tv Bloomberg Best Bloomberg April 19, 2019 7:00am-8:00am EDT
are pointing in the right direction now. taylor: president trump keeps supplying verbal pressure to the fed. the catastrophic fire in one of europe's most treasured landmarks. philip hammond believes theresa may see brexit through. >> as far as imo, she doesn't have any intention of leaving until that deal is done. taylor: auto executives at the shanghai motor show discussed the road ahead for the world's largest car market. the energy segment is growing at a very fast clip. taylor: it is all straight ahead on "bloomberg best." ♪ taylor: hello, and welcome. i'm taylor riggs. "bloomberg best this is -- this is "bloomberg best," your weekly
review of bloomberg television around the world. let's start with a day by day look at the top headlines. u.s. bank earnings were in the spotlight all week, starting monday with goldman sachs and citigroup. ♪ vonnie:tigroup -- citigroup and goldman sachs reporting earnings this morning. goldman.rt with its revenue structure has been quite static, and if you got such a static revenue structure, you can't afford a 40% drop in something, can you? alison: goldman had a really strong rebound in the first quarter of 2018. if you look at this quarter, pretty much across the banks we are seeing decline. we did see at goldman a better-than-expected beat in fixed income trading. the same at citigroup. however, both coming in lower on
the equities side. even though they beat on the earning side of thing, revenue is probably about in-line with some of the key businesses, perhaps a little bit light and some other businesses, but really the beats or tax driven, and that is why investors might not be giving them as much credit as compared to if it was a big revenue boost. >> a major fire devastating the notre dame cathedral. officials say so far the force of the fire is unknown, and no injuries have been reported. what is the latest on what can be salvaged? >> it is not good news. it seems right at the two bell towers. a lot of it is something you can't move. there's chapels and frescoes and statues in their, and obviously those things you can't move out. officials are saying they are not 100% sure they can save the
cathedral. the bells fallf in one of the towers, it could take the whole tower down with it. a very perilous stage. this is not over. guy: french president emmanuel to rebuild thed cathedral. money is pouring into rebuild the cathedral behind you. we just learned the and tim cook of apple will be donating money to rebuild notre dame. money around the world from global business tycoons is flowing in. it is also helping to support emmanuel macron, who last night said they want to rebuild notre dame, and they will.
it is the destiny of france and the destiny of their people. guy: bank of america reporting record profit on the back of its consumer unit, despite a 30 drop in trading revenue. retail lending carried the back to a solid beat. however, stocks trading down. net interest margins, the fading influence of the rate rises, i think a factor behind this. reporter: the markets are having an issue with bank of america not because of bad results. as you mention, the prophet hit another record this quarter. but it is the guidance for the rest of the year. we are really talking about the last hurrah quarter with the fed rate hikes being on pause. executives on the call this morning said that the net interest income, the difference between what the banks are paying out to depositors and what they are making on loans, it is going to grow half as much this year as last year. arrow, butll an up it is half as much. ♪
grew at 6% in the first quarter with stimulus measures providing support. march factory output jumping more than 8% year on year. retail sales rising strongly. >> there's always skepticism when it comes to china's data and whether you are getting an accurate read on what is going on. the bigger picture is that it is hard to ignore the trend. it seems like all indicators are pointing in the right direction now. retail sales holding up quite well despite the trade war and negative sentiment. industrial output really surged, and fixed asset investment is also picking up. the effects behind this doesn't necessarily mean this momentum can be held up, but all indications are that china's helped by being domestic demand rather than the external story, and that in the trades well
deal they are negotiating over the coming weeks and months. ♪ david: morgan stanley shares rising in premarket after the beat estimates. is a little bit light, but almost a rounding error, so i would call that about in line with what we expected. we are going to be looking at deposit pricing at morgan stanley. we've seen pricing coming up on the wealth side, and deposit growth as well, but the trading business, the equity trading business, they earn more from that business, along with goldman, then any of the other global peers. ♪ >> senior u.s. and chinese officials are talking more trade talks to reach a deal by early may.
what is different this time from the many times in the past we were close to a deal? >> it does seem like we are in the last leg now of these negotiations. we have more of a timeframe, according to our sources in the u.s. we are at a point now where we are expecting mnuchin and lighthizer, the trade secondary and representative, to be here the weekend of april 29. the we are expecting chinese premier to fly to the u.s. the following week. after that, we are expecting a deal to be announced when he is in washington. what we are then expect to see is the two presidents will go to a signing ceremony somewhere towards the end of may, and president xi and president trump will sign off on this deal. there are still big question marks over the tariffs. we still have reporting
suggesting the u.s. has asked china to shift retaliatory tariffs away from agricultural products onto other goods so they can sell this as a win to u.s. farmers. but yes, more details on the timeframe. it seems we are getting closer to that in point. ♪ david: there's only one thing going on in washington, and that is the mueller report. attorney general william barr holds a news conference today and will release a redacted version of the report around the same time. counselr: the special not find any conspiracy to violate u.s. law involving russian linked persons and any persons associated with the trump campaign. so that is the bottom line. >> barr was hired for this moment, to bring some gravitas to the podium or attempt to put this behind them. pres. trump: i'm having a good day, too. no collusion, no obstruction. [cheers and applause] vonnie: the report has now been
handed to congress and is also on the department of justice website for public viewing. lot doesacted, but a point to the fact that this isn't over. 10mueller found at least instances where the president could have been construed to have been trying to obstruct the probe into the russian interference in his campaign's involvement. some of those instances are pretty damning for the president. >> we are seeing some of the oedipus that was built up by the attorney general start to crumble. this is a very damning assessment from mueller that he didn't have the confidence to clear the president. i think this explains why the attorney general wanted to get out in front of this. it undercuts immediately the stance the president has taken. kevin: the president getting support from key allies, including the republican national party, which has released a statement virtually
completely saying that this exonerates the president, and that it is time to move on. democrats say not so fast. they want to see bob mueller testify on capitol hill. taylor: still ahead as we review the week on "bloomberg best," u.k. chancellor philip hammond shares his thoughts on brexit negotiations in the future of prime minister theresa may. , the challenges facing european banks and the quest for economic growth. >> the problem is how you coordinate all these countries to have a fiscal boost in case things get worse. taylor: and up next, more highlights from a week full of earnings reports. l'oreal'sumbers -- numbers suggest beauty is alive and well. >> demand is very strong. taylor: this is bloomberg. ♪
♪ taylor: this is "bloomberg best ." i'm taylor riggs. earnings season shifted into high gear this week. let's take a look at some of the prominent companies reporting, starting with entertainment powerhouse netflix. ♪ vonnie: netflix delivering a disappointing forecast for the current quarter, with domestic growth slowing to a trickle. are investors right in being concerned despite the beat in subscriber numbers? reporter: i think this is a bit of an overreaction. i don't really see disney being a huge competitive challenge. i think they are going to be more couple of entry.
the interesting thing about netflix internationally is the fact it has very strong growth. they are building a larger and larger library of non-english begin content. they are being smart about extending the reach of content and what they are doing. i think the reactions we saw were a fear that the forecast was a little below what people thought, maybe because of this competition. probably more like because of the price increases and some of the turn we see, but i still think there's good opportunity. david: johnson & johnson shares are rising in premarket after the company beat expectations for both earnings-per-share and revenue in the first quarter. this was driven mainly off of your prescription drugs. is that fair to say? >> i think the balance was heavily weighted toward the prescription drug side, but we are very optimistic about continued cadence of improved growth we've had, and we are looking forward to 2020 to be at market performance are better.
but prescription drugs did perform very well across all of our therapeutic areas. immunology, oncology, pulmonary hypertension. not just for the short-term data, but for the long-term? we had significant improve will during the quarter as well. >> roche is raising its outlook. the drugmaker sees sales rising by a made digit percentage during this year as new medicines for multiple sclerosis and breast cancer help offset pressures on older treatments. analysts say it is rare you normally have enough confidence to raise your outlook after the first quarter. why this year? strongly intovery 2019. the strong growth is entirely driven by our newly launched medicines. that is the reason why we have raise the guidance now for the full year to the mid single
digits. ♪ l'oreal got more revenue from asia than from western europe for the first time last quarter, surging demand for luxury products countering the drag of a slower chinese economy. guest: for luxury beauty products, demand is very strong. the growth that we had in the 30%, 33%,ter was at which is exactly why we had this year. ofsee a very strong appetite chinese consumers, young chinese consumers, and i think that is one of the secrets of the reason of the boom. ,ery young consumers millennials, are really jumping on the products. ♪ anchor: rio tinto has slashed the next quarter
after various natural disasters, fires and the like. >> they are saying there's going to be continued disruption, flagging that there may be some lingering impact into the second quarter. that is to give the recovery efforts and slow progress. they've been hampered by another tropical cyclone that formed in the region, and your guidance for shipments through 2019 have been cut as low as 333 million tons. if it did hit that low, that would be lower than the amount shipped in 2018, and this just adds to that bearish sentiment around supply in the iron ore market. ♪ anchor: black stem quarterly
earnings today, also announcing reported quarterly earnings today. we've handicapped ourselves with our corporate form. by changing just our form bubble we will double the amount of .oney that can by our stock shery: how big is this conversion? guest: it is pretty big. a lot of my clients couldn't get around the k-1. they weren't in the index. this is really a game changer. blackstone is going to open up to a lot of owners, so it really is a big deal. ♪ anchor: it was a strong start to this year for europe's biggest consumer brands. beste reported its
first quarter since 2016 despite rising prices. unilever beat analyst estimates on underlying sales, helped by positive performance from its home care business. we are concerned about the economic picture in europe even more than in the u.s. nonetheless, global growth is slowing, and yet it looks like consumer staples companies are able to keep selling their goods with pricing power. arees, i think what we seeing here is clearly some improvement in pricing as we recover, particularly in the u.s. the western european market remains pretty deflationary. we are seeing a tough retail environment in germany, france, even somewhat in the u.k. overall it is really the emerging markets boosting numbers today. ♪ vonnie: pinterest and zoom video shares start trading, those ipos priced after the market close
yesterday above their valuations. what were these pricings like, and how do you expect they will go today? reporter: pinterest closed around $19 a share, which would put it below its last private round. there's a lot of enthusiasm around zoom. zoom's financials look great, whereas pinterest doesn't look like it is going to be the x facebook. it is trying to be its own thing , but investors don't seem to understand it. focus going to be more on investing to grow the top line? guest: we are going to continue to invest for the long term. we should really get improvement, but my eye is always on what is going to make pinterest great three years, 10 years from now. that is going to be how we continue to run the business. we are really excited to get -- to see it keep growing. ♪
♪ taylor: you're watching "bloomberg best." i'm taylor riggs. how serious is europe's slowdown? that was the topic of much discussion this week as investors watched for encouraging data points and pondered a gloomy forecast. in an exclusive conversation daybreak:mberg s," societe generale's chairman shared his thoughts. guest:guest: there's no recession overall. it is just that, like in the u.s., growth is not as expected and not picking up, so interest rates remain low, at zero or negative.
we need more investment, private and public. i think europe compared to the u.s. has room to maneuver on the fiscal side because it is going down. the problem is how you coordinate all these countries to have a fiscal boost in case things get worse. that is the big? . carol: one thing people have is canlking about european banks be successful with a negative rate regime. guest: if we were at the same level as in the u.s., we would be as profitable as u.s. banks. we have negative rates instead of 2% rates in the u.s., and we contribute every year to the single resolution fund, which has been built up. andsum of negative rates these contributions is about 15 billion euro.
every year, the banking system .s giving up that tax if taxing banks is the best way to stimulate the economy, congratulations. [laughter] they have to make the decision. if i look at japan, if i look at switzerland, they have tiering which reduces the negative impact of negative rates on the economy. so i think that is something we have to look at. but it is a big decision. carol: bloomberg is reporting that ecb officials lack enthusiasm for this tiering plan you are talking about. in light of that and what you call a tax on the financial system in europe, many are expecting more consolidation. this consolidation a good or bad thing for you? i'm thinking of, for example, deutsche bank and commerzbank.
guest: again, if i look at the u.s. as a model, i think where the u.s. was 30 years ago and even 10 years ago, you have seen this consolidation happening. together with the creation of a capital market which is helping the banks, i think we need to see that in europe, too. consolidation a be within the first stage within borders, and then cross-border. we need to create european banks that compete with u.s. banks on the same level. ♪ taylor: coming up on "bloomberg best," more compelling conversations. u.k. chancellor of the exchequer philip hammond discusses the chances of a compromised solution to britain's brexit stalemate. plus, a conversation with blackstone's stephen schwarzman, and kkr explains why they think
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now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. ♪ taylor: welcome back to "bloomberg best." i'm taylor riggs. last week the european union granted the u.k. a six-month extension to reach an agreement on a brexit deal. talks between the government and the opposition labour party are set to resume next week, even though neither side has much room for compromise on the key issues that divide them. bloomberg's francine lacqua spoke with britain's chancellor of the exchequer philip hammond at the imf spring meeting in washington on whether he supports a permanent customs union if that was required to bring a deal across the finish
line. hammond: we've gone into these talks on the agreement that we need to leave the european union and end freedom of movement, but beyond that we haven't set out red lines. we are prepared to discuss anything they put on the table. we know this is one of their public demands, a custom union. it is not what we set up to deliver, but we are prepared to discuss all of these things with them. just because they've put it on the table to the main we are going to accept it, but we are pretty talk about it. francine: but personally, would you accept it? chancellor hammond: it is about the government's position, and we are prepared to talk about it. francine: many are wondering whether theresa will go. is it better for her to stay beyond -- theresa may will go. is it better for her to stay beyond the extension? chancellor hammond: the prime minister has said she will leave
once she has done the deal and taken us out of the european union. as far as i know, she doesn't have any intention of leaving until that deal is done, so she is a person with a strong sense of duty. she feels that she has a duty and obligation to the british people to deliver brexit. she would certainly want to make good on that. ♪ taylor: the shanghai auto show brought together leaders from auto companies around the world, and they had much to discuss. there's the recent sales fall off in the world's largest car market, as well as signs that china's electric vehicle industry is approaching a bubble. bloomberg's tom mackenzie spoke with several executives about their outlook and concerns, starting with volkswagen's ceo. ♪ we are very strong in china. we have great access to markets here. we want to use the momentum of china -- [indiscernible]
tom: we've seen 10 straight months now of alling sales in china. have seen two quarters with declines. also, i am quite happy with the developers from our viewpoint because they could defend our market position. losing a little bit of volume, but gaining market share. we are not too scared about china. the situation can change rapidly. there is a huge demand still in the market. the economy is basically in sound condition. work the stimulus should and should affect the markets. i am quite optimistic that the
second half of the year is better than the first half. the auto sales decline us on the bed is quite significant. however, what we see at the same time is that the energy vehicle segment is growing. every month you see wrote about 80% or so, so that is very impressive. tom: how does it play out? are you looking at companies being wiped off the map, or are there going to be partnerships here in china tying up with some of the startups? how do you think that plays out longer-term? >> i think it will happen in various ways. we are seeing players slowly fading away, which means they will slowly disappear without funding, without product, and cannot get to the market on time. simultaneously, there are players that will look for strategic tieups to become may
be the new energy arm of some of those oem players. we see that happening with some of the tier two or three players. ultimately, what will be left to compete will be very small. ♪ taylor: global investors are also hoping the chinese economy starts hitting on all cinders -- all cylinders after data this week shows government stimulus is starting to take effect. two the trade war with the u.s., it would certainly strengthened outlook. kkr's henry mcveigh explained what that new trade relationship might look like. ♪ >> i think the u.s. will keep the $50 billion they originally put in place in place. i think there is a chance they roll back the 200 billion dollars. i think president trump needs some growth going into 2020.
i think it also sends a nice sign. but in my 20 plus years of going to china, it talks about something i talked about two shows ago, which is that i think there is a divide. the relationship with things related to technology is more structural. i think it will affect supply chains. asia becomes more regionalized. europe will be somewhere in the middle. that is not insignificant for europe. europe gets 49% of its gross gdp from exports. you saw them, as china slowed, .hey really slowed down, too a lot of our focus in europe is really around finding industries that can go beyond that global slowdown being forced upon them. that has led us to technologies in some areas and consumer experiences. reporter: if i understand you correctly, the chinese economy, the slow down has bottomed. guest: i think it has been
arrested. i think there is a clear message from being on the ground in china that the stimulus they did, both monetary and some of the supply side, is starting to work. reporter: when does the impact of that stimulus melt in places like europe? guest: probably the third quarter. reporter: that much of a lag. guest: i think there is a bit of a lag. unlike in the past and it was just pure monetary stimulus and we had a more immediate spike, i think this will be much more gradual. i think that is important consideration. nominal gdp in china, when you have a fixed investment economy, you can grow 15% to 20% nominally. today it is a service economy with a demographic in their , and that is just north of 6%. taylor: also weighing in with insight on the global economy and markets with stephen schwarzman of blackstone, who
spoke with bloomberg's jason kelly. you have a bunch of portfolio companies that give you a window into help companies and ceos are feeling. how are they feeling? where are we in the economic cycle? steven: we are pretty close to full employment, so that means there's more money going to consumers. consumers are still confident and active. is a real shot in the arm, if you will, for capital equipment with the depreciation schedules. we slowed down a bit from where we were. the current estimate is around 2.5%. for u.s., we've got good growth. in china, i was just there talking to people. they are reporting somewhere around 6.4%. to the extent of those numbers
are absolutely accurate, i can tell you from being there that people are not worried the way they were two or three months earlier. jason: are you worried about a u.s. recession the next you are to -- u.s. recession in the next year or two? stephen: i haven't been, and i was somewhat alone in the fourth quarter. there was this huge drumbeat. we didn't see it with our companies. about 200 companies in that part of the business at blackstone. no ceo thought we were going into a recession. jason: and they remain confident. they remain, confident. it is not as good as it was a year ago, but it's got a good footing at a lower growth level. ♪
♪ taylor: this is "bloomberg best ." i'm taylor riggs. let's resume our roundup of the week's top business stories to the sudden resolution in the business dispute between apple and qualcomm. ♪ emily: apple and qualcomm agree to end a legal battle over licensing fees. >> it is not a surprise they eventually decided to go down this road. apple decided it was nearing a settlement, whereas qualcomm has been talking up a settlement for months now. they both benefit. apple now has a clear path to releasing new iphones and ipads in 2020 faster 5g networks to be compatible with those, and qualcomm sees its business model being certified and vilified here with apple being an
agreement with them by settling, so to speak. ♪ renderingdent trump the attack on the federal reserve, tweeting that the stock market could be as much as 10,000 points higher if it weren't for the fomc. does the united states have anything to worry about when it comes to fed independence? >> not in the near term. the fact that trump is tweeting about undermining fed chief powell does not actually lead to change in his orientation or action. i don't think anyone believes that. >> mario draghi on saturday said it is disturbing that the united states would be attacking its own central bank. he says, "i am certainly worried about central-bank independence, especially in the most important jurisdiction in the world>" people are concerned -- in the world." people are concerned that if these tweets start to have an impact on market psychology, it could interfere in the markets
might not perform in the way people want them to. jonathan: reports that the administration is talking to a number of candidates. inin: conservatives here washington, d.c. such as the heritage foundation are very mooretill backing stephen , who has deep ties to the conservative ideology. people like art laffer are still backing stephen moore, in particular. they are saying he is someone that is more of a policy wonk and crafted in the vein that would add a sense of seriousness that is differentiated from someone like herman cain. if you look at herman cain, his chances of being senate confirmed are increasingly not there. it is not working for him. let's take a look at the senators opposed. senator lisa murkowski, mitt romney, cory gardner.
difficult cain, a path forward, but first even more, the chance is still there. ♪ japanesehave the u.s./ trade negotiations starting. do we know what we want out of japan? to get this done and dusted soon because president trump has had a problem with part of his base, and that is the farmers who have been hit as a result of the trade wars with china. with japan, it is really a tale of the consequences of the president's own decision. by pulling out of the transpacific partnership early in his administration, he left the lucrative agricultural accessopen to improved for countries like australia and new zealand, and meanwhile the europeans have moved in and find their own trade deal both japan -- their own trade deal with
japan. ♪ jonathan: germany's forecast was not terrific, 0.5% now forecast for 2019. >> a wake-up call for the german economy. but this inconstant -- to put this in context, you need to go back a year ago. clearly it is a massive revision. what you see here is that none of the tailwinds they were counting on, china, turkey, the emerging markets, have actually helped. you see that exports in the car markets are under pressure, but for europe in particular, the big question has to do with fiscal stimulus. are we going to see germany spending money to grow? until now, they have been reluctant to do that. ♪ anchor: congressional democrats are ramping up their investigation into president trump's finances and any dealings with the russians.
deutsche bank has been cooperating. what is the panel looking for specifically? >> it is looking for any indications that deutsche bank inappropriately helped donald trump out of financial difficulties in his real estate dealings before he became president, plus anything else that may lead to questionable behavior in the campaign of 2016. eric trump immediately came out with a tweet blasting the committee for this, what he considered to be a "political witchhunt." the democrats have to be careful they don't overplay their hand. >> we've heard this described as a friendly subpoena. is it a problem for the bank? >> they've actually wanted to cooperate for a long time, but given the constraints on talking about a client related, especially one that is as important and sensitive as this one, they never were able to cooperate. now that they've been served a subpoena, it is a legal requirement for them to
cooperate and hand over those documents. i think for them it is sort of a relief. they want to put this behind them and get these documents to the democrats, to the house, and wash their hands of the story if they can. ♪ anchor: a shakeup at j.p. morgan. they have named marianne lake the ceo of consumer lending. she was previously the cfo. it always begs the question, are we grooming a successor to jamie dimon here? could one of these females be the next in line? reporter: this is the really big question because marianne lake was widely seen as one of the top candidates to be the potential successor. this suddenly puts another woman in the pipeline. both women are the same age, actually. one has been at the firm for more than two decades. it definitely puts somebody else on the bench, but draws questions about who will really take the top seat at the
end of the day. ♪ 100 90 million voters in just six hours will cast their ballots as indonesia hosts the world's largest single date election. how significant is this election? >> it is significant because the country's unity is at stake. it is not about the economy. do not differ very much in terms of economic policy. this election is political identity, the religious identity of the country. this is where the country is split right down the middle, between moderate and conservative islam. what is important is unity. whoever wins this election will need to bring the country together, and that in itself is a huge challenge. >> the indonesian president set to claim a second term, with
countscial giving amazing can lead. an internal exit poll shows he has more than 55% of the vote. this feels like a replay of five years ago, but what happens from here? >> from here it is about healing the country. we talked about how the country has been divided because of religious issues. right now the priority is to get everybody together and reunited. that was precisely the message he set forth to the country when he spoke after the elections. for him it is a mandate to go on with his reform agenda. so, it is an endorsement of his economic policies, which he hasn't implanted so far. he has not claimed a victory. he has said he will wait for the official results, which will come by may 21. ♪ vonnie: the ultimate personal and professional come back, tiger woods won his 15th major title, his fifth green jacket at
the masters sunday. it was also a major boon for the few sponsors that stuck through tiger through his downs, nike and tailor-made. this is a massive story. reporter: the one company usmca with tiger woods, back to 1996 when he turned pro, is nike -- the one company you associate with tiger woods, back to 1996 when he turned pro, is nike. they stuck with him through and injuries. back in 2008 when nike won -- major,ger won his last tiger had to go elsewhere. tailor-made makes his clubs. rick stone makes his ball. -- bridgestone makes his ball.
♪ anchor: i've got the earnings analysis chart from the bloomberg terminal on my screen. in terms of a surprise compared to what the analysts had been estimating, it has been a pretty poor season. highlight a to brand-new function on the bloomberg, a fresh look at etf's in europe. taylor: there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on bloomberg television. maybe they will become your favorites. here's another function you'll , where quic
it will lead you to our quick takes on important topics. here's one quick take. >> we are in an era where it looks like anyone can sign anyone can say anything at any one's mouth. >> the technology behind some frauds is improving. this is your bloombergquint take. or realistic looking fake video and audio, developed as a way to put celebrities into porn scenes. they input real audio or video of a specific person, the more the better, and the software
tries to recognize patterns in speech and movement, introduce a new element like someone's face or voice, and a deep fake is born. >> it is actually extremely easy to make one of these things. there were just some breakthroughs from academic researchers who work with this particular kind of machine learning in the past few weeks, which drastically reduces the amount of video you need to create one of these. >> programs like fake app need dozens of hours to create a video that looks like this rather than this. researchers at carnegie mellon revealed software that accurately rendered not just facial features come but changing weather patterns and flowers in bloom. this advance is not yet available to the public, but with increasing hit ability comes increasing concern. >> this is kind of fake news on steroids, potentially. we do not know of a case yet where someone has tried to use this to perpetrate fraud or an information warfare campaign or,
for that matter, really damage someone's reputation. but it is the danger everyone is really afraid of. >> in a world where fakes are easy to create, authenticity also becomes easier to deny. people caught doing genuinely objectionable things could claim it is bogus. it can also be difficult to detect. researchers around the world end of the u.s. to permit of defense have said they are working on ways to counter them. deep fakes do have some positive uses. a firm that creates digital voice is for people who lose theirs from disease. >> each synthesis is the artificial production of human speech. >> there are also applications that could be considered either good or bad, like the many deep fakes that exist to turn as many movies as possible into nicolas cage movies. >> oh, hi mark. taylor: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com, along with the latest business news and
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emily: he is one of the biggest legends in hollywood history. jeffrey katzenberg has produced some of entertainment's greatest hits, bringing us under the sea and teaching us the circle of life in "the lion king." he is also famous for getting fired by disney and starting a new company, dreamworks. which redefined animation for a digital edge -- age, bringing to life a green org or -- ogre and a kung fu fighting panda. today, with the streaming competition heating up, he is placing his next be