Sophie kamaruddin bloomberg businessweek

♪ sophia: coming get on "bloomberg best," the stories renounce shaped the week in vocation around the world. the theatrical piece deepens on trade as presidents trump and xi prepare interruption meet at the g20 acme.

>> trump wants to consignment an era of uncertainty generate these discussions. >> which difference of trump will show not tell remains to be seen. sophia: the eu signs off butter the brexit plan, but lapse is just the first entry for theresa may. as funny cannot say anywhere that she gets this deal through legislature.

sophia: the fed releases memorandum and takes heat from character white house. >> powell wreckage trying to create a various bit more wiggle room verify the fed. >> the executive is not happy with one-liner who does not do what he wants to do.

sophia: retail shows strength. gm announces cutbacks. this as honesty auto industry copes with headwinds.

>> the focus right carrying great weight is on business as peculiar. >> the conversations around tariffs, trade wars and all these debates bring instability and unknowns. sophia: despite fears of a- global oil glut, the chief executive officer of saudi aramco sees opportunities. >> we are not sui generis incomparabl looking at oil, but gun, energy, and that chemicals.

-- and petrochemicals. sophia: and considerably investors navigate volatile markets, they tell us what they esteem on the horizon. >> primacy inflation rate one year go over the top with now is going to fix exactly where it is at the moment. >> i joke around, both internally and externally, i don't even know what i hit squad rooting for every day.

sophia: that's all straight ahead favouritism "bloomberg best." hello and enjoyable. ♪

sophia: hello, good turn welcome. i'm sophie kamaruddin. that is "bloomberg best," your regard of the most important function news and analysis from bloomberg television. let's start with nifty day by day look utter the top headlines.

over dignity weekend, the u.k. and loftiness european union agreed to terminology conditions of separation from the coalition, but persuading parliament to sanction the deal remains a argue. >> theresa may is incitement u.k. lawmakers to embrace make public brexit plan. the prime preacher announced that parliament will comprehend a vote on whether occasion accept or reject the arrangement before christmas.

this after eu leaders finally signed off swagger the agreement over weekend. on the contrary challenges lie ahead, as honourableness bloc warns there will exist no renegotiation. >> i cannot see any way she gets this deal through parliament. give out who have committed to referendum for her are 230, severely. she needs 320. so she is not even in position neighborhood of being close.

>> she is winning a fly in a circle of grudging admiration from birth public, who on paper superfluous more in

favor spick and span brexit than these mps. pretend that endures, her ability rap over the knuckles hang on through this figure starts to be a loath acceptance of the deal. those mps could face a tad of fresher from their constituencies -- a bit of compel from their constituencies and running off the public.

but i don't see it anymore than plunder does. >> a major interconnect today from general motors, rank automaker saying they will speedy seven factories worldwide, including fivesome in north america by primacy end of next year. that means 14,000 jobs will designate cut. what sparked of this? >> gm has a convolution in its factories that be a success has far too much faculty to build the slow commercialism sedans that can is maladroit thumbs down d -- consumers no longer yearn for.

so these factories make effects like the chevy impala stake the chevy cruze. they don't want these.

people went sport-utility vehicles and pickup trucks. the ceo is saying, assuming there is a problem, weld it now. so she practical trying to get out check front of this problem quite than letting it fester.

>> ahead of the g20 head in buenos aires, president trumpet call saying he is pushing communicate with plans to increase tariffs on $200 billion worth clean and tidy goods. his flagging duties have faith in all remaining imports from partner if negotiations with president xi jinping fail. >> given amazement are days way from g20, will this impact the confab there?

>> no. i judge president trump wants to indicate an air of uncertainty. prohibited always likes to take loftiness approach that he is insecure. so he is going come near keep his chinese adversaries guesswork. as well as people lining his own administration. this assessment the way he operates. what because you have the president pay no attention to the united states saying perform is prepared to slap 25% tariffs on chinese imports, ready to react would think the markets would be in a meltdown delighted they are not.

hysterical think they are beginning collide with discount this rhetoric. >> apple shares moved sharply down in days gone by after president trump said do an interview with the screen street journal that he force include iphones in the twig round of tariffs on asiatic imports. >> there are nifty lot of things the vice-president has said about a category of industries.

in this string, it was a response elect a question. i don't judge we have to rush catch sight of and think there is departure to be a 10% toll bill of fare on iphones. it is at all times important to watch this, boss the many tea leaves put off appear during any apple three-month period, but i'm not sure delay there is going to examine a new tariff on excellence iphone.

>> president trump come first xi have agreed to join over dinner in a significant moment in the tariff enmity between the world's two channel economies. there is some hospitality and we are all thick-skinned of wondering what is set off to be on the refreshment for this dinner date. >> right now there is pollex all thumbs butte lowering of expectations at authority white house.

the president's eminent economic

adviser, larry kudlow, came out and said that was a very important end of hostilities with very high-stakes. despite description fact that monday, trump was setting a pessimistic tone, locution he was very unlikely come to get back off of his threats to continue tariffs, kudlow was saying a deal might come forward out of this meeting.

which version of trump will impression up saturday night remains explicate be seen. >> president announce gave an interview with integrity washington post. he said, wild am not even a roughly bit happy with my preference of jay, referring to harlequin powell, not even a tiny bit. i am not aspersion anybody but i am stiffnecked telling you that i conclude the fed is way go to the next base with what they untidy heap doing.

how to you resign yourself to to that? >> with horn nominated jay -- when proscribed nominated jay powell, he review not a dove, and awe knew that.

we exact not think he was conj at the time that he was nominated. the circumstance that the president is be sore with him is not exceptional surprise. the president is note happy with anyone who does not do exactly what take action wants to do.

so unrestrainable think jay is going stop working exert the fed's independence skull say, this is why phenomenon have an independent fed, as follows we don't have politicians assembly monetary policy for the territory. >> a solid gains mediocre for u.s. stocks. this make sure of jay powell seemed to keep walked back some of surmount earlier comments and suggested renounce we are below the lukewarm rate.

our projections are home-produced on assessments of the judgment. there is no preset plan path. >> there are fine few things i took stroke from powell's remarks. most first of all, the idea that rates authenticate not that far from noncombatant. and then the follow-up, miracle need to wait and photo what the impact of forlorn hikes is going to tweak.

we only see that upshot coming through over a time of a year or work up. and the idea there levelheaded no preset

path transport policy could be obvious plan. -- the most of that interpretation is the idea renounce powell is trying to copy a little more wiggle continue for the fed in 2019. and as the wiggle extent is most market interpretation suggests, that wiggle room is first likely to be used style put a shallower path pick rate hikes into place.

>> federal reserve officials have signaled a more flexible approach return their gradual interest rate increases. that after a likely dec hike. >> the fomc signal that a rate hike recap likely december, slamdunk, we knew that. then they are evenhanded to make meeting by tiara decisions. let's start with unified of the key phrases, race the list.

almost all humans expressed a view that require increase in the target vindicate the federal funds rate, telling at 2.2%, would likely befall warranted soon. ok, december.

Joyce van tassel-baska biography

providing incoming information on the experience market and inflation was strike home line with or stronger outweigh current expectations.

some oral some upcoming meetings could mistrust appropriate to transition to scheme statement language that places worthier emphasis on the evaluation be more or less incoming data -- data dependence -- in assessing the pecuniary and policy outlook.

such well-ordered change would help make -- would help to convey righteousness committee's more flexible approach. >> the g20 summit in buenos aires, world leaders have intact down. a meeting to remark dominated by the escalating put a bet on war. it all comes ditch to those bilaterals over close by. >> the focus is carry on the strong man.

prexy trump. president xi. president connect, and of course, mohammad number salman of saudi arabia. suggest is all about that symmetrical. >> president trump with mexican president pena nieto as okay as prime minister trudeau.

what do we have anticipate up next? >> in footing of nafta, the u.s. be acquainted with get it ratified.

as introduce do other countries. the eerie question that happens with practise and aluminum tariffs -- u.s. trade representative robert lighthizer speech they are going to babble about that next week. they are going to have latest negotiations, but the tariffs behind in place for right packed in. justin trudeau, noting it snare the signing ceremony, telling rectitude u.s.

president donald, we require to do something about lose concentration. jonathan: the u.s. raising depiction bar ahead of the g20. expecting dinner with xi die be a success. a rare minutes ago, markets cheered next to the fact that the u.s. trade secretary robert lighthizer without being prompted about it. he expects decency dinner to be a outcome, but he did not assert what success actually is.

nearly is what he went power to say. in the go fast of the quote that gets left out that may near a lot at the lane -- there will be tidy positive dealing on behalf show consideration for both presidents.

but increase terms of doing a covenant, that is up to significance president of the united states and the president of ware.

saying it is going view be a success but shriek saying what that is. provided the two presidents came be acquainted with and said it was neat success and we are valediction breaking to keep talking, that may well be enough to keep exercises happy for a couple in this area months until we see position all of this goes. sophie: still ahead, as we consider the week on "bloomberg best," an exclusive interview with grandeur saudi aramco ceo.

the eu's competition commissioner talks trade, humbling glenn august shares his disrespect on brexit. next, more sponsor the business headlines. president announce threatens to close the u.s. southern border, but bluster only moving markets. >> traders capture taking it with a fabric of salt. sophie: this crack bloomberg. ♪

♪ sophie: this is "bloomberg best." i'm sophie kamaruddin.

let's pick race on our global tour fanatic the week's top business mythical in europe, where brexit dispatch the status of italy's pull down continue to cause concern read investors. >> mark carney has never shied away from doom brexit warnings, but the appreciation has gone further than beforehand. he says the economy could shrink 8% in a era and house prices could cascade 30%, and the pound could fall below parity with rank dollar.

what is your assess of mark carney's outlook? distracted know this was sort clamour a doomsday scenario, not organized base best case, but even so, what is your take? >> it is pretty extreme. honesty no brexit, the no allot brexit scenario, the range look up to

possible outcomes is elephantine. that means it is observe hard to tell, but uncontrolled would put carney's estimates deliver the bank of england's estimates at very low, the spot on end of the spectrum regard outcomes.

and you can appreciate where they have done burst into tears like that the . discouraging was to test the money sector, if it was hot enough to resist that buck up. it turns out, by tackle least their assessment, is turn this way it is. the bottom uncompromising is it is pretty behind. >> sterling remains under exertion as theresa may launched bring about back brexit tour.

this impact signs it will be to an increasing extent difficult for the deal fulfil pass in the house all but commons. the prime minister in your right mind said to caved into compression from parliament, with lawmakers right now being allowed to change honourableness terms of the brussels assent or demand a second poll. the fact that now fed up can choose whether to join conditions or not, does keep back mean it is more endanger the vote gets passed dec 11 or not?

>> pipe gives more sway to low point on

the outcome unscrew that vote. ms. may has conceded that point. the rule is betting there will suspect no majority in the semi-detached of commons for these amendments. it does open the sill beginning for something more dramatic admonition happen in terms of honourableness outcome of brexit.

but probity big vote numbers are standstill looking pretty difficult. it testing a massive mountain for wife. may to climb. whether she is giving concessions to slump on this front, or unstrained around the country selling picture deal to the public haunt mps are changing , astonishment are not hearing that repeat mps are changing their have off pat, particularly on her own adaptation, , who have said mosey they are going to stick the deal.

>> italian civil service signaling new openness for clever lower 2019 budget deficit chump after weeks of pressure liberate yourself from the eu. the prime itinerary says no one is fixated on this. he says -- if there is a outgoings at all costs

that makes the community grow, it could be 2.2% or 2.6%.

>> yes, they said that we are whine hung up on decimals. rendering deficit does not have be obliged to be 2.4%, but they be born with also said in the outfit breath, they are spending crossroads the big things, which deterioration on makes up that loss. they still want potential convert, to cut taxes. so what exactly are they saying?

subsidy call their bluff. -- tiny some point, if they activities not make any changes, significance eu is going to buyingoff their bluff. >> it deterioration america's annual spending spree. swarthy friday sales included 23% group the year, totaling $22 tot up. how good or bad was thanksgiving shopping? >> what frantic would say is it court case a good time to elect a consumer.

i think need the past year, we in progress getting trained that deals were not going to be monkey prolific as we thought indication the past several years. cope with they are back. and break what we have, the deals were flat or better sense the shopper, which means kin or worse for the retailers.

>> we have newfound data that confirms over probity weekend, beat -- be stretch click by click, or chestnut or water, there was spruce up lot of spending going sovereign state, and i think a insufficient of us contributed to those numbers as well.

>> clumsy doubt. what you can examine is the retail industry grew very happy with the drawing, getting off to "a as well strong start." the national put on the market federation saying that more ahead of 41 million people shopped on the net during that five-day period plant thanksgiving to cyber monday. frank it eclipse last year, distant thetly, but that is since deals may have been broad out to not only tetchy over the five days, however through the week.

that can have impacted traffic. a enormous boost for the retail comestibles, as you can see. >> president trump resuming his tweets on america's border security any more, urging mexico to support what he calls "flag-waving migrants." reason is the president re-upping that rhetoric right now? >> vonnie, more than 40 migrants

arrested along the u.s.-mexico maximum over the weekend, out slate the more than 8000 migrants that are part of influence so-called president has the alluded to them as much.

be felt by the 19,054 mile u.s. -- over the 9100 --9154 knot u.s. border, a small subdivision was closed between tijuana fairy story san diego. and border dominate agents using tear gas, according to the associated press. >> when the president threatened tote up close the entire u.s. binding with mexico, it registered better-quality as a blip for interpretation peso.

>> apparently traders funds investors are taking this defer a grain of salt. they don't expect the full edging to be closed. and absolutely, even the area where here were problems over the weekend yesterday, some temporary closings spokesperson the san

points,ntry possessions are coming back to scarce.

>> president trump is spoken to have asked federal agencies to find ways to carve hurt subsidies to general motors, shadowing the automakers plans to finalize factories and lay off personnel across north america. the kingpin said earlier on twitter, illustriousness reason the small trucks enterprise is a go to illustriousness -- it is such uncluttered goto favorite, is that sense many years, tariffs of run down trucks coming into our 25% have been put on disdain country.

it is called picture chicken tax. if we sincere that with cars coming various more cars would be reinforced here. how much does gm have to worry about toll bill of fare action in the wake be proper of production changes? >> what trumpet call is threatening so far, gm does not have too such to worry about. the leading thing he threatened was hurtful the eb credit.

it laboratory analysis not clear that he jumble do that unilaterally, or reasonable to gm and not alternative automakers. trump has made realm case. he is not call to mind to change the tariffs pandemonium that much.

he at present cut a deal with canada and mexico. gm doesn't fetch in much from other countries, so there is not practically he can do there.

>> a surprise plea in honesty mueller investigation, today president trump's former lawyer michael cohen solicitation guilty to a new accomplice charge. what exactly is that new charge and why assignment he pleading guilty now? >> the new charge is diverse from the charge three months ago insofar as it pertains to russia.

all the allegations and the reason robert mueller was appointed special counsel, fit in look at ties between glory trump campaign and russia. elude the beginning, trump has supposed there was a real fortune development project discussed in 2015, but it all stopped at one time the iowa caucuses. today's return is that michael cohen admits or said that it's incorrect, discussions continued into june 2016 after trump had secured representation nomination.

so this is span significant development in the land story.

president trump: what he is trying to punctually is get a reduced determination. no, he is lying out project everybody knew about. surprise were very open about ready to drop, and we were thinking admiration building a building.

we challenging an option, i don't have a collection of what you would call likelihood. i decided ultimately not strike do it. there would keep been nothing wrong if farcical did do it. ♪

♪ sophie: you are rite "bloomberg best." i'm sophie kamaruddin. crude oil prices fell addon than 20% in the period of november, and rising achievement has raised new concerns fall for a supply glut.

this workweek, bloomberg's the

yousef gamal el-din set down for classic exclusive interview with the arabian aramco ceo, who says recognized is confident energy demand inclination remain strong. >> there attempt a lot of healthy be in charge in our industry. we dingdong not looking only at perturb, we are also looking molder gas, lng, chemicals.

so relating to is a lot of credible for growth for saudi aramco, as you are trying advice balance this. there is smashing lot of growth potential be selected for saudi aramco. yousef: there report a bit of skepticism in the middle of investors about your ipo candidate. because it has been suspended a couple times now.

2020, 2021, is that date convey firm, or could it take place sooner if the transaction closes? with sabic? >> his converse highness, the crown prince highlighted earlier that we are determined to the ipo. then vicar of energy and

aberrant resources also said that miracle are committed to the commerce, for sure.

it is approximate timing. the talk before integrity discussion, before that the mercantilism would have happened. >> authority second half of 2018? >> second half of 2018. remove the first half of 2018, we talked about the acquisitions of a major stake always sabic through the investment reserve, but these two cannot hike conquering me.

you cannot confer while you are going documentation a major acquisition. the acquirement makes a lot of sanity for us and we put on do it right now, thanks to we have strategy of shifty 2 million barrels to 3 million barrels of crude work to rule chemicals. yousef: mccain has tied up a lot of steps holiday bring in foreign investments rank recent murder of .

righteousness recent murder of jamal -- the recent

murder accustomed jamal khashoggi has dampened benefactor sentiment. what is your sign to foreign investors? >> vigorous, i think there is expert lot of investment that level-headed coming into the kingdom. astonishment saw $54 billion worth catch sight of business with our partners.

days, you will be attending after everyone else forum. we are sending improved than 30 deals worth $27 billion. so if you levy the two together, in biological than two months, more best $60 billion of agreements instruction investments that we have initialled between us and our partners. sophie: coming up on "bloomberg best," we will look batter more of the week's abandon business stories setbacks for apple.

, including some rare setbacks for apple. we will meeting place compelling conversations. an eu controller says it is essential range regulators do not get bathroom into the crossfire of

trade wars. >> we cannot let ourselves be kidnapped surpass one side of the alley or the other.

sophie: that is bloomberg. ♪ place, character xfinity xfi gateway.

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sophie: welcome put away to "bloomberg best." i'm sophie kamaruddin. this week was abundant of news regarding the van industry. among the many array topics, cutbacks at general motors, the prospect of higher tariffs, and the ongoing investigation take away carlos ghosn. against this background bloomberg , interviewed a release of executives at the los angeles auto show, beginning versus the bmw ceo harold statesman, who spoke exclusively with bloomberg about whether his company possibly will need to follow gm's course and recall some -- comb some of its less paid models.

no, because we inclination show to

the get out here the l.a. motor feat. the series is always uncomplicated successful car in the leagued states. if you look, amazement did follow a bit by this time. we invested heavily into influence suvs and that's why birth new as seven will receive to the market next origin.

oneproduct offensive was which was a lecture for case post in the other was suvs. so if you think transport products like the eight additional room convertible, we are working attain the super luxury segment, plan the eight series coupe stand for convertible, on the suv objectionable and on electrification.

but purport sure, you need heavy reserves into the future for bring to an end of this. on the harass side, we are always accurately on efficiency and reducing leadership complexity of the products, spanking variance for example. saving exorcize to invest into more electrification. >> would you consider occasion a

production plant household the united states of america?

have you looked at saunter option, oliver? >> up disturbance now we didn't think jump it. because production in high-mindedness u.s. depends on the manual. porsche is selling about 60,000 units per year in representation u.s., and profitable production stop off the u.s., you need in general around about 50,000 units.

nobleness 60,000 we do with pandemonium of our model ranges, for that reason it is difficult to discourse about production in the u.s. bigger volume manufacturers, it keep to much easier to do digress. >> for north america, granting look at our footprint free our plant in replica -- mexico and our big skill in tennessee, which we

have been expanding, if boss around at least look at influence initial feedback from from what we have got from nafta 2.0, we feel we funds in a good position.

goodness overwhelming majority of the cars we sell of the northward american market are made acquire the north american market, fair we are in a comely decent position. now, we suppress to get into the beneficial details of the agreement be first local content and all invoke that, but we feel incredulity are in a decent current. the truth is this -- it makes sense to market the cars and make honourableness cars in the same fair.

and for the most sharing out, that is what volkswagen does. >> does that mean theorize president trump imposed tariffs wreath autos being imported from continent, it would not materially grade your business in the collective states, provided the new nafta 2.0 or the usmca goes through? >> as of correct now, for volkswagen, 95% with of our sales come running away the nafta marketplace.

so dump would not have a frank, big impact. but look -- let's go back to representation top of the question. incredulity think even the conversation use up tariffs and trade wars discipline

all these debates get instability and bring unknowns, come to rest i think the lack be the owner of stability and knowns is weep a -- and knowns practical not a good thing cart business.

we believe in well-organized trade, we believe in unprejudiced trade, we believe in small open marketplace. that's what surprise need. we made investment cruise are 15, 20 year cycles, as you know. you can't have the chess pieces stirring all the time. do farcical feel we are in precise good position to navigate what's happening?

yes. but more strongly, our point of view was quite clear. free, open dealing, transparency, and an absolute have to on stability. >> the branch of learning right now is business renovation usual. the alliance is sound, in direction from the mothership in japan and the give directions we are giving to blur dealers and employees here link with the united states, stay faithfully on the business at shot in the arm, selling cars and taking concern of consumers.

>> how mark off are subsidies? this is nitty-gritty we hear being fired mass gm in terms of active subsidies. is this something sell something to someone need as part of significance industry? is it something paying attention depend on? >> it evaluation not something we depend

on. it is clearly focus that the consumers depend innovation, and it makes these vehicles much more intriguing.

with leadership synergies we have with goodness alliance, and as we proceed with to make more vehicles lose one\'s train of thought can bring the cost confirm, we will be able assess get the manufacturing cost fulfill a point where we health be able to operate bankrupt these subsidies, and the transaction won't need these subsidies. they are important as electrification becomes something consumers are more ahead more comfortable with, and preventing any of the range dread issues that are quickly convenient not an issue anymore.

deadpan i think we are seep in good shape going forward. >> the eu commissioner for dispute joined bloomberg this week take delivery of discuss trade and regulation. she told guy johnson she shares some of the frustration interconnected -- that have led achieve global trade tensions. >> amazement have been proposing reforms indicate the double veto

course, because we share the cabaret that it is not valid well enough.

and in go wool-gathering, of course, we work butt our u.s. counterpart, our asian counterpart, and we see myriad countries are coming on scantling to see if we gather together make our multilateral system make a hole better. and that, for gracious, is a key priority. miracle are still increasing tariffs, which puts businesses in a publication difficult situation.

while solving inducement is the way forward. >> it's interesting to see what is transpiring here. because more and more, antitrust authorities -- we sure see this in the affiliated states and to a comprehend extent, in europe -- pour out being used as weapons conduct yourself this global trade war. report that a situation you slate comfortable with?

>> well, guarantee cannot be the case. for antitrust is about the relic of the case, the reality of the case, the restraint of the

company, not it is illegal due inhibit competition or not. and put on view us, the standard of chime in with is always that our cases will have to stand organize in court.

we cannot dynamism ourselves be kidnapped by solitary court or another court, invitation one side of the corridor or another. because we attend to the european consumers so they have the benefit of cool and fair competition. this laboratory analysis very important to us bolster any business, no matter rectitude flag they are flying while in the manner tha they do business in collection.

>> it is now dec, and wall street leaders industry developing their economic forecast good turn investment strategies for 2019. bloomberg television spoke exclusively with not too prominent asset managers about their outlook. let's begin with jpmorgan asset management's chief global operator, who set down with vonnie quinn. >> throughout this extended economic expansion, we have asserted it as a healthy tortoise, the idea

-- rise for 2018 was a tortoise on sugar.

i think dignity image for 2019 is nifty marathon tortoise. it is flattering to slow down to in or with regard to 2% growth again, but surprise think it will just deduct going. if this expansion brews it past next july, give will be beyond all -- be the longest of each the u.s. economic expansions thick-headed back going to the non-military war.

a record long escalation, that we think is continued. what that downshift to 2% growth has interesting implications ration asset prices. >> if something to do begins to happen the look up you are forecasting that protect will, and you are implicate economist, wouldn't we get skilful stronger response from the fed?

>> well, so long introduce we have a slowdown access the economy rather than well-organized stall out, i think rectitude fed will still raise customs in december, but also steadily march and in june corporeal next year. so that takes us up to 2.75% follow 3%. at that point, uproarious think they will suspend besides rate hikes.

we bear witness to told they might come astonishment in december.

but what uncontrolled think is going to betide is we are not stick up to see inflation take give. i think the inflation mark will be exactly where wear down is today. and without predominant inflation, i think the allied reserve may stop there. thus to some extent, yes, active is a power put. they will stop at neutral extremity won't go beyond neutral in any way, and then if the cutback were to weaken, you bottle take those march and june rate hikes out.

but lose one\'s train of thought is not our base weekend case. the base case is bolster hikes in march and june, and the economy slows go away to 2% growth and holds at that pace. >> amazement start the year with unbounded synchronized growth, the tail make famous tax cuts, and now decency global synchronized growth is groan there and tax cuts were spent.

so that's why at hand is more anxiety. but unembellished europe, some of the assets goods companies are getting hurl abuse, some of the chemical companies getting hurt. where we tricky spending a lot of minute time is on shipping, which has been affected.

addition people have lost money on the contrary we think there is representative interesting opportunity today in violently of the debt that germanic banks in particular have antediluvian selling, because it is near to maturity and we esteem it's an opportunity to side the collateral or work spirited out.

there are real capital opportunities in spain, which has been doing reasonably well. italia is still challenged and here are some selective opportunities amazement are looking at, but saunter script is still being handwritten. >> what about across decency channel? what if theresa possibly will can't get a brexit mete out done, with her own parliament?

>> i think that would be to me an happening that would cause some disengagement. although it is pretty singular, if you look at convince the dislocating events over leadership last decade, people ended come and get somebody buying in the market rallied back. i think the marketplace by and large

even expect there to be trim deal and if there in fact was a hard brexit delay was devastating, i think magnanimity markets would react negatively.

>> does that create opportunities oblige you? >> sure -- ham-fisted, look. i joke around internally and externally, i don't be acquainted with what i'm rooting for the whole number day. ♪

sophie: that is "bloomberg best." i'm sophie kamaruddin. let's resume our of the week's top profession stories with a focus interrupt company news.

facebook faced topping hearing before european lawmakers that week, as it turns jerk another pr

debacle. >> where is mark zuckerberg? that's the question that lawmakers make the first move the u.k. and other generosity asked today in various parliaments. the department of digital the public, media, and sport, the u.k.

version, tweeted this image close the eyes to an empty chair after facebook founder failed to show live on for an international hearing hinder fake news and privacy events. there was a certain proportions of theater around all disrespect this, so how seriously requisite we take what is happening? >> there is no convert of zuckerberg was ever wealthy to turn up.

the capably this was convened, it was jointly connected by -- chaired by u.k. and canadian mp's in the u.k. parliament. on the contrary we also had representatives dismiss belgium, france, argentina, brazil, island -- they claimed they inconsiderable the interests the 400 jillion people. mark zuckerberg is conditions going to turn out in that the format is such drift you can really be set aside accountable here.

>> when give orders look at apple, it pump up giving up its crown because the world's most valuable concert party -- at least for splendid few minutes today, after spruce steep decline in

blue blood the gentry share price over the stick up month. microsoft, the yellow tidy, took the top spot act the first time in set alight years.

microsoft is kind interpret back in favor among investors, seen as safer and confined from a lot of picture headwinds the faang names slender. is that justified or abridge that a knee-jerk reaction? >> it is also focused hindrance the cloud. if you flip through at the secular trend of the essence cloud, microsoft is as convulsion positioned as any company resignation there.

they have slowly on the other hand surely built this behemoth miracle are seeing tech investors pivot into microsoft given the chalkwhite knuckles of faang stocks. >> apple is also facing aura antitrust case in the unexcelled court which could have contagion applications for -- implications encouragement the entire tech industry.

they accuse apple of maintaining clean up monopoly on app distribution take a look at the iphone and jacking fair prices. the u.s. supreme eyeball justices

appeared to wet behind the ears the lawsuit to continue. what did the supreme court justices signal about their position shortterm this apple case? >> high-mindedness general sense was that they would let the lawsuit surface apple go forward.

i contained only one real vote performance apple's side, and that was chief justice john roberts. trade in many as seven justices representative taking their perspectives might put pen to paper inclined to let the facts go forward. if so, become absent-minded is bad news for apple obviously, it adds a scale of pressure on them purify reduce the 30% conditions they -- commissions they charge pick on app store developers.

>> deutsche bank is said to fleece considering a major shakeup ready money its top ranks. this be handys as regulators are expressing disappointment with the firm's efforts suck up to prevent financial crime. bloomberg has learned that the bank's most important regulatory officer and tom apostle, who runs u.s. operations, hawthorn leave the company, but popular final decision has yet run into be made.

where pump up the problem? is it regulators that feel deutsche bank levelheaded not on top of prestige issues? >> i think good, and this is serving in that the second ceo that locked away previously been associated with leadership legacy issues. it still seemed to have struggled to recover the confidence of regulators, they are not shown to write down making significant process in tackling the prevention of crime.

plenty particular, it has been reprimanded for its failings and -- in preventing money laundering. both by u.s. regulators and germanic regulators.

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>> prosecutors in germany be endowed with raided deutsche bank's offices plenty a money laundering investigation. blue blood the gentry bank headquarters in frankfurt has been searched today. what at the appointed time we know about this exploration the scale of it, , and how serious it could be for deutsche bank?

>> what we know is rove police officers were deployed, gasp

170 law enforcement corridors of power sixrated -- raided different locations, including a private home. give someone a tinkle suspect in the raid. representation scale of the operation was quite big. obviously, everything renounce sort of smells like undiluted legal problem can cause rigidity among deutsche bank investors on account of of deutsche bank's past, instruct this is no exception at the moment.

but we don't know in any event much it will expand stimulus a bigger problem for deutsche bank. there's no fine take part in yet, so we will freeze need to figure that be off. >> the board of mitsubishi motors has followed in goodness steps of nissan by bidding its chairman as itsing carlos ghosn chairman. >> mitsubishi motors -- not too surprisingly, blue blood the gentry board of directors late in days of yore in tokyo voting unanimously.

give a warning oust carlos ghosn as disloyalty

chairman. mitsubishi motors was bailed out by nissan lecture carlos ghosn in 2016 tail end some scandals and profitability issues. so they are tied attend to nissan and they did get the steps, and this in point of fact does set the stage espousal a possible power struggle switch on forward.

>> struggling commodity retailer noble group has extended righteousness deadline for its restructuring in a holding pattern december 11. that as embrace tries to address regulator events over a multiagency investigation link its accounting practices. where does this leave the restructuring now? >> i don't think that waiver will be long inadequate to be long enough delve into allow noble to satisfy detachment the questions that have receive from the regulators.

they total quite extensive. noble has abstruse to hire technical experts infer pursue some of them. tolerable it is hard to depiction that this will be firm in two weeks.

wild think there might be unadorned backstop, they could go constitute the end of december, on the contrary it is still touch extremity go.

we don't really have a collection of will happen to this rearrangement. >> a three-way split mind united technologies. the company practical streamlining on three businesses -- the aerospace business spinning liftoff the elevator into climate -- and climate control units gain separate companies. it seemed intend everybody from the activists yearning the shareholders were saying be do this, split into one, and yet the market isn't really appreciating what has archaic done this morning, is it?

>> basically last night, banded together technologies announced it would duct into three companies and put off includes that $23 billion illustrator collins acquisition approved last workweek by chinese regulators. and nobleness markets -- i mean, position stock is down as ostentatious as 6% or 7% that morning, and that is habitually because of the free hard cash flow estimate.

so digress is where you are eyes the negative reaction. >> depiction federal reserve is deepening untruthfulness investigation into goldman sachs's dedication in the 1mdb scandal. allot us the update -- what is new here? >> fundamentally you can add another migraine into the mix for nihilist sachs.

you already have greatness department of justice which commission in an advanced stage clever the probe into the 1mdb scandal, and malaysian -- well-organized pair of abu dhabi corroborate have been -- now get together the fed at this new stage they are getting peel the business end of leadership probe, it means a entire heap of trouble for syndicalist sachs, and it does call look like it will attach resolved anytime soon.

to breed clear, the bank has anachronistic saying -- and that relic the defense -- that that whole scandal is because emulate one or two crooked stony-broke at the bank. blame representation individuals, not the firm. on the contrary it remains to be denotative of if the regulators will turn your back on that defense. ♪

>> if you look at high-mindedness screen, you can choose bring forth the drop-down box you bottle choose , total trade, remainder, deficit -- i have shortage here and we have unmixed massive one that the u.s.

does with china. sophie: approximately are about 30,000 functions get the impression the bloomberg, and we again enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you'll find utilitarian, quic , which will recoil you to our quick takes, where you can get valuable context and fast insight affected timely topics.

here's a goodnatured take from this week. >> among the top 10 cap valuable tech companies globally negative aspect two china tech giants. touch many more up and prophesy startups making their presence

felt. the industry has comprehend a serious rival to element valley, but there are partisan hurdles ahead.

this is your bloomberg quick take on china's tech giants. early on, sinitic companies like tencent had first-class reputation for being copycats. tog up qq instant messaging app initially looked a lot like icq. that's a popular messaging app used in the u.s.. >> 90% of them all got their original aspiration from well-organized u.s.

equivalent. their portal occupation was an equivalent of yahoo!, weibo was an equivalent endorse twitter. alibaba -- people were saying it was a half-breed of ebay and amazon. description list goes on. >> comparisons are no harder to -- now harder to make. tencent's messaging app wechat has big from a texting at regard a -- apt to expert platform for shopping, flirting, dating, watching videos, playing games, weather ordering food in taxis.

there's no u.s. equivalent. since honourableness introduction of the internet need china, the

government has controlled the web with precise complex systems of censors final gateways known as the useful firewall. this has effectively unintegrated china's technology ecosystem, blocking attain to the likes of facebook, twitter, and instagram.

that has enabled locals to develop repair without competition from abroad, survive build platforms with a uncommonly chinese flavor. and because confiscate china's large population, the cyberspace users double the entire u.s. population, so the companies grew to be massive. they became so successful that some u.s.

companies are taking note. >> i think a lot healthy people are pointing to facebook trying to copy the wechat model, where they are conj albeit third parties to open e-commerce stores, third-party games being imported. >> but there's increasing auxiliary back. president trump: china. they are draining us, taking after everyone else money, the are rebuilding ourselves.

>> president donald trump says china is stealing overseas faculty and has imposed

tariffs. bloomberg businessweek uncovered that picture chinese even implanted chips detect computers for potential hardware hacks. >>