tv Bloomberg Best Bloomberg June 30, 2019 3:00pm-4:00pm EDT
taylor: coming up, the stories that shaped the week in business around the world. trade talks take center stage. trump and xi prepare to get down to business at the g20. >> fully prepared to add additional tariffs against the chinese. >> that grand bargain president trump has set out to get is much harder to get. >> tensions as the u.s. tighten sanctions on iran. >> i don't think they will hit the sanctions will hit the ayatollah in his pocketbook. >> daimler with another profit
warning. huawei is the focus of deepening geopolitical controversy. >> it has distanced itself from the chinese military. there is a workaround to the blacklisting. >> malaysia's president is not satisfied with goldman's offer to settle the 1mdb case. >> goldman sells me a killing on this. >> the fed stays in the spotlight. top officials talk to us about rate cuts and policy plans. >> 50 basis points would be overdone. >> it's too early to know whether we should use the tool at all. and what magnitude we should apply. >> it's all straight ahead on bloomberg best. taylor: hello and welcome. i am taylor riggs. this is bloomberg best, your weekly review of the most
important business news analysis and interviews from bloomberg television around the world. let's start with the day by day look at the top headlines. president trump made it clear he was ready to impose additional economic sanctions on iran. on monday, he followed through on that pledge. >> president trump today imposing sanctions on the supreme leader of iran. telling reporters at the white house, the action would deny the ayatollah access to financial resources. further sanctions aimed at the leaders themselves. this is more symbolism that actually hurting the economy or the leaders much themselves. the economy is already in so much pain. >> that's right. i do not think the sanctions will hit the ayatollah in his pocketbook. this is to send a message to iran, every time you ratchet ratchet things up with a provocation, we will come back with some kind of robust response. sanctioning leaders of foreign countries is a big deal for the u.s.
we don't do it very often. it does send a message to the rest of the world. >> tehran says the path to a diplomatic solution with washington has closed. the u.s. imposed sanctions against iran's supreme leader and other top officials. how will these sanctions impact iran? >> iran is already under heavy sanctions from the u.s. all the major industries and sectors, from banking sectors, automotive, aviation, shipping, oil exports, energy, all are already sanctions by the u.s. it does raise questions with the iranian authorities as to whether the end game is to promote diplomacy or start negotiations, or really is it by targeting the top officials, is it regime change? >> fed chairman jay powell spoke earlier, reiterating the case for somewhat lower interest rates.
>> the crosscurrents every reemerged with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy. >> he did make the point that it's far too soon. they want to see how things play out. clearly, the decision that they made last week was to predict that things are not going to play out well over the coming weeks and months on the trade front. nothing has changed from that perspective in powell's mind. >> the bells are ringing. it has been a significant down day. nasdaq off 1.5%. some of the biggest news we have seen in a while. >> equities down and yields. ten year below 2%. we have that two-year down at 7.3. we have seen that flight to the haven assets. >> it's a very soggy session. we don't want to read into the short-term section. 2% off of the record high for the s&p. a lot of this is positioned trimming ahead of the g20. more terrible data. you had the comments from the
fed, which saw a spike in yields. >> bloomberg sources say the u.s. willing to suspend the next round of tariffs on an additional $300 billion of chinese goods as president trump and president xi prepare to meet at the g20. this is positive news for the ongoing trade tensions between china and the u.s. but no necessarily progress. it is just keeping the status quo. what are we expecting? >> absolutely. we know that trump and xi are set to meet on saturday, the final day of the summit in japan. sources tell us the trump administration is seriously considering holding off on imposing tariffs on $300 billion of chinese goods ahead of this meeting. that was the promise that china wanted to even sit down at the table. >> u.s. treasury secretary steven mnuchin speaking about progress towards a trade deal with china, telling cnbc, we were 90% of the way there.
i think there's a path to complete this. >> president trump speaking to foxbusiness earlier this morning. he said that he is prepared to add additional tariffs against the chinese should that meeting at the g20 summit in osaka go afoul. >> he's laying out two scenarios. one in which the tariffs, there's a cease-fire and no more additional tariffs. and then there is plan b, the next wave of tariffs on $300 billion of the remaining chinese imports that are not currently subject to them. i think what you are seeing is, donald trump reminding his chinese counterpart that these penalties are looming overhead if they cannot get on a path to a deal. >> all eyes are on osaka, japan. g20 leaders are gathering for their meeting. they will start tomorrow. those meetings are somewhat overshadowed by the bilateral discussion president trump and president xi will have on saturday to try to get trade
negotiation's back on track. what we have seen overnight from china is a statement from the commerce ministry saying, we are not moving very much. it has to be a mutual agreement or else we are not interested. in then there is a report the "wall street journal," i'm sure you saw, china is saying, unless you take huawei off of the table, we will not have a deal. it sounds like china is toughening their position. >> china is restating a position. all along it has been saying it wants to see all the tariffs go. it wants to see huawei let off the hook. we think a short-term truce is being hammered out. that would see a pause for president trump's tariffs in return for resumption of the talks. the reality is that the bigger deal, that grand bargain that president trump has set out to get with president xi in which he gets a rebalancing of the economic relationship, he gets key concessions on intellectual property rights and theft out of the chinese, and that the
chinese in return are able to show that they get something. that's a much harder deal to get. francine: the world's most powerful leaders are gathering in japan for key meetings that may set the direction for the global economy. the key thing to watch out for are efforts to stem rising tensions between the white house and iran and any sign of progress in the u.s.-china trade talks. >> it was a very busy day for president trump. he has nine bilateral meetings during his 24 hours or so in osaka. he had several this morning with shinzo abe and vladimir putin. it seems like with all of these countries, he had some sort of tension here. whether it was trade related or geopolitically speaking. he said there's a good chance of doing something with china. he also said when it came to pledging not to add more tariffs here if talks do not yield anything, he said no. i have not decided that yet.
he has not promised to withhold new tariffs for now. that plan b could very much be plan a. >> president xi jinping, i might add, was pretty straightforward in his criticism, criticizing the united states, not in name, but in their adversaries in using bullying tactics. also, restricting the global supply chain in technology. that is an indirect, of course, reference to the huawei situation. it will be interesting to hear over the next 24 hours as they meet face-to-face in osaka. taylor: still ahead, as we review the week on "bloomberg best," the fed under pressure from inside and out. st. louis fed president james bullard explains exclusively why he voted for a rate cut this month. >> if you think the conditions are right today, go today. that's one of the reasons i dissented. taylor: plus, hsbc's ceo says trade is just the first battleground in a global political struggle.
and malaysia's president wants more cash from goldman sachs to settle that 1mdb affair. up next, more of this week's top business headlines. turkish president demanded a do over in key local elections, the and the move clearly backfired. >> it is a significant point in a 16-year rule for the man, to have lost the city. taylor: this is bloomberg. ♪
tech giant huawei. this week, there were further developments in that ongoing story. >> the u.s. has put five more chinese tech firms on a trade blacklist. days ahead of a meeting between president trump and xi jinping. what do we know about this? >> these entities included four chinese companies as well as a research institution that the commerce says was involved in china's supercomputing efforts. the statement the commerce department released said that this is of a national security concern because they are involved in the chinese military or being developed in conjunction with military uses. the broader concern is that this is another example of the trade war moving closer into a broader economic conflict, cutting off chinese companies from u.s. components, requiring u.s. companies to move their supply chains out of china. >> american tech companies have found a huawei loophole.
u.s. chip suppliers including micron have resumed selling certain products to the chinese telecom company despite a ban put in place for the trump administration. explain to me how this would work for these companies. >> what appears to be happening is that these tech companies are coming to the conclusion that there is a workaround to the huawei blacklisting. under commerce department rules, as long as 25% or less of the technology in a certain product doesn't come from the united states, it comes from someplace outside of the united states, those products can be shipped to huawei. , despite the blacklisting, even if you are an american company. it's important to note that for intel and micron, they have operations around the world. if they can move production or intellectual property to other areas, they can get below that 25% hurdle and resume shipping products to huawei.
francine: huawei has has worked more closely with the chinese military than previously admitted. the telecom giant has collaborated with china's armed forces on at least 10 research projects in the last decade. they include efforts to identify emotions in online video comments and analyze satellite images. how much is this a surprise? >> it should not come as a surprise. why we think it's remarkable or notable is for the very simple reason that huawei has gone to great lengths to distance itself from the chinese military. they have said, we have no substantial relationship there. what this shows is that there is a handful of employees who have done some research and have done in collaboration with the military. >> the lira has jumped after the turkish opposition candidate had a landslide victory in a rerun of mayoral elections in a -- istanbul. the original that had been overturned after the party narrowly lost.
weakened,erdogan is is he?ually, how i imagine he reran the selection this election because he thought he would win? alaa: it's a set of things right now. this is not the only city he lost. he lost almost all the major cities. it is a significant point in a 16 year rule for the man, to have lost the cities. istanbul is a turkish commercial hub. there is a network of patrons that you would lose. it is too early to tell whether this would actually have a significant impact on the president's ability to stay in power until the next presidential election or beyond. romaine: the rally in gold shows no sign of stopping with prices
now climbing to a six-year high as global uncertainty fuels gold's appeal as a haven. is this about where people think the dollar is going to go? luzi-ann: i think so. going back a few years ago, gold has been languishing below 1350. even with all the problems in north korea. we have always had this thing about iran going back and forth. even then, it never got off. it never surged above the 1350. what has changed now is the fed. people are talking about the prospect of lower interest rates. given that the gold doesn't offer any yields, the only way you are making money out of gold is when it goes up. if you have interest rates going down, that becomes more competitive for gold. caroline: oil is extending its gains as u.s. crude stockpiles see their biggest drop since 2016. momentum in a market already rallying on the standoff between washington and tehran. it feels as though the inventory numbers keep shocking the market.
tina: oil is doing much better now. if you think about how the crude oil market has been for the last four weeks, we started to see the price decline at the end of may. it has been a prolonged u. >> there was excitement over the export numbers. tina: yeah, exports at a record, products and oil. we are looking at the potential of having an entire month now in which the u.s. has exported 12 million barrels per day of oil. that is insane. that is saudi numbers. no one 10 years ago would've thought you were serious talking about those levels. anna: u.s. prosecutors are investigating an international network of traders suspected of infiltrating banks and companies to gain confidential information on megadeals. that is according to bloomberg sources. so what exactly are the u.s. prosecutors looking at here? >> well, they are looking at a couple of things. it's an interesting probe that the u.s. is taking a lead on now in the southern district of new york. prosecutors in france and the u.k. are also looking at some parallel tracks.
they are looking at a global ring of traders who have a lot of funds, details that are interesting. they use burner phones and change their sim cards to gather information. what they are looking at is two things. one, they are looking at how they get the information. are they getting it from lawyers or people in banks? how they get it, and then what they do with it. they are looking at their relationships with journalists and whether they are leaking information to get them to write stories about it. so that might manipulate the stock price. guy: today was decision day at the supreme court. the next to the last of this term. and by a 5-4 vote, the court today declined to undermine the courts traditional deference to regulatory agencies. kevin: the court was being asked to overrule a statute that courts should defer to agencies when they are interpreting their own regulations. businesses did not like that. they thought it gave agencies too much power to shift their interpretations. the supreme court with the liberals being joined by roberts
roberts said, we will leave that intact. we will put limits on it. as a general matter courts need to look to the agency's own interpretation of the regulation. it's a big boost for the power of regulation and a setback for business. >> bank stocks rallied after the close on thursday. investors were impressed with the results of the fed stress test. so the european banks surprise the most. >> they certainly did. deutsche bank came in with a pass from the fed, that is not what everybody expected. they failed before a couple times and they passed because the fed saw that they made a lot of improvements on prior years in terms of controls and whatnot. credit suisse has an issue. they have a conditional pass. they have things to do by october. >> the worries about the global financial crisis may be starting to move to the back burner.
i mean every single bank , passing. you also have a record amount of payouts at $172 billion. analysts were expecting $150 billion. a good outcome for the banks. ark: reports out this morning that deutsche bank is prepared to cut as much as half its global workforce in equities trading as part of a broad restructuring to try to boost profitability at the bank. what about the equity business? >> we will focus on the businesses outside of europe. the whole plan is part of an overall strategy to focus deutsche bank more on europe. in the u.s., there are indications they will keep intact, a skeleton operation to be able to service european large clients if they have any equity capital markets needs there. apart from that, it seems like pretty much everything is up for grabs. ♪
joe president trump continuing : his attack on the federal reserve this morning, tweeting, despite a federal reserve that does not know what it is doing, we are on course to have one of the best months in june. in u.s. history. think of what it could've been if the fed had gotten it right. now they stick like a stubborn child when we needs rates cut. chair powell: at the fed, we are a strictly nonpolitical agency. we are human. we will make mistakes. i hope not frequently. we won't make mistakes of integrity or character. >> the president saying that jay powell doesn't know what he's doing. he thinks we would've been better off with mario draghi. >> it's outrageous that the white house is trying to publicly neuter the fed and have the president dictating monetary
policy. that is bonkers. taylor: president trump keeping the pressure on jay powell throughout the week, blasting him in tweets and interviews for declining to cut rates at the central bank's june meeting. at that meeting, one as fomc member dissented from the decision to delay a cut, st. louis fed president james bullard. he explained his thinking in an exclusive interview with bloomberg's kathleen hays. ard: inflation running low and inflation expectations running low, the economy is looking to slow down more sharply than we thought. seems like you better get inflation back up to target while you can. so that's why i thought we should cut here. also, by not cutting, now we are putting high probability on the july meeting. fellow committee members, but by not cutting, now we are putting high probability on the july meeting. generally speaking, i don't like
that as a tactic, say that we won't do something this time but, don't worry, we will do the next time. i say, if you think the conditions are right today, go today. that's one of the reasons i dissented. kathleen: do you like an element? bullard: you are putting high probability on the next meeting. you are saying, not now but maybe next time but not maybe next time. it is very unclear what kinds of data the committee would be expecting to get during the decision time. kathleen: talk of a 50 basis cut at the end of the july meeting is louder now. are you on board with that? mr. bullard: i think 50 basis points would be overdone. i don't think the situation calls for that. i would be willing to go 25 today. i hate to prejudge meetings. things can change by the time you get there. if i was going today, that's what i would do. kathleen: why is 50 basis points overdone? what is wrong with that? is it a bad strategy? does it set up certain kinds of risks?
mr. bullard the economy is : expected to slow down to something below 2% in the second half of the year. that isn't the end of the world. inflation is running low. inflation expectations are running low. we would like to push those back towards 2%. i don't think we have to take huge action. this is more in the realm of insurance, ordinary adjustments to monetary policy that you should be making to be sensitive to market development. taylor: more fed speak ahead as michael mckee's sits down with the san francisco federal reserve bank president mary daly. and malaysia's president says goldman sachs made a killing in the 1mdb scandal and his country , so his country wants more compensation. coming up, more talk about trade. hsbc's john flynn blames trade tensions for the global slowdown , but he says they are part of a much bigger picture. john: i think it is clear that there's a broader desire to see china contained in some way.
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taylor: welcome back to "bloomberg best." i am taylor riggs. time now to revisit more of this week's compelling conversations. let's start at the aspen ideas festival, where federal reserve bank of san francisco president mary daly sat down with an to an interview with michael mckee. michael the market has priced : more than 100% chance of a fed rate cut on july 31, i have never seen that in 25 years, more than a month out, can you ignore that? can you ignore what the market is telling you?
ms. daly: well, the markets are trying to figure out and think about what the reaction function of the fed is and i think at the heels of the press conference we have a good indication and i agree with that indication that we have six weeks of data that looked different than may do we , do we have softer readings on inflation and a softer jobs report, and a lot of headwinds blowing our way, financial conditions, global growth, uncertainty around trade. looking for the next six weeks of data and seeing if it is transitory. i think the markets are trying to figure out that. michael if you do a rate cut on : july 31, how do you feel about whether the debate on 50 basis points or 25 basis points? the new theory it is better to take stronger action earlier? ms. daly: that theory is not as new as it seems, this is just the first time we have had to think about it in a long time , but it came out of the research after the great
recession and the recovery, that using your tools early and maintaining a way that will depend in my judgment for me on how the data comes in. if the data shows significant weakening, it would call for different actions that if the n if the data says we are getting headwinds that are slowing. it is too early to know whether we should use the tool at all and what magnitude of it we should apply. taylor: from aspen to london, where this week bloomberg hosted the emerging and frontier forum, . hsbc ceo joined francine lacqua on stage for a conversation where he shared insight into global trade tensions starting with their impact on business and economic growth. you can definitely see a
postponement in investment decisions, the longer we do not know, the longer this tension continues without a resolution and certainty, the greater the potential of the postponement of investment will accelerate the slowdown. francine: is that worldwide, or in the u.s. and china? john: i think it is a worldwide thing. i mean, we have already got europe experiencing reasonably soft economic conditions. there is a different reason for postponing investment in the u.k. i think -- but generally, the u.s.-china trade tension is the dominant economic theme, and i think it is affecting sentiment everywhere. francine: is this about trade or , or is it something bigger? who will rule the world in the next 20 years? john: i think we have learned it is definitely about something bigger. trade is the first chapter in the story and once we get past trade, there is a broader desire to see china contained in some way. i think we will move in a chapter that covers technology
and maybe a bifurcation of technology and technology standards. taylor: another exclusive perspective on geopolitics this week came from australian prime minister scott morrison, speaking with bloomberg in sydney, he said that u.s. negotiations with china are indeed top of mind for nations approaching the g20 summit. but he stressed they are part of a larger network of global economic relationships. we are looking to them to put the broader global economic interests, which is what the g20 is all about. it is not the g2, it is the g20, and for those nations to create a context for broader global prosperity, of which they would be key beneficiaries, they would benefit more than anybody.
the global economy being strong. heidi: what does australia do in all this? there are lots of concerns, and at some point, and it's already happening depending upon who you speak to, that they are being forced to choose from our strongest ally and our greatest trading partner. so how do you deal with that pressure, and what does not sitting back and letting collateral damage happen? mr. morrison: well, i reject the pressure, i reject the requirement to participate in a binary way. it is a false framework, and it is not helpful. it is driven by a demand to see every issue in terms of conflict rather than resolution. i think australia and my government will be very positive in rejecting that dynamic. because i do not think it is helpful. i do not think it is a helpful analytical framework, i do not
think it is a helpful commentary at framework. it gets people excited about the possibility of conflict, or interested is the better way than to call it excited, and that can generate interest but we are wanting a peaceful and stable world. when those frameworks are opposed as a sensible and mature and reasonable nation, then you call them out, which is what i have just done. taylor: to a conversation from finance to politics as the malaysian prime minister says goldman sachs offered about 240 million u.s. dollars as compensation for the role it played in the 1mdb missing money scandal. he feels it is not close to enough. he spoke to bloomberg on why he
is demanding much more. mr. mohamad: goldman sachs took 10% commission in addition to a hefty interest rate of 6%, that is not usual for governments, governments normally get less than 3%. but the 10% extra that goes to goldman sachs means that we get 90% of the money raised. but we see interest on 100%. that is what it means. i think goldman sachs made a killing on this. >> you have said that you are waiting for a response from goldman. what was the query? mr. mohamad: we wanted to settle it outside of court if possible. but it seems they are not willing to offer a reasonable sum of money.
: and what is a reasonable sum? is it still 6.9? ad: we want to get our 10% back at least. haslinda: when will you take legal action? mr. mohamad: it depends, we will try to expedite things. haslinda: how long are you willing to wait before you take legal action? mr. mohamad: we are very patient. [laughter] mr. mohamad: we cannot say please expedite this matter, we cannot do that. haslinda: will you be filing a civil suit on top of the criminal suit already? that depends on the case. we will have to examine the case. ♪
week in business with a focus on company news, starting with the deal that brought together two high-profile players in pharma. >> abbvie agreeing to buy botox for cash and stock. it is seen as a good thing and we see shareholders of allergan, selling off the stock, is that an overreaction? >> shareholders are losing some stock because they are going to spend a lot of money and pay a big premium for a company that has some of the same problems they do. allergan and abbvie both are dominated by big, older drugs which make up a huge portions of their sales and looking for the next act which is each other. it probably buys them time to
figure out the real future of this combined company will be, it will throw off a ton of cash , and they will get synergies. it will give them some flexibility. >> another resort is buying caesars entertainment for $8.58 billion, creating america's largest owner of casinos, the . the deal was backed by carl icahn, caesars largest shareholder who had been pushing them to consider a sale. brian: carl icahn took a voting control of caesars with the express purpose of installing the ceo of having the company sold, it had gone through challenges with respect to debt restructuring and cutting costs, and this is an opportunity to combine it with a another company, eldorado resorts,
which, while smaller, has been adept at reducing costs and achieving synergy. the presumption is that the company will achieve cost savings and asset sales, $3.6 billion to help make the deal feasible and profitable. francine h20 asset management is : hemorrhaging money, losing over 5.5 billion euros in four days, and monday saw its biggest ever single day drop. why are we seeing huge outflow numbers in waves? >> so this story is about a week old, and it is linked to illiquid bond securities tied to a german financier. what is interesting one week later is that h2o, the fund manager, has taken aggressive steps to calm investors but according to the data they do , they do not appear to be calm. there are questions and serious questions around the assets. what is dangerous for h2o is they want daily liquidity funds, that means investors can hold their money at any time. if you are an investor watching this unfold, you may not want to wait for the surety that h2o may or may not provide.
you don't pay the risk, you just hold. david: trade begins with the new unit at volkswagen, it is their trucking unit, they would spin it off, because there was unlocked value to be had. not so good in the first day of trading, down 2% or so. francine: what is your strategy in china? are we going to see more plans for local joint ventures? do you see openness from china to adding more foreign investors will increase? >> we see the potential for european trucks in china really growing. the cost of transportation efficiency is much higher than in local production. francine: by how much? andreas: it's growing and it has been very successful. francine: by how much do you see
it growing in the next five to 10 years in china? andreas: it depends on market development. there's always a potential there. we started once with 2000 trucks, now 4500 and in the next five years, it could easily be doubled or tripled the volume. matt: it is the third profit warning in a year from daimler, . they are blaming a bigger than expected hit from diesel emissions but it has known about the scandal for a long time. they have a new ceo, he has only been in the seat for a month. it left him holding the bag. what is the story? oliver: the problem is, they have been happening for a while, why are they coming? the last couple of profit warnings always had different reasons. once it was trade, other times it was other emissions topics. always some sort of reason and , and today we are seeing the diesel scandal.
after three profit warnings, investors will have to take a look and ask if there is something fundamental we are not seeing in these financial disclosures. guy: ford is eliminating 20% of its european workforce by the end of next year. this is the detail we have been waiting for from the original plan they gave us. >> yes, that is right. they started telling us in a piecemeal fashion starting in january that they were restructuring their european business. you can see why, they lost more than $1.3 billion over the past two years and were consistently losing market share in europe. now they have told us they are closing a number of plants and also given as the actual number of cuts they will be doing, 12,000 people, about 20% of the workforce in europe. >> top corporate story of the
day, shareholders voted in favor of a new board and director committee. this is set to ease tensions with their partner renault. as they chart a path forward in a two-decade-old alliance. some would say this is progress, governance is being dealt with and they are talking about the dividend. dave: investors have some things to be cheered about with this result. they are moving forward. the governance changes were approved, and nissan is moving ahead. there were some good noises made about the future of the alliance with renault. at the same time, more problems to work through, questions went unanswered in this event and a lot of troubles ahead for these companies. anna: tesla could be on the verge of a record of vehicle deliveries says elon musk. he says the electric carmaker will need to go all out in the last couple of days of the month to achieve that. the record number, a surprise? >> maybe not.
the record in the past was just in the fourth quarter, they did about 90,700 units. they have said for this quarter they would do some were in the range of 90,000-100,000, in the grand scheme of things, this is consistent with what the company was hoping for this quarter. in saying in his email yesterday to employees he passively admitted they may come up short of that if they fail to go all out in his words. vonnie: more problem for boeing's 737 max, tests have revealed a new flaw unrelated to fatal crashes. u.s. regulars are ordering them to make additional design changes. how on earth did they miss this? >> that is the question, how are we still finding out about new problems with the 737 max? for me, it is more troubling it
that it is not connected to the software flaw that led to the max.atal crashes of the this is a separate issue but can cause the airplane's nose to dive in a similar fashion to what we saw in those fatal crashes. it raises more questions about the fundamental design of the max. is it sustainable? they shifted things to accommodate the larger, more fuel-efficient engines and had to put the software systems in place to stabilize the airplane and make up for the change in the center of gravity. that puts more pressure on boeing to come up with a successor that is built for those engines designed from scratch to accommodate that. >> fedex beats analyst estimates on earnings per share for the fourth quarter, but its annual forecast trailed wall street projections and the ceo said he
was disappointed with the trade under the trump administration. brendan: it is a tale of two trends, the rise of e-commerce, fedex expects to make more money from e-commerce shipments next year and investing money to do that faster and more profitably. what is dragging them down is trade weakness. china is a big part of their future, at least the way they have planned it. the challenge they could face is it is possible china could put them on a list of unreliable companies. that would damage their business at a time when both fedex and ups are plowing money into the being able to serve more customers in china and handling e more traffic across the pacific. >> president trump erring his grievances about social media companies today. the president took aim at facebook and google, accusing them of bias and saying the federal government could file suit.
shares of both companies drop on the news before the white house plant a social media summit. we have heard this complaint about anti-conservatism, but what, if any, grounds could the u.s. sue google and facebook? ben: that is the background, . donald trump may be referring to steps they have taken to probing four of the big companies, google, facebook, amazon, apple for a list or possible competitive behavior. he is referring to increasing the scrutiny in congress at the white house summit and in the agencies. francine: after decades at the firm, the man behind many of apple's most iconic products, the chief designer, says it is time to move on. as well as the iphone design and the original imac desktop computer, the ipod, and the ipad. what does it mean for apple? you reminded me that it was a tiny percentage of the market
valuation. >> we saw a slight drop in the share price, about 1% of the market cap. a number of years ago, the reaction would have been more extreme. in the past two years and three years, apple has expanded the emphasis on their services offering with itunes, the app store, apple music, that has gained a far greater significance. though the itunes store itself will be eliminated, that means that the emphasis is moved away from the hardware. the importance he holds in designing these glass and metal bricks, essentially, is not the driver of its growth in the way that it was a couple of years ago. ♪
bitcoin futures. >> yes. the key thing about bitcoin futures, for everyone you control five bitcoins. and then there is march, and that is the ideal thing of margins of error. one speculator cost $23,000. per margin it costs you two bitcoin to control five, that is a volatile position. taylor: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites. maybe they will become your favorites. as we wrap up the look back at this week on "bloomberg best," let's look ahead to an exciting event happening next week, the boston pops fireworks spectacular is the united states largest and oldest public fourth of july celebration. here is a look at the pops by the numbers. ♪ taylor: we will have exclusive
♪ carol: welcome to "bloomberg businessweek." i'm carol massar. jason: i'm jason kelley. we are at bloomberg's headquarters in new york. carole: this week, a special takeover issue. a binge-worthy issue filled with true stories of robbery, bribery, and fraud. jason: including theft in mexico with tragic consequences and how one man raked in millions on biodiesel tax credit with multiple.
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