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tv   Bloomberg Best  Bloomberg  March 31, 2019 4:00am-5:00am EDT

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>> coming up on "bloomberg best," the stories that shaped the week in business around the world. >> revocation to avoid new -- no deal. >> brexit hangs in the balance as lawmakers scramble to approve a plan and the prime minister plays her last political card to get a deal. >> there's no majority for any brexit option. >> we have seen a significant rejection. >> the u.s. and china hold another round of trade talks. uber buys a key competitor, while lyft begins life as a public company. more bad news for boeing. airbus clinches a huge sale. >> the chinese are saying you have to play nice. >> bond markets send out
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recession signals as central banks make dovish moves. >> i basically have policy on hold until fall 2020. >> i did not have any rate increases for 2019. it does not mean that i could not change my mind. >> top officials speak frankly about the global rate outlook. >> even when the economy is high, the turning point came of it earlier than expected. >> this is a car that is moving in a predetermined direction at a slower pace. >> it's all straight ahead on "bloomberg best." ♪ juliette: hello and welcome. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a look at the top headlines.
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last friday, special counsel robert mueller delivered his report on the 2016 election to the u.s. department of justice, and by monday the attorney general's summary of the findings was causing a stir from capitol hill to wall street. >> president trump claiming victory after the special counsel found no evidence of collusion with russia and attorney general william barr saying there's not enough evidence to charge the president with obstruction, but the political fight over the findings are far from over. top democrats are demanding a complete release of the report. where do we go from here? >> i think both barr and mueller made it clear they did not find sufficient evidence that there was a conspiracy within the trump administration to collude with the russians to interfere with the government, so there is going to be a controversy over barr basically stepping in and making the determination that the president did not commit a
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crime. >> bob mueller decided not to reach a conclusion on obstruction of justice. he left that with barr and rosenstein to decide, but the tricky thing with that is barr came into the justice department with a predetermined view on obstruction. he did not think the president could be charged unless he was found guilty of an underlying crime. i think it would have been useful for bill barr to withhold judgment until more people have more access to the underlying information. that did not happen, and now this has become a political football. >> there is a political story, there is a legal story, and i do wonder about what the market impact of the story is. >> i think the market generally had anticipated no real meat coming out of the investigation because the market has been so strong this year. we have had major valuation re-rating. if anything, this may provide a tiny degree of solace or support for risk tolerance because it
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removes a degree of uncertainty if there was that, but in general, the market seems to be trading on a lot of other things as opposed to political risk in the united states anyway. >> apple, the world's biggest tech company, is reinventing itself as a digital services provider. today, at a highly anticipated event, ceo tim cook announced a range of new offerings in video, gaming, payment, but the new services push has not impressed absolutely everyone. wall street was pretty nonplussed, closing lower on the day. >> feels like they went to all their major divisions and said, "what is a new situations of his that subscription service we can come up with for your service area?" one was the app store. they have a new gaming subscription service. makes sense. gaming is the most popular type of app on the app store. video. we have this new video subscription service is coming out in the fall. news. they had the magazine subscription service. from the apple pay division there is a new credit card. four new services here. there is more to come but a very interesting day for apple.
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>> another big defeat for the prime minister in the u.k. parliament has taken control of the brexit process from her. they will put forward their own plan to how to exit the european union. these indicative votes are due to happen on wednesday. they are nonbinding, so what do they actually mean for the brexit process? >> parliament moved to take back control yesterday but so far they have taken back control of the timetable. that means we will have these indicative votes on wednesday. it seems to me parliamentarians will be given a piece of paper with a lot of options so all the voting can be done in one go and not too much time is taken. no doubt the government disappointed they lost 30 votes to the other side. they actually lost three ministers in the process. >> breaking news out of london, u.k. parliament has filed back into the building. parliament voting against a no deal brexit. they have been voting on eight different alternatives to brexit. this, of course, on the back of prime minister theresa may saying she would resign if they
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voted for her deal. what is at stake right now? >> what is at stake is how long brexit might take, what options there are left on the table and when we might see the resignation of the prime minister, theresa may. we are finding out slowly but surely what if any can garner some sort of majority in the house of commons instead of prime minister may's own withdrawal agreement. u.k. parliament rejected a proposal on private. these are all intricately worded types of votes, but generally speaking, we can see there's no majority for any brexit option. does this mean therefore prime minister may sans agreement will be allowed to come back to the house, voted on friday, be accepted and we will therefore see her exit may 22 and finally the u.k. leave the e.u.? >> just got some breaking news on wells fargo at the moment. it looks as if ceo tim sloan is set to retire.
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saying that we will instead have alan parker as the interim ceo and president and the new board selects, but tim sloan select to retire from wells fargo. >> if you think that to what has happened at wells fargo since september of 2000 -- 2016, excuse me, when the fake account scandal interrupted, it has been a never-ending, nonstop drumbeat of scandal after scandal after scandal, in addition to the bogus accounts, we have had inappropriate mortgage fees, people being put into car insurance and pet insurance that they did not sign up for, altered documents in the wholesale lending business that spurred a justice department probe, incorrect pricing and fees for foreign exchange in the wealth management business, people being foreclosed upon because of computer glitches. this stuff is just almost beyond belief when it comes to a bank and while sloan has been
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insisting time and again that he and the rest of his colleagues at the bank are doing the right things -- they brought in a new chairman, betty duke, a former fed governor, they turn over almost all of senior management -- just simply not enough. >> let's turn our attention now to the house of commons where the tellers have lined up to give us the latest results. here we go. >> no's, 344. the no's have it. >> theresa may effectively bringing her deal back for a third time. once again, we have seen a significant rejection. this time a little lower in terms of numbers that voted against it. she lost this time by just 58 votes, but nevertheless, that is still a big defeat. what she said subsequent to that in the house of commons, that we are reaching the limits of this process in this house, either she is hinting at the possibility of a general election or she's hinting at the possibility of a second referendum, but it does now feel as if theresa may's deal is dead for the third time and is
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unlikely to come back. that means probably we are headed for a long extension and that the u.k. is going to take part in the e.u. wide elections taking place in may. theresa may had promised that neither of those things were going to happen. they are now becoming a reality. >> guy, given those realities, do we think theresa may will step down any time in the near future? >> she has already indicated that she will do that. she has indicated she will step down when brexit has happened. >> still ahead as we review the week on "bloomberg best," conversations with central bankers from frankfurt to the in fed. plus, lloyd's of london's ceo promises bold steps to address sexual-harassment claims. up next, more of the week's top business headlines. investors looking for good news in u.s. housing data cannot have been happy with what they saw. >> it's another negative sign in for the housing market.
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>> this is bloomberg. ♪ >> this is "bloomberg best."
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i am juliette saly. let's continue our global tour of the week's top business stories. in paris, where the french president hosted chinese president xi jinping. the leaders crafted a major deal for aircraft. >> airbus got a $35 billion deal with china during xi jinping's visit to france. the 300-plane order is a blow to boeing, and sends a not-so-subtle trade war message to the u.s. >> this is a bigger contract then what was originally and discussion between the countries last year. this is definitely a very big
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blow to boeing but a definite win for airbus. >> how political is this deal? it can be nothing other than political, i suppose. >> it's very political. just from a technical point of view, clearly a huge contract. but also a goes down well for the french president because he spent the day yesterday in paris asking for two-away trade with china. he does not think europe should be just a takeover target with -- for china. you also have the chinese perhaps sending a message to the united states of america. you could argue the chinese are saying you have to play nice. >> boeing says it will submit a final software fix to the faa by -- for the 737 max 8 to the faa by the end of the week and says the update has already been flight tested. however, the max airworthiness certificate has been suspended. saying it must carry out its own review.
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tell us what china and regulators are looking into? >> we saw china come quickly out of the gate after that ethiopian air crash a couple of weeks ago. it was among the first to ground its own fleet of 737 max planes. this seems to be taking it a little bit further. the airworthiness certificate has been suspended, so it does suggest that these groundings could go on for some time and that the chinese really do want to make their own checks, not just the faa, before they allow the plane to fly in their airspace again. >> boeing's legal and political woes are deepening. it is being sued on behalf of a passenger who was killed in the ethiopian airlines crash earlier this month over claims the 737 max was not designed safely. >> a claims the 737 max 8 was unsafely designed and that boeing failed to warn of the defect, which is interesting because we know boeing was working
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on a base -- on a fix of that anti-stall system even before the ethiopian crash happened. if boeing is found guilty, a second crash could prove damaging because they were aware of potential fixes needed for that program. >> the time election commission says the party of the prime minister won the most votes, but the identity of the next government still is not known. officials say the pro-military party gained about 8.5 million votes while the opposition won 7.9 million. they say they have enough seats to form a coalition. >> we're getting a more constructive tone on trade talks. steven mnuchin posting on twitter that the u.s. trade reps and i concluded constructive trade talks in beijing. i look forward to welcoming the vice premier to washington next
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week. >> they have tabled text of a potential agreement and are looking at both sides to see if they match up. the u.s. apparently worried chinese officials are translating u.s. texts differently than they intended. there is still work to be done. the question is we do not know what is in it and how much progress it makes and if it is a face-saving compromise. or if there are actual deep structural reforms the u.s. has demanded that they need to wait until next week. >> when you talk to people, is there a sense investors have been sitting on their hands waiting for this to culminate before making a move one way or the other? >> very much. i think the question will be if trade is what pushes people to go back into the safety of the fixed income market into equities. we have seen a flight into safer assets this quarter. erdogan against markets.
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turkey's lira led declines in e.m. currencies as government measures made it almost impossible for foreign investors to short the lira. this is ahead of key elections. it turns out it is now something like 1000% turkish swap rates. [laughter] overnight, the turkish swap rates went from 23% last week to 1300% today, which is a stupid number because it essentially shuts off the rate. any foreign investor in turkey will be unable to hedge their currency exposure at levels like that. it keeps them exposed and i have to look for alternatives, so other currencies are getting hit today because it is a proxy hedge. >> the u.s. housing index showing mixed signals this year with a decline in starts numbers casting a shadow on the real estate market. give us the latest data showing these mixed signals in the real estate market and what it is telling us. >> today, we had housing starts, and unfortunately, it is another negative sign for the housing market.
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we saw that dip in 2018, sort of the year that home builders and home buyers and sellers would rather forget. we expected to come right back up out of that, or at least economists expected that. we saw with housing starts this morning and another decline. most concerning is the decline in single-family home starts. this is homebuilding for single-family homes, the lowest in about four years. also it tends to be the less volatile category. in the past, we have had declines in condos and apartment buildings. you can chalk that up to some volatility, but single-family homes tend to be pretty reliable. >> saudi aramco is acquiring a 70% stake. third posted the news on twitter a short while ago. we started talking about an aramco ipo, then we went to this transaction.
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-- migrated to this transaction. explain the journey we have been through and why this outcome is different, and why the difference in the ipo? >> the way to understand this transaction is it is a clever way of channeling a big chunk of cash from one part of saudi arabia to another. a few years ago when the crown prince announced he wanted to sell a stake in aramco and a giant ipo to finances economic transformation program, he could not do that in the end. the valuation was too rich for investors, so he needed another way to find that money and this deal is it. what it does is uses aramco's balance sheet to pay the sovereign wealth fund $70 billion in cash for this stake in the chemical company, so instead of $100 billion in an ipo, they will have $70 billion to make investments inside and outside saudi arabia as part of mohammad bin salman's economic transformation agenda. >> the ceo of that bank has been
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-- the ceo of swedbank has been replaced by the chief financial officer. this is just one day after a raid by prosecutors. sweden's oldest bank is in the grips of a money-laundering scandal, or at least allegations of misleading investigators. how much of a surprise is it that they finally dismissed as ceo? >> this is the point. they were literally about to go into the annual meeting. it is so much of a surprise that it has come so late in the day and i guess given what we heard yesterday and the multiple investigations of bankers now facing from the u.s. the fort investigation at home, and insider trading investigation at home, that is pertaining to the management's handling of the scandal as it broke, i guess more alarming to investors than perhaps the scandal of the allegations themselves, which dates from earlier years, but it seems management has lost the confidence of shareholders
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and how it is handling that now. >> michael avenatti charged with trying to extort nike. >> michael avenatti was charged by criminal complaint in california and in new york in new york, he was charged with trying to extort nike of as much as $20 million. he claimed to represent a former aau basketball coach who had once worked for nike but no longer worked for nike, and that he had damaging information about nike and how they had paid off the families of several promising basketball players. they've been entered into the negotiations with nike, and nike said that he threatened the company with economic and reputational harm, essentially saying he would go public with some very damaging allegations unless they paid him immediately a lot of money. nike then contacted law enforcement, which proceeded to
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surreptitiously record avenatti making several statements. then separately, as we understand it, there was a criminal complaint filed in los angeles charging him at least $1.9 million from a dish -- charging him with stealing at least $1.9 million from a client, which appears to be unrelated to the nike case. ♪ >> you are watching "bloomberg
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best." i am juliette saly. ecb president mario draghi said this week that the central bank needs to maintain its accommodative policy stance and also said he is ready to take measures to soften the impact of
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negative interest rates. shortly after he spoke in frankfurt, bloomberg sat down at ecb headquarters with chief economist peter pract. >> what is clearer now is that the perspective of low rates for longer has triggered a debate about the side effects of negative rates, so i think it is fair to say that this issue has to be analyzed carefully, but you need in any case to find a monetary policy case. i think it's fair to say we have to go into this issue, but we need to have a convincing monetary policy case to do that. when you look at the economy today in the lending channel, we do not see any particular problem in the lending channel today, but as we know, with the weakening economy, it may happen in the future, so you have to be ready
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to look at the possible instruments or decisions you may may to take in case. so, readiness, yes, but i think do not rush to quickly to conclusions, but it's fair to say that the conversation has started. >> if the conversation has started, does it mean that interest rates will stay low for even longer? >> i think it is difficult to say today. when you look at prices, market prices, yes, i'm in the days of the first lift off have been pushed further by market participants. the debate has been coming. as i say, the perspectives of rate for longer is something you have to look at the consequences of that. >> does tiering make the tool of negative interest rates less effective? >> the negative rates have been very useful to support the economy because the opportunity cost of saving has been lowered. you push people either to spend or to go into
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more risk in supporting the economy. going into investment and all that. so we have seen big effects of the negative rates on the economy, which is good also for the banks themselves because if the customers do better, it is also better for them. the question that comes today is with a slowing economy, because of international and geopolitical factors, you get lower growth and also the negative effect of the rate situations on the intermediation margin. that is how the debate has been triggered. on the economy, you have to see other things will evolve. >> coming up, more perspectives on monetary policy. the ceo of the japanese bank says the fed's dovish u-turn took him by surprise. plus, conversations with fed president charles evans and roger kaplan. and after bloomberg reports on a culture of sexual misconduct of lloyd's of london, the ceo promises to make changes. >> it is simply not acceptable in this day and age that any woman should not feel safe. >> this is bloomberg. ♪
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>> welcome back. this week, bloomberg held the business of equality summit in discussingth leaders issues of diversity and gender balance in business and society. along with these discussions came news of change. -- was the focus of a recent story in bloomberg businessweek, which found a culture of sexual misconduct in the london insurance market. the company responded with a plan to address the allegations. john neal spoke exclusively with -- not the lloyds that i
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want to be part of. and not that many of my colleagues feel that they want to be part of either. whether these incidences occurred 10 days ago or 10 years ago, i don't care. it is not acceptable that any woman should not feel safe. you run through the actions that we have announced. one is important. that is to understand what we are doing well, but what more we can do. we are notlear on is doing enough. we have got to ensure everybody should feel safe at any time of day doing anything. i am determined that will be the case. >> how can you actually manage to convince people that they will feel safe? it is one thing to police behavior, a lot of the incidents did not happen without -- within the building itself.
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>> you are right. we don't just operate in london. we will impose our own sanctions. any companies chooses to do, if anyone acts inappropriately, we will be decisive. that could include lifetime bans. we are being as clear as we can that we will not accept any form of bad behavior. >> a skeptic might say this is crisis management. aboutou be able to bring and -- and overhaul of culture that your predecessor did not manage to do in five years? i think she did a fantastic job in bringing the marketplace forward. i think the inclusion pledge that changes the market has been incredibly significant. everyone i have spoken to has been shattered by the article. i have no doubt that everyone
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wants to redouble their efforts to ensure that these events cannot occur. fears of a global recession -- after the u.s. yield curve inverted for the first time since 2007. federal reserve said it would not hike rates in 2019. several prominent figures assess the danger. -- spoke with bloomberg at the institute symposium in tokyo. impression is the global landscape has started to change. with learners and of yield curves symbolizing trend. that happened in 2007. we have come to a timing when we raise the level. does it lead immediately to recession? there is a timeline. 2007, the recession came 1.5 years later.
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a safety matt has become more sophisticated. we don't need to be overly optimistic. outlook for the economy as well as the interest rate. the -- is sticking to that -- price target. ultra monetary policy. what do you say about the directing of the policy? the policy turns even when the economy is silent. the turning came earlier than expected. rates would have more room to cut if they have been raised more. the doj's policy has brought the economy to exit inflation. this is a big compliment. on the other hand, we have to raise monitoring levels. 2% inflation target is a means, not a goal. the goal is stable economic growth. we have to come to a time where
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we consider whether policies are appropriate. i think the boj people know these things very well and are doing different job of navigating monetary policy. what is the fed's decision to strike a more dovish tone? givenropriate response some of the challenges. >> as we came out of last year with the turmoil of december and the beginning of this year, a great uncertainty that emanates from the trade stocks between china and u.n.. between north korea and the u.n.. within europe. brexit. all of those elements of -- we sayy really say what is the rush. patient means not a u-turn.
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-- remains the goal. there is an expectation that 2020 would be another rate hike. car thatay this is a is moving in the predetermined direction at a slower pace. >> there is a discussion by some that we may be looking at a rate cut at some point. what would be the catalyst? are distortions in exceedingly low interest rates. it also will indicate that central banks-- remain the only game in town. the federal reserve's latest expression of dovishness
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certainly had an impact on markets this week. two officials appeared on bloomberg television to offer insight. let's start with charles evans. >> we had more restrictive financial conditions at the end of last year and strong growth. after weebounded .ommunicate carefully the economy ended up slowing down with of the first quarter. we are trying to figure out how this plays out. financial conditions seem to be reasonable. or will it be something more than that? i am optimistic. i think we will finish the year
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one and three quarters, 2%. i'm nervous about inflation. i'm worried that it still takes accommodation to keep inflation at that level. policyd down my path for rate increases so that i basically have got policy on hold until the fall of 2020. just a little bit of additional accommodation or not impart any abovectiveness, rising 2%. i have got inflation rising to 2.2% by the end of 2021. we will have as much capacity to cut rates in the time that we really needed if things slow down. at the moment, things look good. it is now happening.
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growthnot sure how much will slow. my judgment is we will slow to one to three quarters percent. that is what you are seeing in the bond market. skepticism and sluggish expectations. >> it is interesting that this bond rally seems to get started matt and took the rate hikes off the table. market has increasingly started pricing in the chance of one rate hike this year. is that a possibility? >> i would emphasize, i will give you my own view, i did not, i have beenot, saying this, i did not have rate increases for 2019.
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it does not mean i could not change my mind. my base case was for 2019. it is always subject to change. what my main goal is for monetary policy right now is that we are flexible and we are patient. i want to see how growth will unfold for the next several months in 2019. , i look nott i see only at the economy hard data, i look at corporate earnings reports. i look at what is going on the markets. getd on all that, as we through and later in the second quarter, i want to be flexible enough and have a stance of policy where we can move appropriately. where that will be. i think we are well-positioned
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to take the appropriate move based on how the facts unfold. ♪
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juliette: this is bloomberg best. let's resume our round out for the top business stories. another chapter in the legal battle between apple and -- apple says it is pleased by a ruling that -- case against a patent is invalid. apple is gaped and import ban in that case. important --ped an and import ban in that case. what could this mean in the ongoing battle? >> what we have seen today is we have two similar cases, but at
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differing stages. a case that was closer to the point where it might actually defect to import of the iphone into the u.s. was shot down. definitely a defeat. the second case has gone through. -- through another stage on its process. >> uber has confirmed it is buying dubai-based rival, kareem. cooper's priciest purchase ever. -- uber's priciest purchase ever. this is coming ahead of cooper's ipo later this year which will value the company at $120 billion. buy ubern attempt to to stop some of the cash burn
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that is going on in the middle east where it is the rivalry between uber and kareem. across the middle east it is a big market. uber wants to be on top of the market. >> samsung fell after issuing a profit warning saying first-quarter results will fall short of market expectations because of a slump in memory chip prices. what are the global applications of this morning? samsung warned that the financial results for the first quarter would be weaker than expected. that was a surprise because investors were already anticipating revenue would decline about 12% this quarter and operating -- would fall by about half. they are warned by samsung it will be worse than that. that is because of declines in the prices of memory chips and displays.
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the screens i go on smart phones. samsung anticipates the second half of the year would be better. the competitors have echoed the positive tones. they may be why investors are reacting relatively calm we to this profit warming -- warning. africa's most valuable company is spinning off its main internet assets. part of the plan to reduce the companies exposure to the johannes berg exchange. tell us more about why you are making this move. have investors told you they want to see this? not a spin off but a primary listing of all our global consumer internet assets. is what we think an extremely exciting portfolio of assets that we believe global tech disasters will be very keen to access.
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we think it is an excellent exchange to do that. isindia's jet airways expanding gains after the border proved the resignation of a 69-year-old founder and chairman. million newet 114 shares in the company and provide the carrier with immediate funding. the exit remover potential of -- gets credited. >> -- has been running the company for the past years. wanted ahe investors free hand in running the company. not very sure about that. banks have been urging it will sit down from the board and exit. giving a certificate to a ban. funding and come to the travel company. bed bath & beyond is up more than 26%. three actors are said to be launching a campaign to replace
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the retailer. how successful might these three combined be? >> i think it is a good first step. they have the same management team that they have had for a long time. none of which have proved successful. be greathat it would if they are able to get a few board seats. i'm not sure if they will be able to get the whole board. i think even with the initiative that they have planned, it will be hard for them to completely turn bed bath & beyond around given that it is far behind any of its cap -- many of its competitors. >> let's talk about mcdonald's. a big bet on tech. largest accusation -- acquisition in 20 years. company, andon a
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ai powered platform. the tech will provide a more personalized customer experience by varying menu displays to show food options based on time of day, weather, and anything else. >> it is a way to try to get you to buy more food. person has a general sense of what they're go to order is. it is called today, how about adding coffee onto your order? did you forget fries? i dollar here, a dollar there, that is the difference for them. they are using tech to customize this and get you to buy more. >> -- has agreed to buy well care. why does this deal makes sense? >> it combines two companies that are focused on government run health care programs at a time when those businesses are in flux.
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you have trump proposing to get rid of the aca, the affordable care act. you have democrats opposing medicare for all. this is a defensive move that combines the two companies. it gives them a lot of growth potential if these programs -- if these initiatives either don't happen or take a while. have 3 -- history of health care reform, it does seem like a decent bet. >> shares have rallied the most in more than a decade. that is after an external investigation into fraud allegations found irregularities warned material. the processor acknowledged some employees may face criminal liability. this is a limited report. it only covers specific transactions. some investors might want to see something more. plans for anything fuller? >> >> anything -- after some findings we are addressing them
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and we have already implemented very strong additional oversight measurements starting last year. on the other side, we can strongly reject now some of the severe allegations. i think everybody sees it was .mmaterial yes, there are findings, on the other side, i think what should be a game is real the trend of the company. >> despite being at the center of global scrutiny, the earnings stretched 25% last year. >> it is so uncertain looking ahead for this company. the u.k. came out with a report about them. >> i think the market for their equipment is dicey at the moment. i think bloomberg news went
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through and we look at all the it is about 30% of global gdp countries have haved, but about 40% embraced or said they are unlikely to been. there will be a market for their gear. ♪
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>> in our brackets for a fundraiser after the second round, a new leaderboard. fight anderson is number one after he picked a perfect sweet 16. he is the only one in the top five that has the carolina tar heels winning it all. online.long check out our own bracket and your own bracket. there are about 70,000
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functions on the bloomberg. the enjoying showing you our favorites. maybe they will become your favorite spirit here is another function. ipo go. it will give you detailed information on offerings past and present from around the world. including this week's highly anticipated offering. the public trading debut on the nasdaq on friday. the founder spoke about it with bloomberg. here beating our biggest rival to go public. how does it feel? >> it feels pretty amazing. there is nothing better than we have all of -- all our earliest investors. the chief has been with us since we started in 2007. >> you are here as a new driver. why was it important to do it this way? >> we want to make a point you
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can invest in communities and business. our drivers community has enabled us to be here at this point. we give them a bonus to do so. the start of how we partner with cities. >> you are giving drivers stock messages. >> we are giving a cash bonus and ability to participate through the present family program. >> let's talk about cost. there is a lot of question how you bring cost down. you lost some $900 million. how quickly can you bring costs down? >> we are going after the trillion dollar market opportunity. u.s.,year in the americans spend $9,000 on their car. this massive market shift just like entertainment has gone streaming, it is happening with car ownership.
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we are investing to take advantage of that. our economics are improving. in your wrist factor -- risk factors you may never be profitable. how do you convince investors that they should be betting on the optimistic? >> if you dig in on the numbers every year, the economics have improved. we are confident that the business will be profitable. there are risk factors. we are making tremendous going after this once in a generation shift. a $1.2 trillion market. a not model to a service model. we are leaner -- leading the way there. ipoou can find a lot more information on the bloomberg. get analysis and updates on bloomberg.com along with the latest business news and commentary 24 hours a day. that will be all for bloomberg
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