tv Bloomberg Best Bloomberg March 26, 2016 8:00am-9:01am EDT
♪ nejra: coming up on "bloomberg best," the stories that shaped the week in business around the world. a terror attack devastates brussels. we examined the global impact on policy, security, and markets. >> clearly it is in our business interests that borders remain open. the cooperation between countries has to be strengthened. >> people should not overreact to this. nejra: a big week in tech as iphone goes small while twitter celebrates a big anniversary. bloomberg covers it all, from apple to xiaomi. >> it was a profitable company for a long time. nejra: and in the weeks best interviews influential people , speak on topics of critical importance.
>> you would rule out the possibility of using nuclear weapons against isis? >> i am never going to rule anything out. nejra: it is all straight ahead on "bloomberg best." ♪ nejra: hello and welcome. i am nejra cehic. this is "bloomberg best." a weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. in retrospect, this week has been dominated by tuesday's tragic terror attacks in brussels. but on monday, attention was focused on silicon valley and a major product announcement from apple. >> apple unveiling a new iphone called the se at its event in cupertino. with a smaller screen and a smaller price tag, starting at $399 for the cheapest new iphone ever. what are your big takeaways? >> i think it's just interesting. i was making an analogy with the golden state warriors.
how rather than go big or go home, the old traditional basketball adage, they found that small ball works well for them and they won a world championship doing that. you can see apple tried the same strategy. apple is finding ways to go small. they got to 30 million people and that was a shocking number. 30 million people bought an iphone 5 last year. they have dedicated users who want to use smaller phones and want to pay less for it. >> they should take away that they are being slightly more aggressive, maybe appropriately aggressive, with a price that should be more in line with emerging markets. this is a great price point because it is going to be more attractive, but at the same time, it is not going to be at the cost of their margins. >> once again europe wakes up to , the threat of terrorism, once again in belgium, and we have to try and understand the scope of what we understand are probably coordinated attacks and how big this network is. tom: you really wonder how they will adapt, how europe will adjust.
from london to paris and now brussels. >> this certainly seems like a coordinated attack. it certainly appears to be in response to the apprehension on of the main living suspect in friday the paris attacks last november. of course, you know the belgian government has been under continual criticism since november, in terms of its terror, anti-terror campaign. why did it take four months to apprehend abdeslam? it seems like he was here if not inmolenbeek at least in the , greater brussels area for that time. they did get him on friday. they thought they had made a major breakthrough in the terror campaign, and this seems to be a big setback that we have today with these multiple explosions. scarlet: belgium is on the highest terror alert level after three bombings in brussels today. at least 31 people are dead more , than 180 are injured. police are at a standstill as
they search for more bombs. >> this is where many of the 31 people were killed in the two attacks that took place in brussels today. we had one attack here at the subway station, which, to put things into context for you geographically, we are right in the heart of the european union, the european commission. i'm actually right now surrounded by buildings that belong to the european commission. if you think about it, this is really the first large-scale terrorist attack, the largest terrorist attack that has taken place in this country since the second world war, and at least one of the attacks happening right in the middle of the e.u., the european commission's headquarters. >> credit suisse is accelerating its restructuring. the bank has announced it could cost savings of $1.7 billion since 2016, costing an additional 2000 jobs. credit suisse is a number of banks struggling to boost profits. >> back in october, credit suisse said we have to kind of
triage what we are going to tackle here and we need to improve our macro business first. credit is doing ok, but then the fourth quarter came credit fell , off the cliff. that continued in the first quarter. they had losses on distressed assets. now they are saying this is moving up the priority list. >> you said you were surprised by your illiquid positions. when did you find out about them? >> in january. >> why was this not clear before? >> as i said on the record, this was not clear to me and to many people inside. that is where we need real cultural change. it's completely unacceptable. there have been some consequences around that. francine: are the people trying to withhold information or was it just -- tidjane: it is a very interesting question. it is linked to a cost problem. if your costs are too high and you are not taking them down, you will lead a river in your strategy. a lot of the problems with investment bankers is that people try to generate revenue
at all costs, if i may say so. it was a high-yielding book, and generating a lot of revenue. so people were reluctant to reduce it because it would expose the cost problems. >> chinese premier, looking to asia to be the growth engine of the world, calling asia the -- to be the growth engine of the world. he had a lot to say. steve england is at the forum , and he really, really kept banging on about growth, didn't he, steve? steve: the outcome looking from the chinese leaders tends to be a little more sunny than in previous months. they are seeing signs of stability. that is the point that he made to the delegates in the forum in asia. mostly it is a chinese conference, but it is intended to kind of be china's version of the world economic forum for asia. ok, and he kept on hammering the
point that they are seeing stability. the quality of economic growth, according to him, is improving. he emphasized that china has enough tools to ensure "stable economic growth," and he is confident that china can maintain that pace of growth, 6.5%, over the next five years. he says, in his estimation, the fiscal deficit is not too high. he also said on the yuan, they will not devalue the yuan to boost exports. and on the property market, he said we want to avoid major fluctuations in the property market. he is aiming for steady development. nejra: coming up on "bloomberg best," a close-up look at the impact of tuesday's terror attacks in brussels. ♪
i am nejra cehic. the investigation into tuesday's terrorist attacks in brussels continues. go to bloomberg.com for the latest details and analysis. throughout the week, bloomberg television tracks the impact of the bombing on global markets and gathers insight from experts around the world. let's look back at the best of that coverage. francine: when we first heard about a possible explosion, futures did not do much. and then we saw a clear but shy risk-off mood. are people now dealing with this kind of thing in their stride? are we mispricing terror risk? >> it is one of the hardest risks to price. typically the short economic impact tends to be quite visible. the economics of things always point to the fact that economies tend to survive these things. markets don't tend to price a persistent long-term impact. however, near-term you do see
flows and price actions, such as the one we are seeing at the moment. >> as we look back, whether we are talking san bernardino, paris, or 9/11, the markets have taken a leg down following attacks, but we have also seen a very strong rebound. we are asking, is this time different? >> the market that seems to be reacting most is what we will call the brexit trade. the weakening of the pound, the widening of the buddha, the sterling, too. that is because we have an election coming june 23, whether or not they stay in the euro. now you have political sides that can take advantage of this. if this happened a year ago, there isn't any political opposition that could take advantage of this. but now, not only do you have it in the united states, but you also because of brexit you have it in europe, too. they will take advantage of this, and that is why you see more of the political trade having a bigger move than the gender playbook, -- standard playbook how do i play a
, terrorist trade? >> the markets are usually or have been at least in the past two years or so pretty resilient to these terrorists. >> that is the right thing to do and it also turns out to be the more profitable thing to do. we should not be terrorized. the actions of a few sociopaths, it is horrible and we have a member of my team in brussels -- he is fine -- but at the same time, the reality is it does not change the overall movement of the global economy. it does not change the outlook the profits or interest rates. so people should not overreact to this. >> borders will be strengthened initially. the topic of schengen will come up again. as a businessman that operates within the european union, how important is schengen as an agreement and as a pillar of the e.u.? do you consider it under threat, and what does that mean for business europe-wide? >> as a european and also u.s. media company, we operate in many european countries.
and clearly it is in our , business interests that the border remains open and free trade continues. and is applied to all of the businesses i know. clearly, our objective has got to be that despite everything and despite concerns about security, borders remain open and people continue to travel and trade continues to flow. stephanie: could an attack like this or in paris get those governments around europe to point fingers or to try to act more in a unified way? thomas i very much hope to see : the latter. we have seen a real weakness of europe in the last weeks and months. in particular with regard to the , euro crisis and the refugee crisis. i very much hope that this is one positive thing that will come out of what is happened in brussels, that this will lead to a more unified approach combating terrorism. >> i do not think this has
significant implications for europe's policies in the middle east, which of course is the reason why we are having so many of these problems, nor do i think it has an impact on a divisive u.s. presidential election in the states. emily you do not think it is? : >> i do not. no, i don't. we have already had these two major paris attacks. we have had a number of major terrorist attacks in turkey. we had the german assault, and now we have brussels. i think by next week, frankly, i would be surprised if in the united states this is the kind , of headline that we are still actively talking about. i think we are increasingly getting inured to this kind of violence in europe. god forbid we have an attack like this in the u.s. it would be very different and would have a political impact. certainly a number of the political candidates, trump included, are going to try to to make a little bit of hay on top of these headlines, but i do not
think it will be significant for the u.s. presidential election. no i do not. >> there are statements from leaders all around the world, including from president obama it have been a, about a response , about a response to this terrorism. what do you think government needs to do in order to defend our allies against attacks like this? >> i think we have to identify with what has happened to the europeans because it has happened in this city before. god forbid if it could happen again. the terrorist group islamic state is a threat both to the u.s. and canada as well as to all the europeans. what it means is, we have got to rally around them. so judicial cooperation, law enforcement cooperation, and making sure that our intelligence agencies are working together, that is the best way probably in a situation like europe where you have , homegrown terrorists in the city of brussels, in the suburbs of paris, the best way to help europeans. alix: pound falling today, posting its biggest decline in major currencies, all of that on speculations that the brussels explosions will boost the case
for a brexit the result of , closing more borders, curbing immigration, all of that fear potentially permeating what we might see in the june referendum. >> indeed it feels like a repetition of that particular occurrence. we had the bombings the tragic , events in paris that led to an increase in support for the output. in the brexit, if you look at the polls we did see a swing in , favor of the leave flow. in the subsequent months. that was reflected in a sustained selloff in the pound, against the euro. the repetition of that seems likely in the near term. that stops at some of the negatives are already in the price, so if anything, unless we see a very significant swing in the polls, the pound downside from current levels did not exceed what we have seen so long ago. >> lots of people talking about the future of schengen and the political pressure that some of europe's leaders are under.
how do we see the euro trade and how does this tell us about how euro, are perceiving the a safe place to put money in the euro? >> what we saw yesterday was the euro not performing well at all. you can explain that by saying that concerns about schengen and the e.u. have been going on for a little while. they have been going on for a little while perhaps this brings , it to a head. i think positioning explains why the euro did not perform well. if we go back to about a year ago, when the u.s. started to perform well when we had risk off events, that confused the market at the time, but we must remember that if we go back to the start of last year, the market was very, very, very short in the euro. and i think what we've had is a big correction in positions since then. and now the market, i think, it has recovered to more normal levels, meaning that the euro is more vulnerable on bad news. >> it's not quite the safe haven play was a few years ago.
>> i think it is very difficult to say that euro is a safe haven, even a year ago. it was exhibiting safe haven behaviors. really, i think that was short covering. >> david cameron, the british prime minister making it clear , yesterday that we should not conflate the issue of what is happening in brussels with the issue of brexit. other people not taking that view. you look at the financial market reaction and that line was drawn fairly quickly. how does this story play in to what happens with that debate as we work our way through the next three months? attacks like this, how do they actually impact the story? >> a impact it exactly as the market showed yesterday. the pound went down minutes after brexit. against all its major rivals. the reason is people will draw that line, whether rightly or wrongly. david cameron has been out in recent weeks saying that the -- leaving the eu makes britain safer and stronger. the situation in brussels challenges that view. there are other parties that will draw a thick line between that and there are others that
will draw in inference or raise an eyebrow. >> what is the mood like in the belgian government, ambassador? there has been criticism of the handling of this both of the government and the security forces. the spotlight, of course has , been on belgium since the paris terror attacks in november. it has led to the question, how is this allowed to happen? >> we may be, given the openness of our society, we are one of the most open countries in the world. as a matter of fact, we happened to be the most open economy in the world, and that openness normally is an asset, but sometimes it becomes difficult. because when things are right in the world, you benefit from it. when things are less well, your are subject to problems, as we right now face. >> what needs to be done on a europe-wide level to combat terrorism? >> if there is a lesson to be learned from the recent past i
would say, it is exactly that the cooperation among european countries has to be strengthened. most of the countries are fully aware of that. as you know our prime minister , spoke with mr. hollande yesterday. that was one of the topics he addressed. what is the point? the point is that intelligence should not only be gathered, it should also be exchanged and beyond the exchange of information, the intelligence should be actually used by the final destinations. that is not always the case. so there is some work to be done, but i think the awareness is fully there. ♪
this week, marriott raised the stakes. >> starwood shares of the hotel company soaring today after it accepted in improved takeover bid from marriott. valued at are we in the middle $13.6 billion. of a takeover battle here? >> very much so. this is a classic takeover where we saw them coming with this improved offer last week. obviously marriott has just come back to match it. they've gone slightly over it. i think what is interesting is starwood has clearly been left open for they come back. i think it is very likely that we will see anbang come back to the table on this one. >> is there a game changing price? what is the ceiling here? how high can both companies go? >> it is a really good question. i think from our point of view we think that marriott would , have put more money on the table if they really wanted to put this knockout bid on there. clearly by just bumping this a
small amount, it suggests maybe they have some more room to go, but maybe the chinese come back in first and there is more of a bump for marriott. the chinese have shown themselves to be incredibly ambitious buyers in the space. they have done the strategic hotel deal with blackstone. i think this is going to be one that will run for a while, and i think we are going to see another bump for sure from anbang. rishaad: the first chinese company to sign up as a major fee for partner and also has been a major theme of the football body since the corruption scandal. roz has got more in put. roz: last year xi jinping made football a national priority. since then, we have seen some wealthy investors from china really put money behind the sport. the chairman and founder has -- china's richest man, according to bloomberg data. he has been aggressively
investing a 20% stake. last year with the deal with fee ifa it's running through until , 2030, worth hundreds of millions of dollars. rishaad: is a good value for money? is it a good use of that money? roz he says it is very : worthwhile. he says other chinese companies could sign up to become top fifa sponsors also. >> valeant ceo mike peterson is stepping down after a series of controversies that culminated with the 61% drop in shares last week alone. we know that mike peterson is out and bill ackman has two new board seats but there is not a , new ceo yet, correct? >> we do not have a new ceo yet, and pearson is going to be staying in until they find one. but we know that the board has asked the former cfo, howard schiller, who is still on the board to resign because they , have accused him of financial impropriety which is leading
, them to restate some of the results. >> shares in valeant rising after a second day of news that michael pearson will be stepping down. hours after that news, pearson was said to have sat side-by-side bill ackman and how they will adjust hundreds of workers in the new jersey office. what do we know about what they said? >> months ago bill ackman was talking about how they were involved and interested. it seems to be mostly passive. bill ackman himself is sitting on this board after yesterday's announcement and doing a town hall style meeting with mike pearson, who has been outed as ceo and chairman of the company. they are saying there will not be major layoffs. debt is the priority to pay down here. they are looking for somebody to replace pearson as soon as possible. >> what is happening to former cfo howard schiller? can he be made to leave the board? >> it starts to get really messy. howard schiller, former cfo and current board member, they have accused him of impropriety and how everything is handled with
some of the restatements there and have asked him to resign from the board. he has refused. he has $26 million in bonus he is sitting on. it is probably a lot easier to find that fight a clawback from , inside the board than from outside. scarlet: sharp shares tumbling in tokyo. nearly a month and since it's board voted in favor of the bailout proposal from foxconn, but the deal has been held up. peter is there a risk that the , deal could fall apart? peter there is. : as you mentioned, we are coming up on a month now since sharp's board approved of the deal from foxconn. it is 26 days to stay. it is a growing list of issues that foxconn is going through before it signs this definitive agreement to proceed with the deal. they looked at some contingent liabilities that sharp has had. they are looking at some of the loans that sharp has to see if they can roll those over at lower interest rates and perhaps get some more favorable terms.
they are also looking at the company's performance in the current quarter. there are reports out there that foxconn may try to decrease the amount of money it is putting into sharp, in additional equity. that was originally proposed at ¥489 billion. so we may see that number go down a bit. angie: so the timeline, when can we expect a decision or an announcement? peter march 31 is a big day for : them. they have credit lines and loans expiring on march 31, and next month we will probably see some movement with foxconn on the front to see if this acquisition does indeed proceed. >> activist investor starboard value is saying they will nominate nine new members to the yahoo! board, effectively trying to replace the current board entirely. this is the 1.7% shareholder that is growing frustrated. impatient with a possible turnaround at yahoo!. so we know a little bit about
starboard's plan. they plan to take over, basically, right? >> yes, it is effectively a palace coup. it is worth pointing out, vonnie, starboard has done this before, in 2014, when they nominated new investors in darden restaurants. it was in the process of selling red lobster and currently owns a little garden. succeeded, and says then darden , shares are up 50%. that is not the way it is going to play out at yahoo!, because starboard is not interested in a turnaround at yahoo! what starboard wants yahoo! to do is to sell the core business and then we will see what happens. vonnie: it is interesting to see who starboard is planning to put on that board. if it can, of course. that's a shareholders agree. one would be the former head of tech m&a at deutsche bank. and then somebody who used to run directv. eddie hart and stein. : it is not a question for shareholders, and it will be for
shareholders to decide if the proxy fight goes forward, is whether they like these directors better, whether they think they can do a better job than the current board. the current board does not have a great track record over the past 18 months. nejra: still to come on "bloomberg best," an anniversary assessment of twitter at 10. up next, the week's most important interviews, including a conversation on terrorism with u.s. presidential candidate donald trump. ♪
♪ nejra: welcome back to "bloomberg best." i am nejra cehic. hours after tuesday's attack of brussels, bloomberg television's mark halperin sat down with leading presidential candidate, donald trump. their conversation about u.s. foreign policy and the response to terrorism leads our review of the week's most important interviews. donald trump: the first thing you have to do is get them to respect the west and respect us.
if they are not going to respect us, it is ever going to work. mark: one element is that they don't respect the west? donald trump: i don't think you can do anything, and you will not be successful unless they respect you, and they have no respect for our president and for our country right now. mark: whether you would will out tactical nuclear weapons, would you rule that out? is is that something you contemplate? donald trump i would be very : late, compared to my opponents running. mark: you would not rule it out? donald trump: i am never going to rule anything out. i wouldn't want to tell you that. at a minimum, i want them to think maybe we would use it. it is the worst thing when we do these interviews, everybody, not just me and you ask a question , like that, and everybody comes so clean, so honest. we need unpredictability. isis is an enemy. it is an enemy not wearing uniforms.
the fact is we need unpredictability. when you ask a question like that, it is a very sad thing to have to answer it because the enemy is watching. and i have a very good chance of winning. i don't want the enemy to know how i'm thinking. but with that being said i don't , rule out anything. i would say definitely, nuclear weapons are a last resort. >> i want you to speak to the people in the st. louis district who go, but will he give you a zero, it has been my income for 10 years. where do we get the growth? >> the central bank cannot drive the growth process. here is what monetary policy is. there is a business cycle. if you run a good policy, there is a business cycle, but not as vague. that is what monetary prelacy is. the growth right was driven by a long run factors and capital. what the u.s. needs is a better medium term growth strategy. you need everyone to get on board with that growth strategy. tom can the next president do
: that, or does it come from congress? closed the zero bound and qe, all of your dictionary policies, much of which is still in place, intervening to growth. are they still affected? james i think they are still : accommodative. i think we are providing an accommodative policy with the zero interest rates in our big balance sheet. but i do think you want to be edging closer and closer to something of a more normal setting so that you don't get stuck in this zero rate environment, the way japan did. you want to edge your way towards a more normal nominal , interest rate structure. i think that would get us back to the kind of equilibrium we had in the 1980's and 1990's, which was really pretty good. >> when it comes to monetary policy, how do you see it? now for monetary policy eight years has been cutting rates over and again.
the has helped people spend today rather than in the future. we have brought spending from the future to the present, that boosts demand and output. tomorrow becomes today and we have done a hold lot of spending. central banks are being forced to do more and more. it is like a cyclist pedaling up a hill that is getting steeper and steeper. they have got to pedal faster and faster to maintain the rate spending. that is why there is diminishing returns a monetary policy. >> you mentioned that they are trying to do all they can. i looked at the bank of england -- i'm sorry, the bank of europe, the bank of japan. experimenting with negative rates. how effective have they been? these were seen as extraordinary measures. king: yes, and you see with japan and the euro area, in essence, banks are trying to push down the exchange rate. most countries in the world can say now if only the rest of the , world is going normally, we would be fine. but since it isn't, we aren't.
what is left? push down the exchange rate. not everyone can push down the exchange rate. most countries have been trying to do that at the expense of the u.s. dollar. now even the federal reserve is concerned about the strength of the u.s. dollar. >> european energy stocks have been on a tear recently. this is a pe story. energy stocks are trading at the highest premium versus the market in more than decade. would you be a buyer at this point? >> i feel that the situation is changing. i feel like in this period, in terms of supply and demand, there is an anomaly because the supply is going down. and the demand is increasing, not at the same speed we would hope, but i think there is some recovery. the situation is a little bit changing.
the stock, the physical stock, is very, very high. and so, it depends. but what we are seeing, in 2016, we can reach a balance in september or october. and then, we don't know about this dock, physical stock is still high. i feel in 2017, the situation will change. >> i am curious to bring it back to the equity stock. your stock has gone straight through the roof. but the earnings story is going down. analysts are downgrading energy estimates. the price is going up and the earnings are going down. something is not right. claudio: no something is not , right. i'm not looking at the oil price. i'm not looking our stock at the moment. i looking at the company and our
investors. you cannot do anything about the price. you have to work on your costs. you have to be resilient. you have to be strong also. when the prices are poor, empty dollars, i think it is falling, the falling of the price and try , to understand what is happening, is, you are wasting your time. >> china recently had its nationals people's congress. there was some concern that the chinese government is too concerned on stimulus and short-term growth at the expense of reforms. what is your take on that? >> we believe that china will continue to grow. number one. our assessment, at the moment, is 6.3%. we have to assess the decisions that have been made by the chinese authorities to factor in those decisions, and see whether we forecast a little bit more
growth, possibly. >> you recently urged asian nations to take the lead in adopting policies to counter global economic challenges. which country specifically need -- which countries specifically need to work on this? what specifically would you like to see? >> i think the whole region needs infrastructure. and you know, the financing of infrastructure whether it is , entirely public or public and private, it will have a short-term impact on growth, as well as a medium term impact on improving product distribution factors. to see that across the region would be extremely helpful. that has been recognized by many investors now. ♪
were scheduled to continue their court battle over digital privacy. a hearing in southern california was canceled at the last moment. >> the u.s. said yesterday it may not need apple's help to unlock the iphone from the san bernardino attacker. the news has led a judge to postpone the court hearing over the issue. do you think the battle between apple and the fbi is over? >> not at all. i think this is going to go on for a long time. sadly, today's of developments in belgium will ensure that. when there is an atmosphere of fear, there will be a constituency for intrusion into our communications. id that is a given. david: yesterday, the 11th hour, the government came forward and said, we don't need you after all. if that is true, if that does work, does that substantially undermine apple's position in the sense that these phones are not as protected as we thought they were? david kirkpatrick: maybe for the
iphone 5s, which is what we are talking about. but earlier phones are less secure. for future phones, and has no bearing whatsoever, in my opinion. on the other hand, i think there's a lot of posing on both sides of this entire issue. in fact, what is really new about this is that the fbi went to court to make apple comply. in fact, quietly i think -- we know there has been cooperation. i think probably they did not need to do it, and apple can do things, and probably has done them in places like china, but we might not really want to talk about publicly or they would not , want to talk publicly. >> another tech headline. twitter turns 10. the company reached that milestone on monday. but as we discussed on bloomberg go, its recent performance has not been cause for celebration. >> 10 years ago today, twitter cofounder jack dorsey sent the very first tweet.
mr. dorsey now finds himself as ceo and facing a barrage of problems as he tries to navigate the next 10 years, and shares are close to an all-time low. growth has stalled. now, the cover story. he sat down with jack dorsey for an exclusive. what did you learn? >> they have a big problem. dorsey thinks it is basically marketing and product. they have the user growth stalled out at 320 million users. the other problem is so may -- so many people have already tried it twitter and decided they don't like it. part of the huge challenge is getting those people back. stephanie what is the recipe? :not just really great marketing. the actual game plan? >> part of it is convincing people you don't have to tweet to use twitter. you can sit there and just listen. and that twitter is the best
place to listen to world events that you are interested in. whether it is sports or politics or entertainment. stephanie if that is argument, : isn't working with advertisers? at the end of the day, they have to make money. >> advertisers like the product. advertisement is going pretty quickly. that is one of the best things they have going for them. but they want a bigger group of users. they want closer to what facebook has which is 1.6 billion users. stephanie if you think about : facebook and acquisitions they have made, whether whatsapp, instagram -- you cannot even compare to twitter. i may last year, paris cap and are they even in the game? , $86 million. >> jack dorsey has very high hopes for periscope. ridiculously long story about a bottle that he walked over periscope and how people can smell, get together. stephanie a puddle? :felix: yeah, a puddle on the street in england.
his point was basically that pairs go can make life events out of anything. you don't have to wait for the super bowl for twitter to get charged up. it is kind of like -- maybe a puddle of tears makes the argument. what does he think the company will look like in 10 years? felix he thinks it will grow, he : thinks they will get users back, and advertisers will follow. but i think part of it is convincing people again the at you don't necessarily have to tweet, be active. you can add editorial controls onto this firehose they have already created. haidi: china's highest valued start of just released an update. much like apple, it had to field questions about slowing growth in its home market. lulu chen caught up with the vice president this week and asked whether the company plans to raise any more money.
>> we are not raising at this point. in fact, our last raise was the december 2014. we raised over $1 million. that gives us a huge amount of investment firepower. we have been investing content in start up companies. the business itself is operationally self-sufficient. we don't really need to raise any more money beyond the round that we did, which was focused on investments. lulu how long do you think this : will last? hugo the company can keep itself : going operationally. lulu as of when have you been : profitable? hugo we have a profitable for a : long time. when you look at how much money we have raised -- you know, right away, we have been a profitable company for a long time. lulu last year, you sold over 70 : million handsets, a little bit below expectations.
now, analysts say the valuation is not sustainable. what would you say to them? hugo: first of all, looking at the china business we were , number one in china in 2015. in fact, number one for the second year in a row. even though the market is not -- at 400 million dollars at the year, growing fast anymore, we are maintaining our leadership position. it is also a very competitive market. we are doing very, very well. nejra: we will be back to wrap up bloomberg best with a memorial tribute to a silicon valley legend. ♪
venture capitalists than horowitz spoke to emily chang about his life and legacy. emily: you and andy were very close. you called him the greatest teacher and the greatest ceo ever. i want to know more about your relationship with andy and what he meant to you. ben: it started with me reading his book. it is this amazing thing. here's this guy who came here literally as a refugee, and then built intel, which was, in my era was the most important , technology in the world. time, his time as ceo, he wrote a book called ," and a lotagement of ceos write books, but no ceo writes a book like that. most write about how great they
are work on a company they built. run a companyw to the right way. i think it is still one of the best management books ever written. it completely change my career to have a book like that. emily: it is interesting because reigned at intel threw fits and starts. it was not always perfect. what was so important about him when it comes to the history of silicon valley? how did he shape this place that we know today? ben: i think not only did he build literally the foundational company, the microprocessor -- and to get to the microprocessor intel was in the memory business , for the first 13 years of life, which is an eternity in tech, usually that is it for you. when you get to 13 years. he was forced to switch the business to microprocessors, something he foresaw might be a big market. he was forced by the japanese, subsidies.
if forced them to switch the business that late in his life to microprocessors. something he foresaw might be a big market but at the time was tiny. intel, and as a result, the u.s. essential tog both the microprocessor market, and the pc industry, which led us to be the center of the internet. he kind of was the foundation for the u.s.'s leadership in technology. know that was the really , big thing. but beyond that he was also the , cultural foundation of silicon valley in that his leadership in turning around, once he achieved what he did, and making sure that other people knew how to do it, was unprecedented. really no one has done as well since. but we have all lived off it and , it has made every company that has been built read that book. or followed andy grove at all.
♪ mark: welcome to this edition of "best of with all due respect." it was a week that tested the metal of those behind the electoral results. beyond the latest electoral results, each candidate had to respond to the deadly attacks in brussels, and explain how they would protect the u.s. against the islamic state and was on around the world. john: several of them made their case. we sat down with donald trump on tuesday. them economy ted cruz of texas as he campaigned in europe. john: we begin the look