plus, emily chang's exclusive interview with tim cook and brian moynihan on diversity in the workplaceexecutives making the , wrong kind of headlines. the ge era ends and more tumult at the top four uber. >> we don't understand how the company is going to run when they have to invest on autonomous cars. who makes that decision? ramy: this is bloomberg. ♪ ♪ ramy: this is "bloomberg best." i'm ramy inocencio. let's continue our global tour of the week's top business stories with an unexpected executive shakeup at ge. >> the change out of the top of general electric, they said tim -- announcing health care head john slattery what assume the role of chief executive. explain the timing of this decision. >> the timing is a surprise. this was likely, or increasingly likely now that trion have stepped up pressure on ge. their original position when they bought the stock was, we like the plan and we are leaving them alone. however, after several years with a weak stock, they decided, you know, we are going to step it up. jonathan: what does flannery bring to the table? he is a 30 year veteran.

up, brian moynihan toss about his views on diversity and inclusion in the workplace.uld lead major u.s. bank. that is next. this is bloomberg. ♪ scarlet: this is "bloomberg markets." julia: let's turn to our segment where we look at the issues of diversity and inclusion. hiringe're focused on practices at big banks. erik schatzker have the opportunity to discuss the topic with the bank of america chairman and ceo, brian moynihan. listen in. >> we hear all kinds of argument for why banks should hire and promote more women. they make better risk managers, generate higher returns, they are less greedy, is that true? [laughter] >> is half the population at half the talent base you are dealing with. those are interesting sideshows to the real reason. are you going to draw your account from one half of the population? if you think you will get what you want, put any analogy out there, you are nba draft any want to choose half the people and others get half the people, you get five picks, he will not fare as well. i think all of the ideas get me, we payieve people very well

bank of america ceo brian moynihan joined us this week to talk about diversity and inclusion, issuesare vital to this company and close to his heart. he sat down with erik schatzker. erik: we hear all kinds of arguments for why banks should hire and promote more women. enter risk managers, generate higher returns, less greedy. is that true? [laughter] is anyn't think that good reason. half the population and half the talent base you are dealing with. those are interesting sideshows to the real reason, which is, are you going to draw talent from half of the population? put any analogies out there -- if you are an nba draft, you only get to choose from half the people, others get to choose from everyone, who will come out better? you are not going to fare as well. all of those ideas get into -- believe me, we pay people very well that are male and very well that are female. it is on the job and what they do and how they perform. those are all sort of sound narratives. the real question is, are you going to draw from 100% of the population in an industry, in a company that is completely

brian moynihan today said it would be down 11%, 12% or so. >> they had a fantastic first quarter, a quarter not expecting in anyway way when it came to trading revenues, so is this a little give back? >> it is. last year's first quarter was terrible for the big banks. the second quarter was a huge quarter. reverse, the had a first quarter better than last year, and that is what you would expect, but now the second quarter because of the comp of last year is not as favorable and we are seeing it down a little bit. >> are you seeing the same impact? is that trading revenue starting to weaken as well? >> it is an interesting environment. readtainty would typically tremendous volatility, and it is not. there is this very passive perspective that investors have, risks isownside outweighing the upside risks, of people are just not that active. >> auto sales and next bag. ford and the sound better than expected, nissan up 3%, ford up 2.3%. gm sales surprising to the downside, down 1.3%. what is your initial take so far on what we have seen out of the auto guys? >> it is starting as a soft month. -

bank of america ceo brian moynihan joined us this week to talk about diversity and inclusion, issuesmpany and close to his heart. he sat down with erik schatzker. ♪ ♪ ramy: welcome back to "bloomberg best." i am ramy inocencio. let's take a look back at some of the major political stories that moved markets this week, starting with theresa may's efforts to shore up support and form a new government after last week's snap election. ♪ >> prime minister theresa may could be bracing for a civil war within her own party. yes, this comes after last week's election. she is facing pressure from lawmakers who hold her responsible from the outcome of the snap election that cost the conservative party their majority in parliament. this comes on the heels of the first meeting with the cabinet since the election. >> i am keeping a close eye on this door, because this afternoon, theresa may has been holding her cabinet meeting. as you say, leading members of the cabinet have come out and held strong support of her, for example foreign secretary boris johnson and brexit secretary david davis, both

brian moynihan today said it would be down 11%, 12% or so.a fantastic first quarter. a quarter we were not expecting in any way when it came to trading revenues, so is this a little bit of give back? >> it is. it is important to remember what happened last year. last year's first quarter was terrible for the big banks. and in the second quarter was a huge quarter. this year, we had a bit of a reverse. the first quarter was better than last year. and that is what you would expect. but now the second quarter, because of the comp last year is not as favorable and we are seeing it down a little bit. >> are you seeing the same impact? is that trading revenue starting to weaken as well? >> it is an interesting environment. there is enormous uncertainty which typically would breed tremendous volatility, and it is not. there is this very passive perspective that investors have, and i think the downside risk is outweighing the upside risks. so people just not that active. >> auto sales have been a bit of a mixed bag. ford better than expected, nissan

. >> i've met with brian moynihan and was at the conference where he lowered guidance slightly. trading is volatile in interest. the rest of his book, book, what they're doing is very good. productivity, cost controls, et set area. it's not effort at the banks. across the board, from caterpillar to estee lauder to some of the banks, they said good things at this conference, so i think they feel good and again, we don't even have any real trump policies in place and yet, they fell pretty good. >> you have one policy in place. the end of war on business. from kudlow, the end of the war on business is why this market is not going down. >> stop. >> no, i'm not going to stop. >> was there a business when the s&p -- look at this. how do you know it wouldn't have? i want to about boeing and the national relations board. if they hadn't had to fight the board in south carolina. >> maybe, maybe. >> most likely. maybe, but most likely, boeing would have done a heck of a lot better. actually focusing on their customers instead of regulators. you're not serious, right? you don't think there'

jpmorgan's cfo starting this yesterday whether brian moynihan, morgan stanley sounding the same sort of alarms. why should investors be in these stocks? >> you should wait for a moment like yesterday in goldman sachs and you see a $7 or $8 collapse. that happens. it happens in great stocks, jpmorgan, whether it's the whale. yesterday it was reaction to the venezuelan bonds that goldman sachs purchased for 31 cents on the dollar. people weren't questioning whether they were going to lose money on the bonds, they were questioning ethical questions about should you be supporting that particular dictator and so forth by virtue of basically backing his bonds. >> aren't we talking -- this is a simple story. trading is down. >> yep. >> trading is bad. yields are too low. banks can't make money. why buy the stocks, erin. >> the sector is off 4.5% for the regional banks and 5.5% year to date so these stocks have been weakened pretty significantly. the sector is trading at 1.15 times book which is cheap on a relative basis versus where it's traded historically. since the election, the bank sto

. >> that was brian moynihan speaking with erik schatzker. >> tackling china's credit crunch. countries rising level of data what regulators want to do about it. this is bloomberg. ♪ >> breaking news. it the department of justice is investigating a unit of the company due to accounting practices. it is conducting a criminal and civil probe that relates to the charging practices when it comes the u.s. government. >> looks like they disclosed in a filing on june 7, it has been around a number of days. they say that the audit process is not been evidenced by any deficiencies a material weakness identified any significant erroneous cost charging. bring it to an appropriate resolution. now the stock is reacting. >> china is attempting to keep its economy growing wild at the same time dealing with is not the debt. how specifically is a going about that and how is he doing at its job. earlier this week, i sat down --h an associate press a for associate professor for the school of business and we talked about the impact of china's credit creation and what that is doing to growth. it i

brian moynihan discussed this with bloomberg. he real question is are you going to draw from 100% of the population in an industry, in a country, completely dependent on the talent. we have a very talented people, and we have a machines they operate. we do not make things. and so, if you don't get from 100% of the population, you are in trouble. asid: valerie jarrett served senior advisor to president obama in the white house. one of her roles was female leadership in corporate america. in d.c. today, because she will be addressing folks on the subject. thank you for being here. thank you so much. i completely agree with him. diversity is a strength, and there is a mounting body of evidence that shows that companies that have gender equity perform better. there is a very strong business case for why this is important, and that is what paradigm for parity is about. david: where are we? 500, we haveur top women ceos. women said, what are we going to do to start the momentum. there is a bloomberg, bank of america, coca-cola, many oth

brian moynihan might start with deposit growth. what kind of business do when exposure to? one exposure to consumer deposits, i.e., deposit growth. so other banks that have strong consumer deposits in the rising rate environments, especially as the fed pointed out they will unwind their balance sheet, that will put pressure on the deposit growth, so banks with strong deposit growth will be the winners in the next 12 months. jonathan: we just had a comments on the bloomberg terminal, we are seeing diminishing impacts of credit qualities deteriorating in capital markets and activity is slowing. i'm assuming he is on financials, so where is the momentum? gerard: charlie and i go way back, he is when my favorites. i will say the growth comes from the return of capitals. as long as the economy continues to grow, the credit quality i think you are going to see will be strong. in subprime auto and a few other places, it is starting to deteriorate but that is not a major problem to the banking industry because there is less exposure there. the growth will, from continued cost savin