>> good morning. i'm dani burger in london with the stories that set your agenda. the curtain falls. reed hastings steps down as ceo after more than two decades. shares jump in late training. not there yet. k-fed officials say high inflation rates will be needed for some time to maintain pressure on inflation. the world economic forum in davos comes to an end with a noted absence of top white house. more top interviews including the french finance minister. breaking lines from the telecom giant. fourth-quarter net sales coming in at a beat. 86 krone is what came in. the estimate was just under 85. they are on track to deliver their goal at 15 to 18% by 2024.

fourth-quarter adjusted ebit is a slight miss, 2 billion krona short of what was expected. the dividend is coming higher than expected. 2.7. estimate was just over 2.5. many analysts have pointed out that this season, their earnings will be a messy one. they have a lot of one-off costs. the focus will be, can their 5g kit -- sales continue to go up? revenue growth as significant and in line with their goal. 5g demand is still alive and well. let's get a check on the broader markets. we are still digesting all the fed speak. reynard talked about time and resolve. she's not softening her stance of higher rates but she did soften her expectations and her outlook on the economy. that was enough for the market to interpret as dovish. a bid into asian equities.

up 0.25 percent. nasdaq futures outperforming the rest of american futures down to the netflix earnings. we will get to those in a moment. the yen is weakening this morning despite japanese inflation coming in at 4%. this was widely expected. not just from economists but from the central bank itself. the 10 year yield is helping to reduce some of the fall we've seen this week. 3.4%. it started at 3.5% so we are down about 10 basis points. still that story into treasuries continues on. davos, it's the final day of davos. i mean, it seems like the focus at the moment has been on davos.

dani: -- manus: absolutely. pretty much having a little dig at richie sunak not being present. schulz is the only g-7 leader to be here. we are in the steps down to the made auditorium. i've had a bodyguard over the last week. he said, when trump was here, it was rammed. you could not move for a moment. maybe those rockstar moments i have changed. what's interesting is the americans, joe manchin got the start on site yesterday. brian moynihan was saying, we got over our skis in terms of hiring and went to the jp morgan gathering last night. fascinating. go talk to almond nassar.

we chatted away. jp morgan. looking at jp morgan, it depends what bank you are at. geopolitics were front and says -- center yesterday with the saudi's in terms of their role in arbitrating between ukraine and russia. they are present. let's take a look at -- listen to the prince. >> we are continuing to engage with both parties. our main objective is to find a way to end the conflict. everyone agrees that the only way the conflict will and is at the negotiating table. we hope to encourage all parties to find a path sooner rather than later. manus: speaking to me yesterday here and travels and saying, was there a window for de-escalation? he doesn't think there's a window for de-escalation today. the conversations continue. i will be tracking the fbi story

with the saudi's. as far as i'm concerned, it was the $2 trillion of asset owners that bloomberg spoke to in the space of 24 hours and how they see the world, that was the peak moment of my first apples. good morning. dani: that's it. small numbers there. manus: i'm rounding up. i'm bullish and i don't see a recession on the horizon. i'm a part of the group think that that is the situation. dani: you have to come back because here on the ground at sea level, there are some really big recession concerns. fantastic work this week. looking forward to the rest of your interviews as the conference closes out. that's manus cranny at the world economic forum in davos. don't miss some of the key interviews. they will be fascinating. we will be speaking to the friends finance minister later

this hour. let's get to our other top stories this morning and our reporters around the world. alex webb will join us this morning on the big shakeup at netflix. enda curran will give us the latest from the fed. co-founder reed hastings is stepping aside as chief executive also sir -- officer. this is happening as the streaming giant hosted some pretty punchy subscriber numbers. joining us to impact all of this is alex webb. we have to start with the big shocker of this. not necessarily the subscribers although that was a good surprise. reed hastings stepping aside. what we make of it? alex: is a very new netflix we are starting to see. he was at the home for two decades. he's the person who created netflix as we know it. he founded this company as a dvd rental operation and he drove the pivot towards online

streaming. he change the way that we consume media. the thing that is interesting is for the longest time, the messaging from netflix was that we were never getting into advertising. it would ruin our product. now they are going into advertising. one has to wonder whether it is just opening the door to people who are more quick with this kind of business and heralding that significant change. dani: speaking of that change. really strong subscriber numbers from netflix that help shares rally about 7% after hours. what was behind that? i'm curious whether the introduction of a tiered system, if we saw anything that would show how that is likely going to continue to be received going forward. alex: netflix was pretty adamant. they had been concerned that the new advertiser supported tear would cannibalize the more

premium tears. people would say, i'm not going to pay as much and go for this lower one. netflix was adamant that that was not the case. they added 7.7 million subscribers. the market expected 4.5 million. a pretty sizable beat on that basis. what we also saw was that profitability was not as high as expected. that speaks to how much you need to spend on content perhaps in order not just to retain subscribers but attract subscribers. they had big hits on wednesday. glass onion. these were big hits for them. it shows that content is possibly the biggest factor in driving subscribers. >> but how expensive is that content? really wonderful to speak with you this morning. thank you for getting up early

for us. i'm sure you will be back with us later. we have more tech to discuss. from tech to the fed. two top officials at the federal reserve saying that high interest rates are needed in the fight against u.s. inflation. let's get to enda curran. i especially find the reaction to brain are really fascinating. she doesn't saw for hers -- soften her stance on this idea. she did talk about this idea that yes, we are seeing signs that the economy is softening. is this a mixed message we are getting from them or is this just consistent? enda: i think it's probably consistent but it is certainly a reminder that the fed's rate hike cycle is not over yet. not even near the pause point. they both made the point that inflation is too high. interest rates need to go into restrictive territory. then they need to stay there for

a while. there was no sense of getting up and signaling that the fed is going to pause anytime soon. the number one concern they have is doubling down on inflation and making sure to keep it contained, get it back into the bottle. she did reference a slowing economy. there are signs that consumers are slowing. that is to be expected. there will be a hit to consumers and jobs. the magnitude of that hit is not yet clear. she wasn't saying it was going to be as simple as a recession and inflation would be contained. the economy is slowing. they don't know how much it will slow. the number one focus is getting inflation up. dani: elsewhere, the treasury secretary janet yellen declaring that the u.s. has hit the federal debt limit. i personally want to know when they are going to mend the trillion dollar coin. what is the treasury going to do?

they talked about extraordinary measures. what did they do to keep this potential risk contained? enda: they have internal measures that they can navigate to stop payments to certain pension funds and stop state gara went -- governments borrowing. they can shuffle money around and keep the government to a ceiling that they can continue to borrow. all of that is ultimately a money shuffle. whether or not january -- governments can agree. they want the spending cuts that the democrats are unlikely to agree to. we've been through this before. there seems to be an extra sense of caution this time around given how polarized the politics are in the u.s.. maybe the agreement won't be as simple as it was previously. dani: i didn't hear you mention the possibility of a coin is all . my heart is broken because of

that. we broke a few minutes ago. let me recap some of these lines for you. we've gotten some more. adjusted ebit for the fourth quarter did miss. eight point one billion swedish krona is what the figure came in that. the expectation was 10.7. inflation hasn't disappeared. margins are crucially important. their margins were amiss and they've said that they see declining margins in the networks for the first half of 2021. additionally in the first quarter, adjusted ebit will be somewhat lower than last year. clearly there are some issues here. costs remain high. the bright sots, they do see some easing of supply pressures. operators adjust inventory as supply situations have eased. enterprise growing slower in

2022. we will see how those shares open in about two hours time. along with those shares opening, let's take a look at what else we will be watching out for today. u.k. retail sales for december alongside german ppi. a panel at the world economic forum. patrick harker discusses the economic outlook and bankers forum at 2:00 u.k. time. chris waller's cliques later tonight. existing home sales data at 3:00 p.m. u.k. time. coming up, we hear some more of what fed's head of had to say. that's next. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you.

our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

>> inflation has declined in recent months. it's going to take time and resolve to get it back to 2%. financial conditions have proven considerably over the past year as the federal or -- reserve and banks around the world have tighten policy considerably. dani: u.s. fed reserve chair lael brainard on the central bank's next move. let's bring in our next guest, sieben harvey.

thank you so much for joining this morning. i guess you could have said that brain already was a mixed bag. she talked about some of the economic weakness that has shown through but basically saying, we need time and resolve to get inflation back down to 2%. the wind has been taken out of the sales of the dollar. global assets are pricing in this move from the fed. have we gone too far with that? simon: i think so just in the short term. a lot of pressure coming through from this kind of diverse move into risk assets. we saw better european growth prospects. all of a sudden, the markets are ok. potentially looking to cut rates from the back end of the year. his prime conditions for us to try to recoup some of the losses we may have made budding against the dollar last year.

i think it's very early. as the u.s. data comes through and starts to show the u.s. economy is shrinking, that will add to risk sentiment. we have to be very selective here against what we are going outside of the dollar to buy. that's what we are seeing in the desert of across the fx market. dani: i want to ask you about one other u.s. risk. we've seen the cost to ensured that the adults -- insured debt defaults spike. i know a lot of this is interpreted as political grandstanding. is this a risk that we need to price in? simon: i definitely think it's a risk and it's a risk that may be takes a different kind of level this time around, given the fact that the senate is so spare and the house is split. it is one of those things.

it tends to be seen as grandstanding purely because there's a common purpose for everyone to get on board with. i think we will start to see markets going towards that deadline. i don't think we can start pointing out a base case where all of a sudden debt defaults. i think that is so detrimental to the u.s. economy that politicians -- we will see some kind of peaceful answer taken here. how close we get to that deadline will be quite key. it comes back to this idea, market risk conditions won't be completely supported over the next two quarters. i think we will see a lot of headwinds to the risk on rally even though we have improving global stories outside of north america. dani: i know we are talking

about this, i can't tell you how tempted i am to blow up this conversation and just talk about a trillion dollar coin. i won't do that to you. it's interesting because it felt like the dollar just had this huge force of momentum last year and it was just a train pushing forward that nobody could stop or get it railroaded over everything. hearing you talk, i'm wondering if perhaps the bets won't be so clean this year. that when we are talking about direction, if chop will be wet 2023 brings. simon: i think so. what we've seen so far toward the back end of 2022 is what i like to call for mo trading. the idea that most people miss down on getting an early on the dollar trade toward the beginning of last year. we know that the dollar is going to soften. how are we going to position for it? as we go into 2023, mixed growth

signals across the globe. that makes it very difficult to say, we are going to move out of the dollar. it has a higher correlation to chinese growth if it has high correlation to commodities that would be preferable. we don't think it's going to be that simple. how can we necessarily look towards different macro gross differentials without necessarily being exposed to the u.s. dollar? dani: we are almost out of time. all i fast you about is the dollar. what are you looking at that looks particularly attractive this year? simon: we like looking at a ud for example. we like the japanese yen. these are currencies that come as no surprise to anyone who watched the show the beginning part of the year. all of a sudden, we start to see that exposure to a slowing u.s.

economy but not necessarily exposure to the dollar's defense in the event that there are recession fears and the probability of stability risks coming through. you get that flow opening up. we like looking at the canadian dollar at the moment. the question is, how far will this go? dani: really great to have you on the program this morning. simon harvey there. enjoy the rest of your friday and your weekend. s&p governor thomas jordan on curbing inflation in switzerland. that conversation is up next. our interview with the french finance minister bruno le maire. that conversation will take place shortly. don't miss it. this is bloomberg. ♪

>> there are a couple of reasons. an important one is that energy has a lower rate in our cpi than in other countries. a second point is that we started at relatively low levels of inflation. the third one which is probably the most important -- i believe there are a couple of reasons. an important one is that energy has a lower rate in our cpi than in other countries. a second point is that we started at relatively low levels of inflation. the third one, the most important one, we have a very them -- strong swiss franc. we let it appreciate already and 21 so we could absorb some of this inflationary pressure coming from abroad. >> how do you see the comp likes of inflation moving going forward? do we see the baseline going

down a bit? is this a problem for the future? >> this is exactly the key point we have to be careful of. headline inflation will come down very quickly. we have to focus on the medium to long-term. that means core inflation. core inflation is roughly 2% at the moment. we aim at an inflation rate that is consistently below 2% in the medium to long-term. we don't expect that we have to tighten monetary policy further. >> you are the first one to hike interest rates. other big interest but -- banks should have acted more quickly. is that still your judgment? >> in 21, fiscal and monetary policy was extremely expansionary and that pushed inflation down everywhere. in 21, there's an increased inflationary pressure. that was the reason why we let this wit -- wish frank. we started to increase interest

rates. interest rates are still very low. as i said before, we don't exclude that we have to tighten further. >> are global central banks behind the curve? >> every country has to see exactly what their situation is. it's important in my view that central banks really commit to price stability, that there's no doubt that central banks will bring inflation back to 2%. >> do they need to get through quickly? you have a small open economy. you get some kind of impact. >> inflation abroad is a factor that is very relevant to us. we have to take that into account. hi, i'm katie, i've lost 110 pounds on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss.

golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom.

dani: it is the final day of the world economic forum in davos square business leaders are meeting to discuss the global economic challenges that lay ahead let's get over to francine

lacqua who is there with a special guest. kathleen: good morning. it is cold, but we are getting some great interviews and great conversations. i have been looking forward to this all week. i am with the french finance minister. and a lot of people are looking at what is happening in france with the big strikes. are you including a drop in the minimum age? >>, yes. that is a necessity for france. everybody can understand there are some oppositions. we are a democracy, so there are rights of everybody to oppose. we also strongly believe that this is a necessity for france the best way of protecting our pension system is to -- ensure more prosperity for the french people. we will stick with that, even

though of course there will be a debate in the french parliament and the framework of the debate within the french parliament, there might be some improvement of the reform. kathleen: what kind of overalls could you make? >> minimum age is one of the key pieces of the reform. we want to reform it to be efficient for all the french people will. even if some of the mps are acting for more justice in some very specific part of the reform, we will open the discussion. once again, our state of mind is an open one. kathleen: talk to me about how much france is losing because of the strikes. >> i don't think that the strikes to have a very important economic impact on the economy, the french economy is doing

well. we have a pretty strong double of growth. we are creating jobs, we have a high level of investment, a very low inflation. i am deeply convinced that france is doing well. and the french economy is doing well. i really think that the strikes will not hurt the french economy. kathleen: so there is no chance that it impacts that with a bit of a recession? >> i always explained that i don't believe in recession inference. i think that we have taken the right decisions to fight inflation. once again, we have a very low level of inflation. we also have taken the right decision at the beginning by introducing a total of overhaul of the system. we stick to the policy of reforms. with the view of creating more jobs, more growth, more prosperity for the french

people. we are on the right track. kathleen: you also go to the u.s. with your german counterparts in february to talk about the inflation reduction act read you think you will get any concessions? >> i hope so. i have been discussing that yesterday. we have, i would say, a david track approach. on the one side, we want to get some concessions and some exemptions from the american side in that macron has been to washington, this visit has been really a great success. i would say a friendly visit. so we are expecting some concessions from our american friends. there is also another way, which is to emplace a kind of european inflation reduction act. and the question is, where do we want to put the money? where do we want to put the european money? do we want to put it in buying foreign goods, foreign devices,

for an electric car batteries? or do we want to but european money in investing in those to devices? car batteries, hydrogen, solar panels, chips. there is a need for more investment and a need also for acting in a quicker way because time is of the essence. we need to be more independent. kathleen: do you think there is enough appetite for european leaders to come together and do what you laid out? >> i really think so. there will be on sunday a very important meeting between president macron and chancellor scholes are working on this ideal for new european industry and policy. we made some very strong [indiscernible] for this newly

open policy. with a view of being more independent on those strategic. there has been a very important seven in barcelona -- summit in barcelona. we were absolutely on the same track. the idea is europe must be the third power between china and the u.s.. and if we want to play that in the 21st century, we need to have our own car batteries, hydrogen, chips. kathleen: do you think europe and the u.s. are aligned on how to treat and deal with china? >> i think there is a gap, and we are all aware of that the u.s. wants to oppose china. we want to engage china. i strongly believe that in the world game, china must be in. china cannot be out. that the reality, everyone is

speaking about the attentions, the oppositions between the u.s. and china. the determination of the u.s. to decouple from china. the reality is there is a level of trade between china and the u.s. that has never been so high between the statements and reality, there is a gap. let's have a look at our own interest. if we want to be an efficient and successful in the fight against climate change, it's to have china on board. if we want the possibility to have more trade for both the u.s. and europe, it's to have china on board we want china to play by the same rules. obey intellectual property, open its markets. the best way to reach that goal is more to engage china been to oppose china. kathleen: final question on the u.k.. what kind of relationship do you think europe and the u.k. will have going forward, given the

noise about a softer brexit, or a coming together? >> i have two strong beliefs on the u.k.. first, brexit has been a historical mistake. this is the sovereign choice of the british people, but it has been a historical mistake. and second, the u.k. is a great friend of france. and must remain a great friend of france. i think that everything that we can do to reinforce the economic ties and financial ties between the u.k. and france, it will go in the right direction. i have an excellent relationship with the prime minister, and i strongly believe that sticking to that very historical friendly relationship between the u.k. and french is absolutely. kathleen: much for joining us. -- thank you so much for joining

us. dani: thank you so much for bringing us the conversation, really fascinating distinction that he was drawing there between that europe wants to engage with china versus a u.s. that perhaps wants to oppose it. francine lacqua at the world economic forum. among many things that he said, we also heard him talk about this idea that the french government is picking firm to its plans on pension reform. this is despite the nation seeing its biggest wave of protests since emmanuel macron became president. unions are calling for further action later this month as those people took to the streets yesterday. demonstrators are opposed to the french government's plan to raise the minimum requirement for retirement from age 62 to 64. caroline: right here in paris,

only one in 10 regional trains are running. this seems to remain open, one in four is closed in paris. unions have also called for drake's -- strikes in oil refineries. the union from edf has called for a reduction of electricity production. more than two thirds of the french are opposed to the reform. >> it is a very bad reform. it is not the time. we consider that the government wants to make us work until death. >> there is money to be found in other prices -- places. i think taxes could be raised in different sectors, and asking people to work to avoid rising taxes is not the solution. unions have said this is just the first step. caroline: we could see many more of this kinds of protests in the weeks and months to come.

the question is whether the pressure from the street could force president macron to bark -- back down. just like what happened to former president back in 1995. dani: caroline reporting from paris. let's get you a quick check on your markets this morning asia stocks continuing to climb. we are about to head into the lunar new year. we will have some asian markets closed for a lot of next week. perhaps a little bit of window dressing and rebalancing before then. it is interesting we are not seeing profit-taking heading into them. tech is outperforming this morning thanks to netflix. outperform rotations. we did get the shocker that ceo and cofounder is stepping aside. in terms of macro news, we have wine all talking about the dedication to bring inflation back down to 2%. she is not lamenting, but she

talked about this idea that we are seeing some softening. perhaps, that was enough for the doves to take that and run. you see 3.4 percent on the 10 year yields, that is lower than where we started the week. we started the week at 3.5%. the yen is falling, weaker by 0.5% versus the dollar. we did get japanese inflation, it did hit 4%. this was expected by economists by the central bank. not too much of a reaction in terms of strengthening their from these markets. coming up, we will get back to the banking story. the morgan stanley ceo will share his thoughts on peeking inflation and china reopening. that conversation next. this is bloomberg. ♪

welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

dani: that is the same for another year. the largest american bank has seen its worst annual stock performance in more than a decade. it's profits sank by nearly one quarter. the paycheck comes after a rare rejection from shareholders last may, only 31% back to the proposal. also, a fun little fact, jamie dimon used to be the most highly paid banking executive for two years ago. he vaulted in front of him. it is morgan stanley chair and ceo much james gorman. we spoke to him in davos. he says there are clear signs that inflation is eking in the u.s. he also told us he has his eyes on china's next policy. >> there is clear evidence that inflation has peaked and is coming down. how quickly the fed will get us

to 2%, remains a debate. the slope of the line is in favor. the second is, not just the opening up of china, but china has embraced the rest of the world more aggressively in the last few weeks, witnessed by the vice premier meeting. in a way that we haven't seen for some time. the big question coming out of the congress and president xi jinping being reelected by the congress was, where does china go from here? does common prosperity mean effectively dividing the pie up so everybody gets a piece? or by growing the pie? what we are seeing is the tilt is no to divide the pie to grow the pie. we have got a very good business in greater china, obviously we have a huge business in hong kong.

and we continue to have up to 1000 people in various functions. no, i think we need to see a little more clarity of chinese policy. a little more sober discussion around global trade relations. and right now, i think we are certainly in a watch. tilting more positive than we would have been three or six months ago. dani: morgan stanley ceo speaking to lisa in davos. now let's get to the first word news. simone: the u.s. treasury has begun using special measures to avoid a payment default. after the federal debt limit was reached yesterday. it is altering investments into government run funds buyer -- for retirees to allow scope for payments without increasing the total debt. the democratic senator joe

manchin called for a bipartisan approach to avoid a default. >> is a wonderful opportunity for kevin mccarthy to act like the adults that we are. how do we fix it together? and move forward? simone: ahead of lunar new year, china's covid says infection levels said -- have dropped to a relatively low level. china is doing a good job as it moves to a new stage in the pandemic said the vice premier raid previously spearheaded things hard-line approach to the virus. the u.s. has announced a major new package of military hardware for ukraine, including 90's riker armor or snow carriers. $2.5 billion package includes onions of rounds of ammunition, tens of thousands of artillery rounds, and other equipment. this comes as western allies look to boost kia before russia washington's -- launches a new ground campaign.

peruvian police have fired tear gas outside congress in lima as protesters try to topple the federal government. the president -- authorities have also reported clashes with security forges -- forces outside of the capital. the nation is now in its seventh week of political crisis that some are calling the takeover of lima. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thanks so much, simone foxman in doha. musk in hot water, more on the tesla ceos lawsuit over tweets made in 2018 this is bloomberg. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done.

with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done.

>> i came into the year thinking that as we came out of a year of great uncertainty, we didn't know how the environment would move along. we thought that by march or april, we should have a pretty good understanding of where interest rates will land, how inflation will move or were. we are seeing it tick down. the one new factor that i have learned as i have been here is really thinking through, what does the reopening of china really mean? and what does that mean in continued economic growth? there is a human tragedy occurring with the pandemic as the whole world has experienced, but as we get past that, there is an in ours -- enormous amount for content savings. -- enormous amount of pent up savings. do feel like that could spur market outgrowth. that also creates a little more certainty as to how the interest-rate environment could evolve.

because of inflation and what that could do. i am hopeful that we will have more of a known environment. if we do that, investors and companies will be able to allocate company more successfully it i think that will help the markets a lot. >> last year was kind of a tough year to plan for the future. we were just talking to morgan stanley about that. i'm wondering from your perspective, whether you think ipo's will start trickling out. whether people will start becoming public again? >> i think that you have to look at the companies in the context of the new normal. if we think there is a new normal wear access to money costs money, cost of capital israel. at the same time, we have the potential for a more sustainable growth environment, then you could see investors say, i'm willing to underwrite that. i do think that growth at all costs is not likely to be a model that will be very successful. will companies, companies that

have a clear path to profitability, great businesses are still of course going to top the public markets. we have 200 copies on file to go public that are committed to nasdaq. question is, when will investors be ready to underwrite that? i think with the more known environment around is to straights, -- interest rates, they will be able to predict the future of models and make those decisions. dani: that was the nasdaq chair speaking to lisa in davos. elon musk is a scheduled to testify today at a trial in san francisco. the case centers on the infamous 2018 tweet, which you are looking at where he said he was considering taking the company private with quote, funding secured at $420. elsewhere, bloomberg learned that must oversaw the creation of a 2016 video that exaggerated

the abilities of tesla's driver assistance system, even dictating in the opening text that the company's car drove itself. a lot to dig through here. let's do it with technology lead, alex webb. let's start with the trial first before we go to the automation. our lawyers worried about ahead of his trial? alex: essentially, people are suing him for securities fraud are concerned that he will try to relitigate whether the infamous for 20 tweet accurate. it has already been deemed reckless by the judge who has said that the jury should consider it as such. they are trying to drive home this point. once he gets on the stand, he may try to justify the rationale behind it. dani: of course, the other thing we are watching, this bloomberg

scoop that emails coming out that he directed his tesla autopilot video. it doesn't look good for him. what could be the ramifications of this? alex: there is a company called nickel law which is named to riff on nikola tesla. he was found guilty of securities fraud last year. it seemed like he was doing a lot more than elong they now are -- fillon may or may not have done. suggesting the capabilities were greater than they actually were. that gentleman is facing a jail sentence. it seems like a long way from that happening for elon musk, but there are quite concerns in this fear. we will have to see how his case goes. but, it is clearly -- primarily a test of just how teflon elon

musk is. he has managed to ride the wave of a lot of these it and get out not quite scot-free, but not face the -- and still manage to become the richest man in the world. this will be quite a severe test on how -- if he can continue that success. dani: he might soon face more tests, considering twitter is getting sued by some unpaid experts. thank you so much for joining the show. wonderful to have you with us to bookmark bloomberg daybreak. next, "bloomberg markets: europe" happy friday. this is bloomberg. ♪

i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. - [announcer] imagine having fuller, thicker, that and the paycheck.

more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music)