kailey: coming up on "bloomberg best," the stories that shaped the week in business around the world. the coronavirus continues to dominate attention, as cases increase day by day while risks ahead remain unclear. michael: the fed anticipates there will be an impact in china. >> saying that is a risk. >> i have not worked down my forecast. kailey: earnings are also top of mind, with another flood of companies releasing results. >> it is clear that the first would be stronger than the second half. >> it will be tough in 2020, to be honest.

>> the focus is to make this next three quarters count. kailey: a major merger in telecom gets approved. >> it was an unusual decision. kailey: democrats unite -- sen. sanders: we are going to unite together. kailey: a cabinet reshuffle in the u.k. takes a startling turn. >> not someone walking out on the job. kailey: an exit interview with the outgoing credit suisse ceo. tidjane thiam. >> the true legacy comes after we leave. kailey: it is all straight ahead on "bloomberg best." hello and welcome. and this isleinz, "bloomberg best." your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. we began with a familiar focus,

assessing the spread of the coronavirus outbreak and measures to blunt its impact. >> the global death toll from the coronavirus has now topped 900. hubei province posted the most fatalities for one day. medical experts from the dove w.h.o. heading to the epicenter of the disease with the agency's chief expressing concern over the spread of the virus among those with no chinese travel history. >> you're seeing a cluster of new cases in france, spain and the u.k. they all appear to have links to a french ski resort where the affected people had contact with a british man that had returned from a conference in singapore, where he is expected to have contracted the coronavirus. that raises fears of a super spreader event. the chinese government is going full speed ahead in terms of trying to contain this.

they say they have spent already $4.5 billion of the $10 billion they have latched to try to contain the outbreak. >> special measures to combat the coronavirus outbreak with the first batch of free lending funds to start today. what is the intended effect and who does it go to? >> it is an emergency member by the pboc and what they want to do is to get nine banks to speed up the lending process to companies that need cash most. those companies that are being most hit by the impact of the coronavirus. it is another one of these cases where we are not talking yet about all out stimulus, but it adds onto the narrative they have shifted from more debt and worried about too much debt and are now focusing on growth stabilization. they have taken steps to shore up financial markets and this is one of their micro steps to get money into the real economy. kailey: it is now official. t-mobile has approval for its takeover of sprint. a regular monthly subscriber

base of 80 million, in the same league as at&t. >> it was an unusual decision , because rather than taking each of the company's defenses to what was perceived as an anticompetitive deal, based on their combined market shares, and based on what we call the hh index, commonly used to assess a merger, no defense on its own met the test that is set forth in the department of justice guidelines. what this judge did instead, is to say, if you take them all and put them together, they rebut this presumption that the deal is anticompetitive. also the judge accepted the remedies of the department of justice and fcc imposed, to divest assets to dish and set dish up to be another competitor in the market. david: the federal reserve chair jerome powell testified on capitol hill for about three hours now before the house services committee. he says the economy's monetary policy is about where it should be. he did refer to the coronavirus in china. tell us about the headlines for you. were there any surprises? michael: no surprises, david. jay powell speaks after every

fed meeting, and of course every fed member speaks quite often. so we have a good idea what they're thinking at any given time. this is more of a chance for the fed chair to speak on the coronavirus for the first time. he did suggest that yes, the fed anticipates there will be an impact in china. but how much of that spills over into the united states and globally, it is still too early to tell. the fed will continue to monitor it. jon: senator sanders coming out on top in new hampshire. a tight finish leaving that best of the rest to take it to nevada. sen. sanders: we are going to unite together and defeat the most dangerous president in the modern history of this country. kevin: for senator bernie sanders, it is onto nevada and south carolina after winning here in the granite state, and also for former south bend mayor pete buttigieg, another strong showing. is senator amy klobuchar who took third, place beating senator elizabeth warren

but also former vice president joe biden. she now meets with donors to try to get more fuel and cash for her campaign. [bell ringing] scarlet: we are looking at gains on a day record highs, the s&p and nasdaq, 2000 getting 7/10 of 1%. romaine: a lot of folks shrugging off concerns about the coronavirus. scarlet: right. the reason people are optimistic as well as hubei province reported the lowest number of new cases this month and the number of suspected factions inside mainland china also declined. >> there are number of new cases and deaths from the coronavirus in china has served desk surged after the province revised its methodology for counting infections. >> this is a massive change. this methodology lead to a spike in 15,000 cases in one day. compare that yesterday you saw the lowest number of cases, around 2000 on a in a month

there was optimism we were starting to see stabilization in terms of number of cases. this spike is likely going to lead to more public anger and scrutiny of the government's handling of the crisis, since it appears that had been reporting numbers that were lower than what the actual instances of these cases. the government had of course been criticized after the death of the doctor who sounded the early warning sign as well. >> the u.k.'s minister, the chancellor of the exchequer resigning thursday in a surprise development on the day the british prime minister is shaking up his conservative government. to tensionsed between the chancellor and prime minister but not some on walking out on the job. and we are a month away from the new budget, the first budget

since the new government has happened charting the course of britain outside the european union, four weeks away and suddenly the chancellor has walked out the door. we had an instant reaction, the pound went up a bit, why, because there's next dictation that there's going to be bigger spending. johnson wants all these new voters across the north and he has made very clear he wants to service them in this budget. that means more spending. you have to assume that javid was trying to put the bricks on brakes on that and now he is gone. flavia: if the eu is gone and they think is going to be a replay of the previous time, it is not going to happen. shery: the message is that we are willing to walk off the cliff at the end of the air, and we are not going to ask for a

transition and not going to ask for more, and we need you to believe it. that is the messaging sent loud and clear. peter: alibaba warning of a significant fallout from the coronavirus on its revenue, and china's economy. the company posted better-than-expected results in the last quarter. but prospects for the current quarter do not look bright with expectations to hurt its e-commerce and travel bookings. the ceo very clear about the enormous uncertainty in the chinese economy now. they do not know where this is going to go and do not a what is going to happen in the next few weeks and how will affect their business as. for companies, they're having a hard time getting workers back onto their jobs and being able to do their jobs. when it comes to delivery of goods, to consumers or other businesses. there also having a shortage of workers on the consumer front alibaba was clear that consumers are fundamentally changing their buying habits at this point. for example, they are buying more of the groceries that alibaba ships. but then cutting back on all sorts of discretionary spending. so it is a fundamental change in demand, too, and alibaba it does not know where this is going to go from here. vonnie: the death toll from the coronavirus continues to rise. disagreements between the u.s. and china about transparency threaten the fight. >> we are more than willing to on this, the w.h.o.

and they will not let us. so i do not know what their motives are. vonnie: beijing says u.s. health workers are welcome to come. the world health organization says nothing has actually been decided. rishaad: 63,000 cases now, the death toll up by 121. these inconsistencies in the numbers has led to a lot of questions being asked. we had some optimism a couple of days ago but that has receded somewhat. again, it is the economy suffering, people's bank of china, again saying they are going to underpin loan growth. also on a microeconomic level, companies such as fiat chrysler halting production in one of its plant in serbia, because they cannot get enough parts out of china. loretta: we now have new risk including the coronavirus. you have to take that into account when you are thinking about growth. right now i'm thinking of that is a risk. i expect that certainly in china, and perhaps in asia, the

first quarter numbers are going to be weaker. there could be spill over to the u.s. economy as well in the first quarter. it remains to be seen by how much and for how long that will persist. in general, i am seeing that as a risk to my forecast. i have not marked down my forecast because of it. kailey: still ahead, as we review the week on "bloomberg best," a conversation with the thiam, the outgoing ceo of credit suisse. plus, the world's top aviation executives discuss how coronavirus is threatening their businesses. >> there is definitely going to be pressure on our customers, chinese customers and anyone who touches china. >> we hope we get through this in the next two weeks and get people on the road again. kailey: up next, the earnings parade keeps marching along. highlights from another whirlwind week. >> a loss and another sign that these are bleak at the vision front. kailey: this is bloomberg. ♪

kailey: this is "bloomberg

best." i'm kailey leinz. let's take a deep dive into corporate earnings reports, starting with barclays. the bank warned of a challenging year ahead, and not just when it comes to profits. matt: barclays has retained its profitability target for 2020. but the bank is also warning it will be even more challenging now, given macroeconomic uncertainty and low interest rates. the ceo, jes staley, his professional relationship with jeffrey epstein could overshadow today's results. the sca and pra are probing how he characterized that relationship to the bank and how the bank subsequently ascribed to regulators. jes: i have been very transparent with the bank and very open and willing to discuss the relationship that i had with him. if you look at the r and f, i

think what is important to note is that the board has done its own review, and they have looked back at my transparency, and they concluded that i have been transparent and open with the bank and with the board all along this process. and in fact, they have unanimously voted for me to be put up for reelection at the agm meeting later this year. so full support from the chairman and from the board. but there is a regulatory process ongoing, and we will let that run its course. amro's fourth quarter net income missed the lowest of estimates. the state-controlled just data dutch bank, do now have to lay aside the ambition to raise the nominal dividend? do you need to drop that commitment now as one of those litmus moments in the dividend

story at the bank? >> no we do not have to do that raise the nominal dividend in euros per share. our commitment is to a payout policy, so each year, we payout a minimum of 50% of our profit. this year we are proposing to pay out sick to pay out 2% of profit, in line with last year. we are maintaining our payout ratio. as you say, that means evidence dividends per share coming down a little bit, because our profits are down a little bit. we think the payout ratio is the best way to manage dividend at a bank, because it ensures a flexibility and means we remain robust from a capital perspective through different economic conditions. francine: rbs is going in for a rebrand, snap slashing its business and change he seemed to natwest group as it seeks to put its tumultuous past behind it. >> incurring losses in terms of the resizing of natwest markets. the yield curve is still going

in this direction. in our own economics and base case we anticipate it will have another yield curve cut. those things make income harder, particularly for banks. alix: daimler is lowering european trading after the company slashed its diffidence to the lowest since the financial crisis and promised cost cuts as it focuses on ev's. ola: you cannot -- on electric vehicles. >> we have proposed measures to our overall fit cost structure. you talk about your vision for >>n for the future. what kind margins do you want to see at daimler? ola: we have put together program for the next three years

where is about cost efficiency and also cost restructure. in our capital markets, we presented in november of last year, we said we want to put a floor in the 2022 timeframe on the car business for instance at 6%. but we have high renditions. the focus now is to make this next three years count. francine: renaud slashing its dividend and posting its first net loss in a decade. the french automaker sales declined plus income from the japanese art and nissan also is down. >> it is going to be -- japanese partner nissan is down. it is going to be tough in 2020 as we suffer from volatility in the market and the café regulation in europe. we are engaging in heavy reduction plans to rebound. >> nestlé pushing back its target for sales growth and says revenue from china slowed even before the break from the coronavirus. it says it will need to one or two more years to return to an increase of four to 6%.

nestlé's bottled water business had its worst performance in a decade. >> we are pleased with the organic growth of 3.5%. it was exactly in line with what we had guided and reconfirmed in previous quarters. it was always clear the first half be stronger than the second half. we sold a nestlé's business which grew close to 10% effective 30th, 2019. december hence, that growth contribution was missing in the latter part of the year. for those people who correctly incorporated that, we came in exactly as we guided. going forward, we are optimistic about organic growth continuing over and above the 3.5% levels. we need another year or so to get to the 4% to 6% range we are targeting for. anna: michelin has warned sales in china are expected to drop this month due to the coronavirus epidemic, adding to a gloomy forecast of lower profits for europe's biggest tire maker. >> our factories have resumed activity yesterday morning. but we are very prudent about the potential consequence of the situation. we know that our self will be in negatively impacted if it were

were ruined. beyond that, it is difficult to guess what is going to happen. and if the chinese economy is going to stop for a very long period, it will have an impact on the entire supply chain in some industries, including automotive. for the time being, we have no specific warning or no specific concerned about our own supply. anna: softbank posted its third-quarter loss for its vision fund. the top $2 billion of the debt comes after a slew of positive news for the company after two of its troubled investments showed signs of paying off. uber said it will become profitable by the end of 2020. yesterday, t-mobile and sprint received approval for their merger. what are the takeaways, then, from the earnings? the vision fund lost, clearly of interest. >> that is just another sign

things are bleak at the vision fund. the outlook there has not been good. that continues and the valuation of those companies, the portfolio companies that softbank has invested in, does not look good at the stage at all. it almost completely wiped out their quarterly profit. so this was a surprise result. and not a good situation for the company. abigail: ride-hailing app lyft is out with fourth-quarter results narrowly beating analyst estimates, but that is not enough to impress investors. the stock falling 4% in after hours trading for not promising profits sooner. what does the company need to do to get profitability faster? know, uber had the advantage of having its earnings first and got to surprise investors by moving up its profitability target. i want to be clear, we are

talking about the adjusted profitability. cuts out a lot of things. there still-even stock companies, company spending a ies spending a ton of money. lyft is still growing impressively, 50%, and they got to a billion dollars in revenue in the quarter. but they have the disadvantage of being smaller. uber has had more time to become a huge business and then start turning those levers to make a profit. it seems like lyft does not want to commit to the same timeline of its much larger arrival. ♪

kailey: you are watching "bloomberg best."

i'm kailey leinz. credit suisse reported quarterly earnings with mixed results. gains in management revenue offset by trading losses. the announcement was the swan song for the ceo ousted earlier this month's after five years at the helm. he sat down with francine lacqua to discuss his departure and legacy. >> we came to agreement with the board that there would be a change of leadership and it was announced. i'm perfectly ok with that. >> have you spoken to the new chief executive and has he told you he will continue and user same strategy? >> the new ceo, we have been very close. i actually appointed him ceo switzerland when i crated the swiss bank which was new he did -- when i created the swiss bank which was new he did a phenomenal job.

he is something i have worked closely with for five years whom i know well. i have every confidence that i leave the company in good hands. that is also very important to me. because the true legacy comes after you leave. i have been fortunate to run to companies. prudential has had good news since i left and it was working very well and i wanted my company to create a durable success. so when i look at the q1 #can see that in q4 in spite of all the perturbation it is doing very good, one of our best quarters ever. and he is continuing in q1 and that is what you want. >> it is highly usual to have a shiva get exec if to say the -- to have the chief executive say the strategy is working great. >> i took over the situation of a company i thing i can say much worse than any new in terms of we had a 10 point 2% ratio. you have to look at the share price and cost structure from 2015 to 2018 we took $15 billion of losses. that is actual money. there's no way we are going to increase the surplus. once it was restructured, and a 2019 we were one of the best

performing stocks in banking. and in 2020 so far as well. so this is performing very well. before that we had to recapitalize. the bank issued 6% more shares. you have to look at the share price -- 62% more shares. people believe that from here the way up is up. we are growing tangibly at 11% per share. that is better. >> given all that, what has the board asked you to leave? >> that is a question for the board. but we agreed there to be a change of leadership and i was in agreement and we are living in a new phase. kailey: coming up, more conversation about european finance. unicredit ceo speaks exclusively about consolidations and negative rates. >> negative rates have a very negative impact on the profitable the banks. kailey: and the ceo of novartis says there's a lesson from the coronavirus crisis. it is imperative to stay vigilant between global pandemics.

>> the challenge is how do you maintain the effort in those gaps? kailey: this is bloomberg. ♪

kailey: welcome back bloomberg best. i'm kailey leinz. this week governments around the world took steps to contain the coronavirus outbreak from quarantines to factory and office closures. novartis said the vaccine could take two years to develop even though it took just six months to create one for swine flu. the ceo spoke exclusively with francine lacqua about the challenges of battling a global epidemic. >> when i step back when i see is we have these moments where we have these pandemics or epidemics. we had sars. we had h5n1, h1n1, mers, the

middle east respiratory syndrome. in each case, we galvanized a massive response. but then the pandemic and the epidemic fades. then the response goes down. then the work stops. or really diminishes. i think the challenge we have had is how do you maintain the effort in those gaps. how do you create the manufacturing capacity are the scientific know-how, to enable us to respond in the next moment. i'm not sure we have tackles that. there are many in many efforts but i think again and again this has been the repeating history we have with respect to pandemics. >> where should the leadership come from? is it governments or the -- where should the leadership come from? is it governments or health organizations? >> there is a group called seppi looking to bridge these gaps. longer term we do need governments and whether it is the g20 or something along those lines, to come together to have some sort of sustained pandemic response over time.

otherwise, i think we will have these moments and we will be scrambling to find a good response after the outbreak of sars. >> do you see it changing? >> we will say. -- we will see. this will be an interesting moment. the scale of the current situation and the seriousness of the situation, maybe it will motivate a bigger long-term response. kailey: the aviation industry has been hit especially hard by the coronavirus crisis. bloomberg spoke with several top executives from airlines and aircraft copies about the impact companies about the impact of the outbreak which is dampened attendance and enthusiasm at the singapore air show. let's start with owings vice -- with boeing's vice president of marketing. >> there is going to be pressure on our customers, the chinese customers, anyone who touches china. and customers who fly to and

from and within the asia-pacific region. there's no question. the good news is, oil prices will probably be lower. but there's definitely going to be challenges for some of our customers. >> and the sales for going from china, you have not seen that in at least two years. do you expect this virus to infect sentiment and to impact sales even more? >> we were on the heels of the phase one trade agreement. so we are engaged with our customers there. they're going to be challenged for the next several months with the virus. ultimately china's big market, 77 hundred airplanes, underserved today. long-term that demand will come back. >> china equates to an accounts travel.of global since coronavirus has happened, 25% of the schedule has been brought down. however what is going on on the ground is more extreme. 50% of the operating flights have been canceled. that percentage may grow. so, look, a lot of folks are

simply not traveling. not only china but southeast asia. we are hoping we get through this in the next few weeks and get people on the road again. >> is it realistic to think the aerospace sector will get back to growth in 2020? that has been the x dictation. -- that is been the expectation. >> iata forecast for the a specific region growth of 4.2% in 2020. that was a protection issue at the end of 2019. overnight, the pundits as they do a bottoms up analysis, looking at the traveling going on. they are now suggesting that could turn into a negative two to a negative six or 8%. we simply do not know as we sit here today. it is fair to say pragmatically that growth of up to 5% in the asia-pacific region is not going to happen in 2020. >> let's talk about the coronavirus. you restarted your chinese plants, over the last two days.

i'm curious as to what kind of effect you see the coronavirus having more broadly, in terms of your supply chain? and in terms of your customers. >> that's exactly the way we look at it. upstream and downstream and customers exactly that way. at the moment it is chinese customers, the chinese airlines, mainly impacted by the situation. we are in a dynamic discussion with them to see how we can support and tell them. -- and help them. we are in contact with a large number of suppliers, mainly in china as we speak. this is where we are concentrate your efforts. we see a situation that is improving. we continue to monitor and to steer that situation moving forward in a very dynamic way, as we learn more about the coronavirus itself. kailey: finally, back to making. -- baclk to banking.

unicredit says it will cut 6000 more jobs including 450 branches in its home market as part about three or efficiency plan announced in december. francine lacqua sat down with the ceo in london to talk about the financial comment in europe. he said it is crucial the ecb not cut interest rates even further. >> negative rates have a very negative impact on the profitability of banks. we do not think it is the case. we think the ecb will normalize. >> have you had discussions with european central bank. do they understand the plights the banks are going through because of negative rates? >> the ecb is proactive to exchange with banks, not only on the monetary side or they interact with us, but also on the regulatory side. the new head of the mechanism has been very transparent about regulatory headwinds, which is a plus for investors. they have better visibility about european banks, we should bring more capital into european banks.

>> does tiering work? >> it can a more tight the impact of negative rates. but negative rates in general, it is an issue if they stay lower for longer. >> do you think there will be consolidations among banks in italy? >> is not for me to comment. we say that as far as credit is concerned, no m&a. >> do rumors about consolidation make a difference your strategy? >> it does not. for us it is very clear. for the new plan called team 23, no m&a we work on an organic plan. in the current environment, transformation of a bank is much more important than acquisition. >> last time we spoke, i was asking what would trigger m&a among two tier bank banks. usually the share price. is that still the case or is it regulation? >> the regular should is

improving these days and the ecb has said they want to be more transparent about the impact of reg latoya headwinds and the reg -- the regulatory evolution. transformation is the most important issue for banks today. and at a share price which is low for the european banking sector in general, it is very difficult to consider any combination which can be eps accretive. >> are european banks strong enough to withstand a possible big fight between london and the rest of europe and it comes to equivalency? >> yes they are. european banks are very good shape. they built up capital and profitability is on the rise. clearly, with brexit, some consequences. more tactical than anything -- they are more technical than anything else. for instance on the clearing side and the equivalence of some of the derivative contracts but these are technical issues. which will be resolved. ♪

kailey: this is this is bloomberg best. i'm kailey leinz. in germany there's been a shakeup in angela merkel's succession plan. the woman she chose is suddenly out of the picture. >> we have really a seismic shock here in german politics. akk is stepping down as a leader of the christian democratic party and will not seek to run as chancellor candidate the next election. last week the afd back to the same candidate as that cdu did. that was not the first thing that happened. akk also let a mini queue or -- akk tried to stage a mini

coup against merkel early in her run last year. >> she's had a number of gaps. she has been in power for just over a year and it is been quite clear and discussed openly in berlin that she was very weak as party leader. the events of the last week really bore that out. this nonetheless was really a stunner this morning, the statement that she is stepping down both as leader of the party and that she will not run as chancellor. she says she will stay on as to oversee thanks. -- to oversee things. but now is an open field and who is going to run from merkel's party to replace her in the next election? >> the latest economic news out of germany shows the country entered 2020 with a flatlining economy and many factors in distress, potentially leaving the country ill-prepared for trade uncertainty and the coronavirus threat. >> the german economy failed to expand whatsoever in the fourth quarter. that follows a pretty bad year overall for germany especially in the manufacturing sector. what is interesting is the weakness was concentrated within the manufacturing sector and

particular month, at the end of the year in december. we saw a huge fall in industrial production, the biggest since the financial crisis. the takeaway is that the risks are still skewed to the downside for the year and germany. and growth could be slow in the first quarter as well. >> revolution of the ballot box. leader mary lou macdonald one of the biggest winners in ireland's elections are to the results? >> sinn fein has won the popular vote, a shock to most people. in the u.s., -- like in the u.s. it does not mean you will have the most seats in parliament. there will be a second party in parliament. that's not guaranteed they will be in government but it makes the mckee powerbroker at powerbrokerm a key

as coalition talks to begin later this week. we are seeing a seismic shift in the ireland's landscape. sinn fein is a potential member of government. warning the city of london may not be granted a deal allowing permanent access to the european financial markets. a photograph of a document from a british minister that seemed to imply the bridge are looking for something called permanent equivalents. >> it has not gone down well. i would point to the words of michel barnier today the toughest warning to the u.k. we have had today when it comes to the city being able to operate in the rest of the european union. we have him saying the idea that you can keep open ended equivalents which means you recognize my reels and a werecognize my rules and recognize yours.

i would not take that for granted. he also went on to say if you really think as the european union we are willing or hoping to keep that unchanged as you move away from our regulation, you're kidding yourself. that is a quote that he said this morning. some very tough language from mitchell barnier and second from u.k. and you're hoping to protect the city, you know you're in frederick fight. -- you're in for a big fight. >> we're looking at big tech because it is facing a new wave of scrutiny from antitrust officials as the ftc demands information on acquisitions made from the start of 2010 through 2019. the ftc announcing their moving under six b of the ftc act to collect information from certain technology comedies. what exactly is a six b investigation? >> is not common so this is new parlance for a lot of people in this industry. it gives them very broad investigatory ability to study an issue. it does not have to have a law enforcement focus. most of the time when we hear the ftc has opened an investigation into because there are some allegation of wrongdoing or suspicion of wrongdoing and they want to find out. this is not based on necessarily suspicion of some sort of wrongdoing. it is to learn information.

and to use that information to either do a study, promulgate guidelines, change rules etc.. >> the u.s. justice department has charged for memos of that members of the military in china with breaking into computer networks of credit reporting from equifax in 2017. there are of stealing data of 145 million americans. >> this data has economic value. and these thefts can feed china's development of artificial intelligence tools. as well as the creation of intelligence targeting packages. >> the cyber event in 2017 how -- had a significant impact on equifax. but the fact that the attackers were military arm of foreign government really raises the stakes and raises the bar for all of us. as attorney general are pointed out it is not just equifax, they have attacked multiple companies. defending against military arm of a foreign government is

different than defending ourselves against a hacker or someone trying to deal still -- to steal credit card numbers. it raises the stakes for all of us. >> pressure advising -- pressure on huawei as the u.s. as a racketeering conspiracy charge against the chinese tech giants, the law associate with cross with prosecuting mafia figures. >> this is the trumpet -- this is the trump administration ratcheting up charges, looking at ways to make life harder. the punishments longer for huawei. there is the belief that not only does huawei present a national security threat by potentially creating backdoors for the chinese government as we have discussed many times, also that there is this year's long pattern of illegally stealing intellectual property, making money off of it, incentivizing employees to steal trade secrets, and really gaining an unfair competitive advantage on the rest of the world, including players in the u.s..

so it really does represent a whole new front in this ongoing war against huawei. >> $12 billion is what 15 hedge fund managers collectively earned in 2019 despite the fact that only a third the s&p 500 last year. what justifies this type of pay? >> these are the top owners of a lot of these big hedge funds who run tens of billions of dollars and make money on the fees they can charge. and the make money on the returns they make. these funds made double-digit gains, a lot of than. -- a lot of them. only a third beat the market. i you like in the top five, the billing dollar, only two of them club, onlyion dollar two of them really beat the s&p. that is tiger global and ti. s&p was up 29% last year. >> rival mall operator simon

property group and talbert centers are combining. this is a 50% premium for taubman for a company whose shares have been in decline for years. their funds from operation have been in decline. why pay such a high premium? >> it is one of the few assets they could go after. they have tried to go after it in the past and did not get at that time around. i think the taubman family controls the asset and they still have the majority of the voting structure. it was difficult for simon to do anything that was not a nice premium at a knock at them on board with the price. as an asset people of tried to buy before. brookfield looked at it in the past and simon. they also had an activist in the stock. if you want to get this done you have to pay big.

>> the iaea saying global oil might slip the first time in a decade after the coronavirus batters china's economy. how long it last the key question. opec, are they going to wait? >> there's a lot of confusion about what opec is going to do. we assumed they're going to agree to eight 600,000 barrel is a cut recommended at a technical meeting last week. but the russians appears to be holding out on the saudi's who are really pushing to get this done. i think market needs it. the market at the moment is pricing in the opec act, not part of the sector oil the coronavirus has caused. if that were not happening we would probably see a real leg lower. >> president trump nominating to -- two people for open positions. >> christopher walker should sell through. judy shelton another matter. she was a campaign advisor to donald trump is in question about fed independence. >> all the questioning focused on judy shelton today and a lot of her controversial views. we expected democrats to come out strongly against her in the questioning and they did that. but three republicans also went after her on different issues. so that creates a wild for her

card for herwild nomination. she only needs one republican committee to go against her to halter nomination. then if she does make it out of committee, only three republicans in the broader senate. ♪

kailey: you can keep track of this developing virus story running the function on the bloomberg. you will find our quick take landing page with the latest global figures from the cdc and headlines from the bloomberg newsroom as well as how specific companies may be exposed. >> there are 30,000 functions on the bloomberg. we enjoy showing you are

favorites on bloomberg television. maybe they will become your favorites. there's another function you will find useful. here's a quick take from this week. >> chances are you are not a vegan. you may have had an almond latte this week. or tofu on your almond at some -- on your ramen at some point. even though a small number of people actually identify as fully vegan, vegan products are filling up and flying off supermarket shelves. that is because more of us are now substituting meat and dairy products with plant-based items. >> i told my friend i'm going to become a vegan and live that plant-based diet. >> so i became a vegan. >> i have been vegan my whole life. >> i am vegan. >> is that the fad like so many food trends, or the start of something much bigger? this is your bloomberg quick take on the vegan economy. the vegan society was founded in 1944. in a bid to discuss vegetarian and nondairy diets and lifestyles.

>> they say you have to eat vegetables, too much meat is bad. >> it began and remained as mock a very small community for decades. but the animal alternative industry is now expected to grow to one under $40 billion in the -- to $140 billion in the next decade there something out there for anyone who wants replace any amount of animal product in their diet, from cheese or yogurt replacement, to bloody veggie burgers. but since only 6% of americans describe themselves as vegan, this growth is coming from outside that community. our meat heavy diet does not just harm animals, it is killing our planet as well. livestock farming produces 14.5% of the planets greenhouse gas emissions. cows are the main offender. rearing and feeding farm animals leads to deforestation, which reduces our ability to absorb co2 in the atmosphere. research from oxford university claims a vegan diet is probably the single biggest way to reduce your impact on planet earth. concern for the planet is one

motivation. over half of u.s. adults who eat plant-based proteins said the main reason was taste. concerns about diet, animal protection and health. vegan product are no longer the weird, dusty packets hit in the hidden in the back of the health food shop. they're being delivered to the mainstream by huge brands like mcdonald's and burger king. they're even vegan bears. -- vegan beers. it turns out brewers use fish guts for filtration. an obsession with oat milk has led to shortages in the u.s. causing hysteria across the country. mainly brooklyn. investors are now getting in on the action. shares of beyond meat surged 600% three-month suffers ipo. -- three months after its ipo. another plant-based maker impossible foods raised $300 million in the same month. what could hold this burgeoning vegan economy back? nutritionists question the

health credentials of these processed meat alternatives. burger king's impossible whopper contains 35 grams of fat in 1000 grams of sodium, half your daily allowance of sodium. others were genetically -- warn genetically engineered greetings need more research to determine their safety. despite concerns their bullish -- there are bullish signs. tradition meat and dairy copies -- companies like tyson and dean's food have invested implant based products. with the posted benefits to our health, moving to a vegan turn and vegan diet could produce savings of a trillion dollars per year on health care and lost working days. like it or not, humans are going to have to shift their diet to help stem the tide of climate change. with our planet's population growing, the vegan economy will need to win over even more of us if it is to have a substantial impact. kailey: that was 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'm kailey leinz. this is bloomberg. ♪

david: as a child, he grew up doing mathematics and was perplexed by anomalies that did not make sense to him, even the rules for scrabble and monopoly. so he changed the rules. he could not make mathematics work for him in the way he would have liked and in a way that would let him follow in the footsteps of his actuary father, so he turned to economics. richard thaler got his phd at the university of rochester where he entered faculty until he discovered work of daniel kahneman and amos tversky and made his way to stanford to study with them. this led him to new ways of using economics to explain the way people actually behave rather than how theory says they should.