little more power to push back on pricing, and gives them broader geographic reach. >> the london stock exchange group shares soaring today on the back of the takeover of the multimedia news agency. this feels like a plan b deal. why is it such a great deal? is -- policythis

investors have upbeat on these transaction because it's a megamerger and this will really transform a global data provider. ♪ lyft,executive shakeup at john mcneil is leaving the company after joining just last year from tesla, where he served as president of global sales and service. notfounders say they will hire a replacement, so why is he leaving? >> that's a good question and we don't quite have the answer. hes an intriguing situation, didn't even last two years and he was in one of the most high-profile positions at the company stop we note in the story that his predecessor who came from amazon also didn't last three years. are questions about

whether they can sustain somebody in that role and it may be telling that they don't plan to hire another coo. ♪ >> bloomberg has learned that citigroup is preparing to cut hundreds of jobs at the slumping trading division, the latest to take action following a rough first half of wall street trading. >> this is a serious move by citigroup, people tell us hundreds of jobs are going to go away, and that includes maybe , andf the equities trading this is a serious mood because citigroup has serious problems on the trading revenue side, much like the west of wall street, and if you take out a one time game, citigroup's revenue from trading fell about 5%. wall street is seeing this trading decline and citigroup is responding with hundreds of jobs being cut. ♪ sharesese capital one

are sliding upwards after revelations that and email exposed to hacker responsible for a 100 million person data breach. a former amazon employee admitted to collecting social security numbers, names, and dates of birth -- what do we know so far about how capital one has responded? >> it is actually kind of unusual, it was a fast response when you compare it to other companies we have seen breached. capital one one made a really interesting note, they said this could have happened if we were on cloud or still using physical data centers. they have said that because they moved a lot of their technology to the cloud that after they were alerted to the hack they were able to dilute the problem and respond quickly. industry the banking leader in terms of adapting the technology and pushing other banks to do the same -- we will see if they get any pushback. ♪ >> china is raising the pressure

on taiwan, suspending a program that allows individual tourists from 47 that is to travel to the island. the ministry of culture and tourism s an election