tv Bloomberg Best Bloomberg June 1, 2018 10:00pm-11:00pm EDT
♪ on "bloomberg best" the stories that shaped the week in business around the world. people in their late, a political still make sense shock waves the global market. we are in a situation today where the fundamentals of italy are very good. >> what we are seeing across the board is reduction of risk. scarlet: another week of actions and reactions on global trade. >> is no longer appears to be america first, it appears to be america alone. join indexes.ares the u.s. jobs report provides another data point.
>> the hawks think they can move forward once, twice, sometime -- some say three times. scarlet: justin trudeau gives us a exclusive. >> no nafta is better than a bad deal. scarlet: how seriously should investors take the turmoil? >> i don't think we are facing an existential threat at all. >> the trend is heading higher in rates and higher in equities. >> the italian situation shows you that uncertainty can't rewrite said it any moment. "carlet: all's right ahead on bloomberg best." ♪ scarlet: hello and welcome. i'm scarlet fu. this is bloomberg best. oil entered the week on an
extended losing streak after some of the world's major oil-producing companies signal they may be ready to do away with curbs on output. >> oil continues to struggle in asia this morning after plunging on writing. the most in about a year. after opec and russia saying the market rebalance lack in april. are we at peak oil or past peak oil? >> there's a lot of speculation that the next opec meeting will say that they are going to increase supplies after a long period of containing supplies. that is a negative factor. apparently president putin sees oil prices at $60 per barrel which is somewhat low what the market is seeing. he is probably talking about rent which is higher than the beauty oh. wto.ent and >> what i would like to stress is that yesterday antedate no decisions remain.
we discussed possibilities always on the table. the solution will be made when the ministers are gathered. just asktaly president economist to form a government on sunday. the aspiration of populist leaders fell apart as motorola rejected that choice. tell us a bit about who he is and what does he believe in? >> he is quite strict on budget as everyone has been mentioning. he is a former of the international monetary on. he is well known in italy. at one point a few years ago he was in charge of faith ending you and he is known as mr. scissors for his interest and cutting budgets. >> italy's populist leaders are preparing for an election as soon as september even at your
they can't harm a cabinet. the league is urging supporters to stage protest. >> italy is a company that has fractured right down the boot. basically we will see demonstrations across the country. on paper we could see elections in august. the speculation is that the president would like parliament and the parties to take initiative and agree to delay elections until september. >> to tally and influenza spreading across budgets. political tendons exploiting. -- political tensions explanation. >> the fundamentals of italy are very good. of course, there is political uncertainty. italyk the fear of leaving the euro or the eurozone
is something that is overdone. he can say his corporate clients are happy, but at the end of the day it is difficult to argue that this political uncertainty is going to stop in 24 hours. >> let's take a look at where the real center of the action was today. the bond market particularly. flight to., massive safety. some of the biggest moves we have seen across the curve since brexit. there you see the italian two-year yield. >> it's not unprecedented that remarkable. what we are seeing across the board is reduction of risk. the white house is lying ahead with the plan to target chinese goods. the finalists will be released on june 15 and go into effect shortly thereafter. beijing is responding to the $50
billion threat. the commerce ministry came out with a statement. what did they say? >> they are disappointed and surprised at the same time the administration was doing this. they thought they had an agreement. list ofe going to put a things china would buy. in the statement they set the matter what the measures the united states takes that china has the confidence and ability to guard chinese evil and core interest. in other words, don't push too far. >> whether or not there ever was a trade war, the truth is now over. calling it an unfortunate soundbite. ask it is hard to keep up with this administration and their politics. this is a big step given that we are headed to the third round of talks. is headedwilbur ross
to china this weekend. now we are here and we are all our strength -- are we doing this or not doing this. is it on or off. it seems to be changing by the hour. >> italian yields in stocks stabilizing as well today after a better than expected bond auction. the country holds $6.5 billion worth of fresh debt. it is definitely a signal to the market that things are calming down. there is appetite for italian exposure and bonds. >> i think the market definitely shows some reaction yesterday. if you look at the 10 year bonds for italy. they went up about 3%. bond yields try to measure nominal gdp. last time i checked it was not anywhere near 3%. tohave seen numbers starting
come down. rationality will come back over the next couple of days. isple search reprice what likely to occur. >> commerce secretary wilbur ross announced the united states will proceed with tariffs on imported ill and aluminum. when the exemptions expire at midnight tonight. what is the reaction? >> the reaction is one of perhaps anger but not surprised. they anticipated this might happen. particularly the europeans. after a series of negotiations in paris, these are the 25% tariffs on steel and 10% on aluminum. every member of the g7 is affected. the eu is now included in canada. along with mexico, the two countries that got an exemption because of nafta talks. those talks have not preceded
far enough and accomplished enough so those two countries joined the others in being sanctioned. >> it has been an extraordinary 24 hours for anybody that studied trade. tariffs are totally unacceptable. >> whatever they do in terms of trade actions will the encountered by a similar weight action from mexico. >> it no longer appears to be america first, it is america alone. cheese.legs, apple, can the came out and said alumina steel, yogurt, whiskey. >> they've run the gamut from the ottoman to anger. sayingsident yesterday he is at a loss when it comes to donald trump but the eu will strike back against 2.8 alien
euros worth of american imports. those could take place as soon as this month. partyly's populist striking an agreement to form a government. a law professor with no political experience set to be sworn in. yields back close to where they were a you -- a week ago. >> what investors have been focused on is the new appointment of the finance minister. the thing with him is that he has publicly called for debate on europe. he has not as eurosceptic as savona. people who call for unconditionally leaving the euro as a cure for all sales are not right. but neither is the dental bank -- the central bank president. adding 223,000 in may, beating estimates. the unemployment rate going to 3.8% sure it average earnings
2.7%.o weighing in on the report. >> the most important number to me with average hourly earnings 2.7% and now annualized at third so are we making america great again? i guess in the standpoint of jobs in gdp and inflation moving higher in terms of wages -- it's the scenario where the fed hawks think they can move forward once, twice, some say three times. i say june is the last. >> way been asking questions about which is for a long time. when will we see a tick up? this might finally be it here it every company we are talking to says they are increasing bonuses and wages. >> we have a new leading indicator. looking forward to seeing the employees numbers at 8:30 a.m.
likedsaw the numbers, he them and he wanted to tell everyone. he couldn't help him elf. scarlet: still ahead, as we review the week exclusive interviews with morgan stanley, justin trudeau, and up next to more of the top business headlines. >> they hope to be able to flip it, like a expensive condo or something. scarlet: this is bloomberg. ♪
the hunting currency. >> central bankers to the rescue. the turkish lira is leading currency gains. after the country's central banks that it's planning to simplify its monetary system. give us an idea of what the control bank has done today? >> what is interesting about the decision today is they raised most of the interest rates significantly but not referring to this as a rate increase. what they have done is switch the benchmark rate. they declared a new benchmark rate and equalized it with the current top rate which was the only one they've been using. this is something central bank governor has been promising to do since 2016 when he took on the job. it is what investors have been asking for to get predictability and that are outlook for monetary policy. over that time it has gotten
significantly more obligated. today they are going back to a simple policy and something investors are cheering. is now new hope for the once counseled a summit 20 u.s. and north korea. president trump has confirmed that kim jong-un has sent an aide to the u.s. for talks. becoming the highest ranking official from north korea to enter the united states since 2000. meanwhile a u.s. delegation in singapore meeting a north korean delegation. >> it appears it is all a go. morning president trump saying we have put together a great team and meetings are currently taking place concerning the summit. solid response to my letter. thank you. looks like they are planning to go through with it.
>> mike pompeo said that real progress was being made during progress with north korean delegation. on june 12be meeting in singapore. it went very well. it is a get to know you kind of situation. the big deal will be on june 12. again, it is a process. we're not going to sign -- were not going to go in and sign something on june 12 we never were. we are going to start a process. i told them today, take your time, we can go fast or slowly. i look forward to the day when i can take the sanctions off. a weight on truckers protest leaving brazil with a massive bill, lower growth, expectations and the possibility of more strikes to come. hitting the lowest level against the dollar -- in more than two years. the government has announced
a few times that the strike is over, but we are still seeing protests in most states. fuel is jill scarce everywhere. supermarkets are a bit empty. it is unclear what is going on. the government has met almost all of the truckers demands and now you are getting reports of people calling for military intervention or change in government. it is unclear what the category 1's. -- what the category 1. >> canada's pipelines will be expanded. buygovernment has agreed to the pipeline for $3.5 million. are we shocked that they are nationalizing this? tradedit from a publicly company? now there are at least nationalizing it. this is farther than they wanted to go in the first life. they said they were going to backstop you. so now what we have is them looking like they need to go all in in order to do this.
they hope to be able to flip it like a really expensive condo or something where they can get it off to a third party or collection of third parties before they have to become pipeline magnates one way or another. think we will see the federal government hold onto it for a while. these things take years to build. >> the federal reserve board of governors voted to change the role that regulates banks trading activities. it will be the most substantial when yet or financial regulation in the trump era. >> there are many agencies in the volcker rule. it's an alphabet soup of agencies. they all have to submit their proposal for public comments. this is a particularly controversial rule. they will give banks, investor advocates, anti-wall street people, like elizabeth warren,
months to weigh in we might not see a i note rule until the end of the year or potentially into 2019. >> let's go to china because it is a big day for the country. more than 200 mainland stocks making their long-awaited debut on the emerging markets index is. this move will open up the second is equity market to investors. what is the feeling like there? >> certainly in places like shanghai there is enthusiasm from investors. beyond china, we have heard from the likes of jamie dimon saying he thinks that despite the moves being limited, it will help to educate people about chinese docs. we spoke to james gorman who said this is positive and would closely or more closely integrate the chinese market
with the global market. he saw that as something to take in terms of a positive good so far 234 shares included in the market.ye -- msci it is a further move again toward integrating china's market. it is the symbolism as much as anything else at this stage. >> spanish lawmakers have voted their are mere. there was overwhelmed with the corruption revelations. >> spain is out with the old and in with the new. the prime minister no longer prime minister. he has been ousted from office. no prime minister has ever been unseated by parliament, now he
>> case than right on china. the message was about the central issue of our time is the relationship between china and the united states. ♪ welcome back to bloomberg best. i'm scarlet fu. stephanie flanders sat down for an exclusive interview with justin trudeau. they discussed the halting progress of talks. trudeau insists he is not worried. >> we continue to believe deeply that there is a win win win opportunity for canada, mexico, and the united states on improving, modernizing nafta. we are continuing to work constructive the with the united states and mexico. we know that trade is a powerful
lever to create opportunities and jobs and growth in our economies. we understand there is an anxiety about trade out there in large segments of the population that don't feel it has worked well for them. we've been working hard to make a trade -- making a case for trade. like the cp tpp. we demonstrated that issues like protection of the environment, gender equality, workers rights are integral in creating the success of trade deals that create growth. >> how do you think it will affect summit if the u.s. has just slapped tariffs on canadian steel? friday is the deadline for that. >> i think taking a step back and what the actual summit is focused on, the g7 is
fundamentally a gathering of the world's most advanced economies to talk about the economic challenges that we have in common. there is one big economic challenge that is shared right across not just the g7 but much of the developed world and that is how do you reassure people that all the changes we are going through in our work basis ai to greatern to trade deals to globalization in general, how are these factors going to ensure that the growth we create is fairly shared by everyone? >> in the next few days, you have to make some real headway with the americans to have a deal or a prospect of a renegotiation this year. are the things you're willing to give up as part of the conversation? >> i've said many times i am not going to negotiate in public in terms of how we are moving forward. in any trade deal, there are
always ways to looks for compromises and to understand that we can get to a win win win. canadians know this up, i will stand up for canadian interest should i will only find a deal that is good for canada. no nafta is better than a bad deal. we made that clear with the president. we know that there is a good deal to be had that can create gains for all three countries per that is the nature of the non-zero-sum game. we are not going to move ahead just for the sake of moving ahead. scarlet: coming up, we will cover the weeks top company news. asus -- jeff bezos faces controversy. we have expert perspectives all straight ahead. >> we've seen this environment where there will be some geopolitical news and a spike in yields and yields will relax.
♪ i'mhis is "bloomberg best," scarlet fu. let's revisit the week's most interesting interviews on bloomberg television, starting with our exclusive conversation with james gorman. >> we have extraordinary global synchronized growth, everywhere from japan through to the u.s. doing well, china doing well, southeast asia, across continental europe. global synchronized growth. we had these political eruptions, which is what it has disrupted, whether it is brexit, what's going on in italy and
spain with the coming elections, angela merkel trying to pull together a coalition. it's almost competition between inexorable corporate growth earnings and economic strength against political instability and rise of populism. ni-crisis, italian mi if you will, which lasted all of 24 hours, is another manifestation. >> it seems like you take a more nuanced view than george soros, that he thinks there's another global financial crisis and they are facing in existential threat. >> i think that's ridiculous. i don't think we are facing an existential threat at all. this is something that has been playing out over 10 or 15 years, are many countries around the world where the average performance of the
economy is much better than the individual performance of the citizens. that is what has given rise of the wave of populism. this has been a long, evolving political trend that we are facing. so no i don't think the eurozone, is in jeopardy. >> how do you invest in this environment? >> you don't react to 24 hour news. moved-year in the u.s. down 30 basis points overnight, then rebounded. you can't respond, we are not traders, these aren't hedge funds. the bridge investor is trying to preserve their capital for the long-term. it is not something you respond to. my reaction is you don't. you watch it for a while. >> does it seem like a flashpoint? could the spiking yields we have seen trigger distress in europe? >> it is always this way. when you look back, you say, of course it happened, of course that was the trigger.
i have no idea. it could. i'm hopeful it will not. euro union will stay together and it will be a part of it. but outside our control. >> but if interest rates, market rates, yields rise, and spreads don't compress, it is going to become that much more expensive. >> absolutely. we have seen this environment where there will be some and thencal yields, yields will relax, come back down. not to where they were, but back down. ,here's the general mindset of things have been pretty great with low interest rates, and we don't want to mess it up. i don't know where that leaves us long-term, this is a grand experiment in monetary policy
which no one can predict definitively how it will go. but it sure feels good having low interest rates. clearly, december-january in the equity markets, we got ahead of ourselves. back in february, there was a weird technical thing that set it off, but that was people -- the bond market, we got a reasonably sharp selloff, just because so many people were short. but the trend is still heading higher in rates, gradually higher in equities, until we get some significant inflation. >> looking at the fed and the tightening cycle, there is a sense we could be closer to the end because there is no inflation than they think. >> well, we are closer than we were at the beginning of the tightening cycle, but i suspect it's more likely that this
environment goes on for another 12 months than we will suddenly get something different. the fed will keep raising rates until they see a change. but at the moment, u.s. growth is pretty good. the second quarter is clearly weaker in europe. there have been a few , if you werets caught up in the idea that european growth will be strong. but u.s. growth is pretty good. chinese growth is pretty good. it provides a decent backdrop for equity markets. >> you've got two new governments, one in spain, one in italy. what can you tell us about what you know about the italian government? >> this is democracy at play. we have to continue working with all countries in europe to progress in our agenda. the newing forward to finance ministers. it's going to be a continuation
of what we have been observing in europe. we have an agenda and we have to proceed. >> are you concerned that italy may be less than enthusiastic about staying in the union? >> we need to make the eurozone he common currency until the end for everyone. thes a crucial element for development of our economy, and i'm sure we'll be able to make it. >> will the euro group do anything to try to convince italy to stay in, particularly an aid package for use with the migrant issue in italy? >> well, the political agenda in we countries is quite -- need to make sure that we provide economic conditions for our people, and that's the whole
of the discussion. >> the spanish government, not as big a change. what do you think the new administration there -- good, discussion there is but yes, we will continue to work. we are working very closely with the two finance ministers of spain, and i'm sure it will continue to be like that. reservewill the federal make of this week's economic data? james ford spoke exclusively with bloomberg. still plenty to discuss our monetary policy. >> what about the political crisis in italy, which have such an outsized impact on market this week? how does it affect your view of
the proper course of said policy? does it make a difference? >> i think uncertainty about the future of the euro is certainly a big issue in the last decade, and the rise of eurosceptic parties in italy is a serious matter. so we will certainly take that on board and discuss it. we have certainly been through this before, with the sovereign debt crisis that raged in 2011 and 2012 in europe. but i'da major factor, also say that when we have been projecting out what the fed would do, i always felt it was priced for perfection, as if nothing could ever happen or nothing could ever go wrote. i think the italian situation shows you that uncertainty can rear its head at any moment. >> looking at what's happening in italy, and with all the trade tensions, not just with the u.s. but with china as well, to what degree do you think that this is
more ammunition for yourself being the strongest dove on a slower rate hike, slower expectations? >> well, as you know, one of the things i've been concerned about is that we go too aggressively and too much on the timetable, not sensitive enough to incoming data. this is the type of thing that could give a person pause. i'm not saying that it will. eu a renewed crisis in the would certainly be a major factor from the u.s. point of view in how we want to proceed. i don't really think we are to that point yet. it sounds like the italians have formed a government, and we will have to see how this plays out over the summer. ♪
♪ >> this is "bloomberg best." i'm scarlet fu. let's resume the review of the top business stories, starting with a report that warren buffett didn't do a deal. >> a bloomberg scoop. warren buffett proposed investing $3 billion in uber earlier this year, but it fell apart amid disagreements over the terms and size of the deal. jumpow it is his m.o. to in situations of crisis, but what do you see in uber to want to invest $3 billion? >> crisis is exactly right. there are echoes of going into goldman sachs during the financial crisis, except this time uber is in a crisis of its own making, but it seems vulnerable, a good opportunity to where a company would benefit from having warren buffett the hind them.
they were talking with buffett about different sized deals, potentially about $3 billion, that there was a proposal for $2 billion, and ultimately fell apart. >> let's talk about rbs. the cfo has resigned, yes. a respected, four-year veteran w who piloted the ban restructuring has left. why has he gone? >> it is an odd time to announce it. they are coming out of the woods after the crisis. it looks like the government will be able to sell its stake in the company, and he's off. you can only imagine he has had a good offer from somewhere. maybe he had a good offer from the bank somewhere in that region and has decided to take it up. we will see what happens and how quickly. >> the u.s. subsidiary of
deutsche bank added to the federal list of troubled banks. the ceo says it is committed to the united states, and you might call back on a couple business areas, but the u.s. is the most important market. remind ambassadors is the difficulty they are facing it means a, clearly special attention from the u.s. regulators, which doesn't make your business dealings and easier. >> deutsche bank's credit rating theanother blow to the turnaround plan. >> it has really fallen behind its rivals, as s&p noted in its report. >> barclays, commerce bank, even rbs have already structured, and deutsche bank is behind. morale has to be an issue inside the bank. they sent out a letter to staff just this morning, the bad news flow.
you have to wonder what impact that has on client. -- has had it is open to an approach from an anchor investor. the businesses have announced the formal negotiations, and i said to have disagreed over the price and size of the stake. what would they have gotten out of softbank? >> both have been really quiet about exactly what their motives are, but we can infer from the type of investor that they hope to get a lot more access to asian markets, which are very popular with the insurance industry, and probably also some help in improving their technology, which is a big issue. board bewiss re's willing to give up some control? >> the inference was that swiss re didn't want to create new shares, and softbank did. and then maybe the whole reason why the deal fell apart. morning, general
motors had a big announcement. they said softbank's vision fund has invested $2.25 billion in their automation. >> this is a major deal for general motors. they made some announcements late last year about the ambitions they had for cruise automation, their self-driving ait, and talked about getting self driving taxi service on the roads by 2019. so what you are seeing is this majorig endorsement, a help toward getting some legitimacy around these plans to put cars on the road and contend with the likes of google and self driving cars. >> i think it is the big recognition of the rapid progress we've made over the last couple years in developing this technology. even more importantly, it's a recognition of a huge impact this technology can have on the world, the business opportunities, that will come around. we're delighted to have softbank on board as a partner sharing in the vision we had for what
autonomous could do for the world. bezoszon's ceo jeff handling increased government scrutiny with flying colors. he spoke at the annual general meeting in seattle. is normally low-key event being swarmed by not just investors, but by activists and protesters. he's not doing too badly, and neither are shareholders, in his role as the ceo and chairman, yet some would like to see the roles separated. how welcoming is he going to be about you? >> there was a group here, and they were protesting outside. one of them have signs, their members spoke inside for the proposal, saying that amazon should not be structured this way, with the board chairman serving as you know. amazon's board recommended to vote that proposal down, and it did lose 20% of shareholders, in
favor of splitting up the role, but it was handily defeated, and the main argument of the board of trustees -- the proposal was look at amazon performance. we did so well under the existing structure, don't mess with success, was the message they had. some iphone display suppliers fell in asia following a report that apple would use ninth generation screens for all new models next year. analysts are skeptical apple could adapt the technology so soon, saying this which is unlikely to happen in 2019. >> it seems like a chicken and egg scenario. the big problem is the led display, it is hard to get production levels high quickly. the biggest manufacturers of the technology at amazon, apple might get what is left over. --display, which can only the reason all these shares are falling, those guys can't make
it. if they can't make it, how will they get the technology? 2015,'s biggest ipo in we will go back to the country's top tech headlines. who is buying into foxconn share sales? baidu,, alibaba, -- alibaba, and tencent. 21.8 million shares apiece at roughly 13-14 baidu, yuan per share. this is the unit which is the main assembler for apple. the company unit is called foxconn industrial internet, and clearly baidu, alibaba, and tencent want a slice of the action. it has raised $4.3 billion they will plow into things like 5g wireless and smart manufacturing, and it's not just interest in the unit, but the
cloud of these companies when it comes to investing across the tech space in china. u.s. is starting talks with the eu to reach a settlement over state subsidies that would block paid to airbus, according to a person familiar with the matter. a resolution could potentially avoid billions of dollars in actions against investors. now significant is the proposal put forward. >> it came unexpectedly. we were expecting yesterday the dispute settlement body, the to start the process for sanctions against the eu as a result of illegal subsidies to airbus. the result was actually a proposal by the ustr to say, we are prepared to talk. billions oftially dollars in potential trade and tarriffs against the eu, on all
goods, not just airbus. just over six weeks after his resignation from wpp, morten sorrell will lead to rest in capital, an investment company. any reservations on his side, given the way wpp -- the way he departed wpp? >> it is hard to say, but what you just said answers the question. this was largely an endeavor started by sorrell. this is the company being acquired -- this is his money. we do have some indications that he has some financial backers, should he find a big acquisition he wants to make. but this is largely his endeavor. >> should he find a big acquisition he wants to make, any idea what he's going to spend that money on? >> there's lots of speculation that he will focus on the ad industry that he just a part of.
♪ >> euro area confidence cooling economic growth, met with budding political uncertainty. the index slipping, taking the games to their lowest in nine months. the decline was less than economists broadcasting. it is the fifth month of drop off after optimism reached a 17 month high in december. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you are
favorites on bloomberg television in the hopes they will become your favorite. here's a function i find useful. to uic go will lead you to quick takes, where you can get important context of fast insight into timely topics. here's one from this week. ♪ 2016 was the hottest year on record, and the previous 17 years has been the 16 most scorching. scientists overwhelmingly agree -- global warming is the culprit. and it's just getting started. icecaps, extreme weather, wildfires, droughts, and the hits keep coming. what are we doing about it? in 2015, the world took its boldest step yet to stem climate change with a historic accord in paris. part.w comes the hard nations must change energy policies and invest huge amount of money, and they will likely do it without the united states. president donald trump announced on june 1 that the u.s. would withdraw from the accord. >> the reality is that withdrawing is in america's
economic interest, and won't matter much to the climate. >> here's the situation. decades in the making, the paris agreement united the u.s., china, and 190 other nations to push the limit of fossil fuel solutions. cutun-sponsored plans to greenhouse gases that traps heat in the atmosphere to avoid other r environmental disasters. but the globe is still expected to warm by as much as 3.4 degrees celsius the century, more than the u.n. target. it means governments will have to offer more incentives for clean energy, scale back support for fossil fuel, make emissions more costly, and reduce deforestation. it is estimated it will require $13.5 trillion in ending through 2030. here's the argument. eache past climate pacts,
country sets its own targets and promised to revisit and improve them. the u.s. was primed to play a lead role, but trump's energy independence executive order reverses obama era rules and directives putting place, and expands production of coal, the dirtiest fossil fuel. the resulting policies threatens the global fight against climate change. without the u.s. commitment to emissions reductions, other countries may join it in abandoning the paris agreement, which could make it even more expensive down the line to stop climate change. optimists argue the shift to a lower carbon future is already underway. businesses, cities, and u.s. states like california are already investing in wind and solar. >> i've been called an environmentalist, if you can believe it. ♪ that was 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 businesses and analysis, 24 hours a day.
♪ caroline: i am caroline hyde in london. this is "bloomberg technology." facebook hopes to put the data scandal behind it. the annual meeting did not go according as planned. we will discuss what is next. plus, a new threat has emerged in the cybersecurity space. why hardware components on computers could make companies vulnerable to an attack.