tv Bloomberg Best Bloomberg July 14, 2018 7:00am-8:00am EDT
scarlet: coming up on "bloomberg best," stories that shaped the week around the world. brexit plans move forward despite chaos in the cabinet. >> she is facing a life or death moment within the conservative party. scarlet: trade tensions ratchet up as u.s. and u.k. tussle over tariffs. earnings season rolls in with some of the big banks reporting results. >> jpmorgan came out with strong results, nothing missed. scarlet: opec issues and a output outlook. canada's central bank announces a rate hike. fox stepping up the bidding for sky. >> it could go higher from here.
scarlet: experts share their analysis of the global economy. >> because of changing policy, there will be stress on spreads. >> if we lose those animal spirits, we have an issue. scarlet: heavy hitters in tech and media weigh-in from media valley. >> it is not yet finished. >> it is disruptive at some level, but positive. >> it changed everything. amazon is changing everything, facebook and google. scarlet: it is all straight ahead on "bloomberg best." welcome. i am scarlet fu. this is "bloomberg best," your weekly review of the analysis and interviews from bloomberg
television around the world. after a marathon meeting last week, theresa may announced her cabinet was finally united behind a plan for britain's divorce from the european union, but the solidarity didn't last through the weekend. >> the u.k. brexit secretary david davis and his deputy have quit, plunging theresa may into a crisis. the resignations come two days after the prime minister announced she had secured a cabinet backing for a plan to keep close ties with the european union after brexit, which a bloomberg source says davis could not support. is this a crisis or not? after the prime minister >> probably the worst crisis in the last year since the last general election and a lot depends on the next few hours. the attention focuses on what will pre-brexit lawmakers do with this? >> turmoil in the british
government as boris johnson has resigned. it heightens the chance of a leadership challenge to prime minister theresa may. >> we do not agree on the best way of delivering our shared commitment. similarly, to recognize the passion that the former secretary demonstrated in promoting -- in promoting -- in promoting. >> i think she thought she had a convincing script put in front of people. now, she faces different dynamics and like the whole of brexit where you have to play to 10 different galleries at the same time, what has happened now is she is facing a life or death moment within the conservative party and that will probably concentrate her mind on that and that may be the single thing that boris johnson and david davis wanted to achieve.
>> court of appeal judge brett kavanaugh's president trump's choice to succeed anthony kennedy on the supreme court, announced from the white house last night. he is well-known within the beltway and has a stellar career. >> extremely well credentialed. his real forte has been administrative law, looking at federal statutes, deciding whether administrative agencies have gone beyond their power under regulation. he has voted to strike down environmental regulations, voted to limit internet regulations and net neutrality rule from president obama's era, and has said the director of the consumer financial protection bureau should be fireable for any reason by the president, giving the president more control over those agencies. >> the trump administration has pushed ahead with plans to impose tariffs on an additional
$200 billion in chinese products by releasing a list of targets. this is an escalation of the trade war between the world's two largest economies. >> the details are this is a list of about 200 items. we are talking about a 10% duty being proposed on $200 billion worth of chinese goods ranging from electronics to tech, clothing, leather goods. this is for the u.s. side about ip theft and forced transfer. you saw that again in a statement today. they said they are willing to talk to the chinese, but they are focused on trying to change the behavior of china when it comes to technology transfers and what they see as intellectual property theft and this is punishment for that. >> give us a sense of the reaction from china. >> pretty strident. they said it is totally unacceptable and they accuse the
u.s. of bullying and promise to retaliate, as they always have promised throughout the dispute. >> president trump's meeting in brussels this hour with leaders of the other nato countries. things got off to a testy start with a confrontation with the nato general on the issue of russian oil. >> even now in the meeting, he is tweeting about soybeans and how american farmers are up against terrible trade barriers with the rest of the world. he is not forgetting his base at home while here in europe. >> the whole issue of nato, defense spending has been a long-standing one between the u.s. and nato, but trump is turning up the pressure and has singled out germany, the economic powerhouse in the nato alliance. people saying behind the scenes that the private meetings are a little more calm, but on the surface, there is quite a bit of dissent. >> crude oil is plunging the
most in almost a year. the commodity, falling midway through today's session. oil helped drive the bloomberg commodity index to its worst day in three years. what happened? >> the biggest thing was the tariffs and trade concerns. that dragged everything down. commodities, concern about the economy and if there is a weaker economy, you have less demand. the concern is wider repercussions and if you have a bigger trade war, it hurts economic growth all over the place. it is not just in the u.s. or china. we import almost no oil from china. it is a broader economic impact people are worried about. >> the nato summit in brussels wrapped up and president trump reiterated the u.s. commitment to nato. >> we are very happy and have a very powerful, very strong nato, much stronger than it was two days ago. >> he is counting it a complete victory, saying he extracted a firm commitment to reach 2%
quicker than the 2024 deadline. he said countries will increase by 33 billion dollars and even more will come, he says. he is looking forward to a 4% target in the future. >> you have the controversy over brexit, theresa may announcing the plan to keep the u.k. closely tied to the eu single market with the free trade area for goods and services like banks could be cut loose. we had three pages before, 98 pages today. fill in the gaps. >> there aren't new headlines, really. nothing has particularly shifted from the highlights we got at the end of last week. it is the big items you mentioned, the free trade area comprising the u.k. and europe for goods, services, divergence, services including banks and telecom services, legal, that the u.k. construct its own trade deals around the world.
the city doesn't like it. it hard for banks in the city to do business across europe. what does europe think about this? the government has been working on this for a very long time. the ball really is in the court of the european commission. >> donald trump has dealt a double blow to the prime minister theresa may on his first day of the visit. his comments on brexit are dominating the pages, meanwhile, protests are expected across britain as he visits. he says we may not get a trade deal because of the kind of brexit they go for. is it just a comment? >> no, i don't think he has a particularly strong grasp of soft brexit versus hard brexit, but he likes to put the foreign leaders he deals with on edge a little when he meets with them. there is a broad tactic, i
suppose, when he goes into meetings like this to make them a little uncomfortable. >> i don't know what they are going to do, but whatever you do is ok with me. that is your decision. whatever you are going to do is ok with us. just make sure we can trade together. that is all that matters. >> jpmorgan kicking off bank earnings with a strong report. citigroup and wells fargo dealing with weaker second-quarter earnings. >> jpmorgan came out with strong results. analysts saying nothing missed, with the exception of one or two small items. >> citigroup were someone who did not have a great quarter. fixed-income trading was lower. they are talking a lot about not being such great movement on spread product. wells fargo, not really having a good quarter. broad-based weakness, even worse than already low expectations. mortgages, falling by one third,
fees dropping there. deposits are trending down, commercial real estate wells fargo in the u.s. is falling. consumer loans are lower. scarlet: still ahead as we review the week on "bloomberg best," former treasury secretary jack lew explains why he is worried about current u.s. fiscal policy. plus, tech and media titans speak their lines at media valley. plus, promotions at morgan stanley set the stage for ceo succession. >> there has been elevation. it was well orchestrated. scarlet: this is bloomberg. ♪ scarlet: this is "bloomberg
best." i am scarlet fu. let's continue our tour. we head to asia. >> trading debut, not the best at opening day. investors questioning the valuation of the company and if it can involve itself into a software services company. >> we have reversed losses, but not trading above the ipo price. >> we are expecting a weaker open and the pessimism that was surrounding this and also the investor concerns that this is a company that has a lower margin handset maker now. it is kind of selling a dream and facing the reality today. >> we are a new species. we are an internet company that
can do e-commerce. we can do hardware and internet well. >> xiaomi's debut was a day to forget, falling in hong kong as an escalating trade war and uncertainty about valuation damaged the biggest offering in two years. >> this isn't great timing for the markets if you look at china and hong kong, both markets are down and there are a lot of jitters about the trade war. >> it didn't take long for investors to change their mind about xiaomi a day after its disappointing debut cared shares rose by double digits. after monday's closed, it was announced that xiaomi would join the hang seng composite later this month. >> tesla announced plans for a factory in china. the goal, to build 500,000 vehicles a year in that factory within two to three years. that is the goal. would it be easier to make that goal in china? >> hopefully, they would laugh
learned about the problems they had ramping up for model three. they will start fresh with producing the model three there, hopefully learning from that but also the model y, in important vehicle for them. it is the crossover equivalent of the model three. it will be a cheaper crossover, priced below the model x and it is important for them to have the local manufacturing in china in order to have those vehicles priced more competitively. >> 21st century fox has increased its cash offer for skype to 14 pounds a share. it is an increase of around 12% on a rival bid from comcast. will comcast come back or are we at the end of that story? >> sky investors expect comcast to come back. 14.18 pounds, the market thinks this contest isn't over and comcast will come back and the price be pushed back higher. manus: comcast will have to want to take on debt if they want to
counter this bid, don't they? >> exactly, and this is where the two battles come into play. the wider battle between comcast and disney for fox, which could be pushed ever higher. and the other context could imply bidding higher for skype. big decisions will have to be made in prioritization and targeting cash. guy: comcast has raised its takeover bid for sky to 26 billion pounds. it is offering 14.20 pounds per share. that is 5% above the proposal. how deep are murdoch's pockets? >> it is more of a question of how deep are disney's pockets? they have to get approval from disney every time they increase the offer. guy: how deep are disney's pockets? >> disney is a well-capitalized company. it definitely could go higher from here.
>> twitters efforts to weed out fake accounts are taking a toll on shares. the stock, falling almost most by march after a "the washington post" report of account suspensions has more than doubled since 2017. this amounts to a delayed overreaction to twitters disclosures. they have been finding three times the amount of spam and automated accounts per week. that number has risen to 10 million. all of this is part of their ongoing efforts to root out manipulation. they have been under fire from congress for allowing fake and automated accounts to run rampant on its platform. reaction from investors is ooting out thesene
accounts did not have much of an impact on monthly active users and their disclosure numbers its most accounts are dormant and aren't regular tweeters. that said, it is important to delete these accounts because many of the accounts we saw active during the 2016 campaign were long dormant accounts activated at key moments to cause manipulation and change the conversation on the platform. >> morgan stanley's ceo has indicated he plans to stay on several more years. he is removing senior executives to groom his successor. what caught your eye? >> what caught my eye is ted pick, a 49-year-old rising star, helping it surpass goldman sachs in stock trading and then he moved over to run bond trading and is now running all of banking and trading operations. separately, we have -- who is taking a greater control of international operations. he has been a long time in london, overseeing operations and cohead of investment bank. it was all well orchestrated. a lot of people were brought up
at the same time today, so a lot of people should be happy in times square. >> pepsico came out with that had an effect on the rest of the sector. it got a bid from its food. it helped an overall beat of bottom line estimates. beverage sales, still struggling. down for a fourth straight quarter in north america. >> it is people turning away from soda and coke finding their stride a little. coke is heavily tethered to the soda business. pepsi has the frito-lay operation. they have been spending a time on advertising, but pepsi is falling into the second-place role there and having a harder time turning that business around. but thank goodness for frito-lay. >> blackstone plans to raise its global private equity fund three years after gathering $18 billion from investors for its last --
what does this say about where blackstone sees the credit cycle and business cycle? >> it seems there still seems to be a hearty appetite for private equity and alternative assets. blackstone had the record back in the day, $21.7 billion last year. that was bested last year. we will see if blackstone tries to get more than that. they are aiming for more than $20 billion. >> guggenheim, striking a deal to bolster its restructuring and liability management practices. the financial terms were not disclosed, but it was announced the cofounder will join as cochairman of guggenheim securities. talk us through how this fits in with your view that we should be preparing for a downturn in the economy, a recession could be forthcoming next year or in 2020? >> in our firm, it helps diversify the mix on the security side. we are representing disney in
scarlet: you are watching "bloomberg best." i am scarlet fu. as if trade tensions weren't making investors anxious enough, the yield curve is under close watch as it continues to flatten, which has historically signaled the approach of recession. jack lew spoke exclusively with bloomberg markets, asia about the risks he sees ahead.
jack: historically, the yield curve has been a very stable predictor. it has accurately predicted almost every downturn and i don't believe it has had more than one false positive in terms of predicting a recession when there wasn't one. if you saw an inverted yield curve, you would see people getting quite nervous now. we are at a moment when because of changing policies, there is going to be stress on spreads and it may not be a normal time in terms of the yield curve being the leading indicator, but i do think it warrants careful attention. it doesn't show a lot of confidence in the long-term when you don't see long-term rates starting to creep up when short-term rates are being forced up by changes in monetary policy. i think there is a lot of reason to be nervous about the economy. obviously, we are in the 90 or
ninth year of a recovery and will probably break a record. >> it is actually one of the longest. jack: i am proud the first seven years of it were on our watch. we did a lot to drive this recovery and i hope it goes on. i don't see any reason it has to be stopped in its tracks. i look at the policies being put in place and they are not friendly to continuing a long-term growth period. >> such as what? jack: i think trade policies are causing uncertainty that will be reflected in investment decisions, and it is going to put a drag on the economy in terms of higher prices and less open markets. i think the tax policies, which while they were cheered by the business community, is a little bit like pouring kerosene on a fire. there is a flare when you pour the kerosene but it works off. the afterburn of the tax cut will be trillions of dollars of debt. trillions of dollars of debt, and that will be a burden on the economy, as we are getting to
the end of the economic cycle. i worry if we had an economic downturn that we don't have the fiscal arsenal that we should have to respond. you would want the federal government to be able to jump in light in 2008 and put a lot of fiscal measures into the economy to get it going. when we are adding literally $2 trillion to the debt over the next 10 years, it is going to put a lot of stress. i think it is going to be a problem driving interest rates up. it is going to have a drag effect on the economy and in the downturn, it is going to be harder to respond. scarlet: coming up on "bloomberg best," more compelling conversations, including insight from philadelphia's fed president and ecb executive board member. and media moguls shared some of their thoughts. >> what we need to do is combine and connect the data, technology. scarlet: this is bloomberg. ♪
scarlet: this is "bloomberg best." global leaders in technology and media converge this week. bloomberg television was also there for in-depth conversation on the industry landscape and the larger economic picture. interviewt with and with maurice leavy. >> it's a traditional advertising industry headed toward the secular meltdown we saw in the retail industry? >> i think what we see, maybe even more, because there is such huge changes, starting with the consumers. you have to start with the
consumer, because at the end of the day, everything we do is for the consumers. when you look at how their attitude, what they are doing on the internet, the fact that they have always their mobile phone with them, these have changed dramatically. they're searching information, communication, etc. this has changed dramatically in the industry and it is not yet finished. what we need to do is to combine and connect data, which is not that easy because of the culture of the people who are very different. and also the fact that we need to invest massively to transform the industry. >> you have some really interesting people here this year. jeff bezos, warren buffett.
potentially the two people who are doing the most to disrupt your industry and the industry more generally. >> well, i won't talk about things at the conference. what they are doing is disrupting. we need to look at how things are done, and they have a total of a million and a half lives, which is not a huge number, but it's an opportunity to explore other ways to do things. we need to be supportive of that. i just see it as an opportunity. >> so disruption is a force for good in the health care industry. >> it could be, yes. >> is the media industry to focused on content and not enough on distribution? >> you can't have one without the other. both of those things are really important. at&t and time warner is this
combination of content and distribution, and whether that deal is a good one or works out, i don't know. i think bringing in competition to the big internet players to the extent that it lets them be with the big internet players, that lets them be with everybody. >> do you think that is the real threat to the industry? >> yeah, absolutely. netflix changed everything. amazon is changing everything. facebook and google, those are massive threats to those businesses. >> in which case, we can look at the scaling up that's going on, the attempted scaling up on the part of comcast, as being a defensive measure, prophylactic against the netflix onslaught, or whatever is coming on. is scale alone going to be enough to protect them from that? >> i do think scale helps, one of the things that could
come out of this, that i think will come out of this comcast-disney-fox thing, is one controlling shareholder of hulu, whoever the winner is, what content they put onto hulu could be interesting. if they put all the content on hulu and try it out, that asset has a real offense against those things. that could be very interesting. there's all kinds of ways this could be interesting. scarlet: on bloomberg television throughout the week, we have had plenty to say about trade, monetary policy, and the state of markets around the world. let's revisit some of the most interesting conversations. caroline connan spoke exclusively with ecb executive board member them operate. she asked how a trade war will affect the central bank's policy in the eurozone's economy. >> so far, the backdrop is very strong growth in the eurozone, meaning that so far what we have seen has the potential to end the recovery. >> can the ecb just sit back and
watch this trade war happening? >> well, we're never sitting back and watching. we have to understand what's going on. but so far we believe the course is strong enough. >> have you already seen some companies holding back investment because of these protectionist policies? >> that may happen. we're not complacent on the possible risks. a trade war would be extremely bad for the world economy. the first victim would be u.s. jobs, u.s. workers, and we hope that doesn't happen. >> the ecb plans to execute me -- qe by the end of the year. look at derail the plan? >> that is clearly our anticipation, but with that said, as with everything we do, as we speak, mid-july, we could
change. >> with a growth rate of 3% or better in this quarter, the most recent quarter and this quarter as well, does that change your view of how many interest rate moves you need to make? of thehe beginning tha year, i had put in three for this year and three for next year. i have not moved off that, but i am open to a fourth increase this year if we see inflation start to accelerate. >> let's talk about some of the wrist. we were talking about trade wars. in your view, is what we have seen so far is serious part of the economy? >> i think what we have seen so far, and with the presenters in the last session have discussed, is we have seen concern, but the overall issue right now is not going to affect the economy in a significant
way, absent one fact. the actual numbers, if you run the numbers, the percentage of gdp as described in the last session, is not a big number. however, it affects confidence. then i'm worried. not large firms, small and medium firms, who are looking at making investments are now saying at least through survey work it interviews, we may hold off on these and see how things shake up. if enough of that happens, if we lose that animal spirit, then i think we have an issue. it is a self-fulfilling prophecy. it's going to have a larger impact. >> we have a lot of fiscal policy, a lot of fiscal stimulus. is that a good thing at the time
-- at a time when the economy is growing at a strong pace? >> i'm ecstatic about the return of fiscal policy as an active tool of macro management. the timing of it was miserable. we should have had fiscal policy, expansionary, early. it was strictly a political decision on the part of the trump administration to go in. i don't think it makes sense to do it that way. i think it is giving us a grand experiment in running a hot economy. janet yellen talked about the benefits of running a hot economy. we're running a hot economy on the back of fiscal policy. but i'm not against it. but the big thing for me is that fiscal policy be ready, politically as well as economically, be used in the next economic downturn. as i look out longer-term, the biggest risk i see to the fabric
of our democracy is if we have to fight the next recession with monetary policy alone, because the consequences of having done this last time are not good. it has polarized our society. >> scott minor, the cio of guggenheim's investment division, says he believes the next recession is coming within the two years. is that what your time is? >> i think it could be sooner. what you see the fed doing now is tightening monetary conditions, and in the postwar period, the stat is something like six out of the last eight tightening cycles have been followed within the 18 months of a recession and lowdown, because money supply is constrained, it has an impact on the real economy. moreover, i think the uncertainty created by the
president's tariff initiative is likely to reduce business investment, increase costs to consumers and producers in the united states, and reduce the sales opportunities for u.s. producers. you're already seeing that, the harley move is a response to the possibility of increasing tariff wars, tariff levels both here and in europe. so the impact, the uncertainty this tariff as a tool of trade negotiations creates for businesses, and the increasing costs for consumers, is likely to slow down in demand. ♪
"bloomberg best," i'm scarlet fu. let's resume the roundup of the week's top business stories with a focus on politics and policy. turkish stocks continued to ride a roller coaster amid a slew of changes following the reelection of president erdogan. >> executive president erdogan has issued a decree naming him head of the central bank and deputy governor, the latest change signaling his plans to follow through on a pledge to tighten his grip on monetary policy under the new executive presidency. we have also seen his son-in-law name does economies are. economy czar. can you walk me through how the changes work? what authority does he have? >> previously the appointment of the central bank, even though erdogan was the supreme decision-maker, he would advise and assent. it was made in consultation with the president -- sorry, the
prime minister, the deputy prime minister, been signed on by the cabinet. now, it is just erdogan, he does that have to get any compromise or advice. >> u.s. secretary of state mike pompeo is fired back on the north statement calling the american disarmament demand "gangster like." >> if those requests were gangster like, then the world is a gangster, because it was a unanimous decision of the un security council about what needs to be achieved. >> when pompeo was on his way to pyongyang, we had the impression that the u.s. was going to be asking to get some sort of flesh on the skeleton deal that was made in singapore. the thing is, it seems that the u.s. and north korea are talking past each other. the u.s. is talking about denuclearization, and they don't seem to be talking about peace
or the end of the korean war or north korean security, and those are the things that the north koreans are obsessed with, so this is where this cross talking is taking place. we just need to see how they sort it out. >> china's foreign currency holdings increased in june for the first time since march. $3.1 trillion. key takeaways? >> earlier than expected increase of about 1.5 billion usd. the foreign-exchange coming out saying they had stable cross-border flows, and the strength of the u.s. dollar was a factor as well in seeing a tick up in the fx reserves. there is this view that as the trade war grinds on, the yuan will come under pressure and policymakers will be resigned to using the fx reserves to support the currency.
it seems like they have kept their drive and capital controls remaining firmly in place for now. >> german chancellor angela merkel meeting with china's prime minister today. they announced a number of agreements with chinese partners, including a plan for basf to open a second chemical complex. >> i think this is a very important milestone for the industry and the market, because so far until recently, it was restricted for a company to own more than 50%. we are the first two can elaborate this opportunity and we are very happy about this. i think it is a strong sign of trust. >> certainly both china and germany are trying to keep the world trade arrangements that exist now up and running,, but this relationship for china is no replacement for the united states. china ships nearly six times
as much of its exports to the united states as it does to germany, certainly not a replacement. for germany, the story is slightly different. germany exports almost as much as it does to china as the u.s. this helps cushion any below their, more for germany than china. >> bloomberg's new energy finance mr. showed a new picture for global energy investment. solar power is falling, but commitments to wind power and energy smart technologies are running above last year. >> it has been an interesting year. typically, $300 billion any year goes to clean energy, and we think when all is said and done, we may end up in the same place, but the ratios have changed. a big part of that is that china is typically the largest market for solar, and right toward the end of the first half of the year, we saw a very important announcement that china is reducing support for solar. that has caused us and others to reduce our forecast. >> meantime, in the u.s. in particular, we have seen an
uptick in wind, in part because wind projects are trying to get built before the step down of an existing substitute. that has been very helpful in terms of the amount that is frontloading investment that otherwise might have been spread out. we also see big announcements from big utilities doing wind at a bigger scale than before. >> opec released its monthly report, saying there is enough supply among non-opec nations to meet demand. what was your biggest take away? what does it mean for saudi arabia? >> i mean, i think it's a reinforcement of the idea that opec has been trying to get a, that there will not be a , thatge there will not be a shortage. saudi arabia and russia pledging to provide as many barrels as the market needs. this, to some extent, reinforces that idea that there is no need to panic, and there's no need to tweet anymore if you happen to be the u.s. president.
>> the bank of canada sticking to its plans raising benchmarks are rates of 1.5%, making it the fourth hike over the past 12 months. the canadian dollar pared sum of its earlier gains against the u.s. dollar. >> really, we're one widely presumed option, which is a hike with a reiteration that future hikes will be gradual. the bank is trying to respond to an economy and stronger inflation by moving, but of course trade risks are posing a headwind for them right now. the pace of those hikes, the subsequent hikes, is the real question mark. they look to be gently pumping the brakes. you talk about being data driven, that's another way of saying they are taking trump more by what he does then what he says, and he says a lot. i guess it's their only option. >> to install prosecutor says malaysia's 1mdb was a ponzi scheme, in which a group of conspirators pocketed funds and
bribed officials. authorities have been investigating how billions of dollars made its way into swiss banks. what are the swiss actually saying about what they discovered so far? >> this was have been investigating 1mdb for several years now, since about 2015, and they spoke to counterparts. what they are saying, it was a ponzi scheme, where about $7 billion flowed from 1mdb into the global financial system for a period of about six years. they were looking at what exactly operated. >> zte taking another step toward escaping a ban from america, even as tensions escalate. what do we know thus far? >> what we know is that zte has signed an agreement with the commerce department in the u.s.
to set up an escrow and start a payment, which is expected to start in the next waiver hours -- 24 hours. this is part of a fine of around $1.3 billion the u.s. came to with zte following the discussion by president trump to overturn this deal, this block for seven years on buying u.s. tech and semiconductors in particular. we're getting closer now to zte being back to full operation. they will then be able to buy most of those components from the u.s. side. a™ >> the justice department appealing the at&t-time warner merger decision. a judge has blocked the bid to block the deal. was this expected? it seems like this was done. >> it is absolutely not expected, this is a huge surprise. the justice department were not only blocked in their pursuit of trying to start at&t from getting a deal with time warner,
but they worse next down by a judge who said they should never have run the case in the first place, in said he would be very opposed to them doing any appeal. i think this is a huge surprise. if this happens and they are successful, you would see this huge, huge deal be unwound, which are the almost without precedent. >> deputy attorney general rod rosenstein announcing the indictment of 12 russian spies for the hacking of the 2016 election campaign. the deputy attorney general says the russians went after 5000 voters, and 12 russian spies will be charged in connection. does with this cast a shadow the over the putin-trump summit? >> this is something people will be talking about through the next couple days, and a related question to that is why did the special counsel bring this indictment? is he sending some sort of message?
>> if you go on the surt function of the bloomberg, they have the best one-day reaction to earnings of 4.8% since fourth quarter of 2007. that happened in february of 2008. it has been a while. >> it has been a long time, is a nice way of putting it. >> go to the bloomberg and use the global commodity function
here, grco. you can see it is a screen of red. the energy complex is lower, agricultural is lower. >> there are some 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television, in the hope they will become your favorite. here's what function you'll find useful, quic go. it will lead 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. >> cyber warfare is a cyber attack that has the backing of one nation with the intent of hurting another. >> it is using a computer, using hacking, to accomplish something you ordinarily need a bomb or a gun to do. >> this takes on a lot of different forms. it could be affecting an any computer, disabling it with the flood of messages, distributed denial of service attack, or with good old-fashioned malware like a virus. >> shedding of the powers a big one. shutting off services to
hospitals, transportation networks. shutting down real service, shutting down port services. >> a number of countries are known to have active cyber warfare programs, but -- >> russia decided to really go on the offense and be noisy, making it known that they have these capabilities and are ready to use them. >> like causing two large-scale power outages in ukraine, were manipulating social media to sway election. >> the thing we have to learn more about is not the cyber warfare, but the information operations. that's what happened in 2016 in the u.s. >> attacks including information operations were sent by the thousands since 2006, and those are just the attacks we know about. >> i think there's a lot that happened with the general public is not aware of. we have no idea. scarlet: and 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. that does it for "bloomberg best" this week.
♪ carol: welcome to "bloomberg businessweek." i'm carol massar. jason: and i'm jason kelly. here at bloomberg headquarters in new york. carol: coming up in this week's issue, a question. can the republican party survive a trade war? jason: we also look at the complicated relationship, to say the least, between vladimir putin and donald trump ahead of the big summit next week. carol: but we begin with our global cover story about tesla. jason: elon musk has made a lot of promises to investors and