hello and welcome, i'm taylor riggs.his is "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. this week began the same way that the previous week ended, with the u.s. and china growing more and more confrontational on trade, in both words and actions. >> president trump says he is very happy with the trade war and that china won't become the world's top superpower on his watch. these comments signal he is in no rush to get back to the negotiating table. this comes as top u.s. tech companies, including google and qualcomm, have reportedly frozen the supply of hardware to china's huawei. that is having an impact on trading in the asian section. why are they cutting off huawei? >> the commerce department has effectively put huawei on this blacklist, saying any american companies that want to do business with huawei have to get a special license to do business with subcomponents

i'm taylor riggs in for carol massar. >> i'm jason kelly. are here at bloomberg headquarters in new york. taylor: and in this week's issue the costly farewell brexit is , having on business. jason also, the price of all the : wrong bets that a u.s.-china trade war would be short. taylor: in the global story -- the cover story, we work is expanding. our editor, joel, is here. great to have you. joel: there's a lot of talk around unicorns, and one of those happens to be uber, which went public and things didn't go so well. wework has confidentially filed so that might be still to come this year. in the meantime, they are trying to figure out, how can we continue to grow and come up with the way of funding that growth in a different way that we've been doing. jason what comes out very : clearly in this story, is this is a cult of personality. joel big time. : the ceo, adam newman, is larger-than-life, incredibly idiosyncratic, but has built his company from nothing to something. his character is the force that has driven that, but it also leads

coming back to taylor riggs and romaine bostick. what do you make of that? romaine: i liked a few of his comments -- taylor: i like a few of his comments. uber tried to raise prices, they lost market share. they had to go back and redo some incentives for their drivers because lyft had been making faster gains into the u.s. marketplace, although lyft is more u.s. and uber wants to be more global. david: since we started trading, we have been watching how uber is trading. we may be missing the bigger story, which is the markets have pared back some losses. the markets are starting to come back a little bit. romaine: we are sitting here talking about uber but we have some commentary out of these trade talks. liu he saying the talks went fairly well. this is how people parse every statement out of the fed. every adjective is going to be parsed. but it is over and he is china. back to romaine: china. romaine: at least we know that he did not storm out. that is what the markets want to see. this is less about whether a deal get done, and more about whether there i

i'm taylor riggs.et's continue our mobile tour of the week's top business stories in australia, where the incumbent prime minister held onto his office after an unexpected electoral victory. >> the australian broadcasting corporation saying scott morrison was able to secure a majority government after an unexpected win on saturday. this is despite trailing in most polls during the campaign. liberal national coalition defeated labor, and scott morrison called it a miracle. >> it was a huge surprise on the night, and it has transformed scott morrison. he has only been at the helm since august into a conservative hero, a front-page newspaper if you see that. it says "messiah from the shire." he did an incredible job during the campaign in tearing down probably the most progressive policy agendas that opposition parties put up in decades, and clearly that negative campaign strategy works for him. >> indian stocks have reached an all-time high as prime minister modi looks to win a single party majority. as

i'm taylor riggs.s is "bloomberg best." your weekly review of the most news,ant business analysis and interviews from bloomberg television around the world. start with a day-by-day look at the top headlines. the same wayan that the previous week ended, growing u.s. and china more and more confrontational on trade in both words and actions. >> president trump says he is very happy with the trade war and that china won't become the world's top superpower on his watch. comments signal he's in no rush to get back to the negotiating table. as top u.s. tech companies, including google, frozenm, have reportedly the supply of hardware to china's huawei. we're seeing this having an on trading over there. why are u.s. companies capping huawei, following the instructions of trump, i guess? >> the commerce department under effectively put huawei on this blacklist, which says that any american companies that want to do business with huawei have to get a special license to components or sell to huawei and that they

taylor: i'm taylor riggs in new york.zon is developing a voice activated wearable device that can reach human emotions. the wrist-worn gadget is codenamed dylan and uses microphones and sought where to discern a person's emotional state. the device could even advise those where it to interact more effectively with others. we are joined by the reporter who broke the story, matt day. i have to admit, i read the story, and my first reaction, it ain't me a little bit nervous. talk about how this technology works, what they plan to do with it. the technology is super early days from what we've been seeing but it basically charts how excited you are when you speak, really grabs it out on a matrix. out on a matrix. see, giventremely to the advances in speech recognition technology, if it can determine how you are feeling. potential he a lot you can do with that. imagines they can direct us to different products and services based on what we are feeling. in sense this is leading that direction, or is this one of those blue sky pr

taylor: from new york, i'm taylor riggs. this is "bloomberg markets.": a few signs of stabilization in equity markets. it has been a rough couple of days. let's get the details. abigail doolittle joins us now. abigail: we are looking at tiny moves up and down for the major averages after the big today --loff, the worst nasty big the big two-day selloff, the worst since january. a bit of a divergence globally. the shanghai composite in a correction from its april highs, the 10 year yield down four days in a row. there is a solid bid for bonds, but only down nine basis points over those four days, so not a panic bid for bonds. if we go cross asset class and take a look at the sectors, we see a small move there as well. we have an even split here. ,eal estate up 6/10 of 1% utilities down 8/10 of 1%. most of these sectors moving less than 1/10 of 1%. finally, as we take a look at seess asset class list, we the bloomberg commodity index barely moving, the haven yen barely moving, the euro barely moving, and gold. we are looking for investors to break the sta

taylor: i'm taylor riggs in new york.pposition leader juan guaido faces a major step back as nicolas maduro keeps a stronghold on the military. lawmakers in washington are weighing in including security advisor john bolton. figures like the defense minister, chief judge of the supreme court, head of the presidential guard, have been outed as people dealing with the opposition. if you are nicolas maduro, can you look at your defense minister anymore and trust him? i don't think so. maduro is now surrounded by scorpions in a bottle and it is only a matter of time. taylor: for more on how these tensions could spill over into other emerging market economies, i want to welcome our guest from voya investment management. cannot talk specifically about a buy or sell recommendation within venezuela, but broadly speaking, has anything in the last 48 hours changed your investment thesis as you look at venezuela? >> thank you, good afternoon. the latest of elements have not changed our mind on the transition. it will be a lengthy one

from new york, i'm taylor riggs. guy: from london, i'm guy johnson. this is "bloomberg markets." taylor: we have markets on the move, lower than expectations on a month over month basis when we thought that they would be flat. .s. march wholesales -- march home sales coming in later than expectations. we did have markets on the move this morning. major0 and all of the indices off about 1% for the week. we are looking out our worst weekly losses going back to that december 24 equity route within the tech sector. is all about full faith and credit. you have the 10 year yield coming in about five basis points. yields lower, price higher. the vicks at a 22 handle -- the vix at a 22 handle. your seeing this across markets with yen strength, classic safe haven bid. guy: absolutely. the north korean missile launches factoring into that story. european stocks trading at session lows right now, down by about 1.5%. it is thursday. there are a lot of ex-dividends we need to pricing to markets, lots of big names like allianz. you want to figure out where we are going with this story? keep an

. ♪ ♪ taylor: from new york, i'm taylor riggs. guy: in london, i'm guy johnson. is the european close on "bloomberg markets." taylor: i want to get a check on the global markets with abigail doolittle. abigail: we are looking at a selloff on this thursday. take a look. here in the u.s., the s&p and the nasdaq down 1.3% or more, on pace for the fourth down day and a row and the worst four days since december 24 of last year. investors selling stocks as trade tensions escalate. the cac in paris down 1.9%. emerging markets also selling off, leading the way, down 2.5%. here in the u.s., something very interesting is happening. the s&p 500 has absolutely moves through its 50 day moving average. we have a tell on near-term momentum buying in yellow, the 200 day moving average last year during the volatility down to fall.that average last right now we are below the 50 day moving average on the s&p 500,'s adjusting we are likely to see the s&p 500 go down towards the 200 day moving average near 2780, so more selling could be ahead. yen, we are seeing investors seeking sa

carol: we want to get more on cisco with taylor riggs. one way we can look at cisco's exposure to china is in the global security vendor space. cisco get about 16% of revenue from the asia-pacific region. that includes china. if china were to crack down and blacklist our domestic vendors, cisco could be hit, given they get about 16% of revenue within the global security market of the asia-pacific region. that includes china. carol: think about how the global chain might be impacted. jason: the long-term impacts we talked about as different countries go for it. taylor riggs, thanks so much. staying in asia, the wealthiest person in south korea may leave his descendents with a massive tax bill. carol: and why it is hard to sell a mega yacht in china. jason: this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek." i'm jason kelly. carol: at sign carol massar. join us for bloomberg businessweek everyday on the on the radio from 2:00 until 5:00 p.m. you can also catch up on our daily show by listening to our podcast.

taylor: from new york, i'm taylor riggs. this is the european close on "bloomberg markets." guy: stoxx 600 not really doing much. apparently the president of the united states thinks the chinese are coming for a deal. the markets not quite so convinced, stabilizing come about not doing much more than that. the british pound is trading $1.30. at dealrospect of a brexit with the labour party seems to be fading. we did seee market, a substantial draw on the eia data out of the united states. we are seeing some price action to the upside, brent trading back above 70 elders a barrel -- above $70 a barrel. taylor: looks like a bit of an improving picture here in the u.s. we knew the s&p 500 was right around the 50 day moving average. perhaps some of the buyers coming in today. starting to see a bit of an improving picture after the big selloff monday and tuesday. the vix is also coming down. , it is really easy to get panicky, so perhaps some of that fear coming down a bit. it looks like that has been lifting up. you're seeing price down, yields up around 2.46, where we were yeste

taylor: i'm taylor riggs in new york. have been reporting all day, the fed has announced no change in its key rates. knows a price. jay powell says they do not see a strong case to change that with a hike or cut. inflation was the twist in today's decision. jim bianco is founder and president of bianco research and writes about bond markets including our bloomberg opinion. i want to start on that you had a great bloomberg opinion piece talking about the dual mandate has not kept up with the times. that brings us a question about why we are using the phillips curve if we can throw it out the window? talk about the dual mandate and if it is still relevant? the the dual mandate that fed has which was adopted in 1977 through an act of congress, is they have to keep employment as high as possible and inflation is low as possible. they need a theory that ties those two things together. that is the phillips curve. the phillips curve means that if unemployment gets too low, it creates inflation or inflation gets too high, it crea

taylor: i'm taylor riggs where it is 630 to your watching "bloomberg daybreak: australia."'s get an update on first word news. we start with fed chairman jay powell who said u.s. inflation is possibly being held back, but what he called transitory -- by what he called transitory forces. though biased toward tightening or easing. he spoke after the fomc left rates unchanged, adding that the fed's current stance is appropriate and there is no strong case for moving in either direction. powell has been attacked by president trump for not doing more to support the economy. >> the weak first quarter performance was not expected. i do not think is related to anything we did in terms of raising rates. it appears to be more -- we do not know this but you never know until with hindsight. some of it does appear to be idiosyncratic. su: meanwhile, a gauge of u.s. factories fell after --/month to the weakest level since late 20 16 signaling manufacturing headwinds have extended into the second quarter. this as companies continue to face uncertainty about trade. the isn or institute for

taylor riggs, thanks so much.on in south korea may leave his descendents with a massive tax bill. carol: and why it is hard to sell a mega yacht in china. jason: this is "bloomberg businessweek." jason: welcome back to "bloomberg businessweek." carol: join us for bloomberg businessweek everyday on the radio from two-5 p.m.. you can also catch up on our daily show by listening to our podcast. jason: and find us online and through our mobile app. our finance editor shepherded this week's special money issue. carol: we talked to pat about two of our favorites. about how chinese tycoons are different from counterparts in the rest of the world. jason: and a high-stakes succession battle in samsung. >> the family behind the samsung conglomerate has about $50 -- $15 billionts in assets but is located in a country with one of the biggest estate taxes in the world. so when the chairman passes away , there is a question about what is going to happen not to the money, but to control of this complex web of companies. jason: l

jason: here's taylor riggs. she has another look at income inequality. taylor: exactly.his is the gini coefficient that measures the distribution of income inequality -- all we need to know, zero is perfect equality, 100 is perfect inequality. as you can see, the line is basically doing a straight line up to 48, showing income inequality is just getting worse. carol: we see it playing out in our political landscape big time. thank you so much. as a matter of fact, that income inequality is top of mind for many democratic politicians, but it has not stopped them from dropping by wall street for lunch and for money. jason: plus how president trump's supposedly cozy relationship with kim jong-un may prevent further nuclear talks. carol: and later on, cisco ceo chuck robbins tells us how the trade war is impacting his business. jason: this is "bloomberg businessweek." ♪ carol: welcome back to "bloomberg businessweek." i'm carol massar. jason: i'm jason kelly. join carol and me for "bloomberg businessweek" every day on the radio from 2:00 to 5:00 p.m., and catch up on our dai

taylor: i'm taylor riggs in new york. meeting of the asian development bank is starting. the institution has been discussing whether an increased interest rates on financing to countries such as china, that now exceeds a certain income level. let's cross over to the event and our chief international correspondent, haslinda auman. what do you have for us? inlinda: just to put it context, some discussions among some countries that perhaps china no longer needs loans because it is dispersing loans themselves to imagine economies through the likes of the belt and road initiative that has been going on for some time. there has been a lot based on that. prospects for the growth for the asian region. good to have you with us. what are the priorities of this meeting? what do you hope to achieve? -- we want to .howcase the development is very well-managed. haslinda: infrastructure. one of the interesting things right now is china's role in dispersing loans to its belt and road initiative. there's discussion about a debt trap? >> t

taylor riggs is here. taylor: kansas city union pacific getting hit hard. $2.5 billion of revenue from mexico. that is 10% of the top line of about $22 billion. the concern is the exposure to mexico. i think they also serve key gateways along the border that connect to the country's. there are points of contacts along the way and you're also looking at 4% annual growth rate of revenues from mexico since 2010. it is a growing sector that would be punished. ofording to the volume growth we are seeing, a lot of it comes from the auto sector. as you can see, also kansas city traffic.of their the volume does come from mexico. their, buter something that is all getting hit. analysts are saying it is not necessarily the 5% threat, but it went up to 25% that is when you start to see some concerns. vonnie: affecting the transport scores today as well. taylor: it is. they've been holding up relatively well relative to the less than 5% relative to the s&p decline. if we go on a subsector level and look at the railroads, it is the railroads and the trucking and the air

joining us now is taylor riggs. in the works and not in the works are but what is new this week? taylor: analysts came out positive in the last couple of days with upgrades in part because there is a macro backdrop. the markets in north america, that has been declining. last year, sales drop by .1%. you are focused in europe and asia-pacific reason -- regions. know, itourse, as we is all about the bigger cars and 36% is suv's. that is where they can benefit, to see the market there. there are good moves for both companies, which is why you are seeing analysts being pretty positive. vonnie: this was always surrogate's dream. it has something to do with the family ceding control little bit? >> it could be. a lot of is as well is, you look forward and see where is the market going to a lot of it has to do with electrification and autonomous driving. we talk about a brawl the time. the push and the expense of autonomous driving. the merger could create about $5 billion in synergies. selling more than 8.5 million per yea

i am taylor riggs in new york.treal conference, apple vice president angela spoke to attendees about her role at the tech giant, transforming its retail presence. i can't with her, we discussed apple and i asked her what opportunities she saw at the company that convinced her to join. >> one of the main reasons was because i thought apple was one of the greatest companies on the planet and i thought, through their retail stores, which were so huge, that there was an opportunity to not only take the experience to the next level, but to have a greater impact on the community. he told the team to always do it through education, said article was to put program -- so our goal was to put programs that could help the next generation learn a lot of the skills that i think steve envisioned they would use. >> as you reflect back on your tenure, what do you consider some of your major successes? just what i was saying. we were able to redesign the stores and there are incredible flagships in the pipeline but they are not only

taylor riggs to tell us what has gone wrong. taylor: you could do my job. red red on the screen. everyone go home. seriously, this is a broad-based selloff. utilities, more of a defensive sector. it is the only one in the green. take a look at the 10 year. .e are down seven basis points it was not long ago, just a month, since that tweet from trump on may 5, almost to the two point 50's -- almost to the s, down almost 7% since then. i also want to talk about oil. demand concerns with oil given the china trade fight. also on the supply side, the highest weekly crude stockpiles going back to july 2017. crude and the energy producers are getting hit. $50 per barrel, we are down to the lowest level on crude since march 12. as we talk about trade, you cannot ignore the chipmakers. qualcomm is taking off 19% just in the last week. yesterday, 3% today. it was already sensitive to a lot of the trade fight. then the headline yesterday that a judge sided with the federal trade commission against the company, accusing the company of anti-competitive practices. that is all these chipmakers p

i'm taylor riggs. let's turn to the ongoing trade war.adidas among 173 companies that signed an open letter to president trump saying "tariffs on shoes made on china would be catastrophic for consumers, companies and the american economy." bloomberg has been looking at who pays the cost of an escalating trade war. the oecd this morning cut the global for cost as trade tensions to crisis level. here's what lawrence boone had to say earlier. >> growth has weakened. it's now quite weak. there has been trade tensions and we think that trade has derailed the global recovery that has been going on since 2017. taylor: for more, let's go to san francisco where the head of international affairs of the u.s. chamber of commerce is with us. great to have you. before we get into the broader story about the trade, i want to touch on a little bit of the news in the last few days about the huawei ban. from your side of the room over there at the chamber of commerce, what is your take on the huawei ban? is that the right approach? myron: good to be on the

carol: we want to get more on cisco with taylor riggs.hat you've got. >> one way we can look at cisco's exposure to china is in the global security vendor space. you can see cisco get about 16% of revenue from the asia-pacific region. if china were to crack down and blacklist our domestic vendors, they don't want to technology, cisco could be hit, given they get about 60% of revenue within -- 16% of revenue within the global security market of the asia-pacific region. jason: the long-term impacts we -- implications we talked about of how -- of how different companies go for it. the wealthiest person in south korea may leave his descendents with a massive tax bill. carol: and why it is hard to sell a mega yacht in china. jason: this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek." carol: join us for bloomberg businessweek everyday on the radio from 2:00 5:00 p.m. and you can also catch up on our daily show by listening to our podcast. jason: and find us online and through our mobile app. our finance editor sh

for answers we turn to bloomberg's taylor riggs. re basically back to where we were a week ago. that is changing a little bit with some weakness this morning. i wanted to take a look at the cost of protection, with a 10% move to the downside. it has really fallen in the last few days. theou mentioned sentiment, yen strength had is a good gauge of fear. we are seeing some standard deviation moves like in previous months or years, so yen strength is there, but it is a calm move. in china, you really have to be staying investments. when china devalued their currency, you had a big discount for chinese currency relative to the total. during the december volatility route, a big drop. right now only seeing about a 3% discount. we are seeing a little bit of calm here as we got a lot of this news. alix: thank you so much, bloomberg's taylor riggs. joining us from chicago is ubs asset management head of intrinsic value equity. we haven't really gone that far. what do you do in a market like that? guest: sometimes it can look like much ado abo

. ♪ >> live from bloomberg world headquarters in new york, i am taylor riggs in for shery ahn.manda: live from toronto, i'm amanda lang. welcome to "bloomberg markets." your other top stories we're following around the world. another fed pick is out the door. resident donald trump says stephen moore is withdrawn from consideration for a spot on the board of governors, hours after moore told bloomberg he was all in. tesla's cash drain. the electric carmaker is hoping to raise $2 billion through debt and stock offerings. and hedge funds are resurrecting the cdo trade. why this time they say it will work. here.check on the market we are seeing a second day of declines, ahead of economic data, jobs numbers tomorrow. we are seeing some consternation around trade news and maybe some disappointment emanating from farmers of what happened between the u.s. and china. it is a down day. we are seeing energy one of the big on the s&p 500. -- one of the big decliners on the s&p 500. big names including caterpillar and disney weighing on this market. tesla is a bright spot, though. if you li

i'm taylor riggs come in for carol massar. jason: i'm jason kelly. loomberg headquarters in new york. taylor: this week, the costly farewell brexit is having on business. jason: also, the price of all the wrong bets that a u.s.-china trade war would be short. taylor: and the global cover story, we work is expanding.

i'm taylor riggs come in for carol massar. >> i'm jason kelly.t bloomberg headquarters in new york. >> this week, the costly farewell brexit is having on business. >> also, the price of all the wrong bets that a u.s.-china trade war would be short. >> in the global story -- the cover story, we

here's taylor riggs. ining me to break this down as a managing director and managing fixed income. munis are rich. are they going to continue? >> everyone was worried about the sky falling, and it has continued. the technicals, over the summer, are incredibly strong for the asset class. some people think the market may shrink in size, by about 40 or $50 billion, too many bonds maturing and not enough new bonds being created. the technical factors for the markets are really strong right now. taylor: talk to me about that, because on a five basis, munis are outperforming our bloomberg aggregate index by almost double digits in some points. how much does that continue this ander and put the size scope into perspective on how much the market could shrink. jamie: if you take a typical muni treasury ratio in 10 years is anywhere from 80% of 100%. it's in the low 70's percent. -- low 70's. the technicals are very strong over the summer. you are not going to have enough bonds. we could hang in at these levels, but

joining us for market reaction to president trump's tweets is taylor riggs. ing up and it does not look pretty. you can see on the board, china's main equity indices were off 5% to 6%. companies and tech leading the losses. hong kong equities having their october and that is bleeding into the u.s. equity market. i want to come into my terminal gtv and take a look at china's broad market industries -- indices. it is having its worst move in three years. today's losses have wiped out all of the gains we have made. back to our lowest level since march 8. if we step in my terminal, i want to take a look at the reaction in the yuan. we had strength and classic yuan weakness and some of the trade prices start to heat up. today you are seeing a two standard deviation move in the yuan and you have that within the trade talks. this is back since trump's election. big heightened moves and today a big standard deviation move. weak by .5%. commodities -- corn, cotton, and soybeans getting hit 2%. within the hard metals, those off 1% to 2% and crude off the lows of th

joining us is bloomberg's taylor riggs. taylor: my takeaway is still u.s. versus rest of the world.2.8% relative to everyone else. the u.s., u.k., and japan will be the countries that the growth slowing as we push to 2020. as we pushed forward to minutes, the oecd says inflator's should rise to 2.2% going forward in 2020. it is all about china. we have to switch over. china's outlook does remain a concern. we know trade tensions are to blame. we have china total exports this year expected to rise to 1.6%. imports rising to 2.8%. imports and exports in china going back to their lowest going back several years. the key takeaway for me is still the u.s. versus the rest of the world. alix: thank you so much, taylor riggs. next year, china, 6%. maybe would not take a lot to get to the five handle? oecd earlier said the trade war could hit gdp. >> if these measures were implemented in full, as you describe them, you're talking about an impact on prices in the 2.5%that could be depending on the extent of what is being implemented, and a decline in gdp, which could be somewhere between .1%

taylor riggs has more. d how that can push us forward in uber's ipo which is said to be big news this week. i want to come to my terminal at gtb go -- at gtv . now down to about $61 a share. that is below the street average estimates. still $74 there per share. i want to look at uber and how it relates to lyft. their marketng share and how much bigger and more global they are and the diversification of revenue relative to lyft. as we know, just with the new york city, four times as many rides and the present of rides relative to their total is much higher. 22% has been declining as they tout how global they are. growth in the margins are much higher per uber relative to lyft. we also have analysts talking about how uber can compare to amazon. amazon did books in the beginning, that is not who we are today. ridesharingey did in the beginning, that is not we are today. the problem is food delivery has low barriers of entry, autonomous vehicles has lots of competition, so they are still heavily relying on r

here's taylor riggs. : so much of what were talking about in the last few weeks has been the outperformance of -- relative to the bloomberg agate index. joining me now is john carney from blackrock. this is not only high-yield, but muni is outperforming a lot of the other bond sectors. what is driving it and can it continue? >> it can continue. muni has had a good run, not only contained to this year, but as you recall, they picked -- muni picked up in 2018 as interest rates fell and they have been an outperform or of other asset classes while maintaining low volatility and high credit quality. here today investment grade muni's are up a little over 4% with excess return. that excess return is a calculation of duration matched treasuries to munis. high-yield munis with a little more to -- a little more duration and credit is up about a quarter. had a: last week, we guest on talking about hitting record lows. tradingee the muni rates to treasuries continuing as well? they look very rich. sean: the narrative

alix: thank you so much, taylor riggs. let's walk forward through the yield curve conversation.rall inflation is at the highest place in the year. is that transitory? francis: probably. it's a story in europe versus the u.s., europe is looking for growth react celebration. in the u.s., the inflation story will matter most to markets. can we finally get a bottom that sustains for two to three months? i need to see that before i get excited about the economy. this is what the ceo had to say about risks in the market. have thatget is to throughout the year. if you look at the one off this quarter, it was in line with cost growth. we didn't think we would be able for theve that remainder of the year. alix: the biggest risk then? willl: the biggest argument i hear for europe is china will help europe. that is true with global trade flows continue. local focus.lus is i don't how much it will help your. david: what will break europe out of the spiral? can't move forward until the yield curve changes. that can't change until you have growth over there. once going to break it? francis: i

i'm taylor riggs in new york. amanda: i'm amanda lang in toronto.ng off his google i/o conference in mountain view, california. we have our senior analyst. there will be a lot uncovered about next steps. hardware seems to be something people are interested in in terms of where google goes. what do we expect out of i/o? >> it is still ongoing, but there has been a lot of emphasis on privacy. you can expect more features, more user control features for every product going forward. second, search is getting a lot more in gauging with them introducing augmented reality into search. google is making a big bet on ar . there will be a billion devices out there that will be enabled. with google search being so ubiquitous, integrating ar opens up new avenues in e-commerce, so search is getting more engaging. more news features as well coming in. there is continued push toward artificial intelligence. you mention hardware. they are trying to catch up with the alexa market share dominance, but with duplex expanding beyond the reservations, now helping you book

taylor riggs has some of the details. ng to kick it off by looking at australia and new zealand. take a look at my terminal on gtv . australia fell below the rba cash rate for the first time since 2015. new zealand 10-year gilts going also to ash 10-year gilts going also to a record -- 10 year yields going also to a record low. japan 10 year now negative nine basis points. since 2016.est in the u.s. it is really all about the inversion of the yield curve on the three month tenure. you are at -12 basis points, nowhere like the inversion we saw before the previous recession, given the low inflation and structural issues with qe. you really need to see that go to -20 basis points before we start to get nervous about a recession. nonetheless, -12 basis points certainly something that catches a ride. david: thanks so much to taylor riggs. directionwe welcome investments head of capital markets and institutional , and richard weiss. somebody is nervous about something. richard: the fundamentals are just not there. we have a

taylor riggs has more. ight that china stepped in dip on the shanghai composite. the index pushing up about 3%. that translated over into the shenzhen, and carrying over into hong kong and other european equities. at least for the day, chinese equities are seeing some strength. that is not quite translating into the currency. we did initially see you on strength, but overall it has been dollar strength, you on weakness -- dollar strength, yuan weakness. interestingwas very we have briefly dipped into an inversion on the 10 year yield curve. we know that is the fed's preferred gauge when they are looking at a nice side a recession. we know all of the equity volatility means buyers are coming into the long end of the yield curve. we are just under two basis points on that yield curve. folding that into equities, a very different story from a week ago, when we had record highs. we are looking at our worst weekly losses going back since the december 24 volatility rout. for theaq off about 6% week, seeing the wor

jason: taylor riggs is here with more on the story. or: you talk about income inequality between corporations and individuals but within the individual sector, you are seeing some income inequality within that. cool thing about the bloomberg terminal is they forecast all the data in yellow weight growth as low skilled workers and blue is high skilled workers. workers growing faster than the low skilled in yellow but back to the corporate sector like the gig economy with uber, depending on the jobs, you could see the low skill which pressure pickup. jason: that is great intersection of the corporate level and the individual level and how it plays into the larger economic picture. mogula billionaire media aims to make formula one racing a little less predicable. this is "bloomberg businessweek ♪ ♪ jason: welcome back to "bloomberg: businessweek." still ahead in this week's issue , how this social at tictoc is shaking up the music industry. flu has spread worldwide with consequences for the global food industry. let's start in the business

have had this problem for a couple of weeks. .ead and shoulders the ad.e to pulug ♪ taylor: i am taylor riggs in for emily chang. this is "bloomberg technology." coming up in the next hour, morgan stanley announces its worst-case scenario for tesla share price to just $10, around concerns for chinese demand an electric car market saturation. and u.s. granted a 90 day reprieve for some american companies relying on huawei equipment, giving them time to adjust to last week's band. but china vows to retaliate.

alix: taylor riggs is looking at all of the market reaction throughout the weekend today. what a month it has been, particularly for the global bond markets. germany getting a record low print on their 10 year yield, coming in at 21 basis points now, and still seeing negative yields in japan. of negativelion yielding debt worldwide. what that means is we are still getting more inversion of that yield curve, now about 19 basis points. earlier this week, we were or 15g about how five basis points is not really summing to get excited about, but -20, -30 basis points gets is more concerned because that is what gets us really started to look like in the past two previous recessions we had when we were seeing at inversion. if there is any good news, it could be that china's tech sector is underperforming the best tech sector in the last 19 days since trump's tweet about trade. , at least the u.s. market is holding out a little bit better. david: thank you so much to taylor riggs. joining us from milwaukee is michael antonelli, bayard market strategist. d market- bair strategist.

taylor riggs with our stock of the hour.'s trade debut in the broader market which is selling off. story of the day is uber. what else is going on? >> that is tied to what we are hearing about the trait discussion. those tariffs went into effect. uber industries -- there are industries that will be affected by this, the technology sector and the capital goods sectors. that is why you're seeing so much bread today. vonnie: part of the market seems to be taking it seriously now that there will be an escalation and this may not end here. >> a lot a people don't want to be exposed to this over the weekend. it appears these talks will drag on past the close tonight. a lot of folks don't want to be exposed to that until monday. you had a market that had gotten complacent when it came to trade and the effect on the economy and the effect on corporate profit. a lot of markets have woken up to the possibility that has not been taken out of the market as much as they had priced it out before. vonnie: the major story will be uber for t