reporter: coming up on "bloomberg best," the stories that shaped the week in business around the world. >> parliament is on the brink of wrecking any deal. >> there is no sense. >> pandemonium in parliament. u.k. lawmakers vote to stop and stop the snap elections. is the he is offering poison of a no deal. >> gone from slightly sublime to utterly ridiculous. reporter: a new round of tariffs -- going into effect

as the u.s. and china prepare for another round of trade talks. >> it is a sharp acceleration in the terms of the two sides. >> neither side wants to be the one that walks away from these talks. >> hong kong withdraws unpopular law but unrest continues. >> you can see the level that has been built up. reporter: argentina's debt crisis deepens. >> they have to do something to contain the flow of dollars out of the country. reporter: the fed given more food for thought. >> a strong correlation with the recession ahead. >> not a great report, it is decent. >> we want to remove obstacles to economic growth. reporter: the top interviews on topics from trade to race. >> these give us reason to double down our efforts. >> low interest rates have significant effects on turnover. >> we have the fundamentals right to deal with a slowing global economy. reporter: it is all straight ahead on "bloomberg best."

kailey: hello and welcome. i am kailey leinz. this is "bloomberg best," your weekly review of the most important analysis and interviews from bloomberg television and around the world. let's start with a day by day look at the top headlines. the week began with the u.s. and china entering a new phase of the trade war with tariffs imposed by both sides kicking in on sunday. paul: new u.s. tariffs on $110 billion on chinese imports are now in effect. china followed through with its own retaliatory measures. even so, president trump said trade talks in washington this month are still on. president trump we will see : what happens, but we can't expect china to rip us off anymore. we can't allow china to take

$500 billion a year out of our country. we can't do that. paul: this is a sharp acceleration in terms of the tit-for-tat tariffs. we saw the u.s. side putting 15% tariffs on $110 billion of chinese imports including shoes and textiles and technology components like the apple watch as well. the next round of tariffs for the u.s. side will be imposed on december 15, targeting $160 billion worth of chinese imports . and by that time, you have got all of china's imports into the u.s. market hit by tariffs. china put tariffs on things like soybeans, beef, chicken and they will be delaying some tariffs and imposing them on december u.s. autos as well. 15, 4 about $75 billion worth of u.s. imports into china in total in terms of september 1 and december 15. business groups say the time for a tariff truce is here. they are looking to negotiations. trump says may still happen later in september in d.c.

>> the u.s. and china struggling to agree on a schedule for planned trade talks. the impasse comes after the white house rejected a request from beijing to delay the latest tariffs. >> they are having trouble getting to the table quite frankly. furthermore, there has not been set the contours of the decision, what would be on the table, what might not. it's not a break, but it is a pause, but we have more contours of this and it turns out the difficulty is we are not sure what we will talk about. and we are not sure when we will talk about it. >> we are getting some ism manufacturing data. august for ism manufacturing in keeping with ism and pmi across the globe.

the s&p taking another leg lower after that. >> truly awful report. the purchasing managers index falls more than a point to 49.1 from 51.2. it is the biggest drop and the first contraction since 2016, january. even worse, the underlying numbers. -- neweans fall to s fall to 47.2, unemployment 47.4%, inventories rise to 49%. when you have inventories rising faster than new orders, there is a strong correlation with recession ahead. >> britain could be heading to the polls yet again. boris johnson will try to trigger a snap election on october 14. if he loses a crunch vote in parliament this evening. >> the first thing that may happen is mp's will have to attempt to seize control of the government agenda, the order paper.

then there will be a vote sometime this evening on whether or not the first hurdle of that rebel bill will be allowed. what mr. johnson said is if that happens, he loses that tonight, he will tomorrow table a motion to dissolve that parliament when they just got back and call the election for october 14. boris johnson: enough is enough. the country wants this done. they want the referendum respected. we will be by october 31 in all circumstances. there will be no further pointless delay. david: while boris johnson was speaking, the arithmetic changed significantly. this morning, boris johnson had a majority of one. m.p.g his statement, and in from the conservative party walked to the other side of the house and joined the liberal

democrats. it went to minus one. we now have a minority government in the united kingdom. >> the ayes to the right, 328, >> i don't want an election but if mp's vote tomorrow to stop negotiations and to compel another pointless delay to brexit potentially for years, that would be the only way to resolve this. and i can confirm we are tonight tabling a motion under the fixed term parliament. >> here! >> he wants to table a motion for a general election. fine. get the bill through. first in order to take no deal off the table. >> a dramatic move in hong kong today when chief executive carrie lam announced she would

withdraw the extradition law which triggered violent protests. was it unexpected? >> it was long in coming according to the protesters. they have been demanding this from day one when she said she would not formally withdraw this controversial extradition bill. instead, she would suspend it and basically calling it dead. but today in her words, to fully allay the public concern, she is withdrawing this bill. but she addressed the other four main demands of the main demands of the protesters but did not acquiesce to any of those demands, including setting up an independent inquiry into what protesters say was excessive force by the police. that has led to a slew of criticism from the pro-democracy and activist camp. you can see the level of distrust that has been built up by the protest community to the government of carrie lam. >> boris johnson's bid to trigger a general election next

month has been blocked. the british prime minister suffered a string of heavy defeats. johnson was thwarted twice in the house of commons. an attempt by the opposition parties and tory rebels to block the new deal brexit which came in second and third readings. later, he failed in an attempt to force a snap general election. >> the offer for an election today is like an apple from snow white and the wicked queen. what he is offering is the poison of a no deal. >> it is absolutely unbelievable. it has gone from being slightly sublime to utterly ridiculous. it is totally unfathomable about what is going to happen. there are some who believe there is some machiavellian master plan at play here. from the outside, it doesn't look like that now. >> china and the u.s. are planning to have face-to-face negotiations to end the tariff war in washington next month.

skepticism remains on both sides that any substantive progress can be made. >> they have agreed to have face-to-face negotiations. it is good that they are talking. these were at the ministerial level which were scheduled to take place this month, september , so we are seeing a delay. both sides trying to manage the markets, neither side wants to be the one that walks away from these talks. there is no harm in meeting. >> the showdown over brexit got personal today. the prime minister's brother quit the government in apparent protest over the brexit strategy. johnson is still arguing for a snap general election in an address today. boris johnson: i don't want an election but i don't see any other way. the only way to get this thing done and moving is to make that decision. >> what we are hearing is the government will ask mp's once again monday to approve an early general election and they plan to do that because they expect a

bill currently through parliament to prevent a no-deal brexit will be back at the commons and will receive royal consent. monday, we will have another showdown with mp's. >> we are euphoric on the news. we don't have any specific date, but who cares. about the 50-day moving average. >> bond bulls were given a tough wake-up call thursday on the enormous surge in yields on the treasury curve showing bond trading is still a two-way street. this is the biggest bond rally in years. >> it certainly was. depending on which part of the curve you are looking at, shery, but no matter what part you were trading, you got hit hard if you were not expecting this to happen. this was something to see. probably the biggest one-day move we have seen in 10 years.

vonnie: companies creating a below forecast amid trading uncertainty and slower global growth. the jobless growth held steady at 3.7%. it is a decent report. it is not a great report. there was a big miss on job creation but higher wage growth, more hours worked, decent. it tells you the labor market is holding in. sec. kudlow: we want to remove obstacles to economic growth. we want to remove obstacles to economic growth. an inverted yield curve and a premature hiking of interest rates last year, maybe the year before, generated an obstacle to economic growth. let's remove that, and you will see this economy with low taxes, low regulations. those are the factors that will lead to 3%, 4% economic growth

and keep this job story as strong as possible. >> jay powell will make remarks in switzerland in a little over half an hour. it is his final comments before the blackout period. mr. powell: we will continue to watch all of the geopolitical things that are happening and we will continue to act as appropriate to sustain this expansion. >> jay powell was extraordinarily disciplined. he stuck to his talking points. he made the point the u.s. economy is in a good place, continues to perform well. he has used this line several times. kailey: still ahead as we review the week on "bloomberg best," fun since it is sticking with u.k. investments no matter what

happens with brexit. the e.u. trade commissioner said the forecast is cloudy for a deal with britain when it finally leaves the bloc. and more on the top headlines. angela merkel's coalition staves off a populist challenge. >> it means there was unrest which will quiet down for some time. kailey: this is bloomberg. ♪

kailey: this is bloomberg best. i am kailey leinz. let's continue our global tour, in china where the government responded to economic headwinds with moves to stimulus. paul: the council of china is signaling a reduction in the amount of funds banks must hold in reserve is on the way, a move aimed at releasing cash into the slowing economy. what did the council say? >> the state council was asking

for the targeted and broad use of ratio cuts in a timely manner, after a meeting held by the premier. and it is expected the pboc will follow. this is what happened in january. they also called for the issuance of special bonds to be used by local government to boost infrastructure spending. many economists are expecting this cut to come as early as this month. it doesn't come as a surprise given the pressures facing the economy. we had many economists lower your forecast for chinese gdp growth to below 6%. there is a lot of headwinds facing the chinese economy. and we heard from the state council themselves the external pressure is placing enough downward pressure on the economy that the reserve ratio is necessary. tom: there is breaking news, widely anticipated. byna moves the reserve ratio 50 basis points. is someso important hi

banks will see a full percentage point. >> this is about the ongoing slowdown of the chinese economy, ongoing headwinds from the trade war with the u.s., but the ongoing concerns the government has about what would happen if it let loose with stimulus, it cut main interest rates or flooded the economy with liquidity. it is still fragile and they're all still risks of bubbles. so what happens this evening here when essentially limits that using step which could put a floor under the slowdown. >> angela merkel's ruling coalition stems the surge of far-right populists. the eurosceptic alternative for germany didn't make a breakthrough in the local elections in the eastern states of brandenburg and saxony. the result could stave off a deeper political crisis in berlin. this was a little bit of a surprise for merkel. do you think the key is whether they can carry through on this?

>> i think you can definitely say merkel's party and the social democrats are junior partners. they are breathing a collective sigh of relief. polls had shown the alternative for germany would actually win the election outright. that did not happen. they did come in second and had a strong showing, but the social democrats hung on. what does it mean for the coalition? that is what we all really care about. potentially unrest will quiet down for some time. >> in a rare sunday intervention, argentina's president imposed capital controls of a blunt policy reversal aimed at containing the country's escalating financial crisis. the announcement came after $3 billion drained out of foreign currency reserves friday and

thursday. >> this is about containing argentina's economic crisis or about containing the president's political crisis. >> it is hard to separate the two with elections eight weeks away. this started because of the primaries. august 11, he had a stunning loss nobody saw coming and the money started flowing out of argentina. you said $3 billion in two days, it has been $12 billion since august 11, so they had to do something to contain the flow of dollars out of the country which will impact inflation and everything else. it is the president trying to make it to the end of his term, but also trying to fix the economic situation in argentina which has become a massive crisis very quickly. >> the ecb has signaled a note of caution on restarting quantitative easing. he told a french magazine the central bank doesn't have to use all of its policy tools at once. he joins a rollcall of others

making hawkish or not dovish noises over stimulus. how significant are these comments? >> they were pretty technical in nature. he clearly remains potentially open to being convinced qe should be restarted. but he labeled the main concerns. one is the two things the ecb is after changing is inflation expectations and short-term market yields. they are best dealt with by forward guidance and official rates. >> the u.s. placing additional sanctions on iran after france try to extend the islamic republic and economic lifeline by restarting with $15 of free purchases. the treasury department designated 16 entities and 10 individuals for the new sanctions. >> iran keeps rejecting our efforts to resolve our differences diplomatically. we will keep at it. we will keep intensifying our campaign of economic pressure. iran has a basic decision to

make. they can behave like a normal nation or continue to watch their economy crumble. >> less than a month after being forced from power, the italian prime minister finds himself at the head of the new government coalition. investors rallying behind his second term as premier. but there is a history of bad blood between the parties. >> this government has a tall order because first of all it should undo part of what the previous government did. it would require much more leadership than honestly he displayed in the first government, but certainly he has matured. he has shown more leadership now, and the renewed good climate with the european union

will be a very potent component. ♪

kailey: you are watching "bloomberg best." i am kailey leinz. the head of the largest sovereign wealth fund is looking past the turmoil and will invest in the u.k. no matter what. but the ceo does consider negative rates a significant concern. he spoke exclusively with bloomberg's editor in chief, john mickelthwait. >> we are a long-term investor in great britain no matter the outcome. we will invest in it approximately the same size. norway also as a country has lived being outside the e.u. but still within europe. britain is close to europe and will be long-term.

we have 2% of the u.k. market substantially and we will continue to be that. i think also for countries we are invested in, it is good to know we are long-term committed to the countries and we are a welcome and stable investor. >> the fed is leading the central banks towards lower rates and you have negative yields in a variety of things. you are trying to achieve 3% a year. bonds are negative. how do you do that? is what wereturn have for spending and backbone, we achieve that, that is challenging. the real return on bonds is the negative. worries we have with regards to markets, one thing on top of our agenda and should be for any investor.

lower interest rates will have significant effects on the return over time. john: do you think it is sustainable, this relentless push towards ever lower interest rates all the way around the world? yngve: i think the market has been quite surprised so far this year. this has been a momentous change from interest rates going up in the u.s. and turning around again. interest rates half world now actually is approaching that territory. kailey: coming up on bloomberg best, more compelling conversations. a top chinese bank executive explains how the pboc's plan to fix rates will foster growth. plus, exclusive interviews with australia's trade minister and the new zealand finance minister. another official keeping an eye on brexit, the e.u. trade commissioner who would like to make a deal with the u.k., but the leadership is not making it easy. >> there is an agreement. the basis is if mr. johnson and

the british government want to change that, he has to come up with proposals. kailey: this is bloomberg. ♪

haley: welcome back to "bloomberg best." i am kailey leinz. last week, the people's bank of china unveiled reforms. it will release the primary each month in the hope of fostering growth. the ceo told bloomberg exclusively why he thinks the new policy makes sense. lpr is like the equivalent of a primary loan. and when they announced that and forced everyone to apply for this rate, when you look at the first day of the fixing, it was

down at 4.2%. at that time, the median lending was priced at 3.25% to and the equivalent of the best of the corporate client in china, if they were issuing the bond, the yield would be 3.05%. so you can see the gigantic parity between the two. when you consider the chinese market is about 80% of the lending market, you can see the need to drop the rate further and further to be much closer to the median lending rate, and also the bond yielding. when they do that, they will force the bank to divert their lending into small and medium-sized businesses and the consumer. and this would be where the growth will be. david: the economy is not doing very well, so banks, i would imagine, would be attaching a larger risk premium to lending to those small businesses. talk to us about demand for credit. cg: yes, the risk would be higher, but then again, we are also starting a lot of the new

trend in china. there is a new trend where a lot of the companies are diverting business into the third or the tier markets and also the city, and we start seeing the report on q2, among many of the companies who start finding a new growth area. and this will push up the consumption, and this will push up the credit demand, all of which will be important for the banks to sustain their growth and their profitability. kailey: bloomberg also spoke exclusively this week with cabinet officials from australia and new zealand, two nations hit hard by trade wars in the global economic slowdown. let's begin with the australian trade minister, simon birmingham, who discussed the challenges of waiting for the u.s. and china to resolve their differences. mr. birmingham: our position has been clear all along, that we do understand some of the points of concern in relation to forced

technology transfer, protection of intellectual property, and that australia shares those with many other countries of the world. but we don't believe the unilateral application of tariffs is the way to go in trying to resolve these issues, and we are concerned about the impact on the global economy and on economies like ours as a result of these ongoing measures that are clearly male having a -- clearly now having a direct and real impact on trade volumes, and from then on economic growth. paul: you have negotiated free-trade agreements with other countries. is it getting hard to conclude those when the climate could change in the breath it takes to type a tweet? mr. birmingham: it is always hard to conclude trade deals, but i don't think the global environment is making it harder. if anything, i think it is providing political momentum that the other countries of the world are actually determined to

demonstrate that we stand committed to open markets and open trade and to growing those opportunities. certainly from australia's perspective, these types of tensions we are seeing give us reason to double down our efforts to make sure we create those new market opportunities for farmers and businesses and that we work extra hard to seize every incremental gain we possibly can. mr. robertson: there certainly are some challenges for the new zealand economy. we are a small, export-based economy so we are going to be affected by the declining state of global growth and the trade tensions that you mentioned. but the fundamentals of our economy remains strong. we have budget surpluses that were forecast, we have the right to deal with what we all agree is a slowing global economy. haslinda: they surprised markets with that 50 basis point cut.

do you think that was the right move, especially when you consider the methods you are -- the message you are sending to the business community? mr. robertson: i think most commentators have priced in a 25-point cut. i think obviously that had some impact on the market but overall it was not unexpected. obviously new zealand has a little bit of room to move still . but we certainly accept the point that monetary and fiscal policy need to work together. and clearly unite, as i say, and do our own forecasts. if it was government spending, it would be part of helping the economy grow even more solidly into 2020. that monetary policy shift was not unexpected, albeit a 50-point cut that perhaps surprised a few commentators. kailey: the e.u. trade commissioner cecelia malmstrom

also facing challenges on multiple fronts. europe is in early talks to rework trade agreements with the united states, and it will also have to establish new trade relations with the u.k., depending on the terms of the brexit divorce. in another exclusive interview, westin how she is approaching sensitive negotiations. comm. malmstrom: we are talking two tracks, one is a limited trade agreement focusing on industrial goods. that has not advanced much yet. the other track is focused on regulatory corporations, applications, standards, and we are advancing that to see if we can facilitate access to each other's markets by recognizing some of the standards and regulatory procedures. david: this comes against the backdrop, obviously, of section 232 proceeding here in the united states where there is a finding on european auto imports that has been delayed by 180 days. that is coming up in the middle

of november. is there any prospect that will be extended? comm. malmstrom: we hope it will be extended because we think it is not based on facts. the european union and our exports of car parts to the u.s. are not security threats, it is based on normal trade. we disagree with the findings of the report, and we hope we can instead focus on a common positive agenda to facilitate trade between us and also cooperate on other trade obstacles in the world and also on china and other threats. david: europe has a fair amount of exports to great britain and the united kingdom, and we are watching this play out right now, even as we speak, in parliament in london, as a practical matter. where is the european union in negotiating potential trade deals, with the eventuality that the u.k. leaves the common market? comm. malmstrom: well, if the u.k. leaves, with or without a deal, obviously the u.k. is a friend and partner and ally and

neighbor. we will continue to cooperate and trade. but until we know the conditions in which they are leaving, which is very much subject to debate internally in london right now, we cannot start negotiating. but when they have left, we will sit together with them and negotiate a trade agreement. it could take time. david: that's what i am puzzled by. what happens to trade in that interim period? between the time they leave and we know what the rules are, what could happen in terms of disruption of exports, particularly from europe into the u.k.? comm. malmstrom: well, that's a question you have to put to london. will we have offered is a transition period, where they leave, but they stay in the internal market for a period of time. and at that time, we continue to trade with each other on the current basis, and we negotiate a future trade agreement. if they leave in a hard brexit, no deal at all, on the 31st of october, that means the u.k. becomes a third country, and we will trade under the rules of

wto, which will make it more complicated and more expensive. that is why we would very much like them to leave under a deal. but that is a decision that has to be made in london right now. david: are there any discussions at all going on between your organization, particularly the trade commission, and u.k. on the possibility of hard brexit and how exactly that would be handled, or is there no discussion at all? comm. malmstrom: the whole european union is representing the 27 countries, it's always open for talks. there is an agreement in the basis. if mr. johnson and the british government want to change that, he has to come up with a proposal. the door is always open, but right now they are meeting and talking, but we still need to see hard proposals from the u.k. on how to avoid hard brexit. ♪

in business,ws finance, and politics. a change at the top for saudi aramco signals that the world's most profitable company moving closer to an ipo. yousef: saudi arabia has again shaken up the energy sector, removing the chairman ahead of the much-anticipated ipo. it is the second time they have been scaled back in a week. parts of his ministerial job are taken away, leaving him to focus only on the oil market. al-falih will be replaced as aramco chairman by al-rumayyan, currently the head of the saudi sovereign wealth fund. there's an interpretation that the saudi government is a lot more in a rush to get this ipo.

matthew: absolutely. i think that is a completely fair interpretation. if you look at the rationale being given, it is about separating the energy ministry from aramco. for the first time in decades, where we have seen the energy minister not also sitting on top of aramco. i think the moves show that they are very determined to get this ipo trade done in the next 12 or 18 months. shery: huawei accusing washington of orchestrating a campaign to intimidate employees as well as launching cyberattacks to infiltrate its internal network. is hauwei backing these claims with any evidence of what they are saying? peter: it was really a strange announcement. it began as a statement about an ip dispute between the company and somebody who accused them of stealing some ip for a panoramic

camera. and then it segued into this very offensive attack on the united states and said that the u.s. government is threatening employees, coercing them, even sending fbi agents to their homes. that the u.s. agents are also trying to hack into its system. the company did not provide specific evidence about any of these allegations, but this is a sign of increased aggressiveness from huawei, where they are trying to go on the offense. i think we will see more of this from huawei, where they try to take the fight to the u.s., despite the u.s. claims that the company represents a security threat and should not be allowed to buy critical components. francine: danske bank, still reeling from the fallout of the biggest money laundering scandal, has a new chief finance officer. it is a name that will be familiar to those who follow european banks. the cfo leaves denmark's biggest bank.

do the latest reshuffles suggest more difficulties at the bank? philip: i think it is the case of the ceo getting his own people on board, people he knows from the market. commerzbank has been there for engle.years with stefan angl so he has experience, and they have taken control of how they want to take the bank going forward. shery: "it is clear to us that the status quo is unacceptable." that is the walmart ceo speaking to news that the retail giant will stop selling some types of ammunition and ask customers to not openly carry firearms in the aisles. what impact will this have on walmart's bottom line? matthew: well, it will have an impact on her sales of ammunition. they control about 20% of ammunition sales in the u.s. and said today these measures will reduce their market share from

20% to between 6% and 9%. denied saying it will have a broader financial impact where they will see a reduction in earnings. they wouldn't go that far today, but it will certainly have an impact on their ammo sales. romaine: oil is falling to a one-month low as the trade war stokes concerns, this as copper hits a two-year low on a global slowdown. some would say it's a canary in the coal mine. others say nothing to panic. my: copper was the leading indicator last year. it dropped in and then crude oil august. made a new high. i look at that -- support is breaking down, but it is way oversold. they are the shortest they have been since 2006. yet crude oil can get down around $42 a barrel which is

basically another $10. romaine: wow. vonnie: the u.s. east coast is bracing for her again dorian. the storm that has just been downgraded to a category 2 but still registers as one of the strongest hurricanes ever on record. it is only one of eight storms to have winds reach 180 miles per hour in the atlantic. matthew: the bahamas really took the brunt of dorian so far. aside from the human and total economic costs if you just , isolated the potential insurance losses, you could look at 2016's hurricane matthew, which produced losses of about $1 billion. this will be probably worse than that, but it is still a manageable number for the insurance industry. renita: hurricane dorian is battering north carolina's outer banks. the storm has weakened to a category of with wind of 90 four miles per hour. further north, virginia has ordered a round of evacuations. meanwhile, in the bahamas, the

death toll from dorian is up to 30. health workers expect to find more victims. romaine: another fine for google. this time with youtube agreeing to pay a record $170 million to settle claims that it violated children's privacy laws. most of that money will go to the federal trade commission, about $34 million will go to new york state. i mean, this is like 1/10 of 1% of what google earns in a typical year. what is the point? ben: the point is that this is a very large fine for children's privacy. it is no question that it's a drop in the bucket for google, it will be easy for them to pay it, like looking through the couch covers for loose pocket change for them. but this is a large fine, 30 times the previous record from just a few months ago for tiktok. the ftc is thinking that they got back their own budget for the bureau of consumer

protection. it goes to the treasury. and they got 30 times what they had gotten in february. that is sort of what they are thinking here. taylor: stock shares are plunging in after-hours trading after the company gave its first earnings report as a public company. now while slack beat analysts' expectations for second-quarter revenue and earnings, it projected slower sales growth for the second half of the year. nico: this is an instance where their best was not good enough. we have seen for years, this was one of the most hyped unicorns in silicon valley. it raised at least $1.3 billion because of all that anticipation, and the stock went down 15% today. it went down about 20% after that first pop when it went public in june. the reason why is because the company is decelerating. slack is a money-losing company. from an investor perspective, if you are not making money, you need to be growing. and if you are not making money

and not growing as quickly as we want you to, we are a little bit concerned. shery: wework's ipo may not be celebration the startup hoped for. the company is said to be seeking evaluation of about $20 billion to $30 billion when it goes public. that is less than half the valuation the unicorn secured from softbank just a few months ago. so, gillian, what happened? gillian: yeah, we saw uber and lyft, other big ridesharing companies that went public, markets saw where they came in and people are now projecting ahead, looking at the performance with early feedback from investors that was not what the bankers were looking for. and that feedback has been relayed to the company, and now expectations have been lowered. ♪

mr. herrmann: if you look at, like, the dots and stuff, back in december, we were saying don't hike in december, keep rates low and prepare markets for cuts. but at that time, 11 of 17 officials said not only hike in december, but two or three hikes this year. in march, it goes to 15 of 17, saying hold steady or one hike. june, it is nine of 17 say let's hold things steady. no cuts. they have been erroneously hawkish for the last nine to 12 months. kailey: 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 is another function you may find useful quic go, which , will take you to our quick takes, where you can get fast insight into timely topics. here's a quick take from this week. >> in a tweet threat exchange with jeff lu on april 17, writer mackenzie fegan had a few questions about the new boarding procedures -- no boarding pass, no i.d. instead, a camera and screen verified her identity against a u.s. customs and border patrol database, then let her on the plane. some passengers might consider the increasing use of facial recognition convenient, some might think it is orwellian, but it is already everywhere. the question is -- how far will it go? it turns out even some of those developing the technology are scared of what the answer might need. this is your bloomberg quick take on facial recognition. in may, san francisco became the first american city to block police and other agencies from using facial recognition

software. jeremy: the biggest concern around civil liberty, whether you enable a totalitarian state with this technology, which seems to be the direction things are heading. >> so how did we get here? like other artificial intelligence applications, facial recognition initially developed slowly beginning in the 1960's. with the help of newly available high-def cameras, machine learning, and giant databases of photos to increase accuracy, it advanced in a hurry. jeremy: facial recognition is technology that takes images from video cameras and tries to identify the people in those images. it does this by taking key points and doing measurements of the distance between those points. >> in december of 2018, london police made their first arrest based on facial recognition after crosschecking tourist hotspots against a database of known criminals. in new delhi, police identified 3000 missing children in four

days. so if that involves catching criminals and finding missing children, why would anyone be against it? for one, you might look at the most developed facial recognition system in the world in china. jeremy: it has been used in combination to create this vast surveillance apparatus, applied against certain ethnic minority groups. even in western democracies, there is concern about police departments using technology to try to find suspects or even people who might be involved in legitimate protests so they can be tracked. >> and those are just concerns about the technology when it works as intended. a study from the m.i.t. media lab found white men were correctly identified 99% of the time, while error rates of up to 35% were found with darker-skinned women. jeremy: microsoft came out last year as the first major tech company to say they are uncomfortable with deploying

this technology until there is clear regulation around it. they were then were joined by amazon, which seconded the calls. it seems like other companies are plowing ahead without such qualms at all. >> to stake out some guidelines, the algorithmic justice center and georgetown university law center unveiled the safe face pledge, which asks companies not to provide facial ai for autonomous weapons or law enforcement unless explicit laws are debated and passed to allow it. a few companies have signed on, but notably, not microsoft or amazon, possibly loath to lose the opportunity to sell facial recognition to police departments and governments the world over. so what is preventing your image from saying a whole lot more about you than it used to? face it -- not much. kailey: 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" this week. thanks for watching. i am kailey leinz. this is bloomberg. ♪

♪ carol: welcome to "bloomberg businessweek." i am carol massar. jason: and i am jason kelly. we are here inside bloomberg headquarters in new york. carol: more from our special double issue, "the elements," on the 150th anniversary of the periodic table. we explore why it is more important than ever, the connections between the elem