>> coming up on bloomberg best, the stories that shaped business around the world. trade-in tariffs dominate the conversation. the vital strokes are not there. we are coming down to short strokes. ofthey jumped ahead microsoft as the world's most valuable company. thought the best thing to

do is to preemptively narrow production. >> both the private sector are heading in the right direction. speaks candidly about preparing for the next downturn. >> we are more cautious compared to 2009. >> elizabeth warren talks about how she would fix u.s. trade policy. >> it is all straight ahead on bloomberg best. hello and welcome, i am nejra cehic. interviews, news and analysis from bloomberg television around the world. showingeconomy has been

stress in the trade war. a new report tells a positive story. china showing raising hopes over the country's recovery. do these numbers mean and does one swallow make a summer? certainly a positive headline. the official and private sector are heading in the right direction. there is some seasonal effect behind it. china's pmiin probably spilled over to the rest of the region. it is certainly a positive number, but we are not seeing

any signs of a sustained rebalance. >> there are encouraging numbers .ut of china a short time ago we got numbers going the other way. mother is some disappointment in the ism numbers pointing to a deterioration in conditions. what this underscores is that even if we do get that the-china trade truce problems in the sector will not be easy to fix and they will not go away quickly. president donald trump is reinstating tariffs on aluminum from brazil. we are hearing that the president will increase tariffs on china if washington and beijing don't reach a trade agreement. moment.quite a it's just a reminder for the

trumpet ministration that this is their favorite trade policy tool. they love to use it to get what they want. dropis is a 9/10 of 1% here for the s&p 500. stocks are down but bonds are not up. mo not fair. have yourpposed to bonds hedge out your stocks. higher alled solidly day. the fact that people did not buy bonds is kind of -- >> tariffs making a comeback. hitting argentina and brazil and responding to the initial tax with a threat to slap tariffs on 2.4 billion dollars of goods.

the commerce secretary wilbur ross saying if nothing happens between now and then the president has made quite clear he will put the tariffs in. the president says you might have to wait a lot longer for a deal. >> and some ways i like waiting until after the election for the china deal. fromt's pull up a tweet the global times that says a source said china will release an entity deal soon. in the u.s.t china crosshairs as it relates to trade. this year france said we are going to tax big tech companies because we think they are not paying enough taxes here .

otheren -- several countries follow. to taxid were going sparkling wine. kim of the equity index is down on the s&p 500. 0.7%. the dow losing exactly 1%. >> only about 2% off of the highs here. the market is getting nervous but still pricing in the fact that maybe this is a poker move. there is some blood on both sides. m a relations between washington and beijing are likely to see further strain. rights abusesn against muslims and minorities. damages thenly

music we have heard from the global times that china is thinking of putting restrictions on some officials for visas and officials -- and travel. that include bash that could include some of the companies. aboundingsets were subject to agreeing on purchases and tariff rollback issues. >> there has been whiplash about where these talks are in. expectations are set that talks are progressing and hopefully they will be able to get a deal whether it is a temporary deal or something that moves the ball forward. that is the goal that we see. raised $29.6co billion in the largest ipo.

profitable most company at 1.7 trillion dollars. somewhat below the original target. did the aramco ipo meet expectations. >> in the midterm they did meet expectations. they were priced at the high-end of 32 rail per share. it immediately jumped ahead of apple and microsoft as the world's most valuable company. the largest ipo surpassing alibaba in 2014. ins is really the first step their plan to diversify the saudi economy away from oil. >> let's get the latest on opec. the energy minister gave them

beautiful news for tomorrow. why is it so intent to come up with the issue today. >> it's just codifying what is already happening in the market. there's a little bit of hubris overnight. that doesn't seem to be the case. not one of them would stop to talk to us. surprised thea oil market by promising significant additional production cuts. it wee market requires to itsard the role is website prices really prop many thought this entire cut would be cosmetic.

it's a little bit of naming and shaming when the press conference happen. iraq are joined and that has never happened. the discussions here were serious. >> investors are focusing on the latest jobs report. analysts are expecting nonfarm payrolls to have 183,000 jobs. ammo very strong report. 260 six thousand jobs created in november and the unemployment rate falls back to 3%. that's still enough to put the annual rate up. not only was november strong but september and october were revised up continuously. kim of the key point is that america is working. despite whatever cynicism more

criticism, the jobs numbers are getting better. >> october 11, the president said we have come to a deal pretty much. it will probably take three or four weeks. that was eight weeks ago. what has the president seen. >> the final stokes are not there. we are coming down to short strokes. we are covering a lot of ground. i've learned never to forecast the outcome and hopefully president trump will make the final call. >> as we close the week it started on a down note. there was all this talk about how the president was in no rush . closes thes&p 500 week out with a gain. ahead, democratic presidential candidate elizabeth warren takes donald trump to

task on trade. an exclusive interview with the brookfield ceo and up next more of the week's top headlines. political infighting puts the .rand coalition at risk >> it is somewhat uncertain. >> this is bloomberg.

>> this is bloomberg best and i am nejra cehic. let's continue our global tour of the world's top stories in politics. there was a summit in the u.k. and recent tensions within the alliance didn't play out as predicted.

>> nato leaders are wrapping up a two-day gathering. the issues discussed ranged from arms-control to china. the obvious issue is what a turnaround from president trump who went from criticizing nato almost saying the u.s. would be prepared to walk out, to know saying that this is an organization that is working well. >> the prime minister having family over for christmas. not everyone gets on, but in the end your family and that's what we got to, despite those open disagreements about the future of nato and what nato's deal should be. forwardmitted to a role . and the value of the alliance. nothing like the discord we had seen -- feared could come from the meeting. >> angela merkel's government has been thrown into crisis.

the grandt risk is coalition? >> the future is somewhat uncertain. they have not come out to say that they want to get out, but they do know that they are somewhat divided on this one. sayould probably want to that his running mate is an ideologue, and she really thinks that this coalition -- that the government has been far too conservative on a lot of issues like climate and social policy and she would like to go out. we have to see how this internal dynamic among the leadership is going to develop over the next few weeks. >> japanese prime minister shinzo abe is rolling out a

massive package supporting the economy battling the export slump, national disaster and the fallout from a hike. >> the headline figure is $240 billion. that is a large number. yenta.rillion deep toto dig down another figure of $7.6 trillion isn't government spending. that will be the punch that comes into the economy. bloombergist at expect the economy to grow 0.4% in 2020, which the government says will add 1.4 percentage points of growth.

they say it's not going to be quite as effective as that. ask -- hongg kong isg's financial sector painting a bleak picture. >> this is a conference that has been in surplus. bones ofeat on the some problems here, reiterating again that this economy will fall into recession for a full year. >> hong kong retail sales plunging over 3%, the latest sign that the ongoing unrest is hitting the economy. asice are firing tear gas thousands marched into these conditions. onwe know that the tourism the retail side has been getting hit. on the political side, in terms of protests there is no sign of a circuit breaker.

we turn to india where the central bank defied all forecasts and left rates unchanged despite gdp data showing a sharp slowdown. >> they offered a weak rationale in our view for keeping the rates. it essentially said they wanted .o do a wait and watch approach , they have time downwardly revised their massive 190by a basis points. deposit on interest rates. >> the federal reserve is acknowledging the year-end demand for cash.

attracted more than $42 billion in bids. >> they realize there will be a -- any central cash crunch at the end of the year and they are trying to make sure that they are prepared as much as possible to see the volatility that we replicated.r is not national gas platform. how much of a game changer is this. >> like you said russia is the world's biggest exporter of natural gas. the this is politically problematic as they try to expand that with the ukraine. this allows them to bypass the

that whole mess to monetize new fields that are too far east to connect to their european system . they are already talking to china about expanding the deal and maybe even to places like south korea about possibly doing a pipeline sue -- through north korea. this is opening a new branch of the world. says that thei house will draft articles of impeachment for against president trump for abusing his office. the president has engaged in abusive power, undermining our national security and jeopardizing the integrity of our national elections. >> do we have any idea what they will say and what it will mean waiting for that to take place? >> those are great questions and

we are looking at three to four articles of impeachment. when the process gets to the senate we don't know how long it will take. it kind of depends on the quality of evidence that the president presents. if he calls witnesses and his legal team fully participates in the process, it could take longer. as you hinted at, that is a consideration for the senators seeking the nomination because they will be stuck in washington when they would rather be on the campaign trail for 2020.

>> this is bloomberg best. u.s. senator and presidential candidate elizabeth warren made news this week she is drafting an antitrust bill that would call and regulators to retroactively review to decades of megamerger zenda ban such deals going forward. bloomberg's joe weisenthal interviewed warren on wednesday and on the topic of trade she >> the president has no plan. >> what is the elizabeth warren plan? >> art of it is to say we need an overall strategy on tariffs. >> trade is about terrace but not just about tariffs. traders about regulation as much as it is about anything else. what i want to see is a coherent

plan for anybody who wants access to american markets. farmerso make sure our aren't being squeezed like crazy and they havenow already lost markets that will be hard for them to regain. we need to be working with our allies. we want to trade deal with china that is favorable to the u.s.. let's not declare a trade war at the same time on canada and on our other asian allies. on our european allies. let's get everybody to work together on this to try to get china to follow a reasonable set of rules. >> if china is hoping to wait out the trump administration, you wouldn't be willing to end the tariffs on day one. sen. warren: we can't keep doing this has one offs.

strategy withrent our allies that makes clear where our long-term interests lie. i want to see trade occur but i want to see it occur in a way that is helpful to the american worker and the american consumer. destroyingp is markets in value around the world. >> would you tie chinese human rights abuses to a trade deal. >> working with our allies we should be putting a lot of trash -- pressure on china. part of it should be diplomatic. we need to's all the tools in our toolbox. andhat was democratic presidential hopeful elizabeth warren. bloomberg is the founder and majority owner of lt, the parent company of bloomberg news. the ceo says he doesn't see a recession around the corner but doesn't mean there is no risk. the nato secretary-general takes

issue with emmanuel macron's charge that the alliance is brain dead. this is bloomberg.

>> this is bloomberg best and i am nejra cehic. nato leaders outside london came in the wake of comments by key leaders. emmanuel macron recently called the alliance brain dead and donald trump has charged that many companies don't pay enough toward defense. maria covered the summit and spoke about these internal differences starting with nato's secretary-general. fact that the president trump is strong and his support to nato and that he recognize that allies like

europe and canada are stepping up when it comes to defense spending. since 2016, european allies in canada have added 130 million u.s. dollars to their budgets. this is unprecedented and is iting nato stronger, and shows that the message from the president is having an impact. deading to the brain comments, i know the language is probably too much. what do you think he is trying to achieve? is this a wake-up call or is there something else happening? >> i don't think we will have to wait to characterize nato. what we have seen is that nato is doing what they have done for decades.

more troops and for the first time in our history combating the eastern lines. increasing defense spending and addressing new challenges like the rise of china which was not on the agenda before. nato is actually active every day and that proves we are responding. >> in general i would agree with him that we could have spent more. be above 60% of the nato economy while the rest of nato including canada and the european side is only spending

75%. he is right there. when you look at the numbers since 2016lion spent is an incredible number. >> trump would say that the netherlands is a rich country. >> we are and he is completely right. we are spending 10 billion on new defense equipment and billions on our overall defense spending. growing at a high pace so we have to keep track. >> the ceo of spotlight.

caroline hyde sat down with the executive and spoke about the particular challenges of guiding a company with growth -- global reach. >> our employee base has actually spread around the world. to 15 yearso do 10 ago was that the complexity of the product grew so much that it was impossible to make it. traditionally people say i will take this and you can draw these boundaries around whatever the site does. we can't do that because it is so complex. create theced to product and have every site talk to each other. typically what we do is take some but who is strong culturally, and we will have a mirror on the others that talks to them every day.

it's kind of old school ground game, we have solved that problem a decade ago. >> it feels like your business comes down to being personal. do you think that is common in science-based businesses? don'tt something people understand about the way scientists need to work? >> i think that is true in general. it's not communication like i know everything and i will communicate it. it's that you have a collective brain, you have to figure out how to pull from that collective brain, and be humble enough to change your mind. >> you can find much more of caroline hyde's exclusive conversation at bloomberg.com. bruce lang spoke with

flat. he says he is preparing for the next downturn but we are not quite there yet. i don't see anything in the current economic environment that tells us something will happen tomorrow morning. that, we are close to 11 years in this economic cycle. i don't think economic cycles have been repealed. some countries are heading there today, particularly in europe. because of that we have high stock markets and there will be disruption in credit markets and stock markets and our view is when you are in an environment that is more robust than you might otherwise have you should be careful.

powder and cash on our balance sheet, the balance sheets are more long-term, getting ready at this point where we can capitalize on situations if the market is current. don't, we will be fine but we are more cautious today than we were in 2009. there are places today that are like two thousand nine in the united states. a financial crisis situation similar to what happened in the united states in 2009. shapenks are not in great stop the non-bank financials are in trouble. with that means is entrepreneurs don't have access to capital.

>> you talked about china and that a third of your assets would be in china and i've wondered at whether there is an thete on that, based on context of human rights and china's place in the world. does any of that factor in? chinast we said asia, not specifically, which includes asia and our mind, but to deal specifically with china, going back to what we do as opposed to what others do. we go to a country we move money and we buy an asset and redevelop it or sell it to somebody else. to anyone.rategic thanks don't move across the borders. it's not really relevant to

anyone, and china has an enormous population that we build and operate. to bek it will continue very relevant to us longer term and i would change the comments that i made years ago. ♪

kimbo this is bloomberg's best, i am nejra cehic. it was a busy week of comings and goings around the world including an unexpected change in top management for google and its corporate parent alphabet. founders stepping down from their roles at alphabet. google ceo will

become the ceo of alphabet. >> we are a little surprised but as surprised as we were four years ago when they announced alphabet, and at that point, soon approach i was effectively the manager of google, he is on the board of alphabet, he has been involved -- google is 99% alphabet, aue for similar percentage of the workforce. i spoke to a former googler today who says it gives corporate structure to the reality. australia's central bank welcoming a new leader. >> you don't envy someone like him coming into the sector at a time like this. ahead,as a tough road

but he hasn't been held down by any of the other scandals that the other banks have had to deal with. it will be a tough job for him. public trust, political trust in the sectors. he has this long road ahead. at the same time, he has to keep investors happy. they're going to turn that around. door.ther ceo at the the co-chief executive at the investment management firm is stepping down next quarter after a 10-plus year tenure at the firm. eileen murray has been there since 2014. she shared the co-ceo title.

it was a remarkable scoop by eric chester because he was considered to be the wells fargo ceo at one point. she has a lot of options for her moving forward. ceo of nissan beginning his first week. what can we expect to hear from him? main can expect that his goal will be to set out a plan and to calm concern about leadership at the top of this company which is under pressure from all sorts of different directions. he has a reputation as being a not and thoughtful leader, someone as flashy as -- there were some risk involved in that. this is a signal there are not worried about taking as big

risks. they want to morecambe contemplative title. somebody who is not going to make big waves but will restore confidence. is the claim from tax authorities presenting the carmaker with a hefty bill related to its 2014 restructuring. what is it mean for fiat. >> the italian tax authorities are claiming that they undervalued their chrysler unit when the merger was going to pull the business away from italy to the netherlands and london. potentially via could pay as much as $1.5 billion in extra taxes.

the allegation of miscalculation and they don't think it should have a material impact on them because they have so many losses in the country so they can offset this eventual payment. >> union credit with a big revamp their. this share buyback will take place between 2020 and 2023. the ceo has also announced 8000 job cuts with 9% of the workforce. plans -- thethe plan has got plenty of sweeteners and it. the payoff will increase in 2023

, so it really depends on whether they consider this generous are short of expectations. >> the other one shows they are still in repair mode, cutting bad loans. that is still a work in progress and it should be realized that you have to spend money to save money. paying for the job cuts will be a big expense over the next two years. thatoomberg is learning more than 30% of the workforce could be eliminated. the asset managers have been bothered by investor defections. can we look at a company that is trying to find its way for a while. they had a scandal 18 months ago that led to the loss of one of their biggest firms of the key moneymaking assets. story says today is that cost will be reduced by

about 40%. enough time will tell, but the key question is what will happen to the assets? it will probably be enough if investors stay for now. >> let's get that story. world's biggest commodities trader is now investigating the company for bribery. they are joining the doj and various other companies around the world investigating this company. this is just one more investigation piling up on the company, adding pressure on management. it reinforces the story that this is a difficult company for someone to say i want to invest here.

are they going to have to pay a penalty? out thatoing to come will show wrongdoing? we don't know. anyone can look at this as a high risk investment. ♪ >> the u.s. is stepping up its efforts against huawei. washington has created a new agency to help businesses purchase telecommunications equipment from other firms. how will this be set up and will it be effective? >> it replaces other similar the agencies, but it has $60 billion investment cap. be set up isll looking outward to the developing nations which cover half the globe in this entity will provide load guarantees or

political risk insurance and even now to take minority equity stakes in companies. that is a very large tech service for this. and the agency isn't waiting around. it has yet to be officially cleared by congress, but that will happen soon. stride -- straight into this debate. kim according to customer growth partners, americans spent 69 billion dollars over the four-day weekend, driving sales up 5% from a year ago. the star of that weekend was black friday. was there any doubt that the numbers would not rise? >> analysts protected a strong black friday. wage growth, low unemployment. what was interesting was that people were going to online sales on black friday not

reserving that just for cyber monday. people still go to black friday because it's part of the american tradition, like i want to go to the store for the social gathering the stories that win in foot traffic is like best buy, walmart, target because they sell electronics and people want to get the deal on the big tv in the big box stores that add value and they have been winning all year. this is their time to shine.

>> this is opec go. the united arab emirates, abu dhabi with the scope and scale of aramco and saudi arabia and

iraq. enjoy showing you our favorite functions on bloomberg television. there is another one, it will lead you to our quick takes where you can get important insight into timely topics. president chinese called this the product of the century. sometimes it is called the new silk road. it has already cost more than the u.s. marshall plan to rebuild europe after world war ii. thatorld bank estimates billions of dollars of projects have been built or are in the works. a high-speed rail line

to indonesia. it is one of the most ambitious intercontinental projects in human history. the stakes are astronomical. morgan stanley estimates spending will total more than $1.3 trillion. trump bank china would like to make a deal more than i would. back u.s.cales involvement, president xi is positioning himself as a champion of global cooperation, development, and free-trade. there are accusations that china is luring poorer countries into debt traps when they're canceling projects even as new deals are being signed. several countries have had to rethink their involvement. sri lanka borrowed

$8 billion for newport, couldn't repave the roads and gave a state on chinese company a 99 year lease in exchange for debt relief. provides china a strategic birth along key shipping lanes. deal struck under its previous military regime. pres. trump: china would like a rollback. >> the trump administration has thought to capitalize on the doubts with mike pence telling the southeast asian nations that the u.s. would not offer a one-way road. in the face of criticism, president xi is doing damage control, calling it a road for peace. 2018, it will extend to the caribbean and the arctic and in between 19 israel became the first of seven nations to sign up brushing off warnings from american allies. these are the countries that

approve of the belt and road project. theworld bank says that revised silk road has the potential to stimulate economic growth. with it comes challenges. some of the risks include allegations of corruption like the former kyrgyzstan prime which offered -- forced a panamanian port to offer a halt to a major tourist destination. president xi who is dealing with china's own debt problems has promised debt relief to some nations. a top chinese regulator called for greater social responsibility in overseas investments. that's the type of sensitivity that china will need to show to win over skeptics. nejra: that was one of the many quick takes. you can find them on

bloomberg.com 24 hours a day. that will be the all of bloomberg best this week. this is bloomberg. ♪

♪ carol: welcome to bloomberg businessweek. i'm carol massar. jason: i'm jason kelly. we are in new york city. carol: this week, the bloomberg 50. from finance to politics, these are the people that shaped 2019 in unexpected ways. jason: plus, a growing pushback on stock webex.

carol: and a different type of