tv Bloomberg Best Bloomberg January 16, 2017 4:00pm-5:01pm EST
>> coming up on "bloomberg best," the stories that shape the week in business around the world. the trump transition rolls on as the president-elect meets the press, and hearings heat up on capitol hill. >> the plan put into place is basically trust donald. >> he's not moving where he needs to move. >> contentious is an understatement. >> brexit worries bring down the pound. china causes global concerns >> i think what you're seeing is a bumpy road. >> things could change the game for drug companies. leaders in the industry tell us what they are expecting. >> at the end of the day it's
about what value is being generated for the patient. we have to be careful not to lose the baby with the bath water. that is innovation. >> and automakers feeling pressure. top c.e.o.s explain how they plan to steer forward. >> we have more in common with the administration and the president-elect than we have at odds. >> we want to have good paying jobs and good economy. that eventually tells my business. >> it's all straight ahead on "bloomberg best." ♪ >> hello and welcome. i'm michael mckee. this is "bloomberg best." your weekly review of the most important business news and analysis from bloomberg television from around the world. let's start with a day by day look at the top headline. monday, the spotlight fell on china contending once again with volatility. reserves slumped by $41
billion last month as the yen tumbled. obviously they were able to defend against that 3 trillion, but how much more can they let these reserves drained? >> you can see that they are using it and they were acknowledging the reserve statement that they did use therefore pile to kind of defend the currency, but they are all also increasing the trend currency so that they don't have to drain as much of the reserves going forward, but you can only go so far on both fronts. let's look at the numbers right now. by reserves pile fell another $44.4 billion in december. in line with forecasts, getting down to that 3 trillion threshold. the pileht quarters has dwindled. >> this is the pvr see defending that line.
>> finally china only had 3 trillion. no, 4 trillion. we have been talking about this inefficiency in foreign reserve and the -- and the ridiculous out of american financing in the country. as a trend, this is good news. furtheru expect measures to contain the capital outflows? >> the market is starting to respond. i don't think that they will go further on that. reflation story gets a lift again, factoring in prices that were more than forecast. producertudy brought prices overshooting. quite simply it was just like yesterday we were talking about continued persistent deflation at the factory gate, but now it's higher than expected, faster than expected as well. the main reason is the commodities rally. iron ore and other commodities
are up. >> don't make too much of these numbers. they are headline grabbing, higher expectations. one year ago prices were down by almost the same. over two years the prices were unchanged. what looks like a big reflation is not necessarily the beginning of hyperinflation with price pressures. of confirmation hearings kicking off today on capitol hill beginning with jeff sessions, the nominee for attorney general. contentious and getting off to a rocky start. give us your highlight. what you most surprised by? >> contentious is an understatement. several protesters interrupting the senators he hearing here on capitol hill. you know, i put the question to his spokeswoman about whether or not he would weigh in on the at&t time warner deal. what she told me was that he
would defer that to the leaders of the assistant attorney general at doj with regards to leading up the acquisition and mergers section. you know, if you are in the business community and watching this hearing, the take away is that sessions will not be as critical of this deal or of other mergers and acquisitions as president-elect trump has been. i heard from a spokeswoman that sessions did not speak to trump at all in their meetings about time warner and at&t, specifically. >> president-elect donald trump ending the first news conference he was -- has given as president-elect. >> what was your main take away about the news conference? washis news conference originally promised about one month ago to be specifically focused on the president-elect's conference -- conflict of interest and that was a big take away here. he did finally address that. another was on russia. he did acknowledge, really for
the first time, that russia was responsible for hacking the dnc. >> what do you make of the plan laid out by sherri dylan, the lawyer who said that he wouldn't have anything to do with the trump organization? >> the plan they put in place is basically trust donald and trust donald's judgment. steps to taken many make sure that the president is insulated from conflicts of interest. an actual blind trust and investment of assets. >> he's not moving where he needs to move. divest.to have him he needs to read of his business interests and put them into what's called a blind trust. >> you don't buy what his attorney just said? what is your response? >> it's not impractical. people do this all the time. >> pharmaceutical and biotech stocks took a dive when the president-elect commented on the
pricing methods earlier today. >> they are getting away with murder. aboutyou have any doubt his power to move markets? in the span of a couple of seconds he surprised everyone. awaysay that he's getting with murder and promising to have the u.s. government negotiate prices on behalf of consumers, destroying the biotech index. they thought, coming in, that trump was going to be relatively friendly to drugmakers. hillary clinton, bernie sanders, those guys were going after the industry. trump seemed pro-business. not the case. he's a populist. >> meanwhile on capitol hill, rex tillerson and can use to testify before the senate foreign relations committee on his qualifications to be secretary of state in the trump administration. >> the u.s. policy against russia in a trump white house continues to come up and what we are noticing here is that rex
tillerson is looking to win over the support of republicans, like senator john mccain and senator lindsey graham. republicans who are frankly quite skeptical of his ties to russia. i would also note that tillerson, unlike trump, said on capitol hill today that he supports the transpacific partnership. that he would want to take a good look at it. that is a departure from trump, who is a pose to tpp -- opposed to tpp. >> biggest decline ever listed in the milan epa, diesel cheating by chrysler. they've been notified of the clean air act violation. shares of 60% were barely above that now. >> maybe compare this to the volkswagen story? this is much smaller, but that doesn't mean that it couldn't do a lot of damage if they wind up being guilty on
this one. they are saying that the devices they have in their didn't cheat. that they are going to fight this and continue to work with the epa. there are specific things that need to be done before you can look at how big of a financial impact this would have. the epa is not seeing these devices that she did these omissions tests. they are saying that there are eight devices on these vehicles. software devices that the company didn't disclose. cheat, then they wouldn't necessarily have to be replaced in people's vehicles. the fines would be much smaller. before you look at this as something on the proportion of the volkswagen 24 billion dollar cost, it would have to be known whether or not fiat chrysler cheated and the company just doesn't know right now. saying that there is no wrongdoing here. >> three of the major banks out with quarterly results this morning. bank of america revenue missing estimates with fixed training
revenue up by 4%. wells fargo profits falling by .4%. >> if you were going to give us one headline to summarize the most important point, what would it be? >> the most important thing i have seen this morning is the share from bank of america. going into this earnings season the stock at a huge run. investors are looking for signs of optimism and this is their signal towards the future. looking at the fourth quarter numbers, everyone is focusing on the more volatile items going into next year. there are more questions than answers. there is so much that we don't know with regards to regulation, tax policy, interest rates, and those are the key drivers. >> was at a reflation story that began last summer? we had the rally that fueled the balance, so which is better set
to capture that story? the more numeral is jpmorgan on the one side, but then their huge deposit base was really ready to take advantage of that yield curve. >> the overall return on equity is the key metric. jpmorgan and wells fargo, despite all the trouble, has a lot of focus on their sales culture going forward, but still these banks are earning relatively higher. ahead onstill "bloomberg's best," the eu debated to big multinational mergers. we have a discussion on some of the biggest regulatory issues in 2017. plus more of the hot button issue of drug pricing. from ceo's of the world's top pharma companies. up next, more headlines from the week in business. alibaba makes a big bet on bricks and mortar. hereey see an opportunity with intel and the others that
this is "bloomberg best." i michael mckee. let's continue our global tour tophe week's topped it -- business stories. theresa may is getting ready to negotiate the british exit from the european union. and anticipation of the so-called hard brexit appeared to have an impact on the pound. >> theresa may has signaled the beginning of control in immigration of lawmaking, leaving the single markets. the prime minister said that she would be able to have control of the borders and laws, but they want the best possible deals for u.k. companies to trade within the eu. i want to go straight to the bloomberg this morning. >> it's looking with a negative
technically. as the cable broke support, it had been a double low in the last couple of weeks since the recovery after the flash crash. not only that, the pound index was also breaking its clean, nice, upward trend, which was even more negative. every cross is looking negative for sterling, technically. looking quite bad. >> a japanese drugmaker expanding its footprint in the u.s. oncology market. 4.6 $6 billion deal, the company is expected to close it by the end of february. shares jumping on the news, it's the biggest intraday moves since 2003. walk me through the math that it took to get to $24 per share on a stock it was trading at 13. >> just look at it product byproduct in the pipeline. how promising is this product?
it is the most promising product. cancer drug?e >> yes, we believe it can be best in class. we believe that it can be one billion. that is how the math works. if you believe that product can function it justifies itself. >> alibaba has founded the latest big business failure to roll up to trump tower. jack meyer discussing u.s. china , how to create one million new jobs in the u.s. over the next five years. what else do we knew -- do we know here? >>'s promise is based on the assumption that they are going to track one million small businesses onto the platform. if each of them can create one more job, that brings a 2 -- >> but they won't create one job. >> may be a lot of them are already doing this. there aree know is
7000 brands falling on the alibaba platform. it might come into direct competition with u.k.. there is going to be a lot of overlap in that space. >> alibaba is making a big bet on brick and mortar. leading a bid to buy out the department store chain for as changing2.6 billion, their burgeoning hold on retail and slowing online business. >> the china retail market is much more fragmented and less efficient than the u.s. market. they see an opportunity here in time to bring some of their customer experience and technology, frankly, to bear on the retail sector that hasn't been operating so well. remember the backdrop year. the chinese government is trying to shift from an export driven economy to a more consumer driven economy so there is an appetite here for can catering to consumers and giving them the
choices that you would have in the u.s. retail space. selling assets into deals, that's their big first step in their quest to bring in cash and ease their debt burden. aboutory, is it still all the debt load? >> they have announced about $2 billion and are sitting on about $30 billion in debt that will come due over the next several years. but investorsngs, are taking it as a good sign of things to come, probably, as opposed to other problems over here. it is certainly in the right direction if you are looking at valuations. they are selling this cancer asset for more than they paid for it, which was a big worry here, that they would be doing fire sales. selling dermatology assets, that's well coordinated to their main business for what people are saying is a good valuation. all, pretty good news as a start to what is probably
going to be a long asset sales process. >> shareholders approved a 13 billion euro capital increase today, twice the market value to carry out its turnaround. this is twice as much as them trying to raise -- we know what happened there. is it going to be a smooth process when this gets to the markets? >> there is certainly quite a bit of optimism on the part of the ceo. he told reporters that he is indeed quite confident that they will be able to get that. we have some comments from some of the investment funds that were present at the assembly. it is a different story compared with most of the others, they needed the funding basically to survive. bankt is still a probable and it needs this to bolster its capital buffers since it is an important bank, a so-called systemic bank, that is what it needs the money for.
>> amazon plans to hire 100,000 people in the united states over the next 18 months, putting pressure on the technology sector to create jobs. amazon is creating 100,000 jobs over 18 months. how many jobs does it typically create in, say, 12 months? >> in the past five years they have created 150,000 jobs. this is a massive jump from the last 18 months. but if you really look at it, it's not that surprising. >> no, because they also lose jobs. >> and they are growing so massively and fast, expanding into hardware with alexa, trying to get more into groceries and apparel, delivering goods even faster to people. requirehose efforts huge ramp ups in workforces. it's not too much of a departure from what we have been expecting. >> i found some of the leads back home after 22 hours of
questioning as a suspect in scandal. a prosecution spokesman said that he denied most of the allegations and that the investigation will be widening. >> this has been a difficult time for them. they appeared yesterday morning at about 9:30, entering the prosecutor's offices, he was surrounded by reporters and activists and cameras and he was asked -- asked about this and he briefly apologized for the company's behavior and he went in and said he spent 22 hours answering questions. he was held overnight and released at about 7:30 this morning local time. the prosecutors have also been questioning other executives at samsung. three of which we knew about on monday. they are digging deep into the allegations to figure out what the role of samsung has been in
michael: welcome back to "bloomberg best." i'm michael mckee. the eu competition commissioner does not shy away from tough positions involving multinational companies. just ask apple and google. she is reviewing to agrochemical megamergers and she discussed the cases in an interview with david gura. and >> let me ask you first about that dow dupont merger, the proposed merger. amidst all of this consolidation in the agrochemical space, what needs to happen to satisfy competition will continue? >> as you say, it is a very concentrated sector already.
what we are looking at is the very obvious, that they still need to have choice. these are the things we are looking at. and the outcome of the merger is, of course, still very open. we have the hearing just today. >> they are pursuing a merger, looking into that, prizing the investigation. what have you uncovered and learned in these last couple of months? >> first of all that even though these companies are in similar markets, it is very different in nature when it comes to the markets that they address and the emerging companies. to china it is very much focused on the chinese market. the want to improve products in their market. to that degree there was a question of innovation here and how to make that happen in the chinese market. that may be the one thing that they have in common with the merger where innovation is a
very important thing as well. >> let me ask you about a few financial custom -- companies. what is that bank and what does the italian government have to show you to give you assurance that their plan is a good one? been.is is it has before we are obliged to see a restructuring plan, that will allow for a viable bank on the other side of the recapitalization. here, of course, it's the detailed accounts. thatll start working on and probably it will take a couple of months or maybe slightly more before the restructuring plan is in place. because obviously it is the main work of the management of the bank. space i knowhange
you have raised concerns on the london stock exchange. concerns about consolidation in that particular space? >> well, it is the market where to have very high barriers entry. but where competition is very important in order to make sure that you get the right prices on a number of different products when it comes to appearing, we are in discussions now with the companies and it still remains to be seen what will be at the outcome of this case. our review of the week continues on "bloomberg best," with compelling interviews from the jpmorgan health care conference. ceos discuss political challenges buffeting their business model. an top of mind at the auto show in detroit as automakers respond to pressure from president-elect donald trump. how do they negotiate the road
consumer friendly pricing regulations. early in the week erik schatzker spoke with a number of pharmaceutical executives at the j.p. morgan health care conference in san francisco. the president-elect had not yet fired his shot across the bow, there was still a general expectation that 2017 bring big changes for the industry. >> we generally believe that the u.s. health care system will continue to reward true innovation. and there is so much that still medical be done in research. especially in areas like oncology and a rolla g. we have an optimistic view. >> an optimistic view because you think what is going to happen? has been discussion about the pricing environment in the united states. the pricing environment and other countries. this discussion is natural. how toare talking about
best use resources and health care. we believe that noble medicines are usually a very, very good way of investing in health. >> so many drugs on the american market. >> that is a competitive system. >> but the pharmacy benefit managers are not about to reward you for innovation. their business is to crush you on pricing. >> it has existed for a couple of decades already. -- you negotiate price in the marketplace, but at the end of the day it is about the value being generated for the patient. 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? the issue will be central to
the debate. we need to achieve a price that represents the value provided. it is clear in my view. we don't have to lose the baby with the bathwater. the best way to do it in my view is to make sure that in the totality the price of generics are made in such a way that they and at thessible price of innovation is recognized for the value it provides. think that the trump administration and republican congress will take a lighter front -- lighter approach? >> i don't think so. i think that this is a bipartisan concern. last year we had the same conversation. people want transparency. people want to understand what is happening. frankly it seems we are blaming the pharmaceutical industry but the system is not working
properly in terms of being able to provide value for both innovation and, remember, once we discover a drug, it's years in the public. >> are you pointing your finger? >> everybody. the entire system, in my view, needs to be transparently reviewed and readjusted. >> the environment here is clearly different from the one in europe. do you have any hope that we will begin to see indication based pricing in some of the major european countries, like germany or france? and if so, when? >> we are doing it today. we been working on this for five years. >> i'm thinking about where. like germany or france, for example. >> we do do some work now at the hospital level in france. in switzerland we have combination based pricing, where
we look for those patients that need more than one of our medicines. for their treatment, of course. we look at pricing those as a pair or a triplet. there are too many countries in europe today ready to instigate the system. in the next five years we will see -- >> it's going to take that long? >> it's happening today. evolutionarily, i think it will be the next five years. more and more countries will be adopted, without a doubt. michael: last month calibers, the largest public pension fund and the reed -- united states, lowered its return from 7% -- 7.5% to 7%. the chief investment officer told erik schatzker that it had a strategy to reduce fees by overseeing more assets with in-house managers. space in theficult to be an active
investor. they are very efficient. just about aht huge majority of our assets internal. very proud to have 70% of the portfolio managed. most of that is the public asset class of stock and bond. much of that in the stock portfolio is index oriented. is pursuingortfolio various active strategies. >> let's go back to that question, then. 70% now, if you had your druthers, you would manage what percentage in-house? >> maybe 80%. >> that is bringing in billions. pulling that lever is a multibillion dollar decision. >> it's a big deal. you can say that 70% in-house currently. for the talent. we have done very well in the fixed income equity portfolio.
with attracting talent. very proud of the teams that we have right here in sacramento. now let's head to the ubs greater china conference in shanghai, where the chairman confirmed that the bank is in to increaseartners its footprint on the mainland. he's a candidly with tom mackenzie about risk and opportunity in china. tom: what is the key risk for china, challenges at least for , 2017? >> the first one is the leadership change that we are going to see, and basically the pile -- policy priorities that we will see propagated. the current administration and current central bank leadership has been in control long. we have the longest-serving central bank governor. he was already at the that she was there when i joined and there when i left and is still there today. the chinese monetary policy is following a steady course of opening up, becoming a member of
the international community. the renminbi is part of the special rights of the imf, and that requires china to become part of the international community. tom: was that the right decision or premature by the imf? given what we have seen in terms of capital controls? the internationalization? >> i think that what you will see is that these processes are never smooth and never straight line. there are always setbacks. there are things that go easy and then things moving in a rocky way. what we are seeing is a large number of political uncertainties materializing. just, if you look at the united states, an announcement for a totally different china policy from the administration is a risk for the u.s.-chinese relationship and for global economic relationships. i think what you are seeing a bumpy road and more political risks in recent years, and that will shake
markets, shaving economics a lot more than it has in the past. in the past, i think the risks were in emerging market feature. now they have become an industrial country future. look at the brexit, look at the european elections ahead. we are facing political uncertainties, and they impact on the economy, financial markets, and processes. like the opening up of china for internet -- internationalization. alsoel: tom mackenzie spoke exclusively with the president of the china-led asian infrastructure bank about china's debt load and the impact of capital controls. >> chinese debt is basically domestic debt. china does not have external debt at high levels, so it is easier to handle. and i believe growth can solve some of these problems, and china's government will be able to address these issues step by step. what is most important is to
make sure that we and china go -- in china ought to go ahead, adhering to the fundamental issue of restructuring and to address some of the structural issues. tom: on the question of capital controls that we have seen rolled out in the last few months, , does it suggest that the imf was premature in including the yuan in its sdr basket? >> in my view, the chinese government would adhere to the principle and keep chinese currency as a convertible currency. being increasingly, i think , currency in a basket. but dealing with the hard money that flows in and out, some measures to address these issues in my view probably is necessary. and i hope things will stabilize
>> i see fiat chrysler gaining more than 2% right now. that company has announced that it will invest $1 billion making three new jeep models in the u.s. they say they will spend $3 billion through ford will cancel 2020. 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 trump's bidding or throwing him a bone here? >> no, i think there is currently a competition of announcements, who will invest what in the u.s. most of it has been committed before.
we know that fiat chrysler is spending a lot of money on jeep. everyone wants to come out and make an announcement that they are spending money in the states. >> breaking news from general motors. the stock, up 5% thanks to forecasts raised to six dollars, $6.50 per share in 2017. a buyback 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, at most flat, and gm is not saying the market will be much better but they are saying that their retail sales and revenue will be better. they are saying they will be able to grow profit as some of the global auto market and global economies are sputtering along a little bit. >> volkswagen has agreed to plead guilty in the united states of america.
this to the admissions ,-- in missions cheating scandal, agreeing to pay $4.3 billion in penalties. prosecutors announced charges against five individuals in germany. >> how does the settlement leave volkswagen? >> well, this basically clears the deck for them in terms of u.s. regulatory disputes over this diesel emissions cheating scandal. the focus in that regard now will shift to the individuals that have been charged. in terms of volkswagen's future in the states, they will not be able to sell their diesel vehicles, or at least they said they are unlikely to be 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 create investment and more jobs in the united states. trump did not appear to make his case in person, but bloomberg's david westin was there. he talked to several ceos about
trump's impact on their business. starting with g.m. costs mary barra. -- g.m.'s mary barra. david: what are you anticipating from this new administration and planning for? >> there is a lot of opportunity. we have more in common than we have at odds. we are looking to strengthen the country, strengthen business performance. we are a big provider of jobs with over 100,000 really good paying jobs, and looking for some regulatory streamlining. he has made statements about the tax, so that will improve our business and allow us to reinvest. david: there is opportunity there for you? >> there is. this is a complex business with long lead times. the volt and traverse are built in lansing, michigan. we need to understand how investment is made, but look for
opportunities. david: parts cross borders and come back in, assembly done someplace else, what do you anticipate in terms of trade and if there were things like a cross-border tax, would it help or hurt gm? >> it is too early. i would be speculating. it depends on how the rules are put together. we are proud of our strategy to build over 70% of the vehicles we sell in the u.s. here. we are the highest u.s. content of all the manufacturers, so we have a lot of jobs here and look to make sure it recognizes the significant investment we have made in this country and the jobs that we are providing. >> what is your view of the trump administration as they
formulate their trade policy? >> we have a good relationship. i talked to him last week when we announced our plant in michigan. he is interested in the things we are, taxes, trade, currency manipulation, all the things that affect american corporations. it is early days, but i am encouraged by what i see in terms of the policy potential. david: if you were going to write the ticket for an atmosphere that would be helpful, what would you ask from the new administration? >> he has already done one thing, appoint a new secretary for the department of transportation. she knows our industry. our industry is changing so much with autonomous driving and the technology going in. we will need a partner in government to make this happen. david: do you agree with what you have heard coming out from the transition team? >> we are working with them.
it is important that they understand our position and where we are. we have been in mexico for over 100 years. that is important for any administration to understand. david: you made some news last week with this plant in mexico. what is your reaction? >> we do build corollas in the u.s. in mississippi. strategically, we made decisions six years ago to realign our manufacturing footprint in the u.s., and the realignment would move the corolla out of canada and move it down to the plant in mississippi and put it into mexico. this decision was made 5-6 years ago. david: we now have a new president coming in. will it change your plans in
investing in mexico at all? >> again, we are a small player in mexico. only 5% comes from mexico, so we are a small player. we were late to move into mexico. we will have to take a look. we understand the priorities in washington, and i think we agree with the president that we want to make america strong, good paying jobs, because that allows us to sustain our business into the future. it is difficult to look at mexico as an isolated area. we have been in this country 60 years now, investing $22 billion. over the next five years, we will invest another $10 billion in our plants to make them more competitive, a new headquarters in texas, and autonomous vehicles. david: we do have a new administration coming in. if you were to talk to mr. trump
today and said these are the regulatory changes you would like to see for the auto industry, what would they be? >> everything which has been done in collaboration with the industry -- no matter what the administration wants, the industry can do a lot of things as long as it is collaborative, as long as we have visibility about what will happen. we can do a lot of things. the only thing we don't like is to be caught by surprise all of a sudden and you need to make a u-turn. david: there have been some tweets and some of your compatriots have woken up to tweets about what they should be doing, especially mexico. do you have a vulnerability in mexico? >> we adopted this strategy to localize production as much as
we can. there is a big thing that no carmaker can control, the situation of exchange rates. the dollar goes up, the peso goes down, so we decided a long time ago to localize production as much as possible. if your revenue is in dollars, your costs are in dollars. we are following this strategy. what is being asked by the administration, build cars in the united states that are being sold in united states, we are fine with i ♪
the blue is bond terminal, the pink is outstanding. really, 2020 is when they have serious money coming due. michael: there are 30,000 functions on the bloomberg, and we enjoy showing you our favorites. maybe they will become your favorites? here is another function, quic . and will take you to our quick takes where you can get important insight on our timely topics. here is a take that breaks down brexit. >> a percent of the european union are on course for a message law. britain voted to leave the block of 28 nations, suede that the eu was out of -- out of touch and a source of uncontrolled immigration. >> an independent united kingdom, how about that? >> the exit from one of the world's most -- trading blocs -- most powerful trading blocs
jolted markets and sent the pound tumbling. the prime minister david , cameron, who campaigned to remain in the eu, resigned. >> 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 have global implications. >> brexit means brexit, and we will make a success of it. >> here is the situation. to begin complex negotiations, may must trigger article 50. this notifies the eu of a country's intention to withdraw. may said she would do this before march 2017. britain has two years to negotiate the terms of separation, trade and safety standards among them. the terms of the withdrawal requires the backing of the government and parliament, but establishing new trade relationships could take longer than five years.
the pro-brexit vote was a populist backlash, but can the u.k. strike a deal with the eu to give it control over immigration without damaging the economy? does it have enough clout to negotiate better trade treaties on its own? it could cause global companies to cut investment or leave. no country has ever left the eu before, but the trade deal stuck by norway and switzerland and by canada and turkey may provide a guide to the uk's future. michael: that was just one of the many quic picks you can find on bloomberg and bloomberg.com. that will be all for "bloomberg best" this week. thank you for watching. i am michael mckee. this is bloomberg. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: ash carter is here. he is the outgoing secretary of defense. president obama appointed him in december 2014. the role marks a capstone for a decades-long career that began in the cold war and went into the cyber age. he has served a lemon secretaries -- he has served 11 secretaries of defense in 11 administrations. he was awarded the defense intelligence medal and the department's di