kailey: coming up on "bloomberg best," the stories that shaped the week in business around the world. a novel virus becomes a global crisis. the human and economic costs mounted with no end in sight. >> we saw risk aversion pick up last week. we are seeing it start to accelerate. >> coming to the office, it seems we have confirmed cases. kailey: central banks take center stage. the fed and bank of england keep rates on hold. >> the chairman sent us a a lot of signals, don't worry, we will focus on expansion. >> perhaps the markets for now interpreting this as a little bit of a hawkish hold. kailey: britain officially leaves the eu.

a new era gone, but hard work remains. >> alignment is key. to what extent will the european union remain aligned with the u.k.? kailey: the u.k. and europe will not abandon -- will not ban huawei from its 5g networks. the u.s. signs a new north american trade agreement into law. >> it has been a significant win for the president. as it relates to the business community. kailey: tech giants and european banks led the earnings parade. >> the last five years, we more than doubled the cash dividend per share. >> we hit every single target, every single milestone of this restructuring. kailey: goldman sachs says it is time for transparency. >> we are not out there looking to buy big banks. kailey: ceo david solomon hosts the company's first investor day. it is all ahead on "bloomberg best."

hello and welcome. i'm kailey leinz. this is "bloomberg best," your weekly review of the most important business news and analysis and interviews from bloomberg television around the world. let's start with the day by day look at the top headlines. the week began with concerns over the rapid spread of a novel virus with global health officials, government regulators and investors rattled by the outbreak. >> containment efforts are failing to stop the outbreak of the coronavirus. beijing reports the number of deaths has risen to 80. and there are more than 2700 confirmed cases. china is extending the lunar new year holiday by three days to stop the spread of the disease. it has also restricted travel for millions. >> it is effectively the biggest test to xi jinping's administration since he took office. this is a test of china's governance, its test with the world spotlight right on china

of how much better it can do this time around than it did with sars in 2003. >> unlike the sars crisis in 2003, china is more integrated into the global economy, 1/5 of global gdp. >> the amount of travel in and out of china is order of magnitude larger today than it was in 2003. in terms of the economics, in 2003, sars took around two percentage points off china's gdp growth, but the world barely noticed. here we are in 2020, if we are looking at a negative scenario on this virus, we would be looking at something that impacts not just china, but the asian region and major economies as well. >> risk aversion picked up last week. this morning, you are seeing it accelerate across asset classes.

start with stocks. take a look at what equities are doing in different geographic regions over the past week. if you look at fixed-income, we are seeing a rally in bonds, sending yields lower. 10 year treasury yields down toward 1.6%, the lowest since october. the one asset class seeing a majority of selling is within commodities. oil getting crushed in the last week. [ringing] romaine: s&p 500 closed on the biggest decline since october. scarlet: 1.6% drop for the s&p 500. a deficit for the dow. is this a selloff or a pause? joe: it feels like the first real selloff. the last couple weeks, we remarked how resilient this market has seemed, even in the face of negative headlines. it kind of feels like today was the day that the dam burst and there was a little fear.

>> germany has just confirmed a 33-year-old has been infected with coronavirus. china meanwhile has expanded travel restrictions of governments and companies in a rush to contain the virus that claimed 100 lives. hong kong limiting travel from china. it is stopping individual travelers from entering the city and shutting high-speed rail. shery: we are talking about 106 deaths. more than 4500 cases. every day it seems we have more confirmed cases. [ringing]>> we are looking at a rally in u.s. stocks recovering from losses the last two days. if you wanted to look for a catalyst, economic data, goods, manufacturing all on upside. shery: apple came out with results topping market estimates on iphone demand. but ceo tim cook says it has reduced operating hours in factories in china. reducing operating hours for

many of the stores. how big is the risk of disruption when it comes to the apple supply chain? >> it is a clear issue and clear overhang over the company's business. from a financial perspective, it seems like they are optimistic about it, given the strong guidance they are providing for the second quarter. >> the fed to release its policy decision later today. economists are not anticipating a change in the key rate decision. >> a nothing burger from the fed. no change in the target range. 1.5% to 1.75%. no word on when the fed will stop to increase its balance sheet. >> we believe monetary policy is will positioned to serve the american people with a strong job market and a return of inflation to our symmetric 2% goal. >> if this was a hawkish or dovish press conference, i think it was slightly dovish. the chairman sent us a lot of

signals, don't worry, we will focus on the expansion. we are here to do what we have to do if things turn nasty. >> tech earnings season underway with facebook the latest report. shares initially dropped, falling 6%. one possible explanation is there might be some concern with facebook's revenue growth. total revenue was up year-over-year which appears to be the slowest rate of growth effort. -- growth ever. >> everything is slowing because some of the issues facebook has been dealing with on a quarter after quarter basis regarding privacy and regulation, content moderation, political advertising, all of these things are still weighing on the company. overall, things are still growing. on another note, the user gains are ahead of where we thought they would be for 2019. this is a company continuing to chug on and perform quarter

after quarter. >> the boe out with their latest decision. no surprise here, except their commentary around brexit is interesting. the latest is they say if recovery stalls, policy support may be needed. they cut the economic growth forecast. they see inflation below target until the end of 2021, however they did not cut. 7-2 to keep interest rates at 75 basis points. >> one comment from mark carney, he said the decision in their outlook is less of a case of so far so good than so far good enough. they will hold. some were surprised at the vote. economists were calling for it to be 6.3. judging by that and the reaction in the markets in terms of the strengthening pound strengthening, markets interpreting this as they hawkish hold.

scarlet: w.h.o. declared the coronavirus a public health emergency. however they say there should not be restrictions on travel or movement of goods. >> this declaration of emergency is not something w.h.o. does lightly. the concern for the global economy was not any additional restrictions, and the focus is on supporting these countries that might not have a robust of a public and the structure. -- public health infrastructure. that will be key in terms of long-term containment. scarlet: a remarkable turnaround for u.s. equities, which will close the day in the green. we closed at session highs. paul: amazon shares soared in late trading after reporting a stronger fourth-quarter earnings. the tech giant beat analyst expectations during the holiday quarter on revenue, operating

income, and amazon web services sales. what were the standouts for you? >> several positive takeaways in the quarter. the revenue number was above expectations. more importantly, the operating income number blew away all analyst expectations, including ours. more remarkable, the fact that they were going into the holiday season spending heavily on one day shipping. the amazon web services business continues to at least hold its own. a lot of positive takeaways with remarkable execution here. >> finally happening after 3.5 years of division and uncertainty, the u.k. is leaving the european union today. the starting gun was fired in january 2013 with a speech by david cameron. markets especially expected the

2016 vote to go the way it did. now starts the real work, boris johnson negotiating with the eu. what is the one thing we need to watch out for? >> alignment is key. to what extent will the u.k. remain aligned with the european union after brexit? boris johnson said he won't extend the negotiating period. whether he will be flexible with the timing is crucial. >> behind the scenes, the conversation moved into the relation a long time ago. future what the europeans worry about is not so much the u.k. leaving, but being undercut when it comes to business. they worry about the u.k. being an unfair competitor, cutting taxes, and the number one priority for the eu is protecting markets.

vonnie: u.k. and russia confirming their first cases of the coronavirus earlier today. the u.s. and japan advised citizens to avoid traveling to china. >> where counting -- we are counting nearly 10,000 people have been affected by this pathogen. over 200 people now have died. some say out of those 10,000, something like 1500 are severe cases. >> 14 provinces in china have extended that lunar new year holiday until the second week of february. that will be quite big. economists are saying this coronavirus could have a bigger dent to the economy than during the 2003 sars epidemic. scarlet: we clearly did not see anyone stepping in. even if you look at volumes, today across u.s. exchanges, more than 9 billion shares traded hands, the most of any date this year since august by far.

this is putting us back in the days when we saw a pullback with more tariffs and trade being a real issue. kailey: still ahead on "bloomberg best," more on the fed's path forward. a conversation with vice chairman richard cleared up. plus, goldman sachs hosts its first investor day. its ceo says efficiency is on the agenda. and coming up, but earnings continues. starbucks announces a stellar set of results. the coronavirus casts a shadow on its success in china. >> we have closed half of our stores. it is day to day. kailey: this is bloomberg. ♪ ♪

kailey: this is "bloomberg best." i'm kailey leinz. earnings season swung into high

gear this week. let's review the most interesting reports starting with results from some important european banks. >> trying to disavow concerns about its capital levels. the lender expects to reach the upper end of its targets this year. the bank made the forecast after earnings jumped in the fourth quarter. it was helped by the rapid growth in latin america and sale of the unit. >> we are proposing an increase in the cash dividend per share. in the last five years, we have more than doubled the cash dividend per share. i think this is important. it shows the model is working. the transformation, the execution. it allows us to keep growth, because we have also grown not just revenues, we have grown the balance sheet and kept an attractive dividend policy. we are very happy. >> let's talk about deutsche bank. germany's largest bank reported a 31% surge in fixed income trading.

it also saw inflows of its asset management unit. giving comfort to investors after a bigger than expected loss in the last quarter. bothe loss this year after-tax and pretax was entirely driven by restructuring costs. transformation effects, as we call them. that is across a range of areas for a tax evaluation after-tax. on the pretax line, goodwill impairment, restructuring charges. that is more or less in line with what we guided the market in july. i see this as very much on track against the goals and targets. we have hit every single milestone of this restructuring. shery: starbucks has closed more than half of its mainline china -- mainland china locations because of the coronavirus outbreak that disrupted its most important growth market. the news cast a shadow over what

otherwise was an upbeat earnings report. sales rose 5% in the first quarter, outpacing the average estimate of 4.6%. >> we have closed more than half of our stores today. it is day to day. we very closely to ensure we are making thoughtful decisions. this is a temporary issue. we will focus on this in a way that is true to our mission and values. we will navigate past this. it will be a temporary issue. as we think about long-term growth in china, we remain optimistic. >> 3m announced fourth-quarter earnings. although it met expectation of revenue and even exceeded per share the stock , still dropped the most in nine months after revealing it will -- it has received a grand jury subpoena in an environmental probe, and it will cut 1500 jobs amid slumping markets, including car parts and electronics. where is your basic business in

terms of organic growth and venture growth? >> our business is delivered a solid q4 in line with our expectations. as you noted, our growth in the range of our guidance and earnings per share is at the high end of guidance. we delivered another solid performance in margin. for the year, a record $4.5 -- $5.4 billion in cash flow. in the face of difficult end markets as we went through the year, we delivered strong execution. that positions us well into 2020, where we see a return to growth. >> profit and sales rising this year driven by key drugs, such as psoriasis and heart treatments. pharma companies saw earnings -- -- earnings share narrowly missed estimates. >> it does come from a continuation of our productivity programs.

we expect to deliver $2 billion in productivity through the end of 2020. we expect to continue to the medium-term. we are announcing a continued productivity program. that is driven by great manufacturing performance and great productivity in our manufacturing and business services, but digital technologies as well, which is transforming the company. >> tesla has delivered it second quarter blowout earnings. record revenue carried the electric carmaker. are we concerned about the valuation? >> it is hitting the upper extremities of what people had expected. analyst's 12 month target is significantly below where it is, more analysts recommending to sell the stock than buy it. my bloomberg opinion colleague

in new york did an interesting analysis, looked at models, and in order to justify the current share price, it would need to deliver an 86 fold increase in earnings per share over nine years. we have been proven wrong, but there is not a huge amount of rationality here. >> there is a tesla bubble going on. there is no doubt this is a bubble. bubbles happen on things that normally change the world. tesla cars are amazing. he has all kinds of technology. he is delivering. the story is so powerful, it sucks everybody in. >> shell is slowing the pace of share buybacks as profit missed expectations, underscoring the challenges to big oil from slumping natural gas prices. why have you slowed down your share buybacks? you are doing $2.5 billion per quarter. now you are doing $1 billion per quarter.

can you meet your target? >> we have to continue to invest for growth. we have to buybacks 20 -- $20 billion of share. we have to reduce net debt. with the outlook at the moment, pressure on oil prices, definitely pressure on gas prices, chemicals at the floor, we have to take a prudent look going forward. for this quarter, we set our share buybacks to one. let's focus on debt reduction at the beginning of the year. let's also be very clear, there is no change in our commitment to buybacks of $25 million. it is just that the pace is uncertain given where we are with macro. ♪

kailey: you are watching "bloomberg best." i'm kailey leinz. this week, goldman sachs held its first investor day after becoming a publicly traded company in 1999. it was an opportunity for the ceo to set a new growth target and announced new efficiency initiatives. he also sat down with bloomberg. david: what we tried to lay out today is opportunities in existing businesses, add new businesses, diversify our revenue mix, and run the firm more efficiently. and if we do that, we will drive the returns higher and hopefully shareholders will be rewarded. sonali: you mentioned a lot of this is organic growth about you did not rule out a merger and acquisitions. do you think the federal reserve will give you the leeway to buy a bank? david: i never said we were buying a bank. sonali: is it possible?

david: we look for opportunities to grow our business organically, and occasionally, there are opportunities to accelerate your plan. united capital is an example. we wanted to move quickly into the high net worth business. united capital allowed us to accelerate that expansion. when we look at the landscape, that is what we are focused on. we are not out looking to buy a big bank. we want to be goldman sachs. we are driving banking services. that has been one of the big evolutions. sonali: we talked about revenue growth, but also cost-cutting. there are ambitious cost-cutting targets. how much includes job cuts? david: we have a cost target of $1.3 billion over the next three years. a significant portion of that allows us to reinvest in growth areas we are looking at. we have not specified how much is in the form of people

specifically, but obviously people are affected by that. but we are also hiring people at the same time. there is a shift in the organization. we spent time thinking about how to get people into different strategic locations that are more efficient, new york and london and hong kong. we are making investments in our frontline businesses. people are moving out, people are moving in, but we think we can run the organization or efficiently. -- more efficiently. that is why we set the cost target. kailey: coming up, more compelling conversations. the fed vice chair details the fomc's latest policy meeting. in the u.s. issued its long-awaited proposal. the palestinians are not on board. jared kushner tells bloomberg they will just have to get with the plan. >> the palestinian leadership

claims to want statehood, but you have to show you are capable of statehood. kailey: this is bloomberg. ♪

kailey: welcome back to "bloomberg best." u.s. president donald trump unveiled his plan for middle east peace this week alongside israel president benjamin netanyahu. the plan keeps jerusalem as the israeli capital while offering a path to a two state solution. palestinians have already rejected the plan. jared kushner helped draft the documents. he told bloomberg he thinks it will eventually bring peace to the region. >> president trump has built the capital with israel. he has shown the israeli people that he that he cares about understands their issues that he cares about their security. , it is only because they trust president trump that he is able

to get israel to make historic compromises. this creates a frameworks for the palestinian leadership. i don't know if the palestinian leadership will seize it, but if stateruly want to have a and they want all of the things if they have spoken and aspired for, it is time to come to the table. if you have issues, if you don't like where the line is drawn, move the line. try to there is flexibility if they come to the table. >> there is a four-year implementation period. >> the palestinian people have been suffering for a long time. so the leadership calling for , days of rage is not helping their people live a better life. i will also say that the palestinian leadership claims to want statehood, but you have to show you are capable of statehood. >> what do you mean by that? >> there are not too many states that, when they don't get what they want, they call for days of rage.

if they want to do diplomacy, they get in a room and do it. the palestinians have billions of dollars of aid. their friends and families are a lot of the leaders rich, but , the money has not trickled down to the people. there are people vested in the status quote. so over time, they have created these illogical constructs, hoping they will never solve them. we made them the most real offer they will ever have. we will finally smoke out whether they are serious or they like profiting from the status quo. >> the executive chairman of the says it is time to step of the largest bank in spain says it is time to step of the commitment to sustainability. protein sat down with francine lacqua. she joins a growing chorus of leaders in finance pledging to do more to combat the climate crisis. >> we are all conscious this is an emergency for the world. you and i, europe, we will not four fix it alone. governments need to get together and do it for all of us.

second, of course as a private sector we can do something. you and i, i eat animal protein once a day -- that helps. but especially as a bank, we as a company need to do more. ,so we have been working on this for 15 years. what we committed to a few months ago is carbon neutrality. the key issue for all of us is it is done responsibly. we don't leave people behind. there are billions of middle-class citizens, but there are billions that are not middle-class that want to live better. so we need to ensure that for example, poland 80% of the 80% of the energy in poland is , coal. we have a big bank in poland. so what have we done? we have said we are not financing new coal-fired plants. , we are not financing new customers that already have coal-fired plants, but we need to continue financing the existing ones because otherwise there would be no energy for

them in poland. my big concern is that we should not forget this. emerging markets are different. second, we need to help companies transform. that is what we are working on. kailey: next week, voters in iowa will cast the first ballots in the 2020 presidential race. among the candidates, tech entrepreneur andrew yang, who advocates for universal basic income what he calls a freedom , dividend of $1000 a month to every american adult over 18. he told bloomberg this unconventional policy would not change the fed's conventional role. >> for me, job one is to get more money in the hands of the american people in the form of universal basic income. so the fed controlling interest , rates is one piece of the puzzle, but i am focused more on direct cash in people's hands. that is the most powerful thing we can do. people love the idea. polls show getting $1000 a month

-- there is an undeniable appealing aspect of that. however i am not sure if people totally understand there would be a trade-off. some people would have to give up existing cash benefits. what would people have to give up in order to be eligible for the freedom dividend? which as he says opt in and why make that an opt-in choice? why not allow people to keep benefits for food stamps and get $1000 on top? >> the vast majority of americans would see a $1000 increase in buying power. the only people that might have to make a choice are people receiving direct cash assistance for heating oil or food stamps. none of them are getting $1000 a in those cases, virtually month, so this is a huge win. when i talk to people who are recipients of these programs live in constant fear of failing they to meet some administrative requirements or losing their benefits so if they were getting

, a stress-free $1000 a month, it would be a massive upgrade. it has no negative incentive for them to make money. right now our assistance programs are predicated on you being below an income level. that was joe weisenthal with presidential candidate andrew yang. >> join bloomberg television for special coverage of the 2020 iowa caucus on monday. let's return to the fed. the fomc held rates steady. at the meeting this week chair . and jerome powell says they will stay put. we got further fed insight from vice-chairman richard clarida. >> the u.s. economy is in a good place. solid growth. historically low unemployment. inflation stable. we left rates unchanged. that was the right call. we think the policy place is appropriate. to support the continuation. solid growth strong labor market , and low inflation.

that is the message. >> are we at full employment? it has been robust. the labor participation rate is at the same time not above where , it was before. >> that is a good question. i'm glad you gave me the the opportunity to answer. the powell fed has been open-minded about understanding the benefits to the low unemployment rate, and unless and until we see unemployment rates putting excessive pressure on inflation, we are not prepared to say we are at full employment. a lot of things economists don't know for sure, is what is full employment. we are willing to probe to see how low the rate can go. there are benefits so that. -- there are benefits to that. as our fed listens events have confirmed. >> one thing that came up in the news conference was the coronavirus. it is on everyone's mind. markets are paying attention. >> it is a wildcard. even the experts would confirm it is too soon to tell.

were looking at how it translates outlook for chinese to the growth, global growth and how it impacts the u.s. monitoring closely, but too soon to tell the impact. >> looking back at gdp growth, often that it is too late. is backward looking it is too late. , what about early indicators like yield curve? we have the three-month and 10 year inverted again, which has people nervous. >> that move has been a recent move. at the time of the december meeting, the yield curve was far from inverted. my individual interpretation is, that is driven not so much by an outlook for the u.s. economy, but globally, when there is uncertainty, money flows into the u.s. that tends to lower yields. , i am not today concerned about the inverted yield curve. i don't think it is reflecting the u.s. outlook. ♪

kailey: this is "bloomberg best." let's continue our global tour of the week's top stories in business and politics. a regional election in italy threatened to put populist pressure on the government. it turned out to be good news for the prime minister. >> italy's matteo salvini suffered a stinging defeat. what does the setback of matteo salvini mean for the government? >> it is good news for the government in rome. this was a regional election, but it was in a crucially key region for the italian social democrats.

would have been a fatal blow if to have lost they lost it. the fact that they held onto it means we will not see a snap election or more instability. i would point to the words of the italian prime minister, i am -- italian premier konta who said we do have a mandate for three years. i am not going anywhere. the biggest loser is salvini, the bad boy of italian politics going home again empty-handed. is going home again empty-handed. that regional election he hoped would precipitate a national election is not going to happen. >> u.k. has given huawei a partial role in building the country's 5g networks. denies a long-running attempt by the move the united states to have the chinese tech giant barred. is this a compromise boris johnson was looking for? >> definitely a compromise the u.k. wanted. you want to keep good relationships with china and the u.s.. there is enough vagary in how it

is framed. i think it can work. 35% share of the network. it is a constraint area. to be honest, most operators have been looking to while away just for the access network anyway. it is the domain it operates your spec team to see. there looking to multisource over time. in the long term evolution of five g networks, we will see the networks shaping up. >> you member states agreed to avoid alliance on a single 5g supplier. they are restricting some suppliers but they have not actually banned huawei from playing a role in 5g. huawei dodging the blanket eu ban from their 5g networks. >> president trump signed the usmca trade agreement, a successionary agreement to nafta.

after extensive negotiations with our trading partners and equally extensive negotiations on capitol hill. >> president trump saying he has delivered on one of his campaign promises to negotiate a new bipartisan trade pact with mexico and canada. the president got bipartisan support but not the support of one of his chief political rivals, senator bernie sanders, who says this plan was not in the best interest of u.s. workers. this is a significant win for the president when it comes to the business community, who was incredibly supportive of the usmca. i got a statement from the business roundtable, chaired by jamie dimon and he is very proud of this plan. they say it is good for the u.s. economy. >> plans to raise as much as $159 million in an ipo. that is at the top end of the range the offering would value the company around $744 million, a drop from the previous valuation. of what happened between then $1.1 billion. and now?

>> a 30% haircut. think about the timing. the valuation was in march, 2019. since then we have seen uber's , ipo, peloton, the wework debacle. it seems a lot of these unprofitable companies did not impress investors. it makes sense that investment bankers would say let's put this at a price that could appeal to investors. >> jp morgan announced it is keeping with its plan for bankers and traders. in keeping bonuses flat as wall street readies for a drop in payouts. jp morgan has been the most profitable bank in history for two years. is this the best they could do? [laughter] >> it has been a record year again jp morgan and other banks . but are preparing for tougher times ahead. remember morgan stanley cut 2% , of their workforce. we don't know what the bonus pools will look like at other banks. we are waiting for goldman sachs, morgan stanley to see if

their investment bankers will keep up with pay. >> samsung saw fourth-quarter profits fall 38% coming in at $4.4 billion. blame following memory chip prices and weak demand for its display business. now the company is expecting a , weak start to the first quarter as well this year, but is forecasting an overall improvement in 2020 as the rollout of 5g networks boost demand for its chips. >> samsung results, a surprise. the company very carefully orchestrates its earnings. it puts up a luminary numbers. and then these final numbers include net income and divisional breakdowns. and it disappointed this time it , missed these estimates. it is largely because memory chip prices did not recover as anticipated. and then also they had troubles , in the display business. they make displays for smartphones and tv's, particularly lcd displays, the prices had fallen more than

anticipated. that hurt the business quite a bit, so it was kind of a one-two punch for the company. >> ge out with its latest q4 results this morning. earnings per share beat $.21. turnaround takes effect. >> this as always is a cash flow story. it would take a lot to impress ge investors after a run-up in shares in the last three months. 30%. ge managed to do it, coming in ahead of increased guidance at $2.3 billion. free cash flow of that reflects better-than-expected performance in their aviation and power unit. looking to 2020, ge says cash flow could be as much as $4 billion, more than some of the most bearish analysts. i will point out that is lower than 2018. , there is still more room for the turnaround story to go, but they are making progress. this is something you like to see for ge.

>> ibm named its chief executive officer, arvin krishna, placing his longtime ceo ginni rometty. she will continue as executive chairman and serve through the end of the year, when she will retire after 40 years with the company. this is surprising, but good, right? >> that is largely responsible for the red hat deal and he has been running their cloud business. contrary to what ibm was about 10 years ago, he has been very vocal about working with other cloud providers, being a multi-cloud partner. that is the big change here. that is a big change from not tech companies 15 years ago not open to working with others have a hard time growing going forward. >> basketball fans around the world mourning the loss of nba legend kobe bryant, who died in a helicopter crash.

bryant won five nba chairmanships with the lakers and began a second career as an investor after his retirement. >> it touches way beyond the basketball world and sports world. he was a very successful investor. he was a media mogul. he had just won an oscar. before he retired, his vc fund focused on tallulah hot sauce dell technologies, alibaba, epic , games. outside of his vc fund, he famously invested in body armor, a gatorade and powerade competitor when it was very small. it recently got a massive investment from coca-cola. from what we understand, his that was five years $600,000 ago, now over $2 million. he was hands-on with a lot of these companies. he has done very well with a number of companies.

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kailey: this is one of our favorite functions, global macro movers. which of the sovereign bonds had the biggest move today? i kind of guessed germany or japan. it was italy, because of the political machinations going on. >> there are 30,000 functions on the bloomberg and we are showing you our favorites. maybe they will become your favorites. here is another function he will find useful.

go it will lead you to our quick takes, where you can get insight into timely topics. here is a quick take from this week. >> decarbonization is a key factor in the fight against climate change. the goal is to reduce carbon dioxide emissions around the world as soon as possible. >> our planet cannot be saved unless we leave fossil fuels in the ground where they belong. >> decarbonization involves sweeping change and incremental steps, working industry by industry, process by process, in every major country of the world. sound expensive? it will be. the science community agrees we have to avoid global catastrophe and have no choice but to mobilize and take on this monumental challenge. renewable energy like wind turbines and solar panels, as well as electric cars, are more popular topics, but there are key sectors less discussed, and changes there are equally important.

pretty carbon i think the planet. here's three -- cement, steel, and agriculture. these three sectors combined make up 40% of all carbon emissions in the world. what will it take to revolutionize these three industries without bankrupting them? cement is the most widely used man-made material in existence. when combined with water and aggregates, it can be poured into any shape needed for construction. used by millennia to build the pantheon and roman aqueducts, highways and parking garages -- lots of parking garages. the global production of cement accounts 7% of global co2 emissions annually. that is largely because of how it is created.

the main ingredients to cement is 'clinker'. in order to produce it, limestone is heated to high temperatures, generated by fossil fuels, releasing co2. chemical reactions within the kiln release more co2 in the process. companies are working to reduce. others are testing substitutes, including the residue left in chimneys of coal burning furnaces. slag from iron production. the drawbacks are serious. these techniques come with a price tag sometimes triple the cost of the traditional process. since cement is holding the world's structures together, alternative recipes make contractors and regulators uneasy. steel is just as important as cement, and global demand is rise 50% between 2019-2050. process involves refining iron ore.t just like cement, this production releases a lot of co2. in europe, owners are testing hydrogen as a way to take the carbon out of iron ore, but it is double the cost of using coke. there is one thing you can do with steel you can't do with

cement, recycle. instead of producing more steel in the first place, we can use what we already have. increasing steel recycling is seen as critical to reducing carbon emissions. agriculture requires a multipronged effort, as it is responsible for 25% of global co2 commissions. the practice of controlled burns after harvest, the use of inorganic fertilizers releasing methane and nitrous oxide into the air, the destruction of rainforests and livestock flatulence need to be addressed. to put a dent into agriculture's carbon output. some hope can be seen in the u.s., as demand for beef products has dropped significantly. additionally interest in meeternatives like beyond and impossible burgers have , soared in recent years. for those who can't quit beef, scientists are developing climate proof cows with digestive systems that produce

less methane. implementing these solutions globally remains an uphill battle. even as more in the u.s. and european take up vegetarian alternatives increased demand , globally means animal product consumption is expected to rise 60% by 2050. >> you are the last best hope of earth. >> we are in the beginning of a mass extinction and all you can talk about is money and economic growth. -- and fairytales of internal economic growth. how dare you? [applause] >> it will take policymakers and companies years of diligent work and collaboration to move industry away from its most polluting methods. but each of these industries is working on answers, with some executives confident they can be both green and show a profit. kailey: that was just one of the many quick takes you can find on bloomberg. you can also find them on bloomberg.com with the latest business news and analysis 24 hours a day. thanks for watching. this is bloomberg.

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carol: welcome to "bloomberg businessweek." i'm carol massar. jason: i'm jason kelly. we're here at bloomberg headquarters in new york. carol: this week it is all about the super bowl. the game will be played at hard rock stadium in south florida. we catch up with the hard rock chairman and c.e.o., jim allen. jason: plus, i sit down with the nba's chris paul. we talk about bob iger, david stern and learning how to say no. carol: so much. and if you haven't watched it,