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tv   Bloomberg Best  Bloomberg  January 14, 2017 12:00pm-1:01pm EST

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♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. the jump transition rolls on at the president-elect may suppress. and hearing feet up on capitol hill. >> the plan at this point is just to trust donald. >> he is not moving where he needs to move. >> contentious is an understatement. brexit worries. >> economic news from china causes global concern. >> i think you are seeing a bumpy road. >> populism in politics might be about to change the game for drug companies. leaders in the industry tell us what they are expecting. >> at the end of the day, it is about what the value is being
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generated for the patient? we have to be careful about not losing the baby with the bathwater, and that is innovation. >> automakers tell us about their plan to move forward. top ceos explain how they plan to steer forward. >> we have more in common with the president-elect and the incoming administration and we -- than we have at odds. >> that is all ahead on "bloomberg best." ♪ michael: hello and welcome. i am michael mckee. this is "bloomberg best." your weekly review of bloomberg television from around the world. let's start with a day by day look at the top headlines. on monday, the spotlight fell on china contending once again, with volatility. fx reserves slumped by
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another $41 billion last month. obviously, they were able to defend, but how much more willing to let these reserves drained? >> they ate knowledge that in the reserves -- the acknowledge that they used their foreign exchange pile, but increasing the capital controls, you can expect more capital controls that they don't have to drink as much of the reserves going forward. but you can only go so far in both fronts. let's look at the numbers. the reserves pile fell by another $41.4 billion in december. that was in line with forecast. it it is getting down to that $3 trillion threshold. it was $4 trillion in june of 2016. 10 straight quarters. the piles have continued to dwindle. >> you see it saddling that $3 trillion line.
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trillion,own from $4 so we have been talking about this. and now, it is down. this is good news. >> do you expect further measures to contain the capital outflow? >> the market is starting to respond. from that point of view, i do not think they will go further on that. >> china's reflation story gets a lift again, as cpi consumer prices are overshooting. >> yes, it seems like yesterday we were talking about continued persistence, deflation, but now we have had four straight months of inflation and faster than expected. the main reasons -- commodities rally. iron ore and other commodities are up. >> do not make too much of these
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numbers. they are higher than expectations, but keep in mind, a year ago, prices were down, but about the same. over a two-year period, the prices are unchanged. what looks like a big reflation is not necessarily the beginning of sort of hyperinflation or , rising inflation and price pressures. ♪ >> a flurry of confirmation hearings kicked off today on capitol hill beginning with jeff sessions the nomination for , attorney general. contentious hearing and it got off to a rocky start. give us your highlights. or even surprised by an today's hearings? >> contentious is an understatement. several protesters interrupted senator jeff sessions hearing on capitol hill. i put the question to jeff sessions' spokeswoman about whether or not he would weigh in on the at&t and time warner deal. what she told me was that he would differ that to the leaders
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of the assistant attorney general at the doj with regards to leading up the acquisitions and mergers section of doj. if you are in the business community in the watching today's hearing, the take away is that sessions will not be as critical of this deal another mergers and acquisitions as president-elect trump has been. i have heard from a spokeswoman that he did not speak to trump at all in their meetings about time warner and at&t specifically. >> president-elect donald trump ending his first news conference as president-elect. his first news conference in almost 170 days. >> what was your main take away? >> you know, this news conference was promised a month ago to be specifically focused on president-elect's conflicts of interest and his business. that was a big take away. he did finally address that. that was one big take away. another was from russia that he did acknowledge, for the first time, that russia was responsible for hacking the dnc.
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>> what do you make of this statement that he does not want anything to do with the trump organization? >> the plan really is to trust donald, and trust donald's judgment. they have taken none of the steps to make sure the president is insulated from conflicts of interest. an actual blind trust and a development of assets. >> he is not moving where he needs to move. we need to have him divest. he needs to get rid of his business interests, and he needs to put it in a blind trust. >> >> what is your response? >> it is not impractical. people do this all the time. >> pharmaceutical and biotech stocks took a dive after donald trump commented on their pricing methods earlier in the day. >> they are getting away with murder.
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>> if you did still doubt that he had the power to move the markets anymore and hispanic couple of seconds, he surprised everyone at this press conference by saying the pharmaceutical industry has been "getting away with murder." it absolutely destroyed the bayou index -- nasdaq pharmaceutical and biotechnical index. they thought that donald trump coming in was going to be friendly to drugmakers. hillary clinton and bernie sanders -- those guys were going after the industry. donald trump is a populist. >> meanwhile, rex tillerson continues to testify about his nomination to be secretary of state. >> the issue of russia and the u.s. policy under a trump white house have continued to come up. what we are noticing is that rex tillerson is looking to win over the support of republicans like
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senator john mccain and senator lindsey graham. the type of republicans who are a little bit skeptical of his ties to russia. i would also note that tillerson, unlike trump, said on capitol hill that he actually supports the transpacific partnership, but he would want to take a good look at it and perhaps reform it. that is a departure from donald to tpp.o is opposed >> the biggest decline ever in fiat chrysler shares. reports said to a ledge diesel cheating and trying to avoid the clean air act violations. shares fell as much as 16%. >> we compare this with the volkswagen story. these allegations are covering around 104,000 vehicles. >> it is smaller, but that does not mean it could not do a lot of damage if fiat chrysler ends up being guilty.
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they are saying the devices they have in there did not achieve. the will continue to fight this and work with the epa. there are some specific things that need to be known before you can really look at how big of a financial impact this would have on fiat chrysler. the pa is not seeing these devices that she did emissions test. but they are saying if there were eight devices on these vehicles that the company did not disclose. that is a fineable offense, but if they did not cheat, then they would not have to be replaced in people's vehicles and the fines would be much smaller. before you start to look at this on the proportions of volkswagen's $20 billion costs, it has to be known whether or not fiat chrysler cheated. we just do not know right now. the company is defending itself and saying there is no wrongdoing here. ♪ >> three of the major banks are out with orderly results this morning. bank of america missing estimates. jp morgan's profit beating and
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up 31%. wells fargo falling by 0.4%. >> looking at three's -- looking at these three sets of earnings if you were to give us one , headline that summarizes the most important point, what would it be? >> i think the most important thing i have seen this morning is the share purchase from bank of america. going into this earnings season, the stock has had a huge run. investors are looking for a sign of optimism. i think that is a signal from bank of america toward the future. looking at the fourth quarter numbers, everyone is focusing on the more volatile item that tends to help to set up the run rate. there are more questions than answers because there is so much we do not know as far as regulation, tax policy, interest rates. those are the key drivers of the stock. >> we have had the donald trump rally that fueled the next leg up on bank stocks. on balance, which bank is better to capture that story?
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you have jp morgan on one side, and you have bank of america ready to take advantage of the yield curve. which one is it on balance? >> if you look at the key metric, jp morgan and wells fargo are still leading. wells fargo despite all of that trouble. a lot of focus on their sales culture going forward. but still these banks earning relatively higher. michael: still ahead, the eu competition commission you -- commission deliberated over two huge multinational mergers. we discussed some of the issues on their plate in 2017. plus, more on the hot button issue of drug pricing from ceos from the world's top pharma companies. plus, more headlines from the week in business. alibaba makes a big bet on bricks and mortar. withey see an opportunity retailers they have invested in. michael: this is bloomberg. ♪
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♪ michael: this is "bloomberg best." i am michael mckee. let's continue our global tour of the week's top business stories. may isu.k. where theresa preparg to negotiate britain's exit from the european union. this week, anticipation of a so-called hard brexit appear to have an impact on the pound. >> theresa may has signaled that immigration is one of the priorities in the brexit negotiation. u.k. prime minister said quote -- we will be able to have control of our borders and our -- but we dowant not want that to affect great britain businesses to trade with the e.u. >> the sterling is looking really negative this morning. it has kind of been a double low
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in the past couple of weeks since the recovery from the flash crash. we are seeing the bloomberg count in texas also breaking its clean, nice, upward trend since the flash crash. there is a lot of dollars uncertainty. it is looking quite bad after may's comments. >> japanese drugmaker cicada pharmaceutical will expand its footprint in america. -- footprint in the u.s.. . it is a $4.6 million deal the company is expecting to close by the end of february. walk me through the math that it took to get to $24 a share on a stock that was trading at $13. >> well, you know, if you look product byproduct -- product by product we look at how much the , product is. >> this is the lung cancer
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product? >> this is the lung cancer drug. we believe it can be the best in class. we believe it can be worth $1 billion a year. that is how the math works. if you believe this product has the potential, then you can price it. >> alibaba has one of their biggest business figures as the latest to roll up to trump tower. the president-elect discussing u.s.-china ties. creating a million new jobs over the next five years. what else do we know? >> we know that his promise to create one million new jobs is based on the assumption that they are going to attract new -- they are going to attract one million small businesses onto alabama's part form -- on to alibaba's platform. if they can each create one job, then they delivered the one million jobs. if you think about it, a lot of them are likely already doing the selling to alibaba. the are 7000 brands that are
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going on alibaba's platform. they might come into direct competition with ebay. there is going to be a lot of overlap in that space. >> alibaba is making a big that -- a big bet on brick-and-mortar. they are leading the charge to buy out a retail chain. alibaba'ss to burgeoning hold on physical retail. >> china's retail market is more fragmented and less efficient than the u.s. market, and they see an opportunity with other retailers they have invested in to try to bring some of their know-how and customer experience and technology to bear on the retail segment that has not been operating so well. remember the backdrop here. the chinese economy is going quite a bit. the chinese government is trying to shift to a more consumer-driven economy. so, there is more of a direction here to cater to consumers and give them more choice than they might typically see in a u.s.
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retail space. >> valeant selling $4.1 billion in assets in two deals. it is one of their many moves to try in ease the debt burden. the story with valeant -- is it still about the debt load? >> it is. they have announced about $2 trillion worth of sales, and they are sitting at about $30 million in debt. that will come due over the next several years. this eases things. i think it is a good sign of things to come for investors. it is certainly in the right direction. if you look at the valuations, they are pretty positive. they're selling this cancer asset for more than he paid for it, which was a big worry that they were going to be doing fire sales. and they are selling dermatology assets. goodare selling those at a valuation as well. as in all, pretty good news
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a starkly long sales process at valeant. >> almost twice its market value to carry out this turnaround. this is twice of much as monte dei paschi trying to raise. we know what happened there. is this going to be a smooth process when it gets to the markets? >> there is certainly quite a bit of optimism on the part from -- on the part of the ceo, who told reporters that he is quite confident that they will get that. we have heard confidence from some of the investment funds that were at the assembly today. it is a different story compared with monte dei paschi who needed that funding to survive. while, it is still a profitable bank, and needs this to bolster its capital buffers since it is an important bank, a systemic bank and that is what it needs , it money for. ♪ >> amazon says it plans to hire 100,000 people in the united states over the next 18 months.
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the announcement comes from pressure on the technology company from president-elect donald trump to create jobs. how many jobs does it typically create say a 12 month? >> in the past five years, amazon has created 150,000 jobs in the u.s. this is a massive jump. it, it islly look at not all that surprising that amazon -- >> because they also lose jobs over the the course of 18 months. let's they are also trying to expand more into hardware. they're trying to deliver goods even faster to people. opening up new centers. all of that requires a huge ramp up in the workforce. it is not too much of a departure from what we have been expecting. >> samsung's heir is back home after 22 hours of questioning as
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a suspect in korea posterior -- in korea's scandal. a spokesperson said he denied most of the allegations. >> this is a difficult time for the company itself. key -- he appeared yesterday morning about 9:30 entering the prosecutor's offices. he stopped briefly and was surrounded by reporters and activists. he was asked about this, and he briefly apologized for the company's behavior. he spent 22 hours answering questions. he was held overnight. he was released about 7:30 this morning local time. the prosecutors have been also questioning other executives at samsung. at least three that we know about at this last night, they point. questioned another. they are digging deep into these allegations to try and figure out what samsung's role has been in this broader impulse peddling
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scandal that has already led to the impeachment of the president there in south korea. ♪
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♪ michael: welcome back to "bloomberg best." i'm michael mckee. e.u. competition commissioner does not shy away from tough decisions involving multinational companies. just ask apple and google. as 2017 begins, her commission is looking at two agrochemical megamergers. she discussed the mergers with david gura. david: let me ask you about that dow-dupont merger. the proposed merger. amidst all of this consolidation, what needs to happen to satisfy that their competition will continue? >> it is a very concentrated sector already. what we are looking at is the
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very obvious, that farmers still need to have choice. these are the things we are looking at. in the outcome of the merger is still very open. we have the hearing just today. david: you say you prize the investigation. what he learned in the last couple of months? >> even though these companies are in similar or overlapping markets, the mergers are very different in their nature. -- in their nature when it comes to the markets they address and the companies that are merging. china is very much focused on the chinese markets. they want to improve the products in their market. to that degree, there is a question of innovation and how to make that happen, also in the chinese market. that may be the one thing they have in common with the dow-dupont merger, where innovation is a very important
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thing is well. david: let me ask you about a few -- what does that bank in the italian government have to show you to prove their plan is a good one? well, before we are obliged to see a restructuring plan that will allow for a viable bank on the other side of the recapitalization. and here, of course, it is the detail that counts. will start working on that, and it will probably take a couple of months, or maybe slightly more before the restructuring plan is in place. also because, obviously it is the main work of the management of the bank. david: in the exchange space, i know you have raised concerns about deutsche voice and the london stock exchange.
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what are your concerns about consolidation and that space and about come petition in the exchange space? >> it is a market where you had very high barriers of entry, but it is important that you get the right prices on a number of different products. we are in discussions now with the companies. and it still remains to be seen what will be the outcome of this case. michael: i'll review of the week -- our review of the week continues on "bloomberg best" with compelling interviews from the jp morgan health care conference. ceos discuss political challenges buffering their business model. automakers respond to pressure from resident unless donald trump. how do they negotiate the road ahead? >> we are very proud that our strategy is to build where we
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sell for the most part. >> we want to localize production as much as we can. michael: this is bloomberg. ♪ with the xfinity tv app,
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download the xfinity tv app today. i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ♪ michael: this is bloomberg best. i'm michael mckee. at his wednesday press conference, president-elect donald trump the drug companies on notice to expect new, consumer-friendly pricing
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regulations. earlier in the week, erik schatzker spoke with a number of our mystical executives at the jp morgan health care conference in san francisco. while the president-elect not yet fired a shot across about, that was still a general expectation that 2017 would bring the changes to the industry. we generally believe that the u.s. health care system will continue to reward innovation. that stills so much needs to be done in medical research. especially in areas such as oncology and virology. we have an optimistic view. erik: an optimistic view because you think what is going to happen? >> there has been discussion about the pricing environment in the united states. the pricing environment in other countries. this discussion is natural. people are talking about how to best use resources in health care.
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we believe that global medicines are usually a very, very good way of investing in health. erik: but the price-setter for americanrugs in the market are the pharmaceutical managers. >> that is a competitive system. erik: right, but the pharmaceutical managers are not about to reward you for innovation. their goal is to crush you on pricing. >> this is what business is about. you are negotiating price in the marketplace. at the end of the day, it is about what value is being generated for the patient. and the u.s. health care system is one of the systems that rewards that better than others. >> what kind of drug pricing environment do you expect from the trump administration? >> i think the issue of pricing is going to be central to the
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debate. i think we need to really achieve a pricing represents the value. it is very clear, in my view, that we have to be careful not to lose the baby with the bathwater and that is , innovation. the best way to do it, in my view, in totality is to make , sure that the price of non-innovative drugs, generics are made in such a way that they become accessible. that the price of innovation be recognized for the value it provides. >> do you think the trump administration will take a lighter touch approach to drug pricing? >> i really don't think so. i think it is a bipartisan concern. last year, we had the same conversation. people want transparency. you want to understand what is happening. frankly, we are blaming the pharmaceutical industry. the system is not working properly in terms of being able to provide value as for both
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innovation, and remember once we , discover a job we have to give it to the public in a few years. >> who are you pointing your finger at? the pharmacy benefit managers? >> everybody. everybody. i think the entire system, in my view needs to be transparently , reviewed and readjusted. ♪ >> the environment here is clearly different from the environment in europe. do you have any help that we will begin to see indication-based pricing and some of the major european countries like germany or france? if so, when? >> we have been working at this for five years with our cancer medication. we have been innovation team today in italy. >> i am thinking of elsewhere -- germany and france. >> oh, ok. we do some work now at the hospital level in france. in switzerland, we have
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accommodation-based pricing where we look at those patients who need more than one of their -- need more than one of our medicine for the treatment course. we look at pricing does medicines as a pair or a triplet as we look forward. there are more than 20 countries in europe today that are ready to instigate the systems. i think in the next five years, we will see -- >> it is going to take that long? five years stack of >> no, it is happening today. in the next five years, more and more countries will be adopting this, without a doubt. >> the largest public pension fund in the united states lowered its rate of annual return from 7.5% to 7%. this week, the fund's chief investment officer told erik schatzker that they also have a strategy to reduce fees by overseeing its assets through health managers. >> it is a difficult space in the stock market to be an active investor.
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they are very efficient. we have brought just about a huge majority of our assets internal. we are very proud to have over 70% of the portfolio managed internally. most of that is in our public asset classes -- stock, bonds. much of that in the stock portfolio is index oriented. 30% of the portfolio is pursuing various active strategies. erik: let's go back to that question then. 70% now. what percentage would you prefer in-house? >> 75% or 80%. somewhere in that -- erik: that is bringing in billions of dollars. >> it is a big deal. that 70% we have in-house currently, we pay four basis points for that. we have done very well in the fixed income and global equity
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portfolio with attracting talent. very proud of the team's we have in sacramento -- very proud of the teams we have in sacramento. michael: now, let's head to the ubs greater china conference in shanghai. they confirm the banks is in talks to increase their foothold on the mainland. he spoke candidly with tom mackenzie about risk and opportunity in china. >> what you see as the key risk or key challenges for 2017? >> the first one is the leadership change we are going to see in terms of policy priorities we are going to see. the current administration and central-bank leadership has been in control rather long. i remember the central bank governor was there when i joined in 2004, and he is still there today. so, the chinese monetary policy has followed a very steady
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course of opening up, and becoming a part of the international community. it the room in the -- it is now part of the special growing rights of the imf and that requires china to be part of the international community. >> given what we have seen on the capital control, the yuan has taken a big step back, hasn't it? >> well, no, what you will see is that these processes are never smooth or straight lined. there are periods when things go easy, and periods when things move in a rocky way. what we are seeing around the globe is a large amount of political uncertainty. if you look at the united states it could mean a totally , different policy for china. it is the risk for u.s.-chinese relationships and for global /economic relationships. i think you are seeing more risk in the global economy then you have seen in the past years. in the past, clinical risk was
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-- in the past, political risk was an emerging market political risk was an emerging market factor, and now it is a developed market factor. >> tom mackenzie also spoke exclusively with the head of the president of the china-led infrastructure bank about china's current debt load and the impact of capital controls. >> chinese debt is basically domestic debt. china does not have external debt at a very high level. it is easier to handle. i believe growth can solve some of these problems, and chinese -- and china's government will
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be able to address all of these issues. what is most important is to make sure that we in china adhere to the fundamental issue of restructuring and addressed -- and address some of the structural issues. >> on the issue of capital control that we have seen rolled out in the past you months, does it suggest that the imf was premature in including the yuan in their basket? >> it is my reading that the chinese government would adhere to the principle and keep the chinese currency. increasingly, a currency in the basket. still, i believe that some measure is necessary. and i hope things will stabilize
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very soon. panicking on of the part of investors will disappear. ♪
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♪ fiat chrysler is getting more than 2% right now. that company has announced it will invest $1 billion in making three new jeep models in the u.s. they say they are going to spend the billion dollars through 2020. ford is also going to cancel a $1.6 billion investment in mexico and save some of the jobs it would have lost in the u.s. are these carmakers doing donald trump's bidding or are they just throwing him a bone? >> no, i think there is currently a competition of announcements of who will invest what in the u.s.
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most of it has been committed before. we know that fiat chrysler is spending a lot of money on jeep in particular. everyone just want to come out and make the announcement that they are spending money in the states. >> breaking news from general motors -- the forecast has been raised to $6.50 a share. a buy of $5 billion worth of shares. >> analysts have been talking about global auto sales tapering off or sinking in the u.s. market next year, being at best, flat. gm is not saying that the market will be flatter, but they are saying the revenue is going to be better. they are saying that they will be able to grow profit even as the global auto market and some global economies are sputtering along a little bit. >> volkswagen has agreed to plead guilty to the missions -- plead guilty to the emissions
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cheating scandal. they will pay $4.3 billion in penalties. prosecutors also announced charges against five individuals in germany. >> this basically clears the u.s.for them in terms of military disputes over this emissions cheating scandal. the focus in that regard will shift to the individuals that of an charged. in terms of volkswagen's future in the states, they are not going to be able to sell their diesel vehicles, or at least they said they will be unlikely selling them anytime soon. michael: it was another busy week in the automobile industry , which has been under pressure recently from president-elect donald trump to increase more jobs in the united states. trump did not appear at the north american auto show in detroit to make his case in person, but bloomberg's david
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westin was there. he talked to several ceos on donald trump's impact on their business. david: as you look forward to this new administration, what are you anticipating or planning for? >> i think there is a lot of opportunity. we have more in common with the the administration then we have at odds. we are looking to strengthen the country. we provide over 100,000 very good paying jobs. we are also looking for some revelatory streamlining. those are all things that will improve our business and allow us to reinvest. david: so there is opportunity for you? >> i definitely believe there is. also people need to understand -- this is a very complex business with long lead times. the traverse we just launched was built in lansing, michigan.
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those decisions were made a few years ago. we need to understand how investment is made, but then look at the opportunity. david: it is also complex in terms of the supply chain. the parts across borders and assembly is done someplace else. what are your interests in trade as far as a cross border tax? would that help or hurt gm? do you have a sense of that? >> it is too early. i'm speculating. we are proud of the fact that our strategy is to build or we have built for the most part. 75% of the vehicles are built in the u.s. we are the highest u.s. content of all the manufacturers. we have a lot of jobs here and , we are going to look to make sure that it recognizes the significant investments we have already made in the country with the jobs we are providing. david: what is your view on the trump administration as a come in and formulate their trade policy? >> i have a good relationship
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with him. i spoke with him last week about our plan here in michigan. he is very interested in all of the things we are interested in. taxes, trade, currency regulations, all of the things that affect american corporations. encouraged about what type seen about his policy potential. david: if you were to write the ticket right now for an atmosphere that would be helpful to the auto industry, what would you ask the administration? >> one of the things he has already done is a point an outstanding transportation commissioner. i have known her well. she knows her industry. our industry is changing so much with autonomous driving coming, and all of the technology. we are going to need a partner in government to make all of this happened. i am very pleased she is the choice. david: do you agree with the trade subject from the transition team? it could have some negative effects as well as positive.
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>> we are working with them. we think it is important that they understand our position. we have built vehicles for well over 100 years all over the world. we have been in mexico for over 100 years long before there was nafta or anything else. we think that is important for any administration to understand. david: you made a little bit of news but the president-elect last week with the plant in mexico. what is your plan after that? >> we do build our cars in mississippi, as well. strategically, we may decisions six years ago to realign our manufacturing footprint in the u.s. the realignment would move corolla out of canada and move it down closer to the plant in mississippi. the decision was made five or six years ago. david: we now have a new president coming in. does that change your plan at all? >> again, we are a relatively small player in mexico.
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if you look at all of the product made in north america, only 5% comes from mexico. so, we are a pretty small player. we were late moving into mexico. we will have to take a look. obviously, we understand what the president wants to do. we all agree with the president that we want to make america strong. we want to have good, paying jobs, good economy, because eventually, that helps business if i am selling cars and a strong economy. -- fact of the matter is if it is difficult to look at mexico in an isolated area. we have been in the country 60 years now and invested $22 billion in that time period. over the next five years, we are going to invest another in our $5 billion plants when it comes to economist vehicles. -- and in economist vehicles. david: we do have a new administration coming in. if you did talk to donald trump
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and were to tell him what , changes you want to see for the auto industry, what would they be? >> frankly, i think everything that is being done in collaboration with the industry is much easier to be done. no matter what the administration wants, the industry can do a lot of things as long as its collaborative efforts, as long as we have some kind of visibility on what is going on, we can do a lot of things. david: one of the things that have been surprising are some of the tweets coming out of the president-elect. some of your compatriots have woken up in the morning to see tweets about what they are doing in mexico. do you have a particular vulnerability there? >> we came up with a business strategy a long time ago to localize production as much as we can. because there is a big thing that no, make her can control -- that no carmaker can control
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exchange rates. the yen goes down, the euro goes up -- we decided a long time ago to localize production as much as possible. if your revenue is in dollars, your cost is in dollars. we have followed the strategy. what is being asked by the what is being asked by the administration. ♪
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♪ >> someone should look at what chinese camesa looking at in terms of biotech. if you go into the bloomberg, you are seeing $11 billion a week from biotech. >> this function on your terminal, you can take a look, this is the debt that development carries.
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come they are starting to under stress, but 2020 is where they have some serious money coming due. michael: there are about 30,000 functions on the bloomberg. we always enjoy showing you are favorite on bloomer television. maybe they will become your favorite? here is one function you might find useful -- quicgo. it will take you to our quick takes where you can get important context and fast insight into timely topics. here is a quick take that breaks down brexit. britain and the european union are on course for a messy divorce. u.k. voted tothe leave the european block on arguments that it was too expensive and a source of uncontrolled immigration. >> we wanted independent united kingdom. how about that? >> britain's exit from one of the world's most powerful
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trading blocs jolted financial markets and sent the pound tumbling. britain's prime minister, david cameron, resigned. david i think the country : requires fresh leadership to take it in this direction. >> it is now up to theresa may to chart a course that will inevitably have global applications. -- global implications. brexit means brexit and we are going to make success on this. >> here is a situation -- to begin the complex negotiation or exit, that a look at article 50 in the treaty of lisbon that requires formal notification of a country's desire to withdraw. she says she would do it before the end of march britain will 2017. then have two years to negotiate in terms of its separation, including unwinding things like trade, financial agreements, and safety standings. it also requires the backing of a majority of european union government. the establishment of trade relations could take much longer -- perhaps even longer than five years.
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here is the argument -- the exit is that the pre-brexit vote was based on populism and a backlash against european -- against europe's political elite. can they successfully exit the european union without a significant blow to the economy? it is a tricky negotiation for theresa may. it could cause global companies to cut investments or leave. no country has ever left the e.u. before, but a trade deal struck by norway and switzerland , two countries never a part of the e.u. and canada in turkey might provide a guide to the u.k.'s future. ♪ michael: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com along with all of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm michael mckee.
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this is bloomberg. ♪ . . .
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david: what did your family think? did they say, what is wrong with this man? he wants to just do computers? bill: i was considered a little strange. have you ever regretted dropping out? as far as your relationship with steve jobs -- >> we were both there at the very beginning. david: is that more of a burden than a pleasure, to be the wealthiest man in the world? >> will you fix your tie please? david: people would not recognize me if my tie was fixed.

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