tv Bloomberg Best Bloomberg July 6, 2018 10:00pm-11:00pm EDT
♪ on "bloomberg up best," the stories that shaped the week around the world. mexico has a historic presidential election. >> this time, we do have a deal. haidi: china's central bank steps up to stabilize a deteriorating yuan. >> fed officials in general say the economy is operating in top gear. >> they will hike at least once more. why not more than that? because it is still sluggish. >> a return to public markets. they pull out all the sports to reach a target.
a mega deal is completed. >> it is important so that we can become much more competitive. >> the loss to industry from trade wars as they already feel the pinch. >> all hell is going to break loose. >> and, neel kashkari has a chat withhart ha bloomberg's joe weisenthal. >> there are word estimates of where neutral is. onthat is all ahead "bloomberg best." ♪ haidi: hello and welcome, i'm haidi lun. let us start with a day by day look at the top headlines.
voters in mexico went to the polls on sunday and when the ballots were counted, the result turned out to be historic. ♪ history, he was elected mexico's first left-wing president in decades, in another decisive win for populism. a was swept to power with campaign of anger over in stressant, corruption and poverty. given the details of how the obredor.went for lopez >> it went very swiftly and. >> quickly, and smoothly, the range by which he won. was a norma's we are looking at a 30 percentage point lead as of now, over his nearest rival. life toe, not rob, not the people. >> he has talked about number of
things that are unique to mexico including a war on corruption, reviewing our government contracts and perhaps, canceling work on a new airport. investors are concerned this morning because he made it a priority in his acceptance speech to say that he was theerned that the poor -- poor would be forefront in his legislation. may be in me that he opens the fiscal cap's. they will also look at central bank autonomy and oil deals. outside investors as well. >> german chancellor angela 's fate could hang in the balance, as she tries to find a compromise on immigration policy. her interior minister offered to resign, and put it on hold as talks resumed. what is going to happen? >> everyone is on proverbial pins and needles, waiting to see what happens at the meeting. at this hour, the interior
minister and head of the bavarian christian social union is set to meet with chancellor merkel to discuss this standoff over immigration. it is really anyone's guess how out.will lay >> my german chancellor has halted the immediate threat of a government breakup, crafting a plan to tighten migration, and party insister the fold. there will be holding centers set up for refugees already already.at the border, registered in other european countries her interior minister who had threatened to quit, will remain in his position. >> it is time we have a deal going into this meeting. she had three big challenges going into the meeting, to keep her christian democrats together, and to please the interior minister. what the john government has agreed as you pointed out, is create transit centers for
migrants at the border. the goal is that they will be able to determine who can stay germany. . . those who cannot will be quickly deported to the country they came from to do this, the german government has also announced a bilateral deal with austria. >> the trump administration letting zte business activity in the u.s. -- resume business activity in the u.s.. shares of microtechnology slumped on word that is chips have been temporarily banned in china. this seems to be the first step in putting zte back into the good graces of the trump administration. next?at comes >> right now, zte will be able to service contracts the sand on or before april 15, when the slapped there ban o ban on them.
as part of the demand last week, the ousted the chairman of the board, and they are moving august 1, when presumably, the trump administration will decide yea ay,, that they can continue doing business with the u.s. companies. >> has the door open -- as the door open for them, it is closing for macron in china -- micron in china. micron were involved in a big intellectual-property battle, there was a lawsuit filed against them in china and the won a preliminary injunction blocking the sale of certain ships in mainland china for -- certain chips in a minute china from micron. n will likely launch some sort of protest, and settle
the dispute with umc. it is a bit after bonanza as of a struggle to figure out the scope of the injunction. >> the federal reserve is due to publish minutes, where officials raised the benchmark rate by a quarter-point point for a second time this year. >> the central message from this minutes, federal officials say that the economy is operating in. top gear solid growth, strong consumer spending and increasing investment. still, many noted that if the fed stays on his current policy path, the federal funds rate could be at or above estimates of its neutral rate sometime next year. what could not them off their path? well, most participants noted the uncertainty and risks associated with trade policy had intensified, and they were concerned that these risk good eventually have negative effects on business sentiment and investment spending. >> the united states went ahead with its tariffs on imports, and
at midnight on washington time. china responded immediately with similar tariffs on u.s. goods. saying "china will never start our trade war, but will take measures in response to others pure: >> this is of course, the first route, 34 billion dollars in terrorists. u.s. tariffs on chinese goods which are impacting a host of different industries, most notably in the commodities market, and protecting u.s. intellectual property. tariffs on u.s. goods, soybeans, sorghum and in the agricultural and forming farming states, that is a great impact on them. the very conservative heritage foundation we should note, argued against what the president has done. but he is getting support from the association of
manufacturers. >> china is very much trying to "eep "the moral high ground that it sees itself having here, painting itself as the victim, of trump's war that he has initiated. that is the line, that they will keep pushing as this continues to go on, this trade war. >> unemployment rising, which growth slowing. the economy adding a better than estimated 230,000 jobs, but the and implement rate rising to 4%. >> this will not change, the fed will not change course by itself. a few more reports in this direction, if we see a wave of people coming to the labor force, i don't expect that, but of that seems to be the case, it could cause an adjustment in their thinking. >> i think people will conclude three things from the implement report, that the u.s. economy will continue to outpace others, two, that it is able to navigate trade tensions -- not a full
trade war, but trade tensions -- and three, that the fed will hike once more. why not more than that? because which growth simply, is still sluggish. >> the headline numbers on this economy look rocksolid. there is some nervousness from some of the officials in the republican party around the tariffs story. if you look at the fiscal stimulus, the positive effect of it, are you concerned about that? >> the objective is to make trade deals better, and i think the president, who wrote "the art of the deal come, i think we will start to see those deals. one of the things we have been watching for is negative impact in the data from anxiety over trade. if you look at the jo jobs report, one of the key places you would see that is the metal industries, where steel and aluminum tariffs are in place. so therebs decrease,
isn't clear evidence that a there is clear evidence that the anxiety of a trade is being harmful to the industries which and.ost watched for harm that is probably because i think, that these people understand the president is driving the world to a better equilibrium. haidi: still ahead, as we review the week, an exclusive conversation with the chief executive of an airline. tony douglas reveals his plan to shake up the carrier and was losses.d and, more of the weeks top business headlines. china manufacturing data comes in below expectations, and it is not all about the tariffs. >> clearly, there are already worries before we get into any concerns about trade. haidi: this is bloomberg. ♪
i am haidi lun. let us continue our global tour of the weeks top business stories with a message from president trump that made an impact on oil markets. ♪ prices slipping after president trump said that saudi arabia's prince had agreed to increase oil production. both he and the prince backpedaling on those comments. it added to the pressure yesterday during an interview on fox. president trump: opec allowed less than we thought last week. they have to put out another 2 million barrels, in my opinion, because we don't want that happening. >> what does the president want? does he want the saudi's to break from opec? >> i think the president wants lower gasoline prices heading into the summer. how that comes about, i don't think is particularly his concern. end of wants to see the
opec? i think quite clearly, he has done for many many years. i think he needs to be really careful what he wishes for, because without the spare capacity that countries like saudi arabia and one or two others in opec hold, we would have no ability to deal with any of the disruptions, even the ones we have seen in the last weeks.of >> saudi arabia cutting oil prices for the month of august, following donald trumps tweet asking opec do more to stabilize prices. the president tweeting "they are doing little to help with anything, there are driving prices higher your car this must be a two-way street, reduce pricing now. has the president gotten what he wants to some extent with the actions were learning from saudi aramco this morning? >> it is a little marginal, but it is significant. in essence, they will only cut prices by $20 a barrel, white and arcane part of the oil market.
but it is a signal that saudi arabia has taken the president's concerns seriously. we have had another interesting reaction from a second opec member, iran. they are less keen as you can imagine, to keep president trump happy. iran's opec governor has even trolled the president, saying in a tweet "your tweets have driven up prices by at least $10 a barrel, please stop, otherwise t will go even higher." let us look at china data from the weekend, the pmi reading showing that trumps rhetoric on trade is perhaps seeping into economic data. the export gauge index, showing that new export orders are tumbling into a contraction. according to a survey, confidence among japan's largest manufacturers is also slipping this second quarter due to trade tensions. what are the key takeaways for you there? >> clearly, there are already worries even before we get into
any concerns around trade. the question for the second half of this year really, is how much of this plays out against any predictions of policy support, be it from the pboc or the authorities, as they tried to address the slowdown. that is a tricky thing for investors at the moment. as we are seeing in the currency market, it is difficult to know what they will do next, what the steps might be. certainly, there is a lot on the plate left for them to be able to stem these weaknesses they are seeing in their economy. sayse governor of the pboc china will keep the yuan stable at an equilibrium level. linning recent currency volatility on dollar strength and external uncertainties -- blaming the recent currency volatility on dollar strength and external uncertainties. the yuan slumped. to a level of 6.67. is that enough for the chinese to stabilize the currency? >> no, i think there will still remain some short-term pressure of the yuan, until we get a
couple of days of strength. the concern will not go away. we saw the capital outflows story at the end of two any 15 and 2017, even after the yuan started appreciating, those concerns lingered for a little while longer. while this is much of a valid, short-term story, traders and day traders should be watching the yuan and should be concerned. long-term investors should not be concerned. this is not a long-term story. >> let us have it to iran, the president seeking deeper ties with switzerland. he called on europe to deliver on its promise to shore up the deal.uclear iran has said it will resume its nuclear activities unless france, germany and the united kingdom can guarantee continued investment and trade. what happens next in this story? >> we are really looking at the measures that the eu may be
taking, how far they may be able to go in order to counter the u.s. sanctions that are unilaterally imposed, and will be introduced as early as next month. so we have coming up now, on friday, a meeting with foreign ministers from the parties that remain in the deal, that is the u.k., germany, france, russia, china and iran. they will meet in vienna and or ans a proposal, economic package aimed at buffering iran against of those sanctions, countering the impact of those sanctions. ♪ >> resilient car sales -- top u.s. automakers reporting high sales in the month of june, despite rising interest rates and escalating trade tensions which were expected to curb those sales. i guess the takeaway is that americans continue to purchase suvs and light trucks at the expense of those passenger cars. the numbers keep snowballing,
right? we saw the shift in demand, people shifting away from cars to work suvs. fiat chrysler started killing off their less competitive cars, but they still sold in large numbers, mostly to rental fleets. when you take is out, you see more numbers. foreign start disinvesting in their -- ford started disinvesting in their car lines, and we will keep seeing more of this. no sign of stability, no end to the fall in car demand at this point. >> the ecb fearing that market expectations for a rate hike in december might be too low. some members of the governing council reportedly saying that september or october of 2019, may actually be on the cards. the euro climbed been on the news. this sounds like. dovish expectations on the margin. anyes, what this is is attempt by the hawks on the governing council to cement expectations for a rate hike in september.
and it has worked, it bolstered expectations a bit, and as you said, it supported the euro. ♪ they's -- the prime minister theresa may has rejected a deal on the customs union. meanwhile, britain's top carmaker wand against a bad brexit deal, saying that investors in the united kingdom would be jeopardized if the latest in a series of -- as of the latest of a series of nick household names warning against brexit. >> yes, talking about the huge number of investment in the united kingdom that is a threat if we have a very bad exit deal, or what they mean by that, a hard brexit. lots of trade barriers between britain and the eu. if you look at what she is proposing, and what mr. davis seems to have rejected, it is trying to inch towards a softer end of the brexit curve. this might actually strengthened
♪ haidi: you are watching "bloomberg best," i am haidi lun. businesses around the world are feeling the impact of tariffs battles. from agriculture to manufacturing, costs are increasing and uncertainty is raising the threat of layoffs we talked. wente atlantic ocean -- we across the atlantic ocean to see how trade was are unsettling the industry there. ♪
global trade of wars -- new england's most valued at up is already in hot water. >> this trade war is going to have some really negative effects on the lots of people in massachusetts. ♪ >> lobster is one of the nearly 700 american asked words that china is targeting for terraces exports. american it is a response to president trump's 25% tariffs on $34 billion on imports from china. massachusetts lobster man billy mahoney, says, he is already been $.50 less per pound on the news. >> if they will pass the deal, all hell will break loose, as far as the price. >> new england landed nearly $700 million worth of lobster last year, 94% of the nation's
total. exports. to china increased 30% year-over-year. >> hope for the slack, but i am not very hopeful. -- i hope the domestic market can pick up the slack, but i am not very hopeful. >> also cut in the terrace the crossfire, steelman effectors -- crossfireriffs are steel manufacturers. >> some of it comes from canada, some of it comes from the u.s. and since the first of the year, the price of the product has nearly doubled. >> the ceo blames president trump's 25% tariff on imported steel from canada and the eu. >> it puts handcuffs on us, because we are unable to buy raw materials at a competitive price. >> he says he might have to
ande his prices 15%, sourcing american-made steel is not a solution. >> many males are booked after october. there are not sure they will able to get the products if booked in advance -- many mills. >> some worry that this have the effect. >> we have actually clawed back a lot of the exports that were coming into the u.s. from china. this will give them an opportunity to take them back from us. >> china will chase down the canadian lobsters and the u.s., will just be hurt by all of this. i think this could affect people going out of business. haidi: coming up on "bloomberg best," the weeks top companies, including europe's biggest steel merger in more than a decade, with reaction from ceos on both sides of the deal. and kumal highlights from the week's most interesting interviews. investors ceo says
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.
♪ best." is "bloomberg time to revisit some of the week's top interviews on bloomberg television, starting with tony douglas. in an exclusive conversation with manus cranny in abu dhabi, he laid out his goals for stealing back global -- four scaling back global ambitions. >> we have financed a management restructuring, it is a punctuation point in a broader transformation program. we have a wide range of businesses, as well as the core airline. we have interests in our travel management business, we have interest in engineering, our
maintenance and overhaul operation, we have partners like jetta, virgin australia, the seychelles. in the past, you had the core airline, the complete management structure that sat over the top of that, and pete did an incredible job of leading us through an incredibly fascinating time of growth, but we didn't have a group structure on top of that. quite simply, what we are doing at this point in time is rationalizing taking layers out, simplifying, making it far more fit for purpose, and taking over. >> you have some risk. what the marketplace is going to want to know is do you plan to take more -- where is the equilibrium for you? >> quite simply, the heart of any airline is its network, and networks need to be reanalyzed. years ago, it would have been
quarterly. today i would question it almost needs to be minute by minute. you will have seen that in the recent past, routes that were profitable for us, we are not shy in taking them off. san francisco, edinburgh didn't work. we couldn't see a way in which they would be economically sustainable. we will take them off. but the flipside is where we see greater opportunity emerging, such as baku, and later on barcelona, it is to make sure that we are more agile in nimble in the way in which we adjust to where the market is. that is the heart of a modern, agile, flexible airline. ♪ >> sweden's central bank is moving closer to its first rate increase in seven years. e-krona spiked after the bank committed to a plan to raise rates toward the end of the year. with themagnuson spoke
governor about that strategy. ♪ >> the majority view is that, on the one hand, things are moving on quite nicely in this economy, and in terms of the growth numbers and the global economy. inflation other hand, pressures are quite modest. case, wet it is the would really like to see that inflation target at 2%, or close to 2%, and with that background it would be too early to change direction now. >> some analysts worry that by the end of this year, when you plan to raise rates, gdp growth will be slowing down and there will be concerns about the inflation outlook. how confident are you you can raise rates? >> that is our projection at this time, but when you were talking about growth slowing down, growth numbers have been
very good for almost five years or something like that. high, in this economy is and that is often what you see when you look at what's going on in the labor markets, where we have increasing shortages of labor. in that environment, i don't think that would be much of an growth numbers will be quite stable for several years to come. ♪ >> u.s. financial markets were closed wednesday for the july for holiday, an opportunity for many to take the day off and the joy of barbecue. recently, joe weisenthal visited minneapolis federal reserve president neel kashkari, the only fed official who regularly use a social media, to communicate on monetary policy and to boast about his guilt left the grill. he invited joe to his home for home cooks stake, and the conversation about issues like
financial rates. ♪ >> in a recession, economists tend to raise the natural rate of unemployment. they think people get dislocated, deals are mismatched, and it ratchets up. only begrudgingly do they lower it. in a't think it is useful recession to ratchet up the natural rate of unemployment, because we are so reluctant to lower it. we would be better off just holding it fixed then ratcheting it up. maybe it's a lot lower than we think. we know workers have more education than they did 20 years ago. we know that firm dynamics have changed. is it 4.3, 4.4, we don't really know. inso there is an asymmetry people in the estimate of the full -- of what is full employment, and it is easier to bump it up and slow to bring it down. >> that's just an observation i made. in a deep great recession, the
unemployment rate hit 10%, most economists estimate it ratcheted up quickly. , sayinghoing it, too all the people who left the job market would never come back. at has proven to be dead wrong. we would have been better off not making that assumption then only slowly learning that it was true. >> as the unemployment rate has come down, maybe people will ratchet down there estimate of where the natural rate of unemployment is. is there something that the fed can do next time around so that it's not keeping that number too high, and therefore implicitly running monetary policy that is too tight? >> one simple thing is don't ratchet it up. if we figure out where it is, 4.5, 4, 3.5 -- if we say it really is 3.5, i say the next time there is a recession, let's just hold it there, and let's
operate monetary policy using that assumption rather than the reflective ratcheting it back up. >> i know that canada every five years has some sort of big reveal -- they look at their approach to making policy and whether it makes any sense, revisiting their assumptions. would you support something like that at the fed? it, but weopposed to have worked very hard to establish credibility on our 2% inflation target. i'm very skeptical -- even if we wanted to raise the inflation target, for example, say at 3%, i'm very skeptical that the american people would support it. there'd likely be a big push back. we worked very hard to get a framework that works. i think we should live by that framework. that means living by the symmetry of that 2% target, not treating it like a feeling. >> maybe four hikes this year. does that seem appropriate to you? ay the mistake so far has been running it too tight. >> i think legitimately we are
moving closer to our inflation target, 1.8%, wage growth picking up. overall, i would be comfortable with us moving to a neutral rate. not stimulating the economy, but once we get to neutral, let's wait and see how inflation the vols. -- inflation involve. there are wide ranges of estimates around where neutral is. some people think it could be as low as 2%, maybe 2.5%. somewhere in that zone. personally don't want us to commit to a steep path until we see how wage growth picks up. ♪
best." let's resume the roundup of the week's top business stories, the focus on company news. it looks like tesla finally has production results to celebrate this week, but that excitement wore off pretty quickly. ♪ >> tesla succeeded in hitting his target of producing 5000 model 3's per week, but what should be a cause for celebration is creating concern, as shares close lower, off by 2.3%. >> the news was digested yesterday when we got an internal email, congratulating everyone for making it. the fact that they hit this 5000 number is not new today. what was due today was their delivery figures, which were a big miss. investors are realizing that they made this marked late in the quarter, and it will still be an uphill battle to make it sustainably. >> tesla is set to be causing production after meeting
its target of 5000 cars per week. questioncomes as some whether the company can sustain those high output level. yesterday, it was like elon musk was declaring victory, we are a real car company, and now they seem to be backtracking. >> elon musk have some confidence in the company's manufacturing operations right now. it is a delicate time for the company, definitely meeting their 5000 unit weekly target, but the expectation is that the pause in production won't affect their production targets going forward. it's not unusual for carmakers to take a break during the july for holiday, to check those facilities, do maintenance, give employees some time off. ♪ reachedny's -- has agreement to set up a european steel champion. the companies say they see synergies of 400 million to have
hundred million euros, and that it is for the long term. less,u satisfied, more or with the outcome of renegotiations over the deal terms? >> i'm satisfied. we've brought a negotiation to a successful end, and it addressed the four major issues for us. it addressed the structure problem, that we create substantial value for shareholders with the synergies you mentioned before. for the majority of our employees, we could secure a more promising future. but the fact that we -- it is also good for our transformation. >> how does this joint venture that into a world where there is too much steel being produced? >> that is why components become important, so we can be much more competitive.
we will not be able to achieve the kind of operation we can achieve together and that is why the consolidation makes more sense. >> the ceo has resigned, bowing to shareholder pressure, stepping down days after the company signed a deal for a joint venture that was strongly opposed by some investors. earlier this year, elliott management wanted to oust him, who has been criticized for rising cost and falling stock price. ♪\ has reached a preliminary agreement for a $4.75 billion joint venture. we knew about this back in december. remind us what this deal is. >> it has taken many evolutions it iss, partly because viewed as this brazilian champion. the government did have a say in how this deal turned out. what they have come up with is a joint venture with a commercial. aviation part
that company will continue to have a defense operation and executive aviation, small, private business planes. but the commercial part is what boeing wanted and what they are getting out of it. the transaction values that at 4.7 5 billion, which is a significant premium when you consider that it is all valued at less than that right now. ♪ >> trouble for airbus. the company is set to miss delivery targets with their jets this year. why is airbus going to miss it? >> my colleagues were reporting over the weekend that they are having continued issues with their a320. there are two types of engines , and it isthe plane continuing to cause headaches. what we have been hearing is that it will essentially to 30 to 40 planes fewer of that type eating delivered. ♪ mostencore has fallen the
in two years in london after company said it was subpoenaed by the u.s. department of justice to produce documents relating to corruption and money laundering. the world's biggest commodity trader says the documents related to the business an in nigeria, the congo, and venezuela. it is quite a big move we are seeing in the shares. is it potentially overdone, given the news? >> on the face of the announcement, potentially, yes. i think what investors are reacting to is the potential for this to broaden out. in this announcement, we have an indication that the doj is also looking at payments made by the oil business in venezuela and in nigeria. one of the key differentiating factors is the appetite for risk for operating in difficult jurisdictions, and the question
how thoset exactly operations have been run in recent years. back asore is to buy much as $1 billion of its own shares, that may shake investor confidence, after a u.s. government probe. the timing is interesting. >> it might do. glencore was having a very good year, we should remember the underlying business is strong, and the whole industry is growing up lots of cash. yes, they are well within their balance sheet metrics. it makes a lot of sense. but as we say, the timing is interesting. ♪ acquiringis commerzbank exchange traded products, part of an expansion plan in europe's largest economy, the french bank taking over asset management businesses in london, paris, hong kong, and zurich. are you surprised?
>> not really. this was a well flagged deal. they are big in the etf space, and the investment bank for them was another performer. germany is a big market. we don't want -- we know it's a very small dent to capital. from commerzbank's perspective, this is part of a restructuring, simplifying, stripping out costs. no real surprises. it should be mildly beneficial to both banks. ♪ >> dell has announced plans to trade publicly again. they will be buying out dbm t tracking stocks, reflecting a big deal. >> you were definitely not the only one who didn't understand the deal.this was very convoluted . surprising it does -- surprisingly, it does simplify their structure. what they are doing as they are buying their tracking stock for
vmware. they are not buying vmware, which a lot of people expected them to do as part of this process. don't see how this full buyout of the tracking stocks also their problems. they were looking at these types of transactions because they have this hefty debt load from their buyout with silver lake. this doesn't necessarily solve that. the benefit of doing these series of transactions was to take advantage of vmware's balance sheets, and they are not doing that. ♪ results, a little bit short of the bar. tell us what you think could have been behind this slight earnings miss. inas management warned back april when they had a call for earnings, they said they would spend more on marketing. the shipment has not been as good as anticipated.
millionr, they ship 40 , probablyore the s9 missing targets. couldn't even ship 30 million this year. business was anticipated, ishough we did see that still below what we have been talking earnings. that is why, sentiment wise, it is not that good. but the company may come out in three weeks time with more guidance on second half outlook when they have their earnings. ♪ >> indebted chinese can, where it -- indebted chinese conglomerate hna group has lost its number two executive. what else do we know? >> we know it was an accidental death. reporters did speak directly with the french police.
they confirmed that the autopsy shows this was an accidental death. he fell, a very high fall, died as a result of that. we have yet to hear from the company in terms of if there is any change in their plans to go ahead with the plan they have had, and with the plan of restructuring. we have yet to hear from them exactly what's going on in that regard. ♪ >> this week, bloomberg television proudly presents an exclusive coverage of the boston pops fireworks spectacular. you can watch it all, the independence day festivities, and musical performances, only at bloomberg.com. ♪
yellow bar, is falling short of revenue. >> there are about 30,000 functions on the bloomberg, and we always enjoyed showing you are favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, to uic go. it will take you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. ♪ >> when you think about people who shaped the world, -- but how about the american executive who bribes, to taking partly as a result of his testimony. sleeping international investigations have led to the arrest and convictions of dozens of corrupt officials, including blazer himself. >> once they got blazer, sat him down, they realized that, this is a monster we have something big here. >> that is an author at
investigative journalist who wrote this book on the scandal. he rated a five star hotel in zurich and arrested top executives from fee for. >> that moment has now become an indelible, watershed moment in the history of modern soccer. >> the world cup and soccer in general have become such big business that executives were offered huge bribes to ensure certain contracts. organizationom an with annual revenue in the seven digit figures to what it is today, which is every four years their revenues is in the billions. >> blazer had done particularly well from his dirty dealings. he reportedly bought himself a $900,000 beachside condo in the bahamas, to south beach apartments, hundreds of first-class flights, and a sweet
in trump tower, another reportedly. but like al capone, his undoing this tax evasion. he struck a deal with the fbi and provided live information for year-and-a-half, while still on the all-powerful executive committee. they were the two dozen or so men who decided, in secret, who gets a hold the world cup, a decision worth billions of dollars in media rights and infrastructure project. >> very quickly, a culture of behind doors dealing, bribery, and sketchy behavior developed in this committee. >> laser mentioned the vote to give south africa the world cup was rate. he also took part in the most contentious decision of all," in 2010 that had it go to russia and qatar, a tiny but rich gulf state with little soccer pedigree. u.s., and french prosecutors are still investigating allegations of bribery surrounding it. 2010, most arem
now either banned from soccer or facing investigation. in the u.s., $300 million from dozens of guilty parties has been collected. former of them -- laser pleaded guilty to 10 corruption charges, but died in 2017 before sentencing. as part of a cleanup operation to restore credibility, they removed the power to award world cups, and handed it to the 200 or so national members. >> in theory, you can still buy them, it is just more people to bribe. there are still questions about transparency that haven't been answered. my feeling is that until they develop transparency, it is going to be hard for them to be credible. >> in june, the members chose the u.s., canada, and mexico to host the 2026 tournament. ♪ >> that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis 24 hours a day.
♪ selina: i'm selina wang, in for emily chang. this is "bloomberg technology." coming up the next hour, the trade standoff between the u.s. and china intensifies. u.s. tariffs on $34 billion worth of chinese imports has gone into effect. followed a few hours later by a statement from beijing to expect retaliation. unemployment rose from an 18 year low and wage gains are unexpectedly slow. we will talk to one automation startup who closed a massive