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♪ taylor: coming up in "bloomberg best." the stories that shaped the week in business around the world. it was everything but is this -- but business as usual at the g7 summit. >> president trump saying he is waiting by the phone to call. that he wants to strike a deal. >> boris johnson tells parliament to take a break. while britain hurtles towards brexit. thrown in aon has norm us -- this into the plans of the opposition. >> people calling it an outrage. the real question is what anyone is going to do about it. >> italy, avoiding elections as a new coalition coming together.
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deadnd of given up as politically, and we are looking at what is being postponed. mdb scandal sends a malaysian leader back to court. the opioid crisis hits the bottom line for a top-tier company. >> a lot of questions remain and no opioid maker is out of the woods. taylor: a longtime federal reserve leader claims the banks should play a political role. >> this is going to give ammunition to trump. francisco,san exclusive thoughts on policy pass 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."
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♪ taylor: hello and welcome. this is "bloomberg best," your 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 weekly with a flurry of tariff threats between the u.s. and china, president trump delivered positive news in a press conference at the g7 summit. >> s&p futures have turned positive after president trump said china wants to restart trade talks. pres. trump: china called last night our top trade people and 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 president's earlier comments that he has the power to force american companies to leave china, roiled u.s. companies, sending yields sinking into a three year low. >> it is a different world, a different trump. he said it was china that called
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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 calls, also echoed by the global times. what actually happened? >> the foreign ministry in beijing warned they were not able to confirm the calls president trump referred to. then we had the signal from the editor of the global times, which is important. he made the point that whatever calls did make place were not at the level of significance president trump thought they were. pres. trump: i think they want to make a deal. i do not think they have a choice, and i'm not saying that as a threat. >> it was very clear his leaders were whispering in his ear all weekend.
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trumpe showed president the speech the vice premier made in china. trump saw the word calm and thought that was some sort of concession from the chinese, that they would not escalate further. positiveing that as a and he is running with it and sending out hopeful messages to markets. >> a former new york fed president called president trump's trade war with china a manufactured disaster in the making. in a bloomberg opinion piece, saying the accommodation encourages the president will escalate the trade war further, increasing the risk of recession. that keepsration making bad choices on trade. >> bill dudley has an understandable position, most of the people argued the world economy is going into a slump. many countries close to recession. the u.s. may be slowing down as well because of the president's
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trade policies, but the fed is not going to get involved in the politics of making trade decisions. >> the fed said today that they rejected the dudley doctrine, that they are not going along with dudley. what is worth noting, this is going to give ammunition to trump and critics of the fed who say, here is evidence there is a deep state. this is going to be a distraction that powell does not need or want to deal with. >> boris johnson asking the queen to suspend u.k. parliament from the week of september 9 until october 14. politicians are due to return from recess next week. this would significantly squeeze the amount of time lawmakers have to make a brexit happen. >> mr. johnson has thrown this into the plans to prevent his idea of taking britain out, do
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or die, by the end of october. it is not unusual to suspend parliament for a new agenda. normally, two or three days, it is announced, so five weeks, fairly extraordinary. what is it going to end in? maybe we are more likely to get this vote of no-confidence. then we will be in the grounds of a new general election. >> boris johnson sparking a controversy with plans to suspend parliament for five weeks. the queen has approved this suspension. labour party leader corbyn vowing to fight. what is the likelihood this gets stopped? there are people calling this a constitutional outrage, but the real question is what is anyone going to do about it? jeremy corbyn and some other mp's have talked about setting up their own parliament in
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another building and holding it outside, to the extent that they see this to be antidemocratic. conte is set to return after a mandate to form a coalition government. >> it is striking. he was given up as dead politically just a week ago, and 2.0.e are looking at the to put have a week together a program and iron out a few difficulties between the parliament. they are going to back this coalition. he is still holding out on his desire to remain deputy premier which may be a dealbreaker for the other side. >> china indicating it will not immediately retaliate against the latest round of tariffs.
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the spokesman said -- told reporters in beijing that the means for retaliation, but thinks the russians should be -- is about removing the new tariffs to prevent 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 rolled out a request that existing tariffs be rolled back. that sounds like a tall order given the trajectory of negotiations. he said also those talks may still go ahead in september. he did not confirm they would be , but that there is some background work going on in 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
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trade calls, although he offered no timeline or other details. what can you tell us? >> we haven't heard anything more today than trump saying there was a call planned between chinese and u.s. officials. he did not indicate the level of the officials involved. he said there was a talk, a conversation planned. the fact of the matter is that if they did speak, it was only two days before the u.s. was expected to increase 50% -- billion of on $110 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 last few minutes. it set a record versus the yen. definitely weaker euro. do we see the euro plunged and
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then equities or the other way around? >> i think they euro was the driver. 4:00 p.m. london, 11:00 a.m., new york, you see a lot of hedges readjusted from international investors. raking some technical work. just above 110. it is a perfect storm. and here we are. >> let's get the latest on dorian. the national hurricane center says it is concerned by dorian's slow motion as it approaches florida's coast. that could put the state at risk at drawn out events. why is it concerning that dorian is slowing? >> when they slow down, it gives it a lot more time to drop rain. hurricane harvey slowed down over texas and dropped record amounts of rain.
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and something similar could happen with dorian. as it comes in, you can get 10 to 20 inches of rain over two to three days. fortuld hit over lauderdale, which is large amounts of expensive real estate in the path of a destructive storm. taylor: still ahead as we review the week, much more on the u.s.-china trade war with perspective from china's largest sportswear manufacturer. plus an exclusive conversation with mary daly. is one explaining why he bullish on the cbs-viacom merger. >> it is a good deal. it is a buy. taylor: up next, more of the week's top business headlines. india's government has promised fiscal stimulus. the central bank is helping provide the cash. >> it has cut interest rates and
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given a record amount of dividends to the government. taylor: this is bloomberg. ♪
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♪ taylor: this is "bloomberg best." i am taylor riggs. let's continue our tour of the stories with more from the g7 summit. discussion about iran was the top of the agenda. there was an unexpected twist when a top iranian official came at the invitation of emmanuel macron. foreign minister visited france for six hours. bilateral talks. we had a brief sit down with the french president emmanuel macron. officials said they gave the u.s. delegation a heads up about the surprise arrival.
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macron did face allegations he blindsided allies. >> president rouhani said he was prepared to meet any political leader in the interest of his country. pres. trump: if the circumstances were correct, were right, i would certainly agree with that. >> a completely different president trump than we heard, making big news in iran and china. -- he asked if you would consider meeting with rouhani, and he said he would. he suggested he would be in favor of extending what is known as a letter of credit. until now, the strategy of the u.s. was to apply maximum pressure on iran. >> president rouhani says he is not interested in just a photo opportunity with president donald trump. insistsian president that sanctions be lifted before negotiations. >> the last thing they want is an event where pictures are taken, but the iranian economy
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does not get any relief. i think that is what they are hedging their bets on. >> president trump has said he 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 again, and beijing get the strongest signal that it may have to intervene. >> it is the strongest standoff right now because we thought that there were no arrests or tear gas last weekend. saturday, a different story. another 29 arrests. teargas, fire. the police and the protesters, hardline protesters, clashing with metal poles. protesters coming at the police
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with metal poles, and also throwing pencil bombs. the police responding with the most force they have used with six police officers pulling their sidearms. one officer discharging a round into the sky, and also, the water cannon truck. the hong kong government putting out a statement saying the violent acts put hong kong in a dangerous edge. >> unrest in hong kong continues. authorities clamping down on demonstrations, having arrested at least three prominent protest leaders. >> what is the latest with these arrests? kong hasms that hong arrested about seven people. there are quite a few prominent people among them, including joshua wong who is the subject of a netflix documentary. they have been banning rights to approving certain
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rallies that have been happening in the city. there is a big one planned for tomorrow. we have numerous arrests today, so the city is on edge. >> german business confidence following to its lowest level in seven years. the president of the institute that collects the data says this reflects deep problems in the german economy. weakness focused on manufacturing is spreading to other sectors. >> the argument has been the situation we are seeing in manufacturing is not affecting the domestic economy. low unemployment. domestic demand is holding up. in that sense, the signal this is spreading could be a sign for the ecb to do more. the question is whether there is enough support for our action. >> i would guess at this point, finding consensus might be
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difficult. >> argentina pushing creditors for more time to pay back its debt. the country is hemmed into a worsening crisis. president macqua -- president pushing for 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 were having increased 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 low ability to roll over this short-term debt. they probably thought with the election coming up, macri thought, i better act sooner
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rather than later. he is considered a lame-duck president. it is a final throw of the dice. >> the reserve bank of india approved a record payout. more than $24 billion of the federal government, boosting the coffers as the economy slows. it comes on top of new measures from the finance ministry to bolster the economy. finally, the government is going to ease fiscal policy. expectation, but one never knows. we have a government running a tight ship. what heavy lifting it has done. it is actually cut interest rates and now given a record amount of dividends to the government. not only dividend but part of its surplus which is very controversial. this will add pressure onto the minister to ease .
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while this comes at a good time for the reserve bank of india, whether the finance minister will bite the fiscal bullet, we -- we willthe watch for that. >> has told bloomberg to the possibility of ultra long bonds is under consideration. in an exclusive interview, he says he anticipates taking advantage of favorable conditions to borrow long term. his comments moved the bond market with the spread widening. >> it is not a new idea. it dates back as far as 2009. the u.s. has consider doing -- considered doing this. the administration has rekindled the idea. it is hard to know how serious the administration is about this. they say they are very seriously considering it, but at the same time, they have talked about this in the past and got a very tepid response from investors. the last thing they want to do is make an offering nobody wants to buy.
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we will have to see whether they follow through. >> let's turn to the u.s. economic data. gross decelerating in the second quarter by more than initially reported. growth revised gdp growth down to 2%. consumers remained a bright spot with spending topping off forecasts. >> i think we are in a slower but steadier footing. a downward revision, particularly consequential, but we can see the primary pillars of economic 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. ♪
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♪ taylor: welcome back to "bloomberg best." i am taylor riggs. the federal reserve was a central topic of discussion this week, with the focus not just on the policy path but the political role. on wednesday, san francisco fed president mary daly spoke exclusively with bloomberg. she is not a voting member, but she explained why she backed the committee's july rate cuts. >> global slowing, the headwinds from uncertainty. those things weigh on the economy. neutral rate of interest has
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been coming down a little bit, so to recalibrate policy, that is why i supported the basis cut , to recalibrate the economy and put the economy back in a good position. >> 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. inflation is under the target. that requires central banks to take action and they are doing that. in the u.s., we look at our economy and see how global factors affect us. we are to take our interest rate decisions based on what we see for the domestic economy. >> there is a sense that central banks are being held hostage by the markets. the more central banks do, the more markets want. is this the new normal? are you comfortable with how it
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pans out? >> markets 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 based on trying to figure out what's coming next from central banks. what i do is i take market information, financial conditions more generally, as an input. financial conditions being tighter, softer, or easier would influence how well supported growth is. i think it is an input, but not a determining factor in my decision-making. taylor: more compelling conversations coming up on "bloomberg best." one guest 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. >> so what is supposed to be a
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simple problem became complicated, and clean water is muddied. taylor: this is bloomberg. ♪ - i think the best companies succeed as a team,
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♪ you are watching "bloomberg best." i am taylor riggs. the emco chairman and ceo visited bloomberg this week for a conversation about investing . as the largest independent holder of voting stock in viacom, he 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 our teammates would say, all our options are still on the table. we want to see how far we go into the area.
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it is not a big number, there's only like 5 million, 10 million shares of the voting stock. should they have gotten a premium since they were selling at a premium, and if they pay -- it is not a lot of money. >> are you actually going to them to court? >> we will do whatever is necessary to help our clients who own the stock. of the 600 50 million shares that will be outstanding, and by the way, this is a good deal. this is a buy. one, have and our houses, 2, 5, 8 streaming services. is he bullish on streaming and is cbs behind on streaming? 600 50 million pro forma shares out, that is 25 billion -- we are paying 40 billion for the entire enterprise. that enterprise without a major
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success in streaming, but putting money into content will generate $40 billion. . >> this is a good question, should they bring back "gunsmoke"? [laughter] >> that brings up an important point. dark phoenix, a product created, lost a ton of money. you have to have good content within your library, so you want to buy cbs because it is going to work. i think they are a good team and jerry will be in command. chapter ended on wall street this week. bennett goodman announced he will step down from blackstone's credit business. goodman was a cofounder and senior managing director of the company that blackstone acquired in 2008. 's stopped by bloomberg global headquarters in new york to talk with erik schatzker. >> i believe we will have a
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selloff. cycles are not extinct, although we have not seen one in quite a while on any kind of prolonged basis. i think the next cycle will be 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. i also believe that there is a lot of capital on the sidelines. we are not the only ones that have a lot of dry powder, and i think that repricing of risk 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 is not going to
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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. taylor: china's leading sportswear maker is feeling the heat from the trade war as it looks to boost its presence abroad. it is poised to grow the domestic market but is facing headwinds from tariffs and the chinese economic slowdown. bloomberg's yvonne mann spoke exclusively with the cfo. >> the trade war has reduced orders at chinese factories and it has impacted china as a whole. this helps chinese brands to have more sourcing choices. we do see more choice, our
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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 outside of china to southeast asia now? >> 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. >> we have seen a surge in online sales for your namesake brand as well as fila. how big of a part does online sales now play in your total sales? >> now, the 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
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online. we will continue to strengthen our efforts in this field. taylor: 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 entanyl as f 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. >> some u.s. politicians out of their own political necessity disregard the facts, find fault, make small things big, and turn black into white. what is supposed to be a simple problem became complicated, and clean water is muddied. hashe u.s. treasury
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recently sanctioned three chinese nationals and two companies operating in china. will you be taking action against these individuals -- will you be taking action against the companies they operate that produce according to the u.s., fentanyl products ? >> at the time that these people were making these substances, the chinese government had not announced a wider controls. what these people were doing did not violate chinese 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. tom: 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 bureau turned around and said fix this now, close this down, you could do it.
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>> 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 them. we will exhaust every means to find them, arrest them, and punish them. ♪
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♪ taylor: this is "bloomberg best." i am taylor riggs. let's resume a roundup of the week's top stories in business and finance with a focus on company news, beginning with another ambitious startup, announcing plans to go public. filing for an ipo
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that will be the biggest this year, seeking a valuation of at least $8 billion. it seems like a large valuation. >> it does. but this is another company that is tech enabled. weis a big valuation, but see a lot of these companies come to market with barely punishing valuations, and some have come out the trap and done very badly. haves, like beyond meat, soared. it is hard to tell exactly how fair a number that is until we see this trade. vonnie: shares of drugmaker johnson & johnson are in the green, even 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.
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investors feared that billion dollar threshold, and it is lower than expected. but as we look at other cases going forward, for example the multi-litigation in october, a lot of questions remain, and opioid maker is out of the woods. vonnie: drugmaker purdue pharma has made an $11.5 billion offer for all lawsuits with the opioid crisis. is it a large settlement , how many cases, states, 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. it is very substantial, i think the market is trying to figure out what this means because the big question is if perdue exits,
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meanrdue exits, does that 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 buy a blockbuster drug, just as some of its big sellers are starting to fade. it is paying $13.4 billion for a psoriasis drug. they are selling the drug so it approval ofntitrust 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 otezla was for sale, but i think analysts thought it would go from maybe billion, $10 million, but a number that raised some eyebrows
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on the street. it is a great drug that makes a lot of money, but $13 million plus seemed a little expensive. >> fanning the flames of m&a. a merger, phillip morris confirms talks with altria about a merger. 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 altria go from way up to slightly down. these companies split in 2008 and now people say that 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 is, namely cannabis and vaping. >> fortescue reported for your underlying profit that beat analyst estimates. very much a different picture.
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>> exactly. that is the question on the minds of investors. certainly, it is where those iron ore prices are headed that is the real concern. but we do know is an 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. the majority of the market sees the iron ore prices heading lower, so what we can expect is a reduction in profits this time next year. pharmas says the profits 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 will impact your business? >> i think you need to look at the economy beyond rate cuts.
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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. ♪ >> tiffany sparkling today as its quarterly profit shattered estimates. but despite the good news in terms of the profitability, foreign tourist spending threatens to crumple the outlook for the year. >> tourism has been a problem for tiffany for several quarters now. this goes back to before last year's holiday season. foreign tourists coming from abroad a lot less, not spending at theses -- as much
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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. ♪ >> apple's reliance on china 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 it 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
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would be a huge lift 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. learning the process would begin after labor day and could see the sale of the entire company. tell us about the amounts involved here, and where revlon would go marketing. >> they have said or we have found that they have had interested parties approach them . 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
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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 alphabet's 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 ndowski, it is something that people had largely given up on, this is a big deal for silicon valley. ♪ >> the former malaysian prime minister's second corruption trial is underway after it was delayed by a week.
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he is charged with graft, money laundering, and abuse of to the -- abuse of power linked to the multibillion-dollar looting of state investment fund 1mdb. give us some perspective. how does this trial defer from the first one? was aboutst trial local transactions, domestic transactions that originated unit. 1mdb this was on a much bigger scale, and it directly involves 1mdb. specifically multibillion-dollar bond sales and acquisitions. it is a significant case, the one we should all be watching. ♪
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♪ you have a turn of the
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morning, a function of the morning that we love which is gtv, you are looking at the canadian dollar. why do you care about this? >> a lot of people are looking for trends in the canadian dollar has endured in the u.s. dollar has gone up, repricing the odds that the bigger candidate is going to be forced to cut rates. taylor: 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 find useful, quic go. it will lead you to 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. ♪ >> hong kong's historic protests have been going on for months, with scenes alternating from huge, peaceful rallies to
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smaller, but violent clashes. what began as a fight against an unpopular extradition bill has morphed into a broader movement against beijing's tightening grip on the semiautonomous city. so where could the hong kong crisis be headed? this is your bloomberg business quick take on the hong kong protests. the movement erupted in opposition to a proposed law which would for the first time s tolow extradition 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, but could not be sent back to taiwan for trial because there's no legal framework to do so. >> hong kong's government said the new law would make sure the city does not 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
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that protects hong kong from china. executiveng's chief has called the extradition bill dead but refuses to completely withdraw it. protesters are not satisfied. their demands have grown wider, resignation,b's 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, the rhetoric is getting harsher. a spokesman for china's hong kong affairs office says 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 forcing the cancellation of hundreds of flights. violent clashes broke out in different parts of the city, with some protesters throwing
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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 rioting with carries a 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. attacks on mainland chinese men during a pro-democracy riot at the airport heightened tensions further. >> the protests have begun taking a toll on the economy, especially on tourism. more than $600 billion of stock market value has been erased since early july and the economy contracted more than originally estimated in the second quarter. beyond gdp the worry is that this will damage hong kong reputation as a safe and reliable commercial hub in asia.
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>> china promised to allow a high degree of autonomy in hong hong kong until 2047. 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 jinping will mobilize and 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 hong kong's special trading privileges, which would worsen the overall outlook for china's economy just as the trade war escalates. what might happen next depends on how many concessions and when both carrie lam and her opposition are willing to make. ♪ taylor: 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 analysis 24 hours a day.
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that will be all for "bloomberg best" this week. thanks for watching. i'm taylor riggs. this is bloomberg. ♪ - that moment you walk in the office
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>> in the philippines a leader can hold the pose via an election. she has been threatened with --that she is been threatened with impeachment and faces charges. and her liberal party famous for the names was decimated in this year's midterm elections. she has been a big critic of manella's relationship with beijing over infrastructure payments and the future of the south china sea.

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