tv Bloomberg Best Bloomberg May 28, 2017 6:00am-7:01am EDT
♪ jonathan: coming up on gary co n "bloomberg best," the stories that shaped business around the world. donald trump takes meetings and making deals while back in washington, his first budget makes waste. >> that is something that is not being received two on capitol hill. >> a lot of economists are crying foul. jonathan: a terrorist attack racks up the threat level. >> opec did with they could do. jonathan: j.p. morgan and wells fargo open up. >> competition is a good thing.
you want a competitive world. >> my number one job is to rebuild trust with all of our stakeholders. conversations on europe as the ecb prepares to unwind qe. >> i think it is only fair that if you leave the club, you settle the accounts. >> they seem to be fully in command. >> i do not fear that markets will be in a position where they will be surprised by what we do. jonathan: it is all straight ahead on "bloomberg best." ♪ jonathan: hello, and welcome. i'm jonathan ferro. this is "bloomberg best," your weekly review of the most important news, analysis, and interviews from bloomberg television around the world. the week began with an unexpected chains from one of
the big three u.s. automakers. >> a management shakeup at ford , the company replacing the ceo. >> it was a bit of a surprise. there have definitely been some pressure for ford because the stock had fallen so much during mark fields's tenure, and it was last week during the shareholder meeting, bill ford was defending the company to the shareholders, but he never mentioned mark fields by name. and so, it kind of look like there was going to be some kind of shakeup at ford, but it was a surprise that mark fields did get pushed out and replaced by jim hackett. >> i have never seen such a time in our industry where technology and competitors and everything is converging to drive real change. it is very helpful at a time like that to have a leader who is very experienced and driving transformational change, and fortunately, we had that in jim hackett. david: is this a matter of
electrical vehicles? it is perceived that you are behind some people in the industry. >> yes, it is about ev's and it is about av's, autonomous vehicles. it is also about really making sure that we are investing in the parts of our car and truck business, that we get good returns, and we are not investing in parts of our business where we are not getting good returns. so, it is really about capital allocation as well. >> 22 people have been confirmed dead with around 50 injured at a blast in the u.k. in manchester. it happened just as a pop concert by ariana grande was wrapping up. police confirmed they are treating the explosion as a terrorist incident, which would make it the most deadly u.k. attack since the bombings back in 2005. >> police have named 22-year-old salman abedi as the suspected bomber behind the attack. the prime minister has suspended her campaign. lessis is looking less and
like a lone wolf attack. police have made an arrest of a 22-year-old man who is suspected of aiding and abetting the attacker. they have also carried out a couple of raids in manchester. they have also indicated the nature of the attack requires required some level of planning. so what we are looking at now is perhaps a much more planned event then say the terror attack in westminster a few weeks ago. >> the threat level should be increased for the time being from severe to critical. this means that their assessment is not only that an attack remains highly likely, but that a further attack may be imminent. >> the white house releases president trump's first full budget. mick mulvaney says it is a taxpayer first budget. the document calls for steep cuts to social programs like governmental nutritional assistance program, medicaid, low income housing assistance,
and blocks grants that pays for meals on wheels. what is the white house trying to do with this document? >> the white house is saying this is a document and a budget that focuses on the taxpayer, less so on the beneficiaries of various programs that would be cut under this proposal. they are saying they are looking at all of these programs and trying to figure out whether or not they are good programs, whether or not these programs are efficient, and several of the programs, everything from medicaid to disability insurance are being cut. and that is something that is not be received too well on capitol hill. this is not the budget that is going to end up on the president's desk, but it does show some of his ideas of how he wants to spend taxpayer >> they dollars. count on 3% growth under a sustainable rate under the long-term, much higher than the previous projection by the omb under president obama. but at the same time, unemployment and inflation kept in check. a lot of economists are crying foul, not just because of the very high and optimistic gdp rate, but how those other
factors play out as well, which would be the holy grail of economic growth. >> china has had its credit rating downgraded by moody's, which says rising debt and slowing growth casting clouds over the financial outlook. take us through what has happened and the consequences of the announcement. >> i think it is something of a slap on the wrist for china really. it is another warning that authorities need to get a grip on the rising debt that has been a key driver of economic growth in china over the last decade. we have had a rating terms warning before. s&p warned last year. moody's warned last year and the imf warned. and now we have today moody's taking the step of putting the china sovereign rating, the they first made since november of 1989.
it is a significant reminder about the challenges china has faced. we know the authorities are preaching the need to rein in leverage and rein in credit assistance, but the steps have been quite modest during the easy a judgment like we saw today from an next journal watcternal her like moody's, it is a sharp reminder of the challenges still ahead in china. >> in just a few moments, the federal reserve will release minutes from it may meeting. this is the meeting where officials left rates unchanged and signaled they were not alarmed by the weakness and first quarter gdp. >> we learned two things today. at their may 2 and may 3 meeting, they were on course for a june rate hike. number two, there was wide agreement that they should not cease from one month to the next -- three investments of assets on the balance sheet when they began to reduce the balance sheet. >> the interesting thing is that we are making progress on the balance sheet, where we are going with that and how they are
going to do it. you can pretty much check the box by the end of the year because a minute sale must everybody agreed on that. the other thing they agreed on is this idea of caps or monthly limits. they want it to be a regular and predictable system, but they also want to taper. they don't want to shock the markets went away. jonathan: can you unwind 4.5 billion dollars and make it a boring? >> yes, you go very, very slowly and make it a non-event. i think they will end up doing that. jonathan: opec extended oil production cuts for nine more months after last year's landmark agreement failed to eliminate the global oversupply. the big question -- is it enough to stabilize the crude market and put a floor in oil prices? >> nine months with the same level of production that our member countries have been producing at is a very safe, and almost certain option to do the trick. >> opec did what they should do. could do. this buys them time to get data
on what the real rate of global demand growth is going to be, and also gives them a period to show more evidence that they are working off those excess inventories. they have also reserved the right, basically, to surprise a market with deeper cuts by the bigger producers, saudi or russia, if they choose to, if what they have done is not enough. vonnie: back in the united states, president trump -- he is in italy. we are here, but he is wrapping up his journey through the middle east and europe. his first foreign trip, of course, and today, he is making his g7 debut after some tough talks in brussels. the g-7 summit will involve debates on public trade, climate change, and migration. and in fact, we have a draft of it looksniqué, and like migration will be one of the subjects very hard hit. matt miller, let me quote the draft, "we have reaffirmed the sovereign rights of states to control their own borders and
set clear limits on net migration levels." what does that mean for current migrants making their way to europe and to the united states? matt: well, i think what they are trying to say is that every member of the g7 has sovereignty to decide for itself. , including european union members. it is a very important issue to italy. remember, italy has the presidency of the g7 this year, and it is something they really want to talk about at the g7, and so they are pushing to get into the communiqué. kevin: it has been somewhat different response the europeans have given president trump than the response he got earlier in israel. earlier today, i went to a briefing with european president donald tusk, who said that he actually was "impressed "with president trump's toughness. europe should be tough, even brutal. behind the scenes, there are appeasement going on to win over president trump, but clearly
some key differences have emerged. jonathan: still to come as we review the week on "bloomberg " we will take a day by day the at president trump, billion dollar deals in the middle east and meetings with nato leaders and exclusive interviews with jamie dimon and tim sloan. and up next, more of the week's top business headlines. the congressional budget office scores the gop health care bill. >> the only cbo score that matters is the one on the senate bill, and that bill looks like it is a long ways away. jonathan: this is bloomberg. ♪
discuss a number of sensitive issues at the annual aipac meeting. apec meeting. >> global trade and the threat of protection will dominate the talks this weekend. the posts summit statement was diluted, indicating pressure on ministers not to criticize the protectionist trend. >> it is very interesting, this watered-down communiqué. we seem to see that theme following the g7. >> the diluted statement, apec ministers pledged to work on regulations, but there was no mention whatsoever on resisting protectionism, and like you indicated, we saw this happen at the g7 as well as the g-20 summit, where treasury secretary mnuchin refused to sign off on any strong wording resisting protectionism. it is suggesting that the u.s.
"america first" agenda is permeating all talks on trade everywhere in the world. hasoftbank's masayoshi son formally announced the first round of capital commitments for the tech investment fund worth more than $93 billion. who is in, who is not in, and what is next here? >> well, softbank originally announced plans for this fund in october of last year. it is going to be one of the cornerstone investors along with the saudi arabian sovereign wealth fund. you also got abu dhabi investors, qualcomm, apple, all are all putting in money, too. they didn't quite get to $100 billion in the first round of closing. they got to $93 billion. that is a lot of money to be able to spend in the next few years. will be able to
go out and hunt for deals. >> euro area finance ministers failed to break impact on debt relief for for greece. that means delays in the bailout review and the disbursement of loans needed to repay obligations due in july, not far from today. why wasn't a deal reached? >> that is a good question, matt. we had almost eight hours of talks, and yet eurozone finance ministers failed to break the impasse. the answer to that question seems to be that really there were just so many positions at that various finance ministers were coming from, and the talks are complex, so it made it difficult to come to this final agreement, although we have are hearing that the talks were constructive. i spoke to the finance minister earlier, and he said we should look at this positively because the review of the bailout went very well and now the talks can turn to debt relief and work on that will happen in the coming weeks. >> shares of fiat chrysler are falling on news news the justice department is suing the automaker for diesel emission violations.
on my understanding of this, fiat chrysler is different from volkswagen because they continue to deny they knowingly engaged in cheating. is that is right? >> that's exactly right. we didn't learn anything about the vw case until it was already solved, until the california regulators extracted a confession and they announced in 2015 that vw is cheating every , and we caught them, and here is how we are going to proceed. this has been so different because, you know, the clock was running out on the obama administration and the epa said, we're pretty sure these guys have some software here that is not acknowledged, not disclose, and we are notifying them of the violation. fiat chrysler went ballistic. they were very upset. here we are months later and still no resolution, but another coming, a consumer
lawsuit -- several consumer lawsuits -- are being brought together in a california court tomorrow. so the epa and justice are filing today in detroit to try to get their case added to that one. >> general motors has been hit with a class-action lawsuit. the suit alleging the carmaker put defeat devices in trucks to beat emissions tests. gm is the sixth automaker accused of cheating when volkswagen admitted to installing software to bypass emission rules. will gm try to fight this or will it admit that this alleged cheating did happen and try to settle? >> g.m. is fighting back very hard and right away. they put out a statement calling the lawsuit "baseless," noting that their vehicles, their diesel trucks, have been approved by the epa and by the california air resources board. >> the ecb says debt sustainability concerns have risen in the past few months.
that stems from political uncertainties in some countries. the ecb publishing the by annual financial stability review as the issue of scaling back stimulus starts to weigh on the central bank. its next meeting is on june 8. talk us through the primary concerns in this semiannual financial stability review. >> the primary concerns are that debt sustainability will become a problem with rising yields in certain areas. the fed is expected to raise rates two more times this year , and the ecb is getting closer and closer to discussing the possibility of normalization of policy. interestingly, the ecb, unlike the fed, has talked about the importance of unwinding qe before it even thinks about raising borrowing cost. >> we have headlines out from the congressional budget office scoring the american health care act for the first time. federal deficits would be
reduced by $119 billion over the next 10 years, and an increase in the number of uninsured relative to current baseline by 23 million, an $834 billion less in medicaid spending. >> this is a report that means the house did not have to go back and pass this contentious health care bill another time. this bill can now be sent over to the senate and the senate can take it up. and what we have been hearing is senators have been meeting on a weekly basis, mostly not to take up this bill, but to start on their own bill. if there is a final product to make it to president trump's desk, it is likely to not look like the house version that just got scored. it will look very different. >> the only cbo score the matters if the score on the senate bill when that is done. that bill looks like it is a long ways away. mcconnell said recently that vote in thehat senate is harder than he thought it would be. that tax reform looks like it will be easier.
>> deutsche bank maybe close to settling a u.s. federal reserve probe into how billions of dollars moved through the bank and out of russia. meanwhile, democratic lawmakers have asked the german lender to hand over its findings on the handling of russian mirror trades, as well as it banking on the half of its president, donald trump. deutsche bank is looking at maybe paying off its third massive fine this year to u.s. regulators. >> right. and this isn't even expected to be the big one. the federal reserve is looking into this, but also the doj and , and the doj is the one investors are really focused on because that could be the biggest fine, and the more consequential one given that deutsche bank is already operating under a deferred prosecution agreement. so, that is the one people are focused on. the federal reserve would certainly be nice for john cryan to get out of the way. they said they are more than halfway through the major things they need to get through on their legal issues, but still, a
lot to be done. >> let's talk a little bit about the u.k. and the u.k. election. campaign resumes today after pausing to respect to the victims of monday night's manchester bombing. a new poll conducted shows a dramatic narrowing in the race with the conservatives on 43% of the vote, and labor on 38%. >> i think there is some real evidence to suggest there could be some sort of loosening in that power of theresa may, and that of course comes back to what she had to do a week ago , about the funding of care for the elderly. that was a very unpopular measure. u-turned on that. people are saying that the u-turn does not bode well for her status when she goes into negotiations for brexit. ♪
♪ jonathan: you are watching "bloomberg best." i am jonathan ferro. president trump's visit to saudi arabia coincided with a business conference. a host of corporate a-listers. jamie dimon was among them and sat down for an exclusive interview with our own francine lacqua. >> the world is going to double in size in the next 15 years. there are plenty of opportunities and threats. competitors around the world. we spend a lot of money on technology. we know what we are doing. we operate around the world. we help companies go around the world. we are in the developing markets.
we are comfortable about our future. >> can you break down where you want to be aggressive? >> i want to grow it everywhere. clients want multiple vendors and suppliers. that is completely understandable. investment banking in certain areas may be harder to gain share. but that does not mean we cannot gain share in this country or that part of the world. we have not given up, we just know it will be harder. >> what about fixed income? >> we have a good share. i think it will be hard to gain. if you look at the number, but if you look at what we can do better in that country or this country, there are plenty of things we can do better around the world. a lot of it will go with technology. we have to maintain our share, competition is a good thing. i have never been worried about competition. you want a competitive world. >> as long as you are betting on that. >> that is our goal. that is what we try to do. >> we spoke in paris and talked about regulation. are you still as confident about the future for wall street? >> yeah. when we talk about regulation,
the trump administration wants to deregulate certain things. most of us in business think regulations have been holding back growth. not just j.p. morgan. it is important to understand that. i am still optimistic they will have some regulatory reform. it makes sense. in my democratic friends understand it makes sense to look at what was done, what could be done better, what could simplify the burden on businesses, what could help people grow the economy. no one is asking for wholesale throwing out of regulations. just look at it in the light of day. jonathan: coming up, highlights from president trump's tour of the middle east and europe which saw the u.s. and saudi arabia sign billions of dollars worth of deals. straight ahead, the brexit barometer bounced all over the place this week. a top e.u. official says britain is not getting out without settling its bill.
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♪ >> it is hard to tell american families if currency appreciates and we see manufacturing return and the gdp growth, everything will be fine. we need greater certainty. even with the discussion today about manufacturing coming back to the u.s., it is going to take time. in many cases, it could take decades and decades. in some areas, it may never return. i think we have to understand the unintended consequences of this new tax. >> if the border adjustment tax went through, what would happen to your corporate tax rate? is there an alternative tax plan you would like to see that could help your business?
>> let's start with the facts. for the last decade, we have paid an effective tax rate of 35%, the highest effective tax rate in the country. under this new plan, that tax rate would go from 35% to 75%. certainly, that is not something that will be good for target. many have talked about their effective tax rates going from 35% to over 100%. there are real concerns. i would like to see greater simplification. and i would love to see our overall effective tax rate reduced. jonathan: that was the target c.e.o. speaking with shannon pettypiece on capitol hill where he was set to testify to a congressional committee against the border tax. brexit talks are scheduled to begin next month. markets watch the e.c.b. closely as they consider going back on qe.
we begin with the e.u. official who weighed in on britain's disputed departure bill. >> is it likely the bill for the brexit will be around 50 billion euros? >> several numbers have been mentioned. i think it is only fair that if you leave a club, you settle the accounts. that is what you do. this will be part of negotiation. everybody wants to have a fair deal. i think it's only fair to say to the united kingdom that you have obligations, and if you want to leave the club, you settle the accounts. >> theresa may said prior payments made on joint projects should also be included, they should be netted off. do you agree with that? >> i will not start negotiating with you at this table. but i understand there will be a
number of things that will be brought to the table by the british side. we will make sure we are well prepared to defend the interests of the 27. >> is the e.u. setting a precedent to say to other countries, you do not want to do this because it is painful? >> absolutely not. this is about having a fair separation. we need to look after the interests of the 27 member states who remain. the united kingdom was not forced out of the european union. the united kingdom decided to leave the european union. it is only fair they settle the accounts and we look after the citizens. we do not want the citizens to be hurt. we want people to be able to continue their peaceful lives on both sides. this is just negotiation to make sure finally we can develop a new relationship that is good for both sides.
before we can get there, we first have to settle the separation. >> i think it is very important the e.c.b. continues to do its work, that everyone is focused, and we are starting to see the exit from this. expectation is we will see that over the course of the next year. the e.c.b. is committed for this year. there will be some removing of biases and forward guidance. there will also be a program discussion around september on what they will do in the next year tapering off purchases. i think that policy will kick in over the rest of the year. it is very important the e.c.b. does that and the president is in good contact and prepares the markets for that. we have seen what has happened when markets are not prepared for a tapering announcement. it is important for the e.c.b. president to be fully in command. >> are you concerned they start normalizing policy too soon given it is on the brink and
there are a lot fewer than there were a few years ago? >> i think the e.c.b., as much is that policy we are on now was appropriate 10 years ago when the crisis started, we are seeing at the 10th anniversary of the crisis. i think that policy looks increasingly out of place. not just the purchases but also the negative interest rates i think will be removed overtime. the u.s. is ahead of europeans in terms of normalizing interest rates. the europeans cannot completely isolate from that. i think the e.c.b. would be wise if by the end of this year they would start to scale back their support for the economy. the european economy is strong. you just saw the german data today. the european economy is doing quite well. the announcement last week where growth has been very strong, almost twice as strong as in
germany. i think the european economy recently is driven by consumption and sustainable development. that is the time to scale back monetary support. >> i think markets have been doing very well our reaction function in monetary policy. i do not feel markets will be in a position where they will be surprised by what we will do in the future reflecting the new situation, the new developments. markets know we are committed to a certain policy stance until the end of this year, which by definition means we have to communicate something to the markets before the end of the year, closer to the end of the year. markets understand that very well. i do not fear any problems or
turbulence resulting from our monetary policy decisions going forward. financial stability is always implicit in the concerns of central banks. but we see the financial stability risk as something that has to be addressed by policies, meaning changing decisions about regulation of financial institutions. >> if you want to make it clear there is going to be some change in monetary policy by the end of the year, that leaves out june. it would make sense to be cautious this june because you have the fed moving again in june. >> i'm not anticipating what they will do in june or september. i am just pointing out something that is evident that we are committed explicitly with certain policy increments until the end of the year.
we have to take decisions about the future. jonathan: europe is nervous about its future. wells fargo is trying to overcome its past. this week, erik schatzker traveled to san francisco for an exquisite interview with the ceo who took the reins in the wake of the scandal. he asked how the turnaround efforts are faring. >> clearly, as you mentioned, we had some issues. my number one job is to rebuild trust with all our stakeholders. we think about that is building a better bank. we are putting many of the legacy issues behind us. we are looking across the company. there will be issues we find and deal with and things like that. but i am very proud of the progress the team has made. we have made management changes. we have taken accountability. we have changed our incentive plan. we have reorganized how the bank is structured.
focusedave been very on remediating customers. over the last nine months, i think we have probably done a year and half of work so i'm pleased with the progress. erik: can we quantify the progress in percentage terms? >> you have to define what the way is. erik: getting you back where you were and want to be. >> one way to measure it would be to look at customer loyalty and experience in our community bank. when you look at those measures which we have been providing updates on, on a monthly basis in an effort to be transparent, the customer experience measures are now where they were at the highs of about a year ago. we have a lot to do with customer loyalty. those are two measures. the other measure from an investor standpoint is to look at in the first quarter, we made a dollar a share. that is 18 consecutive quarters
♪ jonathan: welcome back to "bloomberg best." i am jonathan ferro. president trump made his first international trip as president this week following an ambitious itinerary. bloomberg accompanied him every step of the way, starting in saudi arabia where the president immediately made some big accomplishments. >> the u.s. and saudi arabia have signed deals worth hundreds of billions of dollars during president trump's visit. president trump: yesterday, we signed historic agreements with the kingdom that will invest almost $400 billion in our two countries.
>> is this a success? >> yes, i think this has been some of the best of his presidency. he came into office saying i am a businessman. i know how to talk to c.e.o.'s and cut deals for america. he brought home a lot of deals. he brought home a lot of actual contracts, military hardware, great jobs in america. that is what he set out to do and that is what he did. for a lot of american voters, they will tone down some of the noise about james comey and the russia investigation and say that is what we wanted him to do. >> as president trump continues his overseas tour, his team in washington is getting set to release its first budget. like the president's remarks in saudi arabia and israel, it will be on fighting terrorism. president trump: so many young, beautiful, innocent people living and enjoying their lives murdered by evil losers in life. >> give us a sense of what the
reaction is from the trump camp is to the events in manchester. >> he says he wants to eliminate -- obliterate this ideology. president trump says those responsible for the manchester attack should be held responsible and called them "total losers, evil losers." this was the first unscripted moment in terms of how the president had to respond. much of the first portion of the trip in saudi arabia and yesterday in israel was centered around scripted moments, planned moments. he has largely avoided many of the difficult topics publicly, whether it be discussing a two-state solution or even whether or not to move the u.s. embassy from tel aviv to jerusalem. but that said, he did have several strong moments publicly looking to reassert his support for jerusalem, particularly when israeli prime minister benjamin netanyahu was standing beside
him. >> president trump is at the vatican. given the opposing views of trump and the pope on a number of issues, do you think the two managed to find common ground? >> the pope and president meeting behind me in vatican city, exchanging gifts. the president gave the pope books, including a book with some of the first writings by dr. martin luther king. the pope giving the president books on family, gospel, and here's where it gets interesting, on environment. and of course, the environment is one of the key areas of differences from a policy standpoint between this president and the pope, who has been outspoken as an environmentalist. he did not bring up publicly their differences on capitalism as well as immigration. >> president trump is in brussels today meeting with european leaders as part of his
8-day overseas trip. the president is talking about fighting terrorism. he will be talking to nato about that. at the same time, he has a problem with the leaks coming out on the investigation on the manchester bombing. tell us what theresa may will have to say to him. >> theresa may will be raising the issue of the bbc exclusive reporting that manchester authorities in the u.k. have stopped sharing intelligence with the united states surrounding that terror attack because of leaks coming from the u.s. to members of the media. now, candidly, i have spoken with four political consultants this morning in brussels who have said they feel will embolden the president's case that leaks from u.s. intelligence community are hurting the u.s. national security interests. >> let's get back to president trump and his visit to nato. president trump called for nato to become more engaged in fighting global terrorism and
said nato members will finally contribute their fair share. did he overdo it? >> naming and shaming is not the best way to start a meeting intended to show unity. european nations do not accept the criticism from the u.s. administration that they do not spend enough on defense. they claim spending in areas including humanitarian aid, security, immigration, it also should count as security spending. it is clear president trump does not see things this way. there is definitely a divide here. it seems to be widening. >> president trump is completing his overseas trip with two days of g7 meetings in sicily. there are a host of issues for agreement or disagreement. president trump went to the heart of when yesterday on
german car experts saying "the germans are bad, very bad," talking about the number of cars they sell in the united states, saying, "we will stop it." does this put this at the top of the agenda? >> what put it at the top of the agenda is the interpretation by the respected magazine in germany citing they also translated his, essay the germans were evil or naughty more than bad. then every other publication in germany seemingly picked it up. it will be met with a little outrage from german citizens. but jean-claude juncker, the e.u. commissioner, tried to clarify to everyone that what trump really said is that he meant "bad," and was talking
about german trade. not necessarily german people. gary cohn also backed up the correction. it will be an issue here. the german chancellor will have to address it in some sense. it is a bit of a tempest in a teacup, if you will. jonathan: from the big picture of politics to the focus of entrepreneurs, they set out to offer high-quality bedding products at affordable prices. the company found quite a bit of success. the cofounder and c.e.o. tells the story in the latest installment of "small to big." >> we are a luxury bedding destination, online only, direct to consumer. the company was started by my wife and i. we were in the market for new sheets. we hated the shopping experience. we started with about $20,000 in savings to get the prototypes going, build the website, do the photo shoot. and then we raised money from friends and family, another $100,000.
that got us to kickstarter where the goal was to finance our first purchase order. our goal was $50,000. we ended up selling $230,000 in the first 30 days only by word-of-mouth. social media has been really important to building the brand. there are some logical people in the market for the product. people moving to new apartments. facebook has data on address changes. people engaged doing registries. pinterest is great. and then there are the influencers that spread the word and advocate for the product. we are confident when we get it in people's hands, they will love it. we did not take funding until recently. thing.strapped the whole
we had to sell to buy. we would sell all of our inventory and roll it over to buy more inventory. that created problems of up and down. it is very hard to get momentum and the wheels turning when you have it. planning ahead, getting ahead of inventory, getting ahead of demand to make sure you have enough. it seems simple but is super complicated forecasting all of this. we have gotten much better at it. one of the biggest challenges of consumer product businesses in year one. our first year of sales was about $250,000. mostly kickstarter. year two was 10 x. in sales20 million last week. now we are on pace to more than double that this year. five years down the road, we might be the biggest in the world. we might get acquired by a company looking to get a closer relationship with customers. we feel like we have mined everything in the bedding category, we can move on. we are not ready for that. there is a lot more to do right now. ♪
♪ >> pop into the bloomberg terminal because i want to show you how impactful this could be in terms of saudi arabia and the united states trade. $37 billion is what the trade was between saudi arabia and the united states in 2016. with all this money floating around, look at who number one is, china. they could easily surpass china as number one if all these deals come through. jonathan: there are about 30,000 functions on the bloomberg. we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites as well. here is another function you will find useful.
it will lead you to our quick takes where you can get important context and fast insight into timely topics. here is a quick take from this week. >> ♪ >> europe's common currency has been cheating death for years. now with the u.k. heading for a european exit, greece in potential crisis, and economic discontent across the continent, can the euro, the world's most ambitious financial experiment, survive? folks are fed up with the economic failings of some e.u. countries and the loss of controls to brussels. withdrawal from the euro has become a rallying cry for nationalist movements, including italy's five-star movement and marine le pen's national front in france. meanwhile, the greek tragedy continues. government is struggling to meet creditors' demands to keep the bailout funds flowing. germany's insistence on more
austerity gives the lingering sense that greece may have to leave sooner rather than later. adding to problems is the slowest recovery from the worst recession. unemployment for people under 25 has been stuck at 45% in greece and spain creating what some call a lost generation of european youth. here is the argument. the global financial crisis exposed the flaws in the currency. when it was created by 11 countries in 1999, they agreed to a shared central bank and set of interest rate but only a limited unified approach to government spending or bank regulations. when banks began to wobble and countries like greece and spain were pushed to the brink, the common currency meant they were tied to the euro, leaving them with little option but to accept massive government bailouts in
the euro area. germany, as the area's biggest economy, paid the lion's share. since then, euro area leaders say they have strengthened the rulebooks to make the common currency more resilient. they argue even if greece falls out of the bloc, the euro will survive. european leaders have shown time and time again they will do whatever it takes to keep the currency going. and then there is the politics. the euro, unlike other currencies, is more than a means of payment. it is a symbol of europe's aspiration to unite in peace and prosperity. but some business leaders, analysts, and politicians suggest the currency's structural deficiencies mean its demise is just a matter of time. ♪ jonathan: that was just one of 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. that will be all for "bloomberg best" this week. thank you very much for watching. i'm jonathan ferro. this is bloomberg. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with the fourth leg of president trump's first trip overseas. the president was in brussels today. in a speech at the new nato headquarters, he criticized members of the alliance for failing to contribute enough to collective defense. president trump: i have been very, very direct with secretary stoltenberg and members of the alliance in saying nato members must finally contribute their