tv Bloomberg Best Bloomberg August 30, 2019 10:00pm-11:00pm EDT
coming up in "bloomberg best," the stories that shaped the week in business around the world. it was not as this as usual at the g7 summit. >> president trump saying he is call.g by the phone to >> boris johnson tells parliament to take a break. thrown this into the plans of the opposition. >> people calling it an outrage. the real question is what anyone
is going to do about it read >> italy, avoiding elections as a new coalition coming together. formeral sends a relation leader back to court. opioid crisis hits the bottom line for a top-tier company. >> no opioid maker is out of the woods. taylor: a longtime federal reserve leader says banks should lay a political role. in san francisco -- and an passsive view on policy for a fed leader. >> i supported the change to put the economy back in a good position. taylor: it is all straight ahead on "bloomberg best." ♪ taylor: hello and welcome.
youris bloomberg best, weekly review of the most important news, analysis, and interviews from bloomberg television around the world. let's start with a look at the top headlines. after last week, 80 flurry of tariff threats between the u.s. and china, president trump delivered positive news in a press conference at the g7 summit. futures have turned positive after president trump said china wants to restart trade talks. >> china called last night. said, let's get back to the table, so we will be getting back to the table. i think they want to do something. >> the comments he has the power to force american companies to u.s. china, roiled companies. >> it is a different world, a different trump. he said it was china that called
and they called twice. they are serious about this deal and they want to engage in the negotiations. the key will be the reaction from the chinese. >> president trump says china called. meanwhile, a foreign ministry spokesperson says he was unaware of these talks. what actually happened? they wereistry warned not able to confirm the calls president trump confirmed -- referred to. the -- had a signal from whatever calls did take place, were not at the level of significance president trump thought they were. wax -- >> i think they want to make a deal. >> it was very clear his leaders were whispering in his here -- ear. showed him a speech the
vice premier made in china. trump saw the word calm and thought that was some sort of concession from the chinese, they would not escalate further. >> we will take that as a positive. >> he is run with that and sending out hopeful messages to markets. >> a former new york fed president called president aump's trade war with china manufactured disaster in the making. saying the accommodation encourages the president will escalate the trade war further. exclusive -- his officials say -- >> he has an understandable position, most of the people argued the world economy is going into a slump. the u.s. may be slowing down as well because of the trade
lessees. at the fed is not going to get involved in the politics of making trade decisions. >> they said they rejected the policy. what is worth noting, this is going to give ammunition to trump and critics of the fed who there is as evidence deep state. this is going to be a distraction he does not need or want to deal with. asking thehnson queen to suspend u.k. parliament. toliaments -- politicians do return. this would squeeze the amount of time lawmakers have to make a brexit happen. he has thrown this into the plans to prevent his idea taking
britain out, do or die, by the end of october. it is not unusual to suspend parliament for a new agenda. five weeks, fairly extraordinary. gete we are more likely to this vote of no-confidence. then we will be in the grounds of a new general election. sparking ahnson controversy they plan to suspend parliament for five weeks. corbynparty leader vowing to fight. what is the likelihood this gets stopped? question is what is anyone going to do about it? have talkedp's about setting up their own parliament and another building
and holding it elsewhere. >> it is set to return after a mandate to form a coalition government. >> it is striking. is deadiven up politically. we are looking at what is called -- putting together a program. naming potential ministers. difficulties few between the parliament. they are going to back this coalition. still holding out on his desire to be deputy premier. >> china indicating it will retaliate against the latest round of tariffs. said china has
ample means for retaliation, but thinks the russian that should be discussed is about removing to preventiffs escalation of the trade war. >> with the commerce ministry said it was they would not retaliate against america's retaliation against china's retaliation. he also ruled out a request existing tariffs be rolled back. that should be a tall order given the trajectory. talks mayso those still go ahead in september. he did not confirm they would be there is some background work going on in terms of going on. you could take it as a conciliatory message. he is making it clear china does have the option to strike back if it wants to. >> president trump says the u.s.
and china are going to renew trade calls, although he offered no details. what can you tell us? >> we haven't heard anything more today. saying there was a call planned between chinese and u.s. officials. he did not indicate the level of the officials involved. there was a talk, a conversation planned. was onlyid talk, it two days before the u.s. was expected to increase tariffs on 110 billion dollars of chinese goods. it is hard to imagine where they are going to find some common ground. the euro down half a percent. that happened in the next minutes. it set a record versus the yen. weaker euro.
was it a euro plunge and then equities or the other way around? >> i think it was probably the driver. a.m.,.m. london, 11:00 new york, you see a lot of hedges readjusted. raking some technical work. just above 110. it is a perfect storm. here we are. let's get the latest on dorian. the national hurricane center says it is concerned by dorian's slow motion. that could with the state at risk at drawn out events. down, it givesow it a lot more time. hurricane harvey, at slowed down over texas. something similar could happen
with dorian. overan get 10-20 inches 2-3 days. it could hit anywhere. bringing a large amount of expensive real estate. in a path of a destructive storm. the week, much more in the u.s. china trade war. largest sportswear manufacturer. plus an exclusive conversation with mary daly. why he is bullish on the by a calm merger. >> it is a good deal. it is a buy. more of the top headlines. india's government has promised fiscal stimulus. cut interest rates and
taylor: this is "bloomberg best." thes continue our tour of top business stories. discussion about iran was the top of the agenda. there was an unexpected twist when an iranian official came at the invitation of emmanuel macron. >> the iranian foreign minister visited rents. bilateral talks. a brief sit down with the french president emmanuel macron. they said there was a heads up. heron did face allegations
blindsided allies. >> president rouhani said he was leaderd to meet with any . >> i would agree to that. >> a completely different president trump than we heard, making big news. he asked if he would consider meeting with rouhani. he suggested he would be in favor of extending what is known as a letter of credit. strategy was to apply maximum pressure on iran. he issident rouhani says not interested in just a photo opportunity. the president insists the sanctions -- before negotiations. >> the last thing they want is an event where pictures are taken, but the economy does not
get relief. i think that is what they are hedging on. >> president trump has said he is waiting by the phone. one of the issues is he is surrounded by advisers who have built their careers on drawing a hard line against iran and opposing these kinds of talks. >> the protests in hong kong taking an ominous turn. police fired shots at demonstrators who were turning violent rate they may have to intervene. >> it is a dangerous standoff. there were no arrests or tear gas last weekend. saturday, a different story. 29 arrest. teargas. protesters,nd the hardline protesters, clashing with metal poles.
throwing pencil bombs. the police responding with the most force they have used. six officers pulling sidearms. also, the water cannon truck. the hong kong government putting out a statement saying the violent acts put hong kong in a dangerous place for red fox unrest in hong kong continues. authorities clamping down on illustrations. -- demonstrations. what is the latest with these? >> there are quite a few prominent people among them, including joshua wong who is the subject of a netflix documentary. rights tobeen banning
demonstrate. there was a big one planned for tomorrow. we have numerous arrests. the city is on edge. business confidence following to the lowest level in seven years. the president of the institute saying this reflects issues with the german economy. >> the weakness focused on toufacturing is spreading other sectors. >> the argument has been the situation we are seeing is not affecting the domestic economy. low unemployment. domestic demand is holding up. spreading this is could be a sign to do more. the question is whether there is enough support for our action. finding consensus might be difficult.
>> argentina pushing creditors for more time to pay back its debt. it is hemmed into a worsening crisis. there are a series of desperate measures to try to light the debt load. they will force investors into short-term loans. your take on this? >> the timing was surprising. everyone knew things were bad in argentina. burning through reserves very quickly. they had difficulty rolling over short-term debt. i don't think anyone thought it was going to happen quite so soon. maybe what tipped the scales was the extraordinary level of their ability to roll over this. they probably thought with the election coming up, he thought, i better act sooner rather than
later. he is considered a lame-duck president. it is a final roll of the dice. india reserve bank of approved a record payout. theting the coffers as economy slows. it comes on top of new measures from the finance ministry. the government is going to ease fiscal policy. plex that is the expectation but one never knows. we have a government running a tight ship. what heavy lifting it has done. it has given a record amount of dividends to the government. not only dividend but part of its surface. this will add pressure onto the financial minister to ease financial issues.
it comes at a good time for the reserve bank of india. whether he will bite fiscal let or not. we will have to watch for that. toldatement should has bloomberg to the possibility of ultra long bonds is under consideration. in an exclusive interview, he says he anticipates taking advantage of favorable conditions. his comments moved the bond market. >> it dates back as far as 2009. the u.s. has consider doing this. the administration has rekindled the idea. it is hard to know how serious they are? they are considering and. they have talked about this in the past. and gotten a tepid response from investors. the last thing they want to do is make an offering nobody wants
to buy. we will have to see whether they follow through. >> let's turn to the u.s. economic data. growth da silva rating more than initially were ordered. revised down to 2%. bright spot. >> i think we are in a slower but steadier footing. a downward revision, consequential. the primary pillars of growth look well-positioned to continue driving the expansion. consumer spending, even stronger than first reported. government spending, basically running at the strongest pace in this cycle. ♪
welcome back to "bloomberg best." reserve was a central topic of discussion this week, with the focus not just on the policy path but the political role. send jusco fed president mary daly spoke exclusively with bloomberg. she is not a voting member, but she explained why she backed the cuts.tee's july rate >> global slowing, the headwinds from uncertainty. those things way in the economy. -- weigh in the economy.
thehat is why i supported basis cut. claxton it is the ecb recalibrating -- if they decide to reenter quantitative easing, what do you take away from that? >> all central banks are responding to the fact they have economic conditions changing. in the european union, conditions have slowed quite a bit. that requires central banks to take action every they are doing that. we look at our economy and see how factors affect us. we have to take decisions based on what we see the economy every aquatic -- economy. >> the more central banks do, the more markets one is. is this the new normal? are moving day today.
they are finding their own footing. some of that is based on the outlook they have for the economy. some of it trying to figure out what is coming next. marketdo is i take information, financial conditions more generally, as an input. being tighter or softer, would influence how well supported growth is. not a determining factor in my decision-making. compelling conversations coming up in bloomberg best. -- sharing perspective on the streaming wars. plus, exclusive interviews from china on the impact of trade wars. a top official says the u.s. is wrong to blame beijing for not cracking down on narcotics.
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♪ you are watching "bloomberg best." the emco chairman and ceo visited bloomberg this week for a conversation about investing at the largest independent holder of voting stock and viacom, who recently said he was exploring legal options after his shares were bought for less than he perceived its market value in the company's merger with cbs. vonnie quinn asked him if he is still considering litigation. ♪ >> as one of her teammates would say, all our options are still on the table. we want to see how far we go into it. number, there's
only like 5 million, 10 million shares, it was selling at a premium, and if they pay you an extra dollars -- it's not a lot of money. >> are you actually going to take them to court? >> we will do whatever is necessary to help our clients who own the stock. of the 650 million shares that will be outstanding -- by the way, this is a buy. have in our homes eight streaming services -- is he bullish on streaming and is cbs behind? shares,00 million that's 25 billion, we are paying 40 billion for the entire enterprise without a major
success in streaming, putting money into content will generate -- >> should they bring back "gunsmoke?" [laughter] >> that brings up an important point -- dark phoenix, a product created, lost a ton of money. you want to buy cbs because it is going to work -- they are a good team. ♪ >> the chapter ended on wall street this week. bennett goodman announced he will step down from the credit business. goodman was a cofounder and senior managing director of the company that he acquired in 2008. he stopped by our global headquarters in new york to talk with erik schatzker. ♪ >> i believe we will have a
selloff. cycles are not extinct although we haven't seen one in quite a while on any kind of prolonged basis. will bethe next cycle driven more about valuation and the recalibration of how risk is priced. i don't see another 2008 recession. i think whatever economic downturn we ultimately have will be relatively short-lived. there is aeve that lot of capital on the sidelines. we are not the only ones that have a lot of dry powder, and i risk that repricing of will serve as an opportunity for people to want to put more capital to work. >> so risk may be repriced because of all the capital available, at a higher level that it might have otherwise been? >> no. when things get repriced this time around it will not be because of the macroeconomic
factors, it will be some sort of geopolitical event. whether that's a trade war with china, whether that's some kind of conflict in the middle east. the fundamental economy today as we see it is actually doing ok. ♪ >> china's leading sportswear maker is stealing the heat from the trade war as it looks to lose its presence abroad. it is poised to grow be the domestic market that is facing headwinds from tariffs and the chinese economic slowdown. yvonne man spoke exclusively with the cfo. ♪ the trade war has reduced order is that chinese factories and it has impacted china as a whole. chinese brands to have more sourcing choices.
choice, ourre choice of supplier is mainly based on quality, delivery time, and other metrics. so it's not only a simple function of cost. >> so you are considering moving production to southeast asia? >> in the past, we have always been engaged with supply chain layout of this kind and some of our suppliers are already in southeast asia. we will continue to work with our current setup. >> you saw a surgeon online sales for your namesake brand. online of a part does sales now play in your total sales? online sales contribute to close to 20% of the group sales. but the growth rate is relatively high. we see that the younger
generation prefers to shop online. we will continue to strengthen our efforts in this field. ♪ >> a feud over america's opioid crisis is simmering in the shadow of the broader u.s.-china trade war. president trump accused beijing of not doing enough to curb exports of the highly addictive painkiller as u.s. deaths from the drug skyrocketed. the white house decided this was a reason to raise tariffs on china, but china's narcotics regulator denies the claim. here is his exclusive conversation with tom mackenzie. ♪ politicians out of their own political necessity fault,rd the facts, find make small things big and turn black into white. it is supposed to be a simple problem that became complicated, and clean water is muddied. sanctionedrecently
read chinese nationals and two companies operating in china. actionu be taking against these individuals? will you be taking action against the companies that produce fentanyl products? at the time that these people were making these substances, the chinese government hasn't announced the controls. what these people were doing didn't violate china law. but some in the u.s. political circle take issue with this and want to implement sanctions, which is not constructive at all. it only hurts the good cooperation we've had over law enforcement. >> there would be some who would argue that with the power that you have at your hands, a budget for domestic security of about $200 billion -- if someone in the public bureau turned around and said fix this now, close
this down, you could do it. we do admit that a small number of unlawful people are making fentanyl substances underground in china and shipping them to the u.s. for huge profits and at the request of criminals in the u.s. we have zero tolerance for the. we will exhaust any means to find them, arrest them, and punish them. ♪
be the biggest this year, seeking a valuation of at least a billion dollars. it seems like a large valuation. >> it does. but this is another company that we could call a tech company -- it's a big valuation but we see a lot of these companies come to market with barely punishing valuations, and some have come others done badly, while soared. it is hard to tell exactly how fair a number that is until we get being traded. ♪ >> shares of drugmaker johnson & green, evenin the after the company was ordered to pay $572 million. oklahoma was seeking $17.5 billion in damages, which a lot of analysts saw as a shoot for the moon kind of figure.
ultimately, that is why we are seeing johnson & johnson in the green. investors feared that billion dollar threshold, and it is lower than expected. but as we look at other cases for exampled, the multi-litigation in october, a lot of questions remain, and no drugmaker is out of the woods. hasrugmaker purdue pharma made an 11 and a half billion lawsuitsfer for all with the opioid crisis. is it a large settlement? how many cases and people are we talking about? >> this is around 2000 cases. there are still other cases outstanding but this has been the big bellwether case that wraps up a lot of different cases and puts a lot of this to rest. i thinkry substantial, the market is trying to figure out what this means because the
big question is if perdue exits, does that mean bigger numbers will be extracted, particularly companies that are in a stronger financial position and can withstand a bigger number? ♪ >> amgen is getting a chance to drug,blockbuster paying $13.4 billion for a psoriasis drug. the drug is being sold to win antitrust approval of the $74 billion mortar. it is an asset that they want to offload, it still seems not to cheap. >> exactly. and that was part of the shock today. it wasn't news that cortez lewis for sale, but i think analysts maybet it would go from $9 billion, $10 million, but the number raised some eyebrows. it is a great drug that makes a
lot of money, but $13 million seemed a little expensive. ♪ >> fanning the flames of m&a. a merger the tobacco business .bout a potential why would both stocks be lower if reunification is a good idea? >> that's a good question. phillip morris was down yesterday as the speculation started to bubble up, and it was down when this first hit. now we are seeing it go from way up to slightly down. 2008 companies split in and now people are arguing it makes sense to put them back together, but there's obviously questions about how this would all work. there's big regulatory risks on some of the things key to the fed. ♪ fortescue reported for your underlying profit that beat estimates. much a different picture.
>> asked the question on the minds of investors. i guess it is where those iron ore prices are headed. an we do know is extraordinary surgeon iron ore prices we saw through the first half of 2019. they have really reaped the benefits of that. but it is all about the forward-looking case. seesajority of the market the iron ore prices heading lower, so what we can expect is a reduction in profits this time next year. ♪ surged in june. the australian conglomerate may have to think one time items related to after sales. what i want to know is the ceo in your business -- two rate cuts from the rba, does it matter? will it impact your business? >> i think you need to look at the economy beyond rate cuts. the results we reported today
across a number of retail businesses and our industrial portfolio in many ways shows the australian economy isn't into bad shape, if you can deliver that level of growth. there are clearly some levels of growth, a bit of a slow down and economic growth and consumer spending, partly impacted by concerns around house prices. we are seeing the stabilization, and as we showed in the results, things aren't too bad. ♪ sparkling today as its quarterly profit shattered estimates. but despite the good news in terms of the profitability, tourist spending threatens to crumple the outlook for the year. >> tourism has been a problem for several quarters now. this goes back to before last year's holiday season. foreign tourists coming from abroad a lot less, not spending as much of these big destination stores that tiffany has, like their flagship in new york city.
chinese tourists in particular have been something that has been a huge boon for tiffany over the years, and that has slowed down as of late. ♪ chinale's reliance on starting to look increasingly like its biggest handicap. the iphone maker has shed tens of billions of dollars in market value since president trump escalated tariffs and "ordered" u.s. companies to move out of china. what would that mean for apple to be able to shift supply chains away from china? >> i think right now the company is still hoping that a trade deal gets done, or president trump backs off some of his rhetoric. but if indeed apple is facing these big tariffs, a bunch of which would kick in in december, if that did happen, actually moving production of the iphone out of china, they would need about 25% of that production to meet u.s. demand, moving that
type of production out of china would be a huge list and could take a couple years. ♪ >> cosmetics giant revlon is said to be gun the marketing process to secure a buyer and turnaround around the company to keep it public. we learned the process would begin after labor day. he could see the sale of the entire company. tell us about the amounts involved here, and where revlon would go marketing. >> we have said, or we have found, that they have had interested parties approach them in the formal process will begin after the labor day weekend with goldman sachs. that's their advisor on this. right now they are looking at all options that would basically boost a turnaround. that could be parts of the business, some of their bigger brands. elizabeth arden is one that in the last quarter had actually
been the only brand that put forth net sales, positive net sales. i think it remains to be seen but it is basically the beginning of that process. ♪ federal officials charging a former uber engineer of stealing driverless technology from alphabets waymo unit. this is one of the most intriguing recent legal battles in silicon valley. what did we learn today? >> this was a total surprise. hoover and google settled this a couple years ago. there had been a private arbitration, but the idea that there would be criminal charges people levandowski -- have largely given up on it. this is a big deal for silicon valley. ♪ >> the former malaysian prime corruptionsecond trial is underway after it was delayed by a week.
he is charged with graft, money laundering, and abuse of to the multibillion-dollar looting of state investment fund 1mdb. give us some perspective. how does this stir? is about local transactions, domestic transactions that originated -- this is on a much bigger scale, and it directly involves 1mdb. there is multibillion-dollar bond sales. a significant case, the one we should all be watching. ♪
morning, which we love. you are looking at the canadian dollar. why do you care about this right now? >> a lot of people are looking for trends, and the canadian dollar has endured in the u.s. dollar has gone up, repricing the odds that they could be forced to cut rates. >> there are about 30,000 functions on the bloomberg. we always enjoy showing you are favorites. maybe they will become your favorites. here's another function you'll you toeful, it will lead our quick takes, where you can get important context and fast insight into timely topics. this week's quick take examines the ongoing protests in hong kong. ♪ historic protests have been going on for months, with scenes alternating from huge, peaceful rallies to
smaller clashes. it has morphed into a broader movement against beijing tightening grip on the semiautonomous city. so work at the hong kong crisis beheaded? this is your bloomberg business take on the hong kong protests. the movement erupted in opposition to a proposed law which would for the first time allow expeditions to mainland china and others including taiwan. the proposal will start for the case of a hong kong man accused of murdering his girlfriend in taiwan. he was arrested in hong kong and convicted of money laundering and couldn't be sent back to taiwan for trial because there's no legal framework to do so. >> hong kong's government said the new lot would make sure the city doesn't become a haven for fugitives, but opponents are concerned it could open the door for anyone, including political dissidents and civil rights
activists, and people worry it would eradicate the key firewall that protects hong kong from china. >> the hong kong chief executive has called the extradition bill dead but refuses to completely withdraw it. protesters are not satisfied. their demands have grown wider, including her resignation, more democracy, and independent inquiry from alleged use of excessive force by the police. >> carrie lam still hasn't met a couple key protester demands. as the summer grinds on, it is getting harsher. protesters have committed serious crimes and show signs of terrorism. >> in the past few months, protesters joined together in massive marches and rallies, staged a general strike, blocked roads, and swarmed the airport all from the cancellation of hundreds of flights. violent clashes broke out in
different parts of the city, with some protesters throwing bricks and petrol bombs. police have fired more than 2000 rounds of tear gas and hundreds of rubber bullets. hundreds of protesters have been arrested, dozens charged with writing with the term of up to 10 years in prison. there's been a seemingly unprovoked attack on pro-democracy protests in salem, which sparked fears that beijing was doing their bidding. --acks on mainland chinese heightened tensions further. >> the protests have begun taking a toll on the economy, especially on tourism. within $600 billion of stock market value has been erased since early july and the economy contracted more than originally estimated in the second quarter stop beyond gdp the worry is that this will damage hong kong reputation as a safe and reliable commercial hub in asia. >> china promised to allow a
high degree of autonomy in hong kong until 24/7, which guarantees free speech and capitalist markets. but the protests have raised questions about whether hong kong's freedom will last that long. >> speculation has grown that xi anding will mobilize analysts are saying it remains unlikely. he would face fallout from a military intervention that would potentially be a lot higher than the repercussions of the protests. u.s. lawmakers could revoke trading privileges, which would worsen the overall outlook for china's economy just as this war escalates. what might happen next depends on how many concessions and when both carrie lam and her opposition are willing to make. ♪ >> that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and
♪ >> i am emily chang in san francisco and this is "bloomberg technology." another round of tariffs on china to hit sunday, and how it could impact electronic purchases and the rest of tech. plus, data storage company transitioning its new model as m&a. we will be joined by ceo to find out their plan. plus, more of my exclusive interview with uber ceo. we will get his take on driver protests and why he believes we need to redefine gig economy.