tv Bloomberg Best Bloomberg January 6, 2018 7:00am-8:00am EST
shery: coming up on "bloomberg best," the stories that shaped the week in business around the world. a new year brings a new assessment of global risks from eurasia group. distinguished guests delve into the details. >> the number one risk ceo's see out there is geopolitical. >> this transition from the u.s. is not going to china. china is creating an alternative. >> the unpredictable of key leaders, the lack of a north star with the united states stepping back in so many ways. shery: mifid ii rules go into effect, and the u.s. releases the old year's file jobs report.
>> wage growth at .3% -- that is just not good enough. shery: it's all straight ahead on "bloomberg best." ♪ shery: hello, and welcome. i'm shery ahn. this is "bloomberg best," your weekly review of the most important business news, analysis, and events around the world. on tuesday, eurasia group released its top 10 global risks are 2018. in a bloomberg surveillance special, a distinguished panel of guests discussed it in detail. tom keene started by asking why the prevailing talent is so gloomy. >> because when the global economy feels the way geopolitics do today, people
respond. they see it is a crisis. they know they need to do something. they've got to bail things out, to infrastructure projects, get the banks ready. we had that back in 2008, and everyone knew -- we talked about this -- we all knew it was a crisis and we had to respond. geopolitics are easily as bad today as the economics work in 2008. they might be worse, and yet, there is no crisis, no sense of we have to respond. in fact, if you look at the americas, the one superpower in the world, the one country that could conceivably help to respond and dig us out of this crisis, it's actively doubling down. we are saying that we had no intention of providing the kind of certainty to our allies or supporting institutions, so as a consequence, anyone who looks at geo policy today has to understand this is not sustainable and the crises are coming. tom: your mckinsey global institute is just a miracle, what you do there.
i don't care about that. i want to know what businesses are going to do this year. dr. bremmer talks about accidents. you cannot do three or five-year planning amid a milieu of accidents. what do you see in the behavior of c-class officers this year? >> we should recall there is growth and over the past couple of years, we have seen that improve. the challenge is you have to go after that growth but at the same time, be prepared for these risks. the number one risk ceo's see out there is geopolitical. that is the number one risk. the problem with those risks is they are not probability curves. they are one or zero. if something goes pear-shaped, it is bad. there's issues about resilience. while you are growing, what are you doing for resilience?
what does your supply chain look like? how will it withstand some of the shocks that ian is talking about? how you think about agility in your organization to be able to move resources very quickly -- how do you think about agility in your organization? also we are on the brink of a massive technology transformation. tom: francine, please, jump in from london. francine: is 2018 the year protectionism strikes back? >> it is certainly the year we see much bigger fragmentation because governments are becoming so interventionist. part of that is because the chinese have an alternative model for their investments, and they will be seen as increasingly the most important driver of other economies around the world who will align themselves more with beijing than with washington.
part of it is that president trump here in the united states, who in 2017 talked a lot about protectionism, talked about beating up on trade deals, but aside from leaving the transpacific partnership, did not do very much. in 2018, the u.s.-china economic relationship gets worse. in 2018, nafta has to get renegotiated in the midst of a mexican presidential election. that is not likely to go well. clearly, this is the year we will talk a lot about not only traditional tariff barriers but also nontariff barriers and government support/protectionism for their own industries. francine: what does this mean for globalization? depending on your outlook, what would you advise ceo's to do? >> we are also worried about this trade issue. nafta is the big one on the table right now, as to how that goes. that will be a bellwether, i think, as to how that moves because once we start going against trade, it is a race to the bottom. i hope that will not happen, but
it is a big risk that is there. what ceo's and organizations have to think about is you have to think about being localized. the idea of being a multinational, you have your supply chain around the world. you have to be localized. what are you doing for the local economy? how resilient are you? how do you move people? there are shortages of talent. how do you deal with all of a sudden a shutdown a trade? tom: you lead this year with china and the vacuum of china. how powerful is there leadership? how assertive can they be this year? >> the most important speech i have heard in my life on the global stage since gorbachev declared the end of the soviet union in 1991 was when xi jinping stood up at the end of the 19th party congress and said china is ready to play a global role. "we are prepared to become a global superpower."
they have never said that before. tom: what was the distinctive feature for eurasia? >> it was that china is no longer small, no longer modest, they will no longer be underneath them. they see that not only are they bigger than they have ever been before, not only does china have can all it needed leadership under the strongest leader they have had since mao -- may be greater than that -- but also that is happening in the context of nobody else. it is happening in the context of trump. if trump has had one major impact on the global order -- and he has -- it has been the road that he has created for xi jinping. the opportunity for the chinese to just really occupy some of that vacuum. but the last time we had a big transformation of global order was the u.k. to the u.s. special relationship, great allies, fought in the war together.
now, this transition from the united states -- not going to china. china is creating an alternative. francine: where do you see the relationship between australia and china going, and will that hurt trade and investment in australia? >> of these leak, there are political tensions between the governments at present. prime minister turnbull has made a series of statements about chinese activities in australia. this has caused reaction from beijing. we will see how this stabilizes and the period ahead or if it does not, and furthermore, we will see if economic consequences flow from the current political instabilities, but i get back to my earlier point. the relationship between china and australia is one of a much broader equation involving all regional governments where the rise of china is a palpable phenomenon. shery: coming up, more discussion of eurasia group's top risks for 2018.
and wall street must change the way it deals with women. >> it is not just sexual harassment. it is a lack of diversity. shery: and former treasury secretary jack lew does not think new tax legislation will have a positive impact. >> leaving us broke so we cannot deal with these fundamental problems. shery: this is bloomberg. ♪
>> at one level, i.t., information technology, has become more global. the industry has become more global. this is another area where ian has been saying we are seeing the rise of china. we are seeing chinese tech leaders emerge as global tech leaders, but at the same time, we are seeing fragmentation in the sector. they're no longer in some respects is quite as global and internet as there was a decade ago and five years from now, we may see more of that fragmentation -- there is no longer in some respects is quite as global and internet. tom: how afraid should google and apple be of washington? >> i think we have seen this unfold over the last decade. you certainly see political commentators and washington, d.c. identify the tech sector as a piñata, as you mentioned.
it is not just those on the left. it's those on the right, those in the center. i do not know that people have yet transferred that concern about technology into a defined course of potential political regulation, but that could come, and i think it really behooves all of us in the tech sector to be listening to that and be out addressing the concerns and even just acknowledging the concerns, which silicon valley has sometimes been a little bit slow to do. tom: let's go to the commonwealth of massachusetts and talk to ian bremmer about the tech commons. what is it and what does it mean for us? >> you have the president of microsoft saying that what we thought was going to be a global tech commons increasingly looks like you are going to see fragmentation. as we move from the information
revolution to a data revolution, it is much more top-down, right you can the space that is being created, the way people are engaging and the filters people see to engage in commerce or surveillance are increasingly coming from a bunch of reichmann to companies that are competing with each other very sophisticated in the u.s. or through the chinese government. those are two completely different models. that is not the u.s.-led globalization we have been thinking about for the past 40 years. i think you could make an argument that the facebooks and googles and microsofts are easily as strategically important for the united states as lockheed and raytheon ever were during the cold war, but i do not think the u.s. government is prepared to align with these companies that way. i don't think they have the technological sophistication to understand how to do it, and i also think that some of the silicon valley libertarianism is part of the problem. you want to talk about china? it is the same thing. i think that is an incredibly important space for brad to be a leader on.
shery: among the biggest risks for global wall street in 2018 -- institutional inequality. sallie krawcheck says business and government are failing women and a culture change is necessary. >> somehow, as a country, we are calling mantocracies meritocracy's and believing it. silicon valley, wall street, which have been these epicenters of harassment actually are not providing particularly good returns for their investors. venture capital funds, mostly you could just invest in the public markets. it is not just the sexual harassment. it is a lack of diversity, which has led to poor results, which has made all of us poorer. >> are you going to see a shift
in 2018? was 2017 and inflection point? >> i think there's no doubt. we had in 2017 what i believe is the largest march in history, with over 3 million people, 5 million people, etc. people were asking where is this generation's gloria steinem. she did not show, so women started naming names and something happened that was very different than what happened before. we supported each other and rallied around each other. tom: we are behind on this policy, this policy for families and on and on and on and on, and we see that with the tone of this present administration.
i would not editorialize, but say it is the observance at the end of the year. what would you say to the leader of our big banks, the leaders of our investment banking, the leader of our brokerage firms? >> i will never forget being on your show last year, a couple of years ago, where leo was a portfolio manager, and he turned to me and we were talking about women in business and he said, "we just love having women. we just find it hard to keep them." tom: i remember this. >> i turned to him. i was like "your mom says to be polite." and i said, "have you thought about promoting them?" and he was like, "oh, what a novel idea." did very first news story of 2018 is -- is the very first new story of 2018 is #timesup, which is women coming together to put money behind the issue.
>> we have talked about developed country institutions, and the number one risk is that trump provides space for the chinese to actually do a lot more. you cannot look at the #metoo movement in the absence of president trump. it is probably the single biggest domestic impact he has had in the united states. it is precisely the fact that women around the country and around the world are looking at democratic institutions and saying these do not feel legitimate for me. they don't feel legitimate for us and we don't think the governments are going to fix them. shery: still ahead, former u.s. treasury secretary jack lew joins a conversation on global risk in 2018. he sees significant risk in the gop's recent tax overhaul. >> i fear the next shoe to drop will be an attack on the most vulnerable in our society. shery: this is bloomberg.
shery: you are watching "bloomberg best." former u.s. treasury secretary jack lew joined this week's "surveillance" special analyzing eurasia's report on the top risks of 2018. he noted a common thread in the report. >> the thing that underlies so much of it is chaos. the unpredictability of key leaders, the lack of a north are with the united states stepping back in so many ways, and it is this kind of destructive policy without anything constructive to take its place, and that is true on issue after issue here in the united states. you look at markets over the
last year, the calmness of the markets almost suggest we should look past this uncertainty because what can we do about it, but the moment comes when something happens or something is a surprise that should not be a surprise, i worry about binary changes. tom: i want to go back to the beginning of your career with joe moakley of massachusetts, who was among the most basic of politicians from another time. what is your democratic party need to do to provide leadership within this chaos? what do you wish from mr. schumer, ms. pelosi, and many others? >> fundamentally, democrats are not in charge, so i don't think it is fair or realistic to look to democrats lead the way out of that. you have an administration chose to make policy in a very one-party way, did not include democrats in any of the conversations and now cannot rally their own troops to do the
basic this in his of running the government, making sure we do not default on the debt, making sure children do not get thrown off health insurance. i think the challenge will be to truly work together, and that does not mean coming with a fait accompli and saying "we need your vote." it means doing things you otherwise would not have done to reach a consensus around reasonable compromise. reasonable compromise is the basis around working together. we are not seeing any of that. >> you called this tax bill dangerous. why? >> what it does is almost the exact opposite of what anxious and angry voters were calling for in an election just a year ago. you have people who were worried about where they it in a economy where technology and trade and globalization seem to be changing all the rules they grew up with. what we need his training, education, infrastructure. we need to invest in the kind of workforce of the future that
gives people confidence. what we have seen as a tax cut that spends money we don't have to have very concentrated and if it's for global corporations and the top 1%, and it's leaving us broke so that we cannot deal with these fundamental problems so we are farther behind in actually making progress, and i fear the next shoe to drop will be an attack on the most vulnerable in our society. how are we going to pay for the deficit? you will see legislation to take basic food support away from poor people, to attack medicare and social security. one could not have made up a more cynical strategy. >> people are going to reject things that otherwise are good when they do not work for them. free trade -- good thing for global growth, but people reject it if they think it does not work for them. technology -- obviously a good thing, but they reject it when they see it does not work for them.
what jack is saying now is on the back of this extraordinary tax bill, if you do not see cuts for the average american people, the response is going to be vast rejection. democrats and republicans both have to deal with that. >> this did not arrive with donald trump. the united states has been spending money it has not had for a long time. my question is why is this any different to what we have seen before? >> i have been in office in several different periods. in the clinton administration, we ran a surplus. we fixed the problem. when i can into the office of management and budget in the obama administration, we went from a deficit of almost 10% of gdp to 3% of gdp. we have intentionally as a government made the decision to add substantial amounts of debt at a time when the economy does not need fiscal stimulus. when it needs is targeted investment. the risk of the tax bill is both further disenchantment with
institutions, and if you look at -- and the report gets to this, the kind of rejection of institutions. how are people going to respect institutions more when they realize what the tax bill does? tom: ian bremmer, you grew up tough in chelsea. when you are living fat and large in weston or wellesley hills, you know where chelsea is. how would your mother do it today in this environment? could you have gotten to tulane in this milieu today? >> let's be clear, i did not grow up tough. i grew up getting my ass kicked. if you look at me, you understand why. today, my mother would have voted for trump or maybe for bernie sanders. there is no way she would have voted for a mainstream democrat. there ain't nobody else from my neighborhood that got out of the chelsea projects that is now talking on bloomberg, and i
think it is precisely that environment, environments like it all over the country that are saying this is not working. tom: what does your party need to do to get dominance in chelsea or wisconsin or minnesota where you lost the election? >> that is a good question and what you're talking about used to be the base of the democratic party, and we need to find a way to communicate with people talking about the things that i am talking about. ian is right. you cannot win by saying trade is the whole problem with that is not the hope problem. you have to talk to people respectfully and explain what it is you're going to do so they can have a piece of the economic pie going forward. shery: you can find more interviews at bloomberg.com. up next, top news stories including the last jobs report of 2017 and the first phase of regulations known as mifid ii.
shery: this is "bloomberg best," i'm shery ahn. let's take a day by day look back at the top headlines from the first weeks of 2018. markets were closed on monday, but the dominant story is the week again involve the resumption of nuclear gamesmanship from north korea. long -- hasun has the nuclear.s. the capability is a reality, not a threat and was reviving his grandfathers tradition of this message. how significant is the new year's overture to south korea? this is significant. it's a tactical shift for the
north korean leader. he has been being provocative all last year in his comments, and particularly those directed towards the united states and president trump. this is kind of an olive branch, saying he would be willing to have talks with south korea where he once the olympics to go well. this really is a change. we will see how significant it is, in terms of what kind of talks they are willing to have. but as part of the new year's message, this was a definite shift. >> president all trump has responded, saying the u.s. has a more bigger and more powerful arsenal. the one-upsmanship continues. north korea opened communication lies with the south the first time in two years. is trump's pressure having an impact? geopolitics are very quickly
back to center stage in 2018. on one side, we have kim come out and saying he wanted to have better relations with south korea, and this morning, they were testing and its intended checks off only used to communicate between the two sides. they used to communicate between the two sides. that's all very positive. the flipside is that front continues to take a very hard stance, and the u.s. is concerned that this could be a ploy that north korea is seeking to drive a wedge between south korea and the u.s. on the nuclear issue. the biggest shakeup to europe in regulation a decade is finally here, mifid ii takes effect and the question remains, is everybody ready? >> a lot of work has gone on at the firm level to make sure the systems and processes are now in place. but certainly, i would be
surprised if every single thing was ready as of today. i there's some assumption by regulators that protests and system changes will take some time. and the actions won't be pursued on day one of things are ready. >> is their probability of a research price war starting to take place? an happeningat's over the past three months, going back to september and august, was a very high prices being posted by the sell side for research coverage and with all those price quotations come down quite significantly in recent months. that is evidence really that price competition is having ultimately a positive impact from the research consumer perspective and the end client of asset managers. >> is it way too early to say mifid ii is better? it's a better sequel back to films of its predecessor? being on at's like
customer service helpline. everyone has got their complaints and that story about how annoying it is and what headache it is for mifid ii. it's too early, but there are plenty of delays and reprieves and grace periods in this relation that hasn't been fully implemented yet. >> president trump baking away from steve bannon. -- breaking away from steve bannon. he says he has quote lost his mind. give us the backstory. outhere's a new book coming this going to be explosive and some of the experts -- excerpts have come out today. steve bannon's interviews among them. and certainly are explosive are a formal splitting of this relationship that has been strained since ban was forced out of the white house for months ago. but it still existed. it seems like a real touring point -- turning point. >> trump and bannon believe they
are responsible for trump's election, that they are the leaders of the nationalist movement that elected trump. i think the near-term effect is it is going to weaken bannon's movements. this insurgent splinter faction of right-wing republicans. the other thing that hasn't got a lot of attention and is worth focusing on, bannon's main benefactor is robert and rebekah mercer, news hedge fund fortune has supported a lot of the organizations the bannon has been in charge of, like breitbart news. mercer came out yesterday and indicated she is going to withdraw that support. i think that is going to make weaker and will be good news for moderate republicans. >> commodities on the 15 day winning streak on the bloomberg commodity index, a record run. weaker and will be good news for moderate republicans. testing levels we've not seen in three years. what is driving it? >> you have a combination of
things. opec production cuts, saudi arabia and russia getting together, for more than a year, refusing production significantly, more than anyone had expected. what is new is how strong the global economy is doing, look at the pmi and the manufacturing index. requiresring activity diesel the power machines at a lot of petrochemicals. a good example, german unemployment falling to an all-time low. that's adding to crude oil and other commodities and that's where we see the prices are the highest we've seen in three years time. for the first0 time ever in the dow industrials. record highs once again. >> it's only three days in. is there anything we can say about this is the best three since x?
>> you seen the dollar increasing and the futures commodity index isn't quite keeping up with the spot. the dollars on everyone's mind right now. along with the flattening yield curve in the linkage between the two. for now, it's very much a commodities driven story in the stock market and commodities market. >> expectation for jobs, 190,000 private jobs estimate to be added in 4.1% of the unemployment, we are looking for it. 148,000 jobs, short of that $190,000 -- 190,000 estimate. 4.1% was the jobless rate unchanged. in terms of average hourly earnings, up 0.3% year-over-year, up 2.5%. both of those figures in line with estimates, still showing relatively anemic earnings growth.
>> the important thing is wages. creation with the jobs to find if wages was .3 with the upision back down to .1, so .2 per month. if you do your wages going, you can get inflation going, which is what the fed wants to get going. >> i've been telling you that the one disappointing number we see month after month after month is we saw wage growth up 2.5% against cti of 2.2%. you see a real wage growth here at .3%. that's not good enough and we are committed to get real wage growth in this country, and we do believe you will see it over the course of the next year or two. shery: coming up on "bloomberg best," more of the stories that shaped the week in business and finance. band is over for steve cohen and he can manage outside capital again, but his new shop looks very different from his
shery: welcome back to "bloomberg best." i'm shery ahn. week's topthe business stories in washington, where the fomc released the minutes of the december meeting. >> the federal reserve out with december minutes and they expect tax cuts to boost consumer business spending, though they remain unsure of the impact of the new tax law overall. they show strong support for further gradual rate hikes from setting the stage for other .25 percentage hike in march. will was the discussion on inflation and how is it going to change from the meeting in november to the meeting in december. there was not a lot of
difference in the substantive discussion, but the one difference was that, in terms of the risk assessment around inflation, what this chart shows you is fewer people on the fomc saw risks their inflation outlook as tilted to the downside. fourumber went down from in september to two in december. risk is seeing the balanced both on the upside on the downside of. on the margin, slightly less worry about low inflation than before. >> the death toll from the antigovernment protesters climbed a security or -- protests clash with imitators. 20 of died in the unrest after more violence on the -- a right. defending thei is iranian people's right to demonstrate peacefully.
>> the situation is calm and we have a senior official saying the protest will die down in a few days. this is secretary-general of iran's supreme security council. interestingly, vertically, blamed the u.s., britain, and saudi arabia for seeking to take advantage of the unrest. 27% of hashtags on social media after the protests were created by saudi arabia. china has entered 2018 with robust momentum. the cash and manufacturing surged 51.5 to 50.8. that beat estimates. property tax may be delayed until 2020, what are the three main concerns that the chinese authorities will have an 2018? is going to beit an important year for china. they are trying to take on risk
and they want to curb overall debt, and to do that, they want to really tackle off-balance-sheet lending and shadow banking, wealth management policy and the like. that's one area they are going to look at. on the other hand, they want to clean up the environment. there's been a lot of degradation after decades of rapidfire growth. do they go hard, a big company that rely on state debt of the risks and of putting thousands out of work, or do they turn a blind eye to those companies and focus on cleaning up the banking system specifically? all indications are they are getting the balance right, but the campaign is in the early days and if they want to prevent this, and get their debt problem under control, they have many problem -- many months of hard work ahead of them. >> steve cohen is back and he has big brother with him. $3 new firm is set to manage billion to $4 billion of clients money. after running into legal issues with his former company, he is
taking no chances. what's different about the new firm? just served a two-year ban for managing outside money and then with that, he's hired quite a compliance team. 50 members. >> 5-0. >> 50 members. the new general counsel was hired a few years ago. folks -- of awing listen to audio and look and the emails, they are getting involved in the hiring process of money managers and is part of the settlement from a couple of years ago, he has outside monitor separate from general counsel who is actually filing reports directly to the fcc to make sure they are following securities laws. >> amazon's shakeup of the retail landscape may not be over, according to one well-known technology analyst. gene munster saying they could
acquire target, noting both companies focus on mothers and families. >> and love use future is a combination of mostly online, but some off-line. getting 1500 stores the target would bring it would be very valuable. prediction, but i think what really highlights is the main weakness that amazon has now in its fight against its biggest rival, walmart. doesn't have the physical store presents. it purchased whole foods, a got 400 to 500 stores, but that is still just 1/10 of the store presence of walmart. if it wants to give shoppers the choice of being able to go somewhere, to return things, to buy things, to pick things up, it has a lot of catching up to do. alibaba of men doing the merger with monogram after they failed to win regulatory approval in the u.s. and it offered $18 a share, valuing any deal at $1.2 billion.
what happened and how big of a blow is this? blow a pretty significant to international expansion, especially in the u.s. there was an expectation of synergies generated between monogram and financials asia business. the company was really confident all the way up to this last moment, but as of now, you can see that the company has said they just see no way that the trump administration is going to approve this deal and they've already agreed to pay $30 million as part of the termination agreement with monogram. dominion energy will buy scanf are nearly $8 billion after a failed project made them a project for acquisition. scale -- shares soaring after they were cut. this is a good way out. >> it's a good way out, if you look at where this company has been, it's a horrible year.
longer than that, there's this issue try to build a nuclear power plant and it was quite far along the road in doing that and then they decided they are not going to do it. this is a good way out. for dominion, this is the potential liabilities they are taking on that are enormous and quite unknown. that is still find it on an asset that they will not be able to review these construction costs and they are also
settled with a half built nuclear power plant. whether or not they finish it, who knows? agreed tos petrobras pay nearly $3 billion to u.s. investors who lost money following the massive corruption scandal that became known as car wash. for thewhat this means future of petrobras? >> almost $3 billion sounds like a large amounts, but investors were expecting something around $10 billion. investors are morgan stanley,
for example. it came in at a lower cost and earlier than interest rate. people weren't expecting it to be this early this year. positively, and it sent out a very positive sign to the market. jp morgan said he removed the company right now. it was a large overhang. >> tesla is again pushed back production targets for its all-important model three after shipping fewer cars than expected in the last quarter. tesla delivered 1550 model threes in the final three months of the
year, trailing the analyst estimates for over 2900 units. tesla has kicked the can down the road by another quarter. originally they said they would be getting this 5000 unit in week run rate by the end of december, that it was the end of march and now they are saying you won't be until the end of june. and yet people still seem willing to wait on this car and
on this company. i think investors are heartened by the fact that the model less sales weres and x up. 3%shares and intel fell over on a report that a flaw in its processor chips could make its operating system vulnerable to hacking. the company confirmed the chips contain such a feature, but they other firms in semiconductors are also's double and disputed its products contain a bug. >> it's a pretty big deal. it's affecting pretty much every intel processor made in the last 10 years, intel makes over 90% of the process is made in the world. this is a pretty huge deal. at the moment, there been no known exploits of this, no one has been attacked and no one -- it basically has not been taken advantage of yet. the are working to fix it.
>> yesterday, we reported on the chip vulnerability that could give hackers access to information, like what is stored in the icloud. apple said the flaw raises issues with all of the max and ipads being used all around the world. what is the problem? >> all of the chips that are used all of these devices have those fundamental vulnerabilities that would allow an attacker to steal almost anything that ship has in memory. all of the vendors and companies that produce computer hardware are in the process of trying to update and patch their systems. apple was very quiet about this earlier in the week and just came out yesterday and said yes, this affects all of our hardware as well, with the exception of the apple watch which is based on a different kind of chip technology and operating system. everything else is affected and will have to be patched.
>> weave a great chart that shows the growth of the last several years in the bloomberg intelligence function for streaming growth under netflix. we see that since 2012, take a look at this. they are just growing, growing, grilling. not a dent in the uptrend. >> about 30,000 functions on the bloomberg and we always enjoy showing you are favorite on bloomberg television. maybe they will become your favorites. go will lead you -- quic go. you get fast insight into a timely topics. >> 2016 was the hottest year on record in the previous 17 years of seen the 16 most scorching. scientists overwhelmingly agree
that global warming is the culprit. and it's just getting started. icecaps, extreme weather, wildfires, drought, and the hits keep coming. what are we doing about it? the015, the world took boldest step yet to stem climate change within the storage record in paris. but now comes the hard part. nations must change energy policies and invest huge amounts of money. they will likely do it without the united states. president altra announced to june 1 that the u.s. will withdraw from the accord. president trump: withdrawing is in america's economic interest and won't matter much to the climate. >> here's the situation. the pair's agreement united the u.s., china, and more than 190 other nations in a push to limit fossil will pollution. sponsored plan secured pledges to cut greenhouse gases, emissions the trap heat in the earth's atmosphere in an effort
to avoid the rising seas and other environmental disasters that climate models predict. even if all pledges are met, the globe is excited to warm by as much as 3.4 degrees celsius this century, more than the human target of well below two degrees. it means the government caps off or more incentives for clean energy, scale back support for fossil fuels, make emissions more costly and reduce deforestation. it's estimated the deal will require $13.5 trillion of spending through 2030. here's the argument. such asast climate pact the kyoto protocol, each country set its own target and then promised to revisit and improve them. the u.s. was primed to play a lead role in climate change, but trump's independence executive order reverses obama era releases to combat, change and expands production of coal, the dirtiest fossil fuel. the resulting policies threaten the global flight against climate change. other countries may join it and abandoning the paris agreement. this could make it almost
impossible and even more expensive down the line to stop i'm a change. optimists argue the shift to a lower carbon future is already underway. businesses, cities, u.s. states such as california are already investing in wind and alert and taking other steps to make it work. >> i've been called an environmentalist. ♪ that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, with the latest business news and analysis, 24 hours a day. that's all for "bloomberg best." thanks for watching. i'm shery ahn. this is bloomberg. ♪
>> welcome to bloomberg business week. >> we're inside the magazine head quarters in new york. week's issue, a graphic look at the third shift at slaughterhouses. the night lking shift. >> we are. risk.lso the workers at >> plus the running shoes looking to take on nike. that's ahead on bloomberg business week.