oliver: i'm oliver renick. carol: facebook's image for a future. and why recalls drag economy, that's a fun story. oliver: all of that ahead on "bloomberg businessweek." ♪ oliver: we are here with megan murphy, let's start by talking about the opening remarks section. this examines the philosophy behind to some of the biggest companies we know, in particular, facebook and google and what really their priority or mission is. megan: this piece, we strive to be controversial and this piece is rocket of it is -- provocative in the sense that they've talked about being that only instrumental in the way you conduct yourself online and your everyday tasks, but also reinforces for good in the long term evolution of humanity. what ashlee vance, who has written this piece really talks about is can you make that a legitimate claim when you have become the biggest single driving of advertising dollars and trying to get people to click on ads known to humanity. oliver: the thing interesting about this is is not necessarily new for a company to try to have some s

i'm oliver renick. >> and i'm carol massar.an also catch us on the radio at series channel 119, and in new york and in 200 in boston, 90 one fm in washington, d.c., a m naik 60 in the bay area. >> and in london and asia on the bloomberg radio plus at the >> president trump's budget isn't expected to get passed congress. >> but that could be what it white house wants. peter coy explains. >> we got a first look at what the budget looks like. give us the rundown on how both sides of the aisle are reacting and what the hope is to accomplish what trumps are. >> the budget of course is very ambitious. the concept is that trump inks he can wipe out the entire federal budget deficit and produce a surplus like 2027. at the same time that he raises spending on the military and border control and protects the retirement portion of social security and medicare. >> provide some scope on that. how big of a challenge is that when you talk about wiping out the budget? >> it's a huge challenge because most people who have looked at the budget s

i'm oliver renick. carol: and i'm carol massar. businessweek section, indonesia police is breaking up chile cartels. carol: we spoke to our editor. >> when i heard chile and bank -- when i heard central bank in chile in the same sentence -- [laughter] indonesia,rt about how the central bank, the team has 500 units spread out across the country, we're talking about 7000 inhabited islands, to monitor the prices of many of the items in the basket that is used to track inflation. this story was about a that saw thewn price of chilies triple. that immediately set off alarms. one of these 500 teens, which is not composed of central bankers , but also law-enforcement and representatives from the national competition agency, they started investigating and they started investigating, and the investigation spread to borneo and an adjacent island. they figured out there was a group of wholesalers a corner the market in this one area chiliessupplies up that was supposed to be going to local markets. carol: what's important here is that chile i

oliver: and i'm oliver renick.n the radio in new york, boston, washington, d.c., and in the bay area. in asiand in london and on the bloomberg radio plus up. the future of movie theaters. oliver: we are talking about virtual reality parlors. i am really excited about your story because it sounds like a lot of fun and it seems like a big step for bringing virtual reality habit. tell us what you're looking at with imax right now. >> earlier this year, imax bought some people into it and center it in l.a. where it is games that itr. for a will be the format new sort of friday night out or if you like, a new form of entertainment that will be an alternative to the imax theature. for me, it was an eye-opening experience because today, as a film reporter, you get to see a lot of virtual reality. it's a really important part of the hollywood story. the adaptation to new technology and new medium, not just for marketing films, but there are people who really do believe it's going to be a new medium for which to tell storie

. >> and i'm oliver renick of it largecandal of proportion. >> no patient is left behind because every patient is a gold mine. >> facebook's anti-fake gold mine. all that ahead on bloomberg businessweek. ♪ >> we are here with bloomberg businessweek editor-in-chief make an murky. let's start with the opening remarks. you do a great job summarizing a complex edition but it keeps on going deeper and that's the political corruption that exists in brazil. tell us how you guys took decades of corruption and synthesized it into this really good piece. show that even decades of corruption is actually sentries old in brazil and sort of deal back the layers as -- of the carwash scandal, which is this latest scandal that's been enveloping brazil. it takes us back to the president before her and its enveloping in the existing president and has the roots in the structure of brazil generally, one of the last countries in western america to have a monarchy that was departed in 1889. but if you go back that far and see the sequence of scandals they have grappled with, it's a natural outgrowth of how t

i'm oliver renick.global economic section, a growing number of middle-class that is willing citizens are fleeing to the u.s., specifically miami. we talked to reporter margaret neir margaret: you have a crisis that is getting worse and worse in venezuela. the economic level, i think 00 bolivars is one dollar. people with good salaries are now earning $50 per month. food, medicine, everything is in short supply. they were coming with very little money. that is different from earlier generations of venezuelans that first started coming here after chavez took power in '99. oliver: for a long time, venezuela was a place where people came to. after the rule of chavez, people -- it is a different picture. do they think there is hope or there a life to create here? >> they miss venezuela, but most the people we talked to do not want to return. they are making a life here. they are applying for political asylum. most of them probably will not get it. that would mean deportations possibly in two years or three y

i am oliver renick. am coming to you from the magazine's headquarters in new york. in this week's issue, venezuela's slide from prosperity to poverty and chaos. we examine the effects on the latin american region. we go to canada, justin trudeau opens up to our editor-in-chief john micklethwait about working with donald trump. then, the prestige, power, and celebrity influence of sheryl coo of facebook and best-selling author. all that ahead on "bloomberg businessweek." ♪ carol: we are here with editor in chief megan murphy. the first story we take a look at in opening remarks, then his venezuela. if we look back 10 years ago, it was an emerging market that was firing on all cylinders. different story today. megan: incredibly different story. the thing i like about this piece is exactly that issue you bring up. there is a quote in that piece that says they can't picture a country that has fallen so quickly, so fast, not just economically or markets, but the actual impact on people. the statistics in that

oliver: i am oliver renick. carol: in this week's issue, a question being asked from wall street to main street. oliver: if america were a company, would you keep its ceo? carol: that's next on "bloomberg businessweek." ♪ oliver: we are joined by bloomberg news editor-in-chief john micklethwait. john, in your opening remarks section of this week's "is this week" you essentially hold up donald trump his own meter stick, by his own standards for what he promised. tell us about how you went about taking about this. john: i think it's probably the fairest way to judge him, and that he said it's the way he wanted to be judged. he sold himself as being a businessman who would run the government more efficiently, and he would do better negotiation. he rubbished barack obama, hillary clinton and said he was better than this. he said he could run things very efficiently. i thought it was a nice conceit to sit and look and say, he was the ceo, and if you were the board examining how he had run this company of america, how

i'm oliver renick.rporations target europe, there is one e.u. official that wants to make sure they play by the rules. then our vacation guide atan save your life. all that ahead on "bloomberg businessweek." ♪ oliver: i am back with megan murphy to talk about some must reads in this addition. -- edition. let's talk about politics. megan: this comes out of the french election what we saw with emmanuel macron taking a commanding win over le pen, but it is lkg about the strong man rulers that will roll out in a way refer to as mini trumps like an indonesia and turkey and the netherlands. or could we be at the end a strong man politics? if we are at the apex of this trend. it is a fascinating look. you don't know where strongmen attempts are in place to bring back authoritarian forms of government. oliver: that is a big question after france if that is a turning point or a blip. let's talk about strong women. this is about cracking down the corporations. megan: the danish politician has rv out a reputation

i am oliver renick.inister slides from posterity to poverty and into chaos. the effect on the latin america region. canada with justin trudeau. opens up minister about working with donald trump. the prestige power and celebrity influence of the coo of facebook and the best-selling author. all that head on bloomberg businessweek. carol: we are here with editor in chief megan murphy. the first story we take a look at in opening remarks, venezuela. if we look back 10 years ago, it was an emerging market that was firing on all cylinders. different story today. megan: incredibly different story. the thing i like about this piece is exactly that issue you bring up. there is a quote in that piece that says they can't picture a country that has fallen so quickly, so fast, not just economically or markets, but the actual impact on people. the statistics in that these are so alarming. the average venezuelan is losing 19 pounds, the struggle to get access to food. oliver: does this signal a change of ideology or re

i'm oliver renick., can a single powerful personality solve the positions that institutions cannot? and there is one you official that wants to make sure they play by the rules. then hours my vacation guide that could literally save your life. all that ahead on "bloomberg businessweek." ♪ betty: -- oliver i am back with megan : murphy to talk about some must reads in this edition. let's talk about strongmen and the change we've seen in politics around the world. megan: this opens the book and is a strong read because it comes out of the french election, what we saw with emmanuel macron taking a commanding win over le pen, but it is actually talking about how the trend of strongmen rulers is either at its beginning and is going to roll out in a mini way, what is referred to as many trump, in places -- referred to trump in places like indonesia in turkey and the netherlands. or could we be at the end a strong man politics? if trump, given everything that goes on around him, really fails in this dysfunctio

oliver: i'm oliver renick. this is "bloomberg markets."onnie: time for the biggest business stories in the news right now. money managers that oversee almost half $1 trillion -- ceo has been fired, and 94 members were ousted. residentr world bank robert zoellick will be chairman. it was time to put new leadership in place. manufacturing in the united states expended less than forecast in april. the issa manufacturing index showed that orders and employment pulled back. that it indicates that manufacturing is settling into a more sustained pace of growth. and expended by the most in a most three years. 21st century fox and blackstone group are teaming up to make an offer for tv station owner tribune media. according to people money with the situation, blackstone would fund the bid and foxwood continued tv stations through the joint venture. pay-tv operator, dish, reported first-quarter revenue that missed estimates. it puts pressure on the chairman to strike a deal capitalizing on billions of dollars he has a community. that is your bloombe

i'm oliver renick. you can catch us on the radio.ection, new generation of satellites with night vision i can see down to the millimeter. me is theteresting to baseline of this thing called synthetic radar. a started has just raised $12 million for the development. they can transform what is called sar from the realm of military and spy satellites to day-to-day customers -- companies. oliver: this is synthetic at picture radar. -- aperature radar. what is this? >> the satellites that have in the province of the pentagon or governments around the world. they are about the size of a school bus and weigh 2500 pounds. they veiantntnas on them. the rean because they have to being radar 300 miles down to the surface of the earth from space. the idea is that the radar bounces off the earth itself and will travel back to the sensors on the satellite, which will interpret the data so they can build. as far as we can tell, the most --urate or beautiful images they are the most accurate or beautiful images known to man. oliver: it is pretty cle

i'm oliver renick. carol: and i'm carol massar. o be the coolest kid in the room again, banking on technology. on that ahead "bloomberg businessweek." ♪ oliver: a reporter makes a trip to nike headquarters to find out how the company is beating fierce competition from adidas and under armour. out with thecame vapor max. it is a shoe they had been working on for seven years. it is an extension of their famous error branding -- air branding. they made the airbag the entire sole. it is part of their way to still that momentum from adidas who has caught fire in the north american market and has grabbed share back from nike. nike is still the giant, but they have lost momentum, and they are not the only cool brand now the way they were for years. carol: back in 2010 is when they started working on this shoe and the market has changed substantially. is a shoe like this, will this bring it back to its glory days? >> they hope so. it goes for $190, and it is selling out because they put it out and limited supplies to keep each timeoing, but

i am oliver renick. vonnie: i'm vonnie quinn. this is "bloomberg markets." we are live from bloomberg world headquarters in new york over the next hour, and cover stories out of los angeles, paris, and beijing. here are the top stories we are following around the world. treasury secretary steve mnuchin joins us this hour. from tax reform to expanding sanctions, the top issues facing the trump administration. vonnie: also this hour, an interview with wells fargo ceo tim sloan. the interview comes just days after a contentious wells fargo shareholder meeting. oliver: and tricking the fed balance sheet may not be as easy as janet yellen hopes. we will look at the potential hazards as the fomc that's set to meet tomorrow. let's check markets with abigail doolittle, where we have another

oliver renick joins us with a couple of cards to explain what is going on.re's a lot of stuff going on with volatility. right now, it is the focal point of the market. as it pertains to money going into the part of the market you might think is not very active at the moment, it's the u.s. and the minimum volatility etf. etfow of funds into this that bases itself on finding low volatility stocks in the market. if the volatility is low, why do we want to do that? this is the flows into the etf. in, in, and. their objective is to find low volatility. the market has not been very volatile. i want to point out the bottom panel. these of the correlations to the 10 year bond and the bloomberg barclays index and the actual vix index. lots of reds and greens. they don't see a high vix. there's a slightly stronger correlation to the bloomberg barclays index following bonds. when bonds to well, people are putting money into the index. if we look into the content of the etf, we can find out why. this is where we have the biggest difference from the s&p 500. the utilitie

. >> and i'm oliver renick of it largecandal of proportion. >> no patient is left behind because everyld mine. >> facebook's anti-fake gold mine. all that ahead on bloomberg businessweek. ♪ >> we are here with bloomberg businessweek editor-in-chief make an murky. let's start with the opening remarks. you do a great job summarizing a complex

oliver renick writing a great story today on what has been going on with those stocks and how much there could to be did. you can see some of the top earnings we are watching. apple shares down 1.8% and tumbling in the wake of iphone unit sales being lower than estimated. aadp cutting its booking forecast for the year and anadarko missing estimates. a check of oil ahead of the industry number -- we are going back to this now. oil, there we go. quick check, it has come down from its highs of the early session. industry read on inventories shary drawdown. we will see with the government data shows in half an hour. mark: we are down for the fourth day, down by about .2. supplies of apple or falling today, fewer iphones sold in predicted, but little change after reaching that 20 month high yesterday. the earnings season continues for banks. drive increase in the first quarter profit. global revenue rising 33%. net income up by 4.4%. to the executive -- one of the few european banking offices targeting growth from a trading business, aiming to increase global market revenue. down 5% annually.

i am oliver renick. and i am coming to you from inde the gane's headquarters in new york.e hotbed for laundering. and by 2017 is shaping up to be the biggest year yet for the u.s. heroin industry. and finally, what a murder in kansas tells us about race, immigration and the future of america. all of that is right ahead on bloomberg.

oliver: i'm oliver renick. facebook's image for a future. s drag economy, that's a fun story. oliver: all of that ahead on "bloomberg businessweek." ♪ oliver: we are here with megan murphy, let's start by talking about the opening remarks section.

i am oliver renick. we will talk about cyprus. the hotbed for laundering.y 2017 is shaping up to be the biggest year yet for the u.s. heroin industry. and finally, what a murder in kansas tells us about race, immigration, and the future of america. all of that is right ahead on bloomberg business week. ♪ >> we are here with megan murphy and i want to start by talking about the cover story.

. >> and i'm oliver renick.o you from inside the headquarters in new york. >> a scandal of large proportion. >> and the strange business of rare diseases where every patient is a gold mine. >> facebook's anti-fake gold mine. all that ahead on bloomberg businessweek. ♪ >> we are here with bloomberg businessweek editor-in-chief megan murphy. let's start with the opening remarks. you do a great job summarizing a complex edition but it keeps on going deeper and that's the political corruption that exists

oliver: i am oliver renick. e, a question being asked from wall street to main street. oliver: if america were a company, would you keep its ceo? carol: that's next on "bloomberg businessweek." ♪ oliver: we are joined by bloomberg news editor-in-chief john micklethwait. john, in your opening remarks section of this week's "is this week" you essentially hold up donald trump his own meter stick, by his own standards for what he promised. tell us about how you went about taking about this. john: i think it's probably the

oliver renick out with a great story today dispelling that notion. so.ses this chart to do we've got a look at how these companies have done this year versus the s&p 500 in white. we have facebook here as well. he says if you subtract the gains these companies have seen this year the s&p 500 would only be 1.5 percentage points lower than it is on the year currently. that's a smaller effect than we have seen for the past decade. these big tech companies do contribute significantly to the gains in the s&p 500 overall that that's not unusual for the best performers in a given year. we will continue to watch these companies and their affect on the market. you have to take it with a grain of salt as well. thank you for that. we are keeping our eye on capitol hill. white house officials say republicans are just two or three votes away from being able to guarantee passage of a health care bill. president trump gets said to meet with palestinian authority president mahmoud abbas. the have already begun that meeting. let's head over to washington to hear from

. >> and i'm oliver renick. >> a scandal of large proportion. >> no patient is left behind because everya gold mine. >> facebook's anti-fake news lab. all that ahead on bloomberg businessweek. ♪ >> we are here with bloomberg businessweek editor-in-chief

oliver: i'm oliver renick. carol: facebook's image for a future. onomy, that's a fun story. oliver: all of that ahead on "bloomberg businessweek." ♪

oliver renick, thank you as well.s york, for our worldwide, you are watching bloomberg. ♪ >> this is bloomberg daybreak. morganup at noon, stanley's global head of interest rate strategy. jonathan: it was the week where volatility increased in d.c. to a certain extent where the calm was broken on wall street. here are the highlights from the conference in las vegas, weighing in on the week that was and the drama in d.c.. trade that we have all embraced, has driven the markets to new highs in equities, is coming to an end. >> nothing to run around with your hair on fire. , a lotre recalibrating of the expectations we had of things getting done are getting adjusted. >> we have had more than four months of street inflows of foreign investment into emerging markets. reversing the november december trade. we saw a big selloff in em's. we have seen the reverse. >> it will become a more difficult environment. >> it is evident the markets are pushing back further if not orcounting completely one two of the major programs refo

oliver renick is here. is part of the story of the bull market --number he really believes that? oliver: it's between a rock and a hard place. if yound of what it is look on relative basis. there's obviously great deal of people buying stock market us that -- 22 times -- an all-time high. this clearly no hesitation to be involved. if you actually look at different parts of the market, there's a fair amount of trepidation that remains, people concerned. people think, everybody's throwing money away, that's not the case. but check it was going on in terms of asset managers and hedge funds. joe: we have a chart here. oliver: does a full on the line -- the blue line there is looking at asset managers, white line looking at hedge funds. this gutless short in terms of s&p 500 futures position. that's in the wi-lan. can see that -- look at the blue line. here you haveis to keep perspective. there has been a change in the most recent right of market -- it's been the noncomplex -- and that's good for markets obviousl

jonathan: dan skelly and oliver renick, thank you.e bit in the united states. the gains in europe not following through to gains in the united states. the biggest loser there is facebook. alix: facebook, revenue growth .ill fall is there warning that overshadowed the news. facebook first quarter sales the estimates and the monthly user number rose. joining us from los angeles is a security analyst. at that slower at growth warning, too, why is that? >> they won every single time they open their mouths that ad revenue is growing nicely. the driver is average revenue per user and that was close to 40% in the u.s. it will keep growing here and it will grow much more to radically worldwide. they are adding a ton of new members. thego are getting phones in developing world and they are accessing facebook. i think they grow for a long time and i think they monetize instagram. they are doing smart things with instagram that are defensive, like insta graham stories, to make sure none of us -- instagram stories, to make sure we don't switch to

oliver: and i'm oliver renick. >> a scandal of large proportion. >> no patient is left behind becauseine. >> facebook's anti-fake news lab. all that ahead on "bloomberg businessweek." ♪ >> we are here with "bloomberg businessweek" editor-in-chief megan murphy. let's start with the opening remarks. you do a great job summarizing a complex edition but it keeps on going

oliver: i am oliver renick. is week's issue, a question being asked from wall street to main street. oliver: if america were a company, would you keep its ceo? carol: that's next on "bloomberg businessweek." ♪ oliver: we are joined by bloombws

joe: great conversation, fx reporter vince, and oliver renick.some headlines from the nato secretary general jen stoltenberg, he is speaking to reporters. donald trump was there for the the --s and the long is blunt is the optimal word. he has been clear in his commitment to nato. previously donald trump suggested nato was obsolete, so we are referring to his commitment. president trump sends a signal that they could develop annual spending plans on the criticisms from donald trump. only five out of 28 nato members provide the incentive for gdp right now. this is important. we are waiting for stoltenberg, -- they won'tll engage in combat, but they have agreed to expand to the anti-i.s. coalition. so those are live actors from the briefing in brussels. this is bloomberg. ♪ mark: home searches in the city of manchester and the u.k. are revealing clues in the fast-moving investigation in the concert bombing that killed 22 people according to manchester's police chief who said eight arrests are significant. u.s. foreign intelligence may have to guara

covering the stories, bloomberg fx reporter george leigh and oliver renick.ns to add what it calls countercyclical factors to its daily axing. what does that mean? recs it is more like a black box, no one knows exactly what it means. there seems to be an emerging consensus that it would stabilize the dollar and exchange rate. essentially what we would be seeing, is a period of repegging. : is it trying to prevent a collapse? [indiscernible] >> it is within a narrow range. it is trading between 680 and 690. on the other hand if you look at the yuan rate versus other including the korean won and the japanese yen, the renminbi is signing according to that index post by the china foreign exchange trading system. >> is this a temporary measure because they want stability heading into the meetings in the autumn, and in line with that, what does it mean for sdr inclusion because they make such a big deal about the liberalization and what message is that sitting out? and moody's mentioned the reason why they were willing after the downgrade to give them a stable outl

oliver renick joins us on the set. doug ramsey is still with us from minneapolis. h -- what is going on with tech? oliver: i think this is the belief in the cyclical rally there will be a rebound in earnings that will be driving this. i think there is also the notion that perhaps there is growth and the rest of the world, if not in u.s.lected equally projections and i think the gdp number from a couple weeks ago put the brakes on the idea the u.s. economy is going to start surging just because of the talk of fiscal policy. these are going to be companies that benefit multinational he. trumpk after the election, there was a focus on domestic shares in the u.s., financial shares, but when you look at the broader picture, there is growth that can be seen in other markets around the world and companies like apple, google, microsoft, they will benefit. if you follow trade, they have been meeting the markets. too.is a big part of it, doug ramsey is long on this group, as well. david: how about that, doug? it says cyclical on one hand, and international on the other, does

andthan: market lehman oliver renick. let's begin with you. it's an easy story to tell.e conclusion is it's a problem. the history books tell us what? >> we have a story out about this today. has been more and more research and people questioning the idea of how rare it is to have this type of leadership. when stocks move the entire market is not necessarily a new thing. we did a similar type of research and looked at where the s&p 500 would the if you recalibrate the index. amazon., apple, basically what's happening is they are contributing quite a bit to the market. to be in stocks that do lead the market. historically this happens every year. the skewness that exists across the market is just a fact of market. for investors it is important. you also have to realize this is something you are going to have to deal with every year. acronym got alix steel so excited. thousands of dollars worth of terminals. the story with bread, a lot of people looking at something like the nasdaq and indicating it is a problem. how do you look at the situation? issue isoncentration somet