tv Bloomberg Best Bloomberg January 28, 2017 12:00pm-1:01pm EST
♪ >> coming up, the stories that shaped the weekend business around the world. trump administration is the ground running, acting swiftly on several campaign promises. >> what leaders to create jobs in the u.s. >> you will get favor shakes and better deals with trading partners. >> a lot of people were hoping he would start with tax reform. >> the industrial average is 20,000. we asked what is in a number? >> we expect 10 ipo's in the next few weeks. >> greed eventually comes back. >> parliament will get to vote on brexit. >> it is similar to a frog getting boiled, this will not be
quick. >> we very much welcome them. >> its high season for corporate earnings and we will run down some results. >> investor confidence is there. >> one objective is a better balance of profitability. >> we are reviewing our priorities. >> that's all straight ahead on "bloomberg best." ♪ him him david: this is "bloomberg best", your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. i'm david gura. let's start with a day by day look at headlines. on monday, three days after the inauguration, president donald trump got down to business. >> president trump against his and>> president trump against first full week in office.
we have a business leaders meeting this morning. what emanated from this? >> donald trump made it clear know you will reap message to different business leaders including elon musk and dow chemical. he said he wants these leaders to create jobs in the u.s. he was to reduce taxes, reduce regulations, but he said if they decide to take their business to other countries and try to ship jobs back to the u.s., they will face a big border tax. vonnie: president trump is wasting no time in the white house. he has signed an executive order to withdraw the u.s. from the transpacific partnership accord. >> he is pulling us out of tpp. that was meant ironically as a way to contain china. his nemesis. he indicates he was to renegotiate the north american free trade agreement with canada and mexico. i suspect this is what we are seeing in the markets. for several days the markets were focused on less regulation,
lower taxes. now they are beginning to wake up and say the mighty some stuff we don't like your from the trade front. >> he did what he promised he was going to do. >> i suppose what is a bit unexpected is you people like malcolm turnbull, the prime minister of australia, reaching out to japan last night. also the prime ministers of new zealand and singapore, saying let's take this tpp and see we can drive that forward without united states. >> the highest u.k. court ruling prime minister theresa may needs the provision of parliament to trigger the countdown to brexit. >> today, by majority of 8-3, the supreme court rules that the government cannot trigger article 50 without an act of parliament. >> this government is determined to deliver on a decision taken by the people of the united kingdom and the referendum to leave the european union. we will move swiftly to do just that.
>> now the government will be working to try to put before parliament a very brief simply worded document. the aim is to try to give fellow lawmakers as little to object to is possible. the third largest party in parliament said they will bring 50 amendments to what of the bill is before parliament. and then falls to the speaker of the house, you might hear more about him, he is a man who decides how many of these amendments are allowed in and how many get airtime. that will be crucial. that will be crucial. mark: to what extent will today's ruling delay the triggering of article 50? >> i don't think very much. the expectation is mostly members of parliament and the house of commons, with the exception of some liberal democrats, there are only nine of them, and some labor people. but the snp will vote again. there will be a healthy majority for the limitation bill.
-- implementation bill. >> as the market opens we are all on dow 20 k watch. we got the dow crossing the 20,000 level. be dow now at 20,019. up 106 points. we've been knocking on the door for many days the could i reset level. >> typically wall street has kind of forgotten about the dow. there is all the analysis based on the s&p 500. the dow is a price weighted index. it just really isn't practical in this day and age. it was fascinating to watch that 20,000 really become sort of a resistance zone. and early january people were viewing it as a technical level. now trump is in and we have seen him in the first couple of days
really focus on the very equity friendly parts of his agenda. >> it finally happened. that held above the level. 155 point advance for the dow. a lot of excitement but what does it really mean for investors? >> the bigger picture is you had a breakout of the last five or six weeks. not only the dow, the s&p and some international ones as well. the dax. clearly from a technical perspective that is pretty bullish. an upside breakout. >> republican lawmakers in philadelphia today putting to have plan for working with president donald trump. the president of mexico tweeting he will not attend a meeting scheduled to take place next tuesday with president trump. >> this is stunning. the idea that donald trump would tweet out to the president of mexico, don't come if you're not going to pay for the wall. then he would get a response by twitter from the president of mexico saying i'm not coming.
>> does he have a choice in canceling the meeting? >> there is questions about the order of things and how this will transpire. we are where hearing report yesterday the mexican administration and president were already thinking about potentially canceling the trip based on trump's executive order to begin work on the construction of the wall. >> theresa may will be addressing the republicans shortly. what is she doing in this form? why not go to washington and addressed congress in both parties? >> she will be at the white house tomorrow. the development across the pond influencing perhaps the leverage that republican officials, including the trump administration feel they have been negotiating a deal with the u.k. in terms of a trade agreement. that was before the withdrawal of the mexico meeting.
a lot of moving parts today. >> why am i in washington? theresa may will be here a little bit later on. the british prime minister becoming the first leader to meet donald trump at the white house. from a financial market point of view, how significant is this trip? >> i think it's really important. the fact trump sees the relationship with u.k. being critical to the success of his administration. to me, i think what's important is trying to flesh out what he has in mind in terms of a relationship. theresa may, clearly the challenge in terms of potential economic slowdown post-referendum is still out there. what we need to see coming into 2017 is clear plans for investment for the u.k. and continue to enable the economy to grow. >> what is president trump expecting and hoping to get out of this meeting? >> i put that question to trump's senior counselor kellyanne conway inside the white house.
what she told me is the focus is going to be all on trade. i can tell you kellyanne conway told me perhaps something they might be discussed privately is ways in which president trump and his administration could assist prime minister may in helping her meet at march 31 deadline of triggering brexit. clearly a lot of different moving parts behind the scenes. >> what about for him? does he need to come away with something saying i got this out of the prime minister? or is it enough to say i can get along with countries? >> the latter. of political orbit of president trump and the people in that orbit am talking with tell me today the goal is to not have any hickups publicly. david: we dig deep into donald trump and trade policy. with the dow 20,000 calling for champagne or caution? a round of writing reports and the week's top business stories, including a memorandum from president trump.
♪ david: this is "bloomberg best." i'm david gura. let's continue our global tour of the week's top business stories. in asia, samsung is working to rebuild consumer trust and investor confidence after last year's smartphone debacle. >> samsung has confirmed faulty batteries caused some of its galaxy note 7 models the burst into flames. what exactly are they saying? >> they said factories were part of the issue, causing the batteries to overheat and cause fire. electrodes in the first batch of batteries essentially came as the they cause a short circuit.
the the fact that the defect was in the design and manufacturing phases. donald jin apologized over the issues and said about 200,000 pounds and 30,000 batteries -- >> some sun announced it will buy back in the $8 billion in shares on a strong quarterly results. profits doubled almost $6 billion, largely from rising prices from memory chips and tv screens. the results show that samsung empire was not badly burned by the overheating note 7 smartphone fiasco. >> more than doubled to 6.92, just under 6 billion u.s. dollars. that was driven largely by the semiconductors, a unit doing very well for samsung over the
last year. and a recovery in its mobile business. they do expect earnings overall to decline quarter on quarter. >> opec oil producers have agreed on a way to monitor compliance. >> they are not at 100% yet. the saudi minister says they hope to reach that 100% level in february. everyone complying fully with their quota levels. they are setting up a committee of several of the countries that will look at exports. they will look at so-called secondary sources, which are analysts that look at the market. >> president trump taking steps to advance construction of the controversial keystone and dakota pipelines. >> this idea of everything has got to be done with u.s. steel and u.s. based products and workers.
this is an encouragement for transcanada to reapply. a direction for agencies to look at things quickly and nowhere president trump is coming from. these discussions and negotiations have not yet totally begun. >> one has something interesting and that's the call for looking at regulations that impede american manufacturing, construction of new plants. he's asking for a collection of comments that will be published to help and guide the regulatory process going forward and perhaps a limitation of regulations. that when you say he did something. the other is what he says is i like pipelines. if you want to reapply, i am in favor of it. >> president donald trump acted on two of the most fundamental and controversial elements of his presidential campaign, building a wall on the border with mexico and tightening restrictions on who can enter the u.s. president trump: beginning today the united states of america
gets back control of its borders. gets back its borders. >> this was an executive order in which the president ordered the construction of the mexican wall. of what needs to be done by congress to move this forward? >> this was campaign rhetoric repackaged in the executive branch. and now the ball moves to congress for top republican leadership like house bigger paul ryan are already meeting with their advisors on how exactly to move the president's agenda into a budget. >> there are some creative ideas that i've been coming up with for the taxpayer may see initial down payment, but then eventually the security measures paid for by increasing a border security fee for visa applications from mexico and central american countries that are the biggest offenders of illegal immigration, to things
like border security fees and remittances going from the united states to these countries, a border security fee attached to that. >> networking giant cisco announced yesterday it will buy software maker ap dynamics. this is ahead of the planned ipo. you were try to make a pivot into some of the harvard business. white is this particular company help you do that? >> if you look at app dynamics, gets a cloud-based dynamics management system. what they do is translate application performance into business insights for the customer. they do it across both private
cloud and public cloud. we think the synergy of what we see and what they see if the application layer creates visibility vanilla company in the industry can provide to our customers. >> the china central bank is ordering the nation's lenders in the first quarter of this year. a tricky situation right now where you have to balance keeping liquidity in funding and credit risk. >> and the mountain of debt and china. you have to balance that. especially as the chinese lunar new year is coming up quicker this year. january also is the time when banks frontload their lending for the year, especially in mortgages. that concern, you need to balance credit risk and keep enough funding in the financial system ahead of and into the prolonged lunar new year holiday. the ppoc has ordered banks to strict the control new loans. this includes a request for banks to keep increases in new mortgage lending below that
first increase we saw in the fourth quarter. >> after months of negotiations, johnson and johnson has won over -- they are buying the swiss drugmaker for $30 billion. it will help j&j become the leader in medicines for a rare type of high blood pressure. what was it that finally decided the owners to go with this. how they structure the deal in the end? >> i think the answer is in the structure of the deal. i think everybody has been openly talking about the fact the ceo of actelion was reticent in giving up control of the company. this is the best deal they can put together in terms of the structures made. he gets to run actelion 2, or whatever you want to call it, and j&j gets a control sales
growth. >> barclays bank has settled on dublin for its main hub and the european union. they will move 150 staff there. they will lose easy access to the european trading block with people with knowledge of the decision. choosing dublin is one thing. taking a whole host of people out of london is another. it's the former not the latter, isn't it? >> barclays is never been on the end of the more apocalyptic warnings after brexit. just 150 people, it will not change the overall structure of the group which still has hundreds of thousands of employees elsewhere in the world. we can see cities emerging as winners. we have dublin, a number of banks looking to go there. and we also frankfurt and other u.k. banks including lloyds are looking to set up a series to operate in those cities. this isn't quite the end of europe's financial center yet. ♪
♪ david: welcome back. it has been historically on wall street with the dow jones industrial 20,000 for the first time. what this is milestone actually mean? we covered it in detail on bloomberg television. >> are we at an inflection point? is this an indicator of positive the mental's -- positive fundamentals? >> that is the hope. when i woke up in the middle of the night on november 8, number nine and i saw the dow was down 600 points. since that time we came roaring back 3000 points or 15%.
is basically hope. the hope is we will see reform for corporate income tax regimes that makes it more advantageous to be in business in the united states and navy cement for structure spending. there is a lot of optimism. it is manifest in the market, and the dow 20,000, and it's been a raucous they are right here on the floor of the new york stock exchange as we hit that milestone number. >> if doubt 20,000 signals momentum, what is it tell you about listings of companies? how does this change your forecast and how many companies you'll see listed on the new york stock exchange? >> let me take you back a year ago. in the first quarter of 2016, we had no ipo's. zero. we did not raise any money for corporate america. companies were not able to take money they had not raised in invested in their business. i was his meeting with my team upstairs. we expect 10 ipos in the next three weeks, including four on friday. those 10 are really big ipos. most are raising $500 million,
$600 million. when we expect to raise $1.7 billion next week. this is good. >> way to be go from here? we had this round number. what does that tell you about what is around the corner? >> in the long-term, when you look over the balance of the year we think both earnings and the economy are on track to essentially keep the bull market going. the near term is a little less certain because what we have really done was we have almost a destroyed this wall of worry in large part that the 7.5 years of the bull market has climbed. whether you think about it in terms of the low level of short interest out there in the market, the very, very high
confidence levels on the part of both consumers and optimism in small business, both of which those numbers are extreme the spikey. when we have seen those numbers dip in the past, it's been difficult for stocks to sustain the kind of momentum we have seen the last couple of months. >> some people out there say run numbers don't matter. a lot of people have said over the last two years to get the retail participation you need big headlines on the front pages to induce their appetite to buy equities. is that where we are at? >> i think so. people are still calling this a rally. the market bottoms on march 9, 2009. this is a bull market. the great irony is this happened without any retail participation. there is been net redemptions if you count both mutual funds and will etf's over the last eight
will years. this makes a difference because andthis makes a difference because there are good reasons why retail investors are out of the market. serial misdeeds on the part of corporate america and wall street and obviously the financial crisis. greed eventually comes back. >> it says the dow tops 20,000. that's the kind of headline were my mother-in-law calls me. >> i think sir john templeton said the bull markets are born in pessimism, growing skepticism, and they die in euphoria. it's hard to say you have euphoria if you have never egyptian's from retail investors. you shouldn't worry about valuation, but there are a lot of people that sat on the sidelines for the last eight years them i want to get in. david: coming up, we will revisit some of the most compelling interviews. donald trump's tough talk on trade, and brags it could mean big changes for european businesses that might not be all bad. >> that will lead to bankruptcies and elite opportunities.
david: you are watching "bloomberg best." i'm david gura. days after taking office, president donald trump made statements on trade, withdrawing american support for the transpacific partnership and promising to implement protectionist policies. throughout the week we discussed the possible global effects of trump's stance on trade. here is some of that conversation. >> we do think that trade barriers will probably go up. we don't expect the sort of numbers on across-the-board basis that trump was using during the campaign, 45% on china, 35% of mexico, but we think this will be a major focus.
what we have seen so far confirms that. >> how does this affect your outlook for 2017 for the u.s. economy and the global economy? >> it does to some degree. the economy generally is in pretty decent shape and the u.s. easier fiscal policy should have an effect late this year and 2018 and sort of prolong this period of above trend growth into 2018. we think we will probably go beyond full employment. inflation will move higher and we also have a lot more in the funds rate. >> do you consider a strong dollar to continue as well? >> we do expect a strong dollar. is mainly based on interest rate differentials. for the euro-dollar we expect
parity by the end of the year. our monetary policy view is that the fed does need to normalize and will normalize, whereas the ecb and the bank of japan still can keep it for a long time to come. >> how confident are you the tpp will continue and live on? >> the decision by the president was not unexpected, but that doesn't mean you should walk away from these things. there is still a lot that can be gained and we intend to pursue that where there is opportunity potential for other partners to step into this. australia is a trading nation. all of these things. are economic interests are much aligned with that approach. we have had excellent arrangements finalized with china and south korea and japan. the tpp was an important part of this. we will just get on with it. >> a very major border tax. we had the idea that was coming.
plusses and minuses for the u.s. economy, or just minuses in your view? >> what we don't know is what form that will take. the republicans in congress seven talking about a border adjustment tax which would really be kind of like a -- donald trump previously said he doesn't want a border adjustment tax. this one sounds much more like a regular tariff. if that is what he is talking about, i don't think the market will react well to that. i think a lot of people were hoping he was going to start with tax cutting and tax reform and that more protectionist tendencies would come later, if at all. his inaugural address and now these actions suggest maybe he is moving back to the front. >> there was talk about neo-mercantilism -- could it out again work for the u.s.? >> it has not been working for china. you raise it in a good way in
the sense that mercantilism and protectionism, economic isolationist thinking has been tried hundreds of times around the world and it does not work. it works the wrong way. it makes you poor, it does not make you rich. >> we will see real capital investment. we will see trade competitiveness from our corporations with a lower tax rate. we will eliminate off shoring and europe stealing our tax base. we will start getting fair shakes for better deals with our trading partners. all those things will happen and basically full employment. we will see a stimulative environment is trump is successful, with will be very positive for the united states and slightly negative for the rest of the world, but it is
telling the globalist nightmare that they are trying to make it. the u.s. has been a wage giver and a price taker. >> is it as simple as short rates, dollar strong? >> if you need to boil it down to a soundbite, i would say yes. they are idiosyncrasies of every trade relationship, but one would think if we get to -- the question is how to we pay for it? had a we pay for cutting the corporate tax rate? it is my view, our view at our firm that border tax adjustability is the limited pay for it. that is basically taxing the trade deficit. is broadening the base and forcing your trading partners to pay for the cut and tax. is actually very elegant. >> britons anticipated break with the european union is affecting the outlook for investors.
interviews this week delivered insight on that issue. but start with guy johnson's conversation with guy hands who expected to be represented with good for business. >> we will have to continue to borrow money. we won't have the -- interest rates will start to go up. that will lead to bankruptcies. it will lead to opportunity. sadly, and this is always one of the strange things about business, i think it is probably that for the majority of people and that for the country. but i think my business is probably going to be good. >> on what kind of scale? how good is a get? how big will the opportunity be? giving some other numbers. how higher interest rates going
up? >> when i said a reduction of wages, i was talking about real terms over 20 years. it's a small change each year. it is similar to a frog getting boiled. it is not going to be quick. it will be very slow. and terms of interest rates, that will take some time as well. but the u.k. at some point is going to have to continue to pay for itself. people talk about the j curve. the j curve in terms of devaluation is never worked for the u.k. the u.k. did it for 200 years before joining the european union, constantly devaluating. how much, i don't know. but the differential between us and europe will need to be several percent. >> my colleague francine sat down imagery this week with ana
botin. >> you did 19% of your revenue in the u.k. we have not had article 50 yet. consumer spending has been holding up. what happens when article 50 is triggered? >> who knows? in the short-term the u.k. is doing well. the last six month seven good and they should be positive for the next six months. inflation will hurt consumers obviously. we are respecting lower growth in the u.k. for 2017. not as low as we expected before. we still expect growth, lending to grow less but still to grow. again in this context, the u.k. has a great job this year. we absolutely are totally committed to the u.k. is a local british bank. we have grown our lending, from
loyal customers. it will be less growth is still positive and this is important. >> if the u.k. loses passporting rights, does it make any difference to how you operate and manage the u.k.? >> for us it makes no difference. we are a british bank so we take the profits and we landed them in the u.k. what we care about is our customers. it will affect our customers and this is what we need to think about as we work out what's going to be the new relationship between the u.k. and the consonant. we are very close, lots of exports, imports, and we need to think about that and the people. there are a lot of british people on the continent. let's think about the people and the customers, the small companies, trading between the u.k. in europe as we work out. >> we expect to see you at davos. the big u.k. banks are moving to frankfurt in opening banks. do you have a sense that a lot of these bankers would move
talent to madrid? it is a financial center. >> of course if anybody is going to move from london we will welcome them in madrid. we have great people and a great infrastructure. i think it's a great place. london is still the hub first talent, the market is there. i think london will remain the most important center in europe. ♪
♪ david: this is "bloomberg best." i'm david gura. a host of companies reported quarterly results this week, including prominent tech firms. could against the china's e-commerce colossus alibaba. >> a boost after china's biggest e-commerce company was it better than expected results. where is this revenue growth coming from? >> there is not much growth and user numbers anymore. is the first time in a long time
bailey at single-digit growth. it is coming in. users are spending more. but we saw compared to a year ago is 30% growth in the average revenue per user. that is really big. on mobile, 50%. people are purchasing 50% more than the year ago. that is really important for alibaba because china is so large that they are almost hitting peak usage, over 800 million users. they will not be heavily a much more out of it so they need to get more per person. >> out of it shares fell in extended trading at her fourth-quarter profits came in below estimates. it was dented by heavy spending to support its cloud business and a one-time tax payment. core add business did show strong but they closed at a record high yesterday. how do you weigh the results?
>> they missed on the bottom line but the core business is very strong. it was 36%, the highest in four years. was really driving this growth is the you tube and mobile search. that growth momentum will continue. the cloud business, and you growth avenue for the company, might induce margin volatility going forward. it's a large market so all in all the growth opportunities continue to be there but the margin volatility might surface. >> microsoft second quarter and profits exceeding projections, both by rising customer sign-ups and office cloud computing services. the first running reports since they completed their $26 billion purchase of linkedin. >> the business continues to grow for them. nearly doubled. there is no sign of that slowing down.
the office 365 business is interesting as well because i successfully moved from this model where he always to pay for a copy of office to now only paying a subscription. in the long run that has some nice financial benefits. we are starting to see some opportunities they are driving from that as well. interestingly enough, given the windows business did ok. >> that'll chestnut. >> it still had some opportunity. they are heavily involved in gaming. that's a hot area as well. they are nicely positioned as they move forward. >> earnings update from yahoo! the company's fourth-quarter adjusted earnings per share beat analyst estimates, rising to $.25. revenue also be estimates at $960 million. more important is the state of the acquisition by verizon. despite suffering both to largest corporate eta breaches
of all time, the deal is still on. it is now pushed back to the second quarter. >> we see the company trying to bail itself out of a situation. we saw declining revenues of about 4% a year over year basis, but that's better than previous quarter's we saw double-digit declines. they will take the they can get. can they find a business underneath all the garbage that is yahoo! that actually is a profitable business for them to run? >> they deliver their numbers. the fourth-quarter adjusted at one billion euros. that is a slip below. one billion euros is will he earned in the fourth quarter. tomorrow from 1.02. where was a little bit of a shaken the fourth quarter? >> i look at a slightly different, but it's important to
know the philips group had a defining year in 2016. we separated out lighting. brought it to the stock exchange. we are still consolidating lighting but phillips is growing as a health technology company. it was in health technology in the fourth quarter we saw 5% sales growth and 190 basis points of profit improvement. you can conclude our health technology activities really have momentum. >> shares of boeing on the rise this morning after the jet maker reported fourth-quarter earnings better than analyst estimates. topline, what is good in these numbers? >> the improving global economy and increasing demand for passenger and cargo jets. >> as you look forward to growth, the military is not that big. it is less than 50% of the revenue. it's not really in the forefront.
do they plan to grow that military? >> they key is their cyber security business. the biggest concern for governments and corporations are cyber attacks, more so than military attacks. boeing is a key player. people don't know how big they are in cyber security but they are a very big player. that's an area where trump said we need to focus on, for the expenditures are producing tremendously. and unmanned aircraft with a defense spending is increasing. the mitigation, cyber security and unmanned aircraft are a big growth areas. >> the swiss drugmaker announcing plans to buy back $5 billion in shares and a potential spinoff of its eye care unit. are you actually talking to potential buyers? >> we announced we are going to conduct review of the next year. this will include all options, including retaining the business to exiting the business the capital markets such as an ipo.
this without a clue the pharmaceutical part of alcon, we took that part of the business and we integrated it into the innovative medicines division. we are just starting to review now. we are not down the path to far but we thought we should be opened within so in our own associates everyone knows we are conducting this review. >> an 18 month high this morning, 2% in sydney after releasing production numbers for the second quarter. it seems like both numbers are in line with estimates given just no surprise given how much iron ore has rallied. copper was the big disappointment. >> we are in the media celesta the values first. copper a big letdown. 357,000 tons with a quarter. the market expected 411,000. the risk is much better. iron ore second quarter output was upbeat. up 4% on year. federal production was down a
little. coal pretty broadly in line. overall the markets welcoming of these numbers from bhp. >> ericsson. those shares of a higher fourth-quarter revenue that analysts predicted. it is some relief to the ceo who took the helm last week. 10 days and and you have cut the -- >> we are reviewing priorities and investing in areas where we can and must win. i think we have great opportunities. we have a strong platform, a strong position on technology. we are very good financial position as a starting point. >> ford is out with its earnings. >> forward is out with its -- spot on at $.30 for the fourth quarter. slightly better than forecasted on revenues. some saw the number of vehicles sold in the u.s. europe was much stronger for
them. they also got guidance in the next year. they say the investments and autonomous vehicles and electric pupils. are they shifting towards europe and china? you are profitable and europe for the first time last year. >> one of our objectives as a company is to get a better balance of profitability. as we get into 2017 we do expect that our profits are going to be continuing to be strong, but also at the same time in europe and china we will continue our positive performance. we do expect europe to be done a bit this year. that is based on the weakening of the sterling because of brexit. >> numbers out of ubs this morning. beating estimates because of a surgeon equity trading revenue. the u.s. wealth management business have a record period. ubs has seen improved investor confidence in the u.s.
>> investor confidence is there. we are talking regularly the clients and we do see a in readiness in planning for investments and not only financial markets, but the underlying businesses. it's quite clear investors are looking for concrete actions by the new u.s. administration before they go into investment mode. ♪ in ♪
bloomberg. we enjoy shown you are favorites. we hope they become your favorites as well. another function you will find useful, quic go. and get fast insight into timely topics. here is a quick take from this week. >> taiwan is a constitution, and army and an elected government. get the united nations is not formally recognize it. the reason, china considers the island one of its provinces. the government is illegitimate and the talk of independence is deeply hostile. a new president in taipei and the leading aggressive party is testing china's tolerance and the new president in washington. the first female president provokes an angry response in china by speaking to donald trump by telephone after he was elected. in difference to the beijing
government, no u.s. government can talk to really to a taiwan president from us for decades. she wants peaceful ties with china while resisting the china principle. that principle has underpinned relations with china in the past. if the understanding of both sides will long to one china, even if they had different ideas about what that means. trump says his support for one china policy hinges on cutting a better trade deal with china, prompted a complaint from the chinese government. president trump: we have to be bound by a one china policy unless we make a deal with china. >> polls show strong support for maintaining the status quo and little immediate interest in independence. taiwan's 23.5 million people have built their economy into a technology and manufacturing powerhouse.
the average income is three times that of china's. apple iphones are made there. they want to keep the peaceful keeping international ties and a future less dependent on the mainland. while many china watchers say there is too much at stake in a military confrontation, trump's election has added uncertainty. and an increasingly assertive china has more than 1200 missiles pointed at taiwan and no peace treaties in seven decades. ♪ david: that was one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis 24 hours a day. that is all for ""bloomberg best." i'm david gura.
♪ mr. buffett: i said what do i do with this money? he said, investing it is about assigning the right use for the money. i did not want to go to college. i went to omaha. i had $175,000. i thought that was all i would need to let the rest of my life. david: did you ever run into that guy again? mr. buffett: he needs protection now. david: when you had your first annual meeting, how many showed up at that? any advice to a young investor who would like to emulate you? >> would you fix your tie, please? david: most people would not recognize me if my tie was not fixed. let's leave it this way. all right. ♪ david: i do