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tv   Bloomberg Best  Bloomberg  November 17, 2019 3:00pm-4:00pm EST

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juliette: coming up on "bloomberg best," the stories that shaped the week in business around the world. wall street listens carefully as president trump gives a speech on the economy in new york. >> if we don't make a deal, we are going to raise those tariffs. >> we did not get the news summer hoping for. juliette: fed chair jay powell sent a message to markets as he testifies on capitol hill. >> there's not much more they can do so they will sit and wait. juliette: unrest in hong kong grows more intense. >> we have seen this for five months. juliette: saudi aramco fleshes out its public listings. >> their hands are tied in terms of production policy by the
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saudi government. juliette: goldman sachs and apple in a credit controversy. >> he got 20 times the credit limit. juliette: alibaba shatters sales records on the annual singles day. >> $38.3 billion. juliette: plus the top interviews featuring bankers and central bankers from around the globe. >> the slowdown is a concern. i am seeing that it has bottomed out. >> i see the level of the policy rate as appropriate for the economy we have. >> negative rates are something which hurt the economy. >> the important message for the market is these interest rates are low for a prolonged period. juliette: it is all straight ahead on "bloomberg best."
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juliette: hello and welcome. i am juliette saly. 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 a day by day look at the top headlines. the last 22 weekends have seen mass protests and sometimes violent clashes in the streets of hong kong with monday usually being a day to recover. but this monday, unrest spilled over into the work week. >> stocks in hong kong fell the most since late august as protests escalated after police shot and wounded a protester. >> you mainly see this kind of chaos with the tear gas in the riot police on the weekends. all over hong kong. but not usually this weekday in the middle of the day. a lunch hour kind of situation. there was tear gas, chaos in the streets.
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it was spurred by, as you noted, the shooting, live shots of someone early this morning. it was a day where protesters had already called for a general strike. we have seen this on weekends for five months. we have not seen it many weekdays. weekdays, businesses have been able to operate in the central part of the city, the financial hub, without relatively too much disruption. that changed today. >> the s&p 500 eking out a small gain. it did retreat from record highs earlier. this after president trump not really adding much insight into the china trade negotiations. maybe not as much as the market had been hoping for. the president said a deal between china and the u.s. could happen soon. while also warning about the potential consequences of not reaching an agreement. president trump: if we do not make a deal, we are going to
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substantially raise those tariffs. they will be raised substantially. >> if you look very hard through what was really a tour through the greatest hits of economic policy in the trump administration, you maybe got a little bit of a hint at some progress in the trade talks. but we did not get the news some people in the markets are hoping for. some folks were hoping we might get an announcement of a signing date for he and xi jinping to meet. this was very light on news when it comes to trade. the markets don't seem overly excited about that. they really did not bunch very much during that speech, and that tells you we got more of the same. >> steady as she goes. that was basically the message from jay powell in testimony before the congressional joint economic committee. but he said the central bank is ready to deal with any challenges. >> we think monetary policy is in a good place. but we will be watching
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carefully incoming data. if developments emerge that cause a material reassessment of the outlook, we will act appropriately. >> he did not make any news. that was his goal. the fed has done its bit. the economy is being stimulated somewhat by the fed being a little accommodative. that is about where they are going to stay as long as the economy continues to perform about as it has. there are still threats out there, particularly trade and the slowdowns in other countries. they are going to keep an eye on those things. but for now, there is not much more they can do so they will sit and wait. juliette: trade talks between the u.s. and china have reportedly hit a snag over purchases of agricultural products. further rattling investors already on it from president -- already on edge from president trump's latest terror threat. i thought the agro purchases were the most done part of the deal. they were meant to be the lowest hanging fruit. >> if there is one aspect of the talks that confused everyone it is what is happening with these agricultural purchases.
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it is politically important for trump that china knows that it . for trump to have a deal, he wants something where he can say to farmers, look at what i did for you. i have been able to secure these purchases. i do think probably china is using that to its advantage. >> trade uncertainty appears to be taking its toll on china. the country's economy losing more steam in october. retail sales slowed more than expected. reflecting how cautious private companies have become. >> two big takeaways from economists. on one hand, they said the numbers suggest sub 6% growth. it fastens the idea that the chinese growth target for next year will be below 6%. economists say it underscores why china needs to secure a trade agreement with the u.s. and we had a comment from the commerce ministry saying whatever agreement is reached
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will have to include a provision around the rolling back of tariffs. >> hong kong faces a fifth consecutive weekday of disruption. the long-running unrest is hitting the economy and undermining a string of public and corporate events. >> the frustration in the streets are gaining. that 70-year-old man hit in the head by a brick, he has passed away. also, there was lots of news yesterday that spread like wildfire that the government was preparing a curfew for this weekend, beginning presumably today. most of the comments coming from china are from xi jinping. he is speaking in brazil. nothing necessarily new but the fact he is speaking about the hong kong situation on third-party soil is significant. he says the continuing violent crimes have trampled on the rule of law. he is voicing steadfast support not only for the chief executive policee lam, but for the
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for punishing what he calls the violent criminals, even though there has not been due process. >> hong kong expecting its first annual recession since 2009. the city has revised estimates for economic growth as political unrest shows no signs of abating. gdp is expected to contract from -- 1.3% from the previous year, according to the government. meanwhile, third quarter gdp shrank 3.2% from the previous quarter. how difficult is it to model future economic growth or a future recession if the protests stay as they are? >> pretty difficult. it is not good for the economy. what we are seeing right now is the shops have closed early. businesses closed. restaurants are down. if that continues, it is obvious what the effect is. the only question is how much. >> larry kudlow signaled the u.s. and china are making
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progress in trade negotiations, saying we are coming down to the short strokes. we are in communication with them every single day right now. are we anywhere closer to a trade deal or are we in the most treacherous phase right now? >> i think we are in a messy endgame. we have been here before. we were in here in may for a bigger deal and that fell apart . but on this phase one deal, they are still hashing out some of the final issues including details of chinese agricultural purchases. exactly what sort of intellectual property commitments they will make. and the timing of any tariff rollback, or whether the u.s. will do any tariff rollbacks. there is a lot that can still go wrong. right now, all the signals are we are in that endgame. >> record highs, s&p 500, going through the 3100 mark. we are currently seeing record highs across the board. juliette: still ahead as we
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review the week, the ceo of unicredit insists negative interest rates can have positive effects. plus, an exclusive conversation with san francisco fed president mary daly. >> i am a little bit open to the idea that the risks are on the downside. juliette: up next, more of the week's top business stories. disney launches its streaming service. and the first day does not exactly go magically. >> there are just too many people trying to get into the door too quickly. juliette: this is bloomberg. ♪
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juliette: this is "bloomberg best." i am juliette saly. let's continue our global tour of the week's top business
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stories in china where alibaba again staged an e-commerce blowout with its annual singles day event. >> alibaba surpassing a sales record, bringing in more than $38 billion u.s. for singles'day bonanza. what were the most popular items? >> we have a huge number of electronics. they are pushing a lot of products through us. we have got new iphones. those are the top of the list. it is really the headline number, $38.3 billion worth of sales this time around. that is an increase of 26% from the year previously. interestingly, this is what people are looking at, it is a slight slowdown in the pace of the growth. analysts and investors are inferring some knowledge about
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what is happening to chinese consumer confidence. and whether the slowdown is reflected in alibaba's singles' day numbers. >> we are missing the magic. the launch of disney's streaming service hitting technical difficulties because of overwhelming demand. is this good or bad that there are technical glitches and crashes for users? it creates a buzz. it feeds this narrative disney + was such a big deal it broke the internet. >> this is not good, it is a lack i. not what they wanted. we were speaking to them last week. they say this is not the end of the world. we spoke to a lot of technology people about this and people who work with disney. they say this is not the end of the world. it seems complaint levels are coming down.
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there are just too many people trying to get in the door too quickly. >> disney shares soared to a record high after 10 million fans signed up for the new video streaming service in just two days. there were also a lot fewer complaints. it has been huge for disney. we did not expect they would get to 10 million this fast. >> no one seemed to expect that . the headlines now are disney dazzles. yesterday, it was disney+ becomes disney minus. the stock was pushed to an all-time record. at one point, it was up 7% intraday. what disney gains is not only a lot of cred for the ceo who staked his legacy on the video sharing. but it allows them to bundle together products for espn and hulu as well as the higher price. >> bloomberg was first to report a wall street regulator is opening a probe into goldman sachs's credit card practices. over the weekend, a well-known tech entrepreneur tweeted about
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his frustrations with the apple card and the disparate credit limits between him and his wife. you are the first to break this news. it immediately triggered a regulatory response. what is the potential issue here? >> this has blown up. it started with david hansen the , guy who created ruby on rails, a popular programming tool, complaining about how he got 20 times the credit limit his wife has got. immediately got online traction, everyone sharing experiences. before you know it, the regulators saying we want to regulators saying we want to look into this. the issued they are looking into is to see whether these credit assessments banks use, that credit card agencies use, financial services companies to determine how americans borrow money, to try and make sure there are no inbuilt biases. that is where we are right now. >> walmart reported third-quarter earnings before the bell this morning. when it did so, it showed earnings beating estimates.
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the retail giant boosted its outlook on growth for the year. >> the key has been groceries. this is a category where they saw a mid-single-digit increase in comparable sales growth. it has been a real strength for them for several quarters now. in particular, it is boosting online sales. they rolled out this buy online, pick up in store program. it proved really popular with shoppers, especially in the suburbs and especially at a time when amazon's grocery strategy looks incoherent, it is a win. >> tencent out with earnings. fitness the lowest analyst .stimate walk us through the latest numbers. >> the top line and the bottom line, there was weakness. revenue is up around 20%, a little over 20%, which is not bad. but in china, that is pretty weak for chinese standards. the real weakness was in advertising. but the upside, smartphone games posted 25% growth.
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last year, there was a crackdown on games in china. but they have been able to get more games out into market and monetize those games. going through to the bottom line, they have been higher cost for r&d and more content. that is really what is happening at tencent. juliette: we are watching for nissan to begin trading. the automaker has withdrawn its dividend outlook and is now undecided on a payout in an unexpected blow to the top shareholder. how is this likely to play out with this relationship? >> renault has three seats on the board, including its top leadership. you can imagine it will play out as a concrete battle on the board over the payment of this dividend. they are relying on this. it comes to hundreds of millions of dollars. they rely on it as a key component of their own earnings. that is going to be a boardroom battle that will help define how these two carmakers work together going ahead, what kind
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of dividend that shakes out to be. >> they are selling what could be $30 billion worth of bonds to help finance the acquisition of alergen. -- allergan. it could be the largest bond sale in it could 2019. bloomberg reporting this is a deal that has attracted more than $70 billion in orders. >> that's right. we just found out the deal has launched at a size of $30 billion. a little bigger than the $28 billion we were expected, showing what a great environment this is for funding. they are really leading the calendar with the biggest deal this year. it will be the fourth-largest of all time. it is not just in investment-grade, it is high-yield. we are seeing 10 new deals announced today. most of those look like opportunistic financing because borrowing costs have been so cheap. >> kkr is said to have formally approached walgreens with a deal
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to take the company private in what could be the biggest ever leveraged buyout. how did this come together? what do we know at this point? >> we know the walgreens ceo has been talking to private equity groups about a potential take private of the company. kkr was one of the groups in initial discussions. we've learned today they have put in a formal approach. what happens next is they will probably look to do some diligence. we are working to find out what kind of price we are talking about and how the deal unfolds. >> cg capital is among the groups bidding for the unit. sources say it is one of the businesses that submitted by last week's deadline. the business could fetch more than 15 billion euros. why 3g capital. they are better known for burgers and ketchup. >> that is a very good question. what is the link between burgers and french fries and elevators. really, there is none other than
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they are looking for a good investment. they have put the asset on the block. they really need the money because this is a company that is struggling. a couple of suitors have been sniffing around this particular asset. for them, it is a new industry. one that is still growing fairly well. for them, it would offer an interesting new avenue. >> boeing shares surged after it provided a new timeline for the 737 max to return to service. the company says the faa is on track to certify the redesigned flight control software next month. do we have some sort of positive expectations that this plane will be back in the sky? >> that is the way the market took it. boeing came out with a statement that had some good news and bad news. the bad news was it boils down to about a one-month delay in expectations of when the max will have full regulatory approval. the timetable has shifted to
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january instead of december. the good news was that the extra detail that boeing provided and the assurance that they gave around the january timeline was taken as a big positive by investors, at least. ♪
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juliette: you are watching "bloomberg best." i am juliette saly. this week, jay powell told congress he feels the fed's current policy stance is appropriate for now. san francisco fed president mary daly holds a similar view. she explained why in an exclusive interview with bloomberg's kathleen hays. >> we calibrate policy to make the baseline growth be sustainable and promoting goals
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of employment. and price stability. the policy accommodation we have taken, which has been three great cuts this year, has put policy stance in a good place to make the baseline come out. where we needed to be, slightly above trend growth and continue to move up in inflation to target and further progress on full employment. i do think of that as the economy is in a good place. of course, we continue to be data-dependent and look at the risks and see if the baseline changes even with this accommodation. >> is this a pause in the fed rate cut path? is the fed at a policy crossroads? do we go this way, that way? what needs to happen next? >> can i give you a third option? my third option is where i am today. i see the level of the policy rate right now as appropriate for the economy we have.
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which is good consumer spending, good domestic momentum, but facing headwinds which have hurt business investment and manufacturing. we are in a moderately accommodative stance. that's appropriate. i feel like we can stay in that stance for the time it takes to get inflation back up to 2% on a sustainable basis. >> i am hearing you have paused. what you are trying to figure out now is -- you are saying you probably don't have to do anything. but you are just as willing to say inflation is rising, i guess we will shift policy in that direction. the headwinds have stirred up again and we will have to go in the other direction. >> one thing we have to do is look forward. even though i have characterized the economy as in a good place, and policy is currently appropriate, we also have to look at the risks that emerge. on one side, you have the potential for the accommodation we have given to spur the economy and the stimulus other
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countries have put in place works and we have some upside potential. but i think on the other side, there is some downside risk that continues to emerge. we could come out with slower global growth. we could get a furthering of trade uncertainty. we still have the brexit issue to settle. i am open to the idea the risks are on the downside. but right now, i see the policy stance we have got as the right one for the risks we have ahead of us so far. juliette: there is much more to come, including highlights from a busy week in european politics. angela merkel signals support for the e.u. banking union, while in spain it did not go as planned for the prime minister. >> we look at the state of spanish politics. fair to say today it is a mess. >> coming up, more compelling conversations. the unicredit ceo says despite negative rates, european banks have a good relationship with the ecb.
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>> the ecb has made a lot of progress in the supervision side. juliette: this is bloomberg. ♪ here, it all starts with a simple...
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juliette: this is "bloomberg best." i am juliette saly. they defied expectations of a rate cut this week. the bank held at 1% saying it is standing by to add stimulus to the economy if needed. adrian ore spoke exclusively with bloomberg about the decision. mr. orr: the first thing is an interest rate at 1% and a very low, flat yield curve is highly stimulatory for the new zealand economy. the exchange rate has been below measures, broad measures of fair value, also adding toward a more stimulatory nature, and that has
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been for quite some time, you know, the last year or so, so despite the global growth slowing, our terms of trade and export process have been quite positive. the trade in the exchange rate is bleeding through, the interest rate side, we have seen it, a blunt broad talk. we see it at least maintain spending. >> when you decided to keep rates on hold, i guess you expected to see more of a market reaction. was that a good of an, "ok," or was it a surprise? mr. orr: no, it was not a surprise. we have had one of the biggest debates around when we landed on the decision, how do you communicate this so that it does not confuse and correct unwanted efforts. any central banker's desire is
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that you can deliver a message, which leaves conditions probably on the same space of where they were. that is what happened. you know, they are all different shades of loose stimulatory levels for the exchange rate and the interest rate. i think the important message to give to the market is that these interest rates allow for a prolonged period. -- are low for a prolonged period. juliette: india's banking sector has been under pressure. the country's economy is slowing down at the same time as it is dealing with nearly $200 billion in bad loans. the state tank is india chairman believes the situation is improving. he spoke exclusively with haslinda amin in singapore. >> as far as the slowdown is concerned, i am seeing in bottoming out. from hereafter, things should be much better. haslinda: how about the rest of the banking industry?
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mr. kumar: the banking industry also, i look at the numbers from different banks whether private or public sector, all of them have done much better than one year ago performance. they are slowly coming down off the difficulties. but to say everything is now hunky-dory and everything is all right, that would be overoptimistic. but at the same time, things are looking much better than they were. haslinda: the rbi, regional bank of india, says it wants to link pay with performance. do you think that will help the issue at all? mr. kumar: 75% is still. there is no issue with fixed compensation. direct think there is a
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correlation or link between the proposal. it will impact one of private sector. it may have some impact about their decision-making process. but at the same time, i am praying that they do not become too risk-averse. juliette: european banks have been complaining loud and long about negative interest rates, but this week, francine lacqua set down with unicredit chief executive jean pierre mustier, who admitted negative rates could be a good thing. here he is in another bloomberg exclusive. >> negative rates are something which help the economy. many people criticize the e.c.b. saying they negatively impact the top line of the bank. but at the same time, negative
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rates help the european economy to a modest rate of growth. net-net, the banks have been having a decent performance. maybe now they are low, only get for longer, it might have a slightly negative impact on banks. we shall see. francine: does shearing help? jean pierre: it does, and the e.c.b. can do more. they could increase the multiple. francine: how would you describe the relationship right now between the banks and the european central bank right now? jean pierre: the regulators, there is only so much you can do with them, but on the supervision side, it is a matter of trust.
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two or three times a day, we speak together so you build trust and can benefit from one each other. and the ecb has made a lot of progress on the supervision side. in five years, they did something super good. juliette: it has been quite a week for alibaba. it raked in record sales on its annual singles' day extravaganza, and it began taking orders for hong kong share sales that could be more than $11 billion. founder and former executive chairman jack ma spoke with bloomberg. jack: a trade war might be, i would say, the usa and china relationship might be in some turbulence in 20 years, the next 20 years. we have to be very, very careful. i think it is so important for china and the u.s., two great
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countries working together, to support the economy, prosperity, share a lot of technology together, and for so many years, china and the u.s. have been working together. there is a problem. that is very natural. if there are no problems, that is not natural. we have to solve the problems. we should not create more problems. >> is there still a plan to list financial? jack: some they will, but we are not in a hurry. we do not have a plan for that yet in the short term because financing, first, we are very profitable. we grow very healthy, and there are a lot of things we want to do in these years to make sure that we have enough investments for the future. >> if you did list, do you know
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what exchange you will be looking at? jack: just like i say, we are not thinking about when to marry, so we are not thinking about where to marry yet. ♪
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juliette: you are watching "bloomberg best." i am juliette saly. let's resume our roundup of the week's top stories in business, finance, and politics. spain held its fourth general election in four years, with the caretaker prime minister hoping to strengthen his hand and form a new government. the vote did not go according to his plan. anna: there is a political deadlock, it would appear, and -- in spain once again. the gamble looks to have backfired with yesterday's general election returning fewer seats for his socialist party. maria: this was supposed to end the deadlock, the fourth
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election in four years. if you look at yesterday's results, it probably made it worse. the socialists won the election, but they lost seats, and more crucially, they have no path to a majority. there is speculation the country could be headed to a grand coalition with the traditional rival, the pp. the party leader says they want to stay in the opposition. when you look at spanish politics, it is fair to say today it is a mess. and you are seeing a lot more political fragmentation. you can see a very frustrated country. guy: in spain, they are forming a coalition to break the deadlock. sanchez's socialist party will end to months an of sparring, we think. if i look at spain and i look at italy, politics look very similar. alberto: i agree.
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it is a semi-populist coalition, where you have the mainstream parties and some populist parties combined. the good news is we have the scene in europe after a populist government, generally the electorate begins to move toward a more pragmatic program. we are not really worried about instability. there is reforms that need to be done between now and the next slowdown. this is more a problem at the european level, though, than at the national level. guy: the head of the brexit party, nigel farage, has beaten -- boosted boris johnson's chances of winning the majority, albeit marginally. nigel farage says he will not contest the 317 sets that boris johnson's conservative party won at the last election. >> this is just over a week after he threatened to put 600 seats to conservative voters if
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boris johnson did not repudiate his own brexit deal. that was a nonnegotiable request for johnson, who then unleashed a great deal of criticism against farage, basically saying the brexit party was going to spoil brexit if they continued to oppose. so it has given the conservatives a break there, however, not in many seats, which are held by the labour party and some liberal democrats. guy: the labour party leader jeremy corbyn pledging to bring free broadband for everybody calling for open reit's partly , paying for it on taxes primarily on tech companies, including facebook and google. this is the party's most striking move as the election campaign tries to win voters. is this realistic? >> no. we are going to get lemonade
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from taps next. it sounds good. "we are going to give you free broadband." in practice, it is really hard to implement in an effective way. frankly, it is more likely to slow down the rollout rather than increase it. francine: chancellor angela merkel has signaled her support for european banking. while not an official endorsement, her approval suggests a willingness to explore the possibility. is angela merkel now signaling a breakthrough? >> yes, i think that is what she is saying. she basically says europe needs to move ahead, and she is aware that germany has been standing on the brakes, largely because of her own party, because the party is basically opposed to committing to a deposit scheme. but she knows that this internal blockade needs to be broken up, and she has signaled support for scholes to move ahead. shery: china's credit growth
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slowed more than expected to the weakest pace since at least 2017 . what is this telling us about the effectiveness of the targeted measures? limit ofnts to the these measures by the pboc, targeted to ensure that banks lends more to the private sector, it simply is not coming to fruition in the way that many officials in the people's bank of china would have liked. look at the aggregate financing number for october. it came in at $88 billion u.s. but it is the weakest number since 2017. it is a fourth consecutive month of slowing expansion of adequate social financing. -- aggregate social financing. look at the new loans number as well. that jumped to the lowest number in 2019. this credit data now puts the pressure on the pboc to act more aggressively than it has been in
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the past. nejra: the world's third-largest economy also adding to global growth concerns. japan reported an unexpectedly sharplyrd-quarter missing estimates as the global flow hit trade exports. chris: .2% growth is never a good thing, but there are a couple of reasons why japanese policymakers may not necessarily be overly concerned about this slowdown. so, first of all, we have got a significant rundown in inventory. there was a hit from trade. that is not a surprise, but we have seen some positive prospects for a deal on that score. net-net, what does it mean? well, we have got prime minister abe and his administration compiling a fiscal stimulus package now. the numbers are not so bad that they would argue for an even bigger package that already
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envisioned. perhaps about ¥5 trillion. and that net-net means less pressure on the bond market. francine: germany has dodged a recession. europe's biggest economy has posted surprise growth in the third quarter but weakness is expected to persist. what helped to keep up growth? chad: they narrowly avoided that recession. it came in part because of consumer spending and strength in the construction industry. as you know, the building boom is continuing in germany here, in berlin, for example, the boom has been such that they have actually frozen rent here to try to control the increasing prices. so it is really on the consumer side where they have managed to avoid recession, just barely, here in germany. francine saudi aramco will allow biddingors to start
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november 17. what is one question people want to know? julian: certainly people want to know the sizing and the price. this is the big thing that has been left out. but i think there are a number of worries around this ipo from potential investors, not least the fact of the company's hands are tied in terms of production policy by the saudi government and by their commitment to opec. saudi arabia has traditionally taken the biggest share of opec output cuts, and that means this proportionate -- a disproportionate burden is resting on the shoulders of saudi aramco. that is not a comfortable position to be in if you are a minority shareholder. francine: the world energy outlook was released today. the agency says there are deep disparities in the global energy system. global demand is set to plateau
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around 2030 as opec considers further production cuts. when you look at peak oil, and 2030, could it come sooner than 2030, or could it be postponed if the world changes in terms of growth? faith: it could go either way. if the governments take much stronger clean, efficient technologies, push them much stronger, we may well see that the peak can happen earlier, but at the same time, if the policies of the governments were to go in the other direction, we may see peak comes later. nejra: money managers out with with their latest holdings and moves in the third quarter. filings revealing the latest trends among hedge funds after a dramatic three months of the market. sophie: we have facebook and netflix as some of the most popular trades. harvard management making facebook their single biggest equity trade, but we have
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microsoft here, the second quarter in a row, unloved, despite a more than 40% gain in the period. with that said, that does not mean all tech companies are doing well. in the second quarter, remember, uber was the most significant trade for hedge fund firms. in the third quarter, there was a decline. stan druckenmiller's firm sold almost all of their state. travis kalanick has sold a lot himself. why does it matter? if you look at hedge fund performance, it has been lackluster. but i think a lot of people are hoping the markets will go up. equity hedge funds have been doing better than anybody else in the class. so people are hoping that the volatility can really form a resurgence for some of these guys and post some really significant gains through the end of the year. guy: the house intelligence second day of public hearings underway with the former u.s. ambassador to the ukraine testifying. any bombshells?
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kevin: former ambassador marie yovanovitch testifying, saying she felt "threatened," when she learned she was featured in the july phone call between president trump and president zelensky. she also testified she feels that her ousting by president trump in may was a hit at morale at the state department as well as for diplomats all around the world. president trump, for his heart, having a busy morning as it relates to the impeachment inquiry. he tweets, "everywhere marie yovanovitch went turned bad. it is a u.s. president' right to appoint ambassadors." republicansd largely sticking to partisan sides with no signs of republicans breaking from supporting president trump. ♪
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mark: it will take a lot for it to not derail this rally that we are seeing in america, unless president trump says everything is off, and i am increasing tariffs across the board in china. there is no reason to think the global economy is going into recession. juliette: you can follow this on the bloomberg blog. find out how it is affecting your investments at any point in time. there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here is another function you will find useful, quic . it will lead you to our quick takes where you can get fast insight into timely topics. here is a quick take from this week. >> 5g, or fifth-generation
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mobile service, promises a lot, nothing short of a revolution in the way we connect to the real and online worlds. it is the first big upgrade in a decade, but it is not smooth sailing. debates about security have put the u.s. and some allies at odds with china and could delay the rollout of 5g. this is your bloomberg quick take on 5g. 5g, in principle, should be light years ahead of 4g, first designed to be 100 times faster than its predecessor, reaching 10 gigabytes a second and very low latency, allowing you to download a full movie in a matter of seconds. south korea switched on in and is expected april 2019 to achieve top speed by year's end. japan and parts of china are not
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far behind. u.k. providers were aiming for limited 5g in 2020, but elsewhere in europe, some are questioning the business case for an all-out rush for the service that will cost billions to deploy. when will 5g be the new normal? don't hold your breath. even if you live in areas where companies are already rolling out 5g, it will be a couple of years at least before it will let you use your 5g phone. furthermore, you need a 5g phone. huawei, lenovo, and others, are releasing 5g phones soon. apple will not market a 5g phone until 2020 at the earliest, as it waits for the market to develop. what are the security worries? 5g is not easier to hack than 4g, but if it is hacked, we have more to lose. the current conflict focuses on huawei, the world's largest
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reducer of telecom equipment. the u.s. and other nations worry that chinese 5g equipment could be used to spy on them, a kind of trojan horse in the mobile network. that has not been proven, but the concerns are serious. huawei is favored by providers because of the technical edge and lower cost. but the u.s. wants to keep the company away from what it sees as critical national infrastructure. president trump has curbed its ability to sell them united states and by parts from u.s. suppliers. by 2024, the amount of data carried by mobile networks will be five times greater than today. 5g networks are expected to cover more than 40% of the population by then, according to ericsson. the question is not if you will get 5g but when. just get ready for a lot of controversy along the way. juliette: 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 will be all for "bloomberg best" this week. thanks for watching.
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i am juliette saly. this is bloomberg. ♪
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jason: welcome to "bloomberg businessweek." i'm jason kelly. kailey: and i'm kailey leinz. we are inside bloomberg headquarters in new york. jason: this week in the magazine, allegations of gender bias from the new apple credit card and its issuer. we are talking about goldman sachs. why it is the poster child for a bigger issue with algorithms. kailey: john legere. details on that, plus a

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