tv Bloomberg Best Bloomberg April 27, 2019 12:00pm-1:00pm EDT
♪ viviana: coming up on "bloomberg best," the stories that shape d the week in business around the world. earnings reports come fast and furious with big tech and european banks leading the way. >> if we get people to come to twitter once a month, we have failed. we are not delivering for them. >> we are very strong in the americas. >> they are just minting money. viviana: deutsche bank and commerzbank and their merger talks. samsung puts its new fold on hold. >> this is a reputation and pr marketing nightmare. viviana: oil prices surge as the u.s. clamps down on iran. >> the hardline no waiver was a surprise.
viviana: while u.k. banks brace for brexit, britain's chief financial regulator speak exclusively about how to manage the transition. >> it would be a big mistake to lose contact, to isolate ourselves. viviana: economists and executives share insight on the state of the economy and global growth. >> we do not see signs of problems but we are planning cautiously for the >> if the fed second half. did not do what it did, we would see panic in the bond market. viviana: it is all straight ahead on "bloomberg best." ♪ viviana: hello, and welcome. i am viviana hurtado. this is "bloomberg best," the your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. we begin with a day by day look at the top headlines. on monday, an outpouring of
shock and empathy after a wave of deadly bombings on easter sunday across the south asian nation of sri lanka. shery: one of asia's deadliest terrorist attacks in years has shattered a period of elective calm in sri lanka. more than 200 people have been killed in a series of bombings that targeted luxury hotels and christian churches. haslinda: what a devastation, coordinated explosions on easter sunday. churches, luxury hotels around the country, the capital of colombo, no question. the prime minister says he will have to look deeper into this. the thing is, he said, authorities had received warnings but little attention was given to the warnings. the priority, though, is to ensure sri lanka is not destabilized. >> we are prepared to take all measures necessary to ensure terrorism is contained and wiped out in this country. haslinda: those measures include a nationwide curfew.
that has been imposed, facebook, whatsapp, social media access has been blocked. the impact is on the economy. this is not great news for a country that was forced to take a loan from the imf recently. investors still have fresh memories of a country plagued by civil war. vonnie: the u.s. is increasing pressure on iran. oil rising to its highest in six months. with the u.s. government eliminating sanction waivers that allow buyers to import iranian crude. was the market anticipating this? alix: absolutely not. what happened last time, six months ago, crude prices were somewhere where they are now. everyone thought there would be no waivers, and at the last minute, trump comes out with waivers. that surprised the market. but the hardline no waiver was a surprise. vonnie: how might iran react?
>> i don't think there was much of a can do in this case. removing the waivers means that 2 million barrels of oil they have had in the last few months will go away. maybe not all of it, but for now , the problem is it is going to be offset by production in the u.s. and in opec. typically saudi arabia will offset iran, and i suspect there was negotiation ahead of that. francine: crude has plunged. saudi arabia has large to make global crude market does not go out of balance and will coordinate with other producers to control supply. does the president know that the stopping of the waivers means oil prices will go up which he has ranted against? >> indeed, his bet is saudi arabia will help mitigate that upward pressure and replace the barrels that the sanctions will take out from iran. but it is clear that saudi arabia has no plan to flood the market. the talk we are hearing is yes,
they will help, but they will be cautious, and they went to see material reduction in iranian exports before they increase their own production. so it may be that the market will be very tight, and clearly, you are seeing prices and bit up the last couple of days. vonnie: shares of twitter rallying today, hitting their highest since july. this morning, twitter announced earnings topping first quarter sales projections, and reporting strong user growth. ble dailyse in monetiza active users. what is the monetizability. >> twitter has stopped doing monthly active users, that famous stat we use for most social media companies, and they they are focused on monetizeable are people, which who log into twitter every single day and in the company's perspective, can be advertised towards. >> we have been sharing a number externally for some time, which was monthly active usage. if we get people to come to twitter once a month, we have
failed, we are not delivering to them. we want people to come every day and see value on twitter and keep coming back to find out the things that are happening around the world. >> real at a brand-new high. the nasdaq, 1.3% up. what a record. >> yes, a decisive record. anna: credit suisse's main trading business has swung to a profit, remaining unscathed from what a rival ubs, and of the worst environments in recent history. tidjane: three years of deep cuts and restructuring, it is important for our activities to be stable. i think that there may be an upset for us and the ability to take market share. equities is strategically very important for our business. francine: take market share from who? tidjane: we do not mind. francine: mainly european banks? tidjane: where it is available.
we are very strong in the americas. my head of equities is a very cautious man, which i like. we do not want to be too bullish. results does not mean we have solved every problem. shery: facebook jumping in late trade after reporting better than expected first-quarter revenue, however, it is facing swelling legal costs, regulatory threats, and privacy concerns. the overall picture for facebook still looks strong. could we say they had been able to move past negative headlines? that we have seen in the last few months? >> yes, so if you look at the fundamental growth, it was a strong quarter on almost every metric. one big concern, facebook's future growth is dependent on stories. ' advertising and pricing is lower than in the us newsfeed. this quarter showed they can manage it this transition well.
that instills confidence and their ability to drive revenues with this transition. francine: today is a big story, -- a big bank story. in switzerland, ubs is switching expectations after a dire quarter from its wealth management division came in higher than estimated. >> the second half of march, market conditions and investor sentiments most improbably, both in absolute and also relative to last year. francine: here in the u.k., barclays earnings were mixed. that income came -- net income came in lower than estimates. we spoke exclusively to jes staley. jes: we face the choppiness around equity capital markets, and m&a activity around the world. >> barclays was my much exposed to europe with exit, it has put a lid on capital market activity, on dealmaking more broadly, and it is hard to see a change in that soon. david: deutsche bank and, should -- commerzbank announced they
are ending talks of a merger, saying the difficulties of putting the banks together were too great despite the upside they saw. >> we envisage over time industry consolidation will take place in europe, and deutsche bank wants to be part of that. the timing and the specific form of that obviously remains to be seen. david: was this a deal that ever made sense, looking back at it now? >> i think it really depends on whom you ask. for the most part, berlin was not behind this deal. the problem was, of course, for people outside of banking, 40,000 job cuts just doesn't work well, especially for people at this income level. internal people, they told us it really was too costly, to complicated, and bash too they told us it was too costly at the end of the day, too complicated, and did not create the kind of economic synergies they would have hoped for.
>> amazon reported quarterly profit that exceeded analyst estimates. demonstrating their focus on cloud computing, advertising, and other higher-margin businesses continues to pay off. amazon also continued to narrow its loss on international operations, which helped boost profits. however, it is not all good news. outlook for the second quarter is less stellar. revenue and income guidance are both a bit light. what do you make of the quarter? >> the upside is because they generated 43% margin and cannot spend all that money. they have $25 billion of gross profit and managed to only spend $20 billion of it. that is the story. this company has run out of things to spend money on. obviously, they will keep building fulfillment centers but that is not going to grow materially year-over-year. there are going to build the same 50 or 100 every year. they are just minting money. yvonne: chinese president xi jinping did far more than just deliver a revision of its belt and road initiative. he took the global spotlight on
his speech in beijing to deliver a powerful message on steps china is ready to make as it moves toward a trade deal with the u.s. xi vowing not to try to get an the yen to getue an advantage on trade. >> china will not pursue yuan depreciation that harms others. theourse, this is something u.s. has been complaining about for a long time. for the most part, until china's economy started growing, it was pretty stable. it is interesting he made a point to say these things at a speech when he knew everybody would be listening. vonnie: wha's largest ipo, uber is helping to bash hoping to raise as much as $90 billion. the ride hailing company bash hoping to raise they are aiming $9 billion. for an $84 billion valuation. characterize it conservative? >> i think so, given what has happened with lyft, it makes sense for them to go with a conservative valuation because there is no path to profitability for this company.
when i compare them to a company like slack which is going public, that has negative ebita ibitda margins, there, you know that when they hit billion dollar revenue, they will be profitable. they are right to leave some room for the stock to go up once it prices. 7x sales fees are reasonable. viviana: still ahead as we review the week on "bloomberg best," the ceo's of united airlines and honeywell explain how they see the economic picture. the head of britain's financial conduct authority explains what brexit means for global banking. up next, we are plowing through more earnings reports. top executives share thoughts on their company's performance. >> if you look at this year, we will have three potential major launches. viviana: this is bloomberg. ♪
♪ viviana: this is "bloomberg best." i am viviana hurtado. we continue with our roundup of the week's most intriguing earnings reports. let's start with results from beleaguered aircraft giant boeing. boeing suspending its forecast as uncertainty over its 737 max clouds its future. we know the concerns that mire the company. they are not going anywhere anytime soon. it is not often that you see this company miss in terms of estimates. >> no, it is not. uping had been on the up and , it was at the top of his game. it was the largest u.s. industrial company. then he had the masks 7 -- some max 7 crisis. it has changed the ground for
boeing. it was interesting to see the stock reaction, shares were edging up higher. the shares have held up well which is a reflection that they have a strong backlog. it is not easy for customers to jump ship and go to airbus. people think there will be some near-term volatility while they figure this out, but long-term, it is going to be just fine. >> meanwhile first quarter , profits beat estimates, but warned of a shaky market in china. once again, it seems as though too clear were a bit in terms of concerns about future guidance. >> we saw this last year, with me high water market, all the jitters across the industrial sector. i think there are just worry points in the global macro economy right now. that is not necessarily what you want to see for a capital goods company especially at this time of year where dealers are trying .o ramp up their inventories
that is not what you want to see . they do not see alarm bells now. if you are an investor there were worrying signs, and there were quite a few of them. paul: tesla began the year with a loss of a most a half million dollars along with a record drop in quarterly deliveries. are these results shocking or just a surprise? >> i am going with shock. if you look at the top line number or the profit figure, it is only a surprise, because the company had said sales fell in the quarter. that was previously announced. they signaled there would be another quarter of loss the following quarter, and possibly the third quarter is a return to black. but at this stage, it is very hard to give credibility to the projections. they have been wrong so many times. it is a moonshot for investors, and you have to think the goodwill for musk is starting to run thin.
matt: profits at ford blew past expectations. the stock jumped $10 in the after-hours trading for the first time in 1 eight months. the cfo told bloomberg results were driven by its core business at home. >> for north america and credit, they are the two pillars for the company and have driven results for a long time, and continue to do so in the quarter. what we saw was strong mix, we saw strong positive net pricing. our costs were up a little bit. we had good leverage. within that, the f-series was strong. we got positive contributions from the new ranger, and , itica's best-selling van also contributed. it was broad-based within north america. emily: microsoft reported profit and sales that beat estimates, racking up the new massive cloud computing deals. break it down for us. >> absolutely. stellar earnings across the board. i cannot find fault in it at
this point. looking across, whether it is adnumbers, whether it is share, it is a true estimate of a very strong corporate i.t. environment. vonnie: coca-cola shares are up 1.9%, after they posted a profit beat. north american volumes were down for a second straight quarter. you did get a boost from higher pricing, but i am curious how long you can sustain higher pricing to maintain margins and profitability. >> i think the north american business was a little softer in the first quarter, but i think it should be's and in the context of the leader timing of easter, which tends to affect the business, and also a bit of negative whether in the first quarter and a little less emphasis on some of the low-margin water business. i think the u.s. had a solid quarter.
pricing last year, i think it was more of an extended year based on some of the commodities fx and the u.s. specific situation of freight. the way that the freight industry worked in the u.s.. ultimately, we continued to focus on the value of the consumers. they will only be willing to pay the price if the brand and product they are getting is the one that works for them. matt: novartis is plotting a faster course after spinning off its eyecare business. the drugmaker raised its profit margin and beat estimates. -- profit estimate for the years, and first-quarter earnings beat estimates. >> we have 26 potential blockbusters in late stage development. in our industry, as you focus is a medicine company, you have to make the best of your innovation power, your replacement power is strong enough that you can replace the patent power. that is the bet we make as a company. we believe we have that innovation power. if you look at this year, we have three potential major launches already approved in
quarter one. and we have five or six major readouts coming out over the course of this year. all of that taken together puts us in a good place. >> big oil, a big focus. chevron beating estimates after slashing expenses, while exxon stumbled, posting its biggest refining loss in 17 years. let's start with exxon, big miss. >> earnings per share came in at $.65 versus estimates of $.72. net income fell 49% year-over-year. they obviously saw daily production fall below 4 million barrels a day. but as you mentioned, the refining business is that w weakest part today. chevron missed daily production estimates but there earnings per beat. they also solid downstream results coming in better than -- coming in less than expected. they did better than xm, which is when we are not seeing their -- they did better than xm, which is where we are not seeing their stocks under pressure as
much as exxon today. the outlook for the refining business is better into the second quarter. >> deutsche bank has released a full set of first quarter results this morning after pre-releasing numbers yesterday. germany's biggest lender has cut its 2019 sales outlook, saying it sees first-quarter net euros and 6.4 billion says credit loss provisions will remain in the mid-teens if deutsche bank does not embark on another merger. could we see a new strategy? >> that is broadly speculated. they have had five turnaround plans in the last three years, so this might be number six, a bit of a sobering morning. if you cannot do a deal that is probably more interesting than looking at your bleak revenue outlook, than you need to get back to the hard work of trying a new strategy here. ♪
>> you are watching bloomberg best, i am viviana hurtado. what might global banking look like after brexit? this week, guy johnson and vonnie quinn spoke exclusively with andrew bailey, the ceo of the u.k. financial conduct authority and also seen as the front runner to defeat mark carney at the bank of england. -- to succeed mark carney at the bank of england. he discussed the constellation of challenges banks and financial regulators now face. andrew: there is no question in the period since the financial crisis a decade ago, what has really happened is a global initiative to build stronger regulatory foundations. world, and financial the conduct world. there is no question brexit will not impact on that increasingly global approach, which is right because wholesale financial markets are global. guy: is it a prerequisite for whoever wants to be the next governor of the bank of england that they should have significant regulatory experience? andrew: i have spent years
delicately steering around those questions. let me say this, what has changed in the post crisis is that the bank of england has been given an important regulatory response. the bank i joined in the 1990's had responsibilities, and we went a long way without having them, and it is appropriate the central bank should have those responsibilities. i am a strong supporter of that. i am involved in that work as a member of the committees. vonnie: how can you regulate banks in britain if you are not in agreement with european regulators on various issues? andrew: first of all, we work closely with european regulators. one of my guiding principles on this since the aftermath of the referendum, i became chief executive the week after the referendum when i moved from the bank of england, and had the experience leading up to the referendum. it would be a big mistake for us to lose contact, to isolate
ourselves from our regulatory counterparts around the world, but particularly, from our european colleagues. we have gone out of our way not to do that. it is one of my guiding principles. one of the ironies of brexit for me personally, i spent more time on the continent of europe post referendum than i did before. the point is, we are not going to lose contact. that is important because we have much business to do together. we want to have open markets, and as regulators, the way to support that is to have strong relationships. all our actions are designed to achieve that. ♪ viviana: coming up on "bloomberg best," more of the week's top business stories. a bidding war between oil companies breaks out in the permian, and a new ceo takes over at kraft heinz. but first, more compelling conversations. a top candidate to lead the european commission offers bold thoughts on trade and competition. >> i think we have change the
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viviana: welcome back to bloomberg best. this week, corporate earnings were in focus. robust results are easing concession returns. several ceos joined bloomberg television to discuss the overall economic outlook. let's start with the honeywell chairman and chief executive. vonnie quinn asked if he is worried about an impending slowdown. >> no, not really. as you saw in the long and short cycle businesses, we had a very strong quarter. 40% long cycle oriented, so i'm
very confident that segment of the business, short cycle has done extraordinarily well. if we don't see any signs of problems, we are planning cautiously for the second half. short cycle can turn very quickly. so far, so good. >> are pmi data missing something? >> there could be segments that continue to grow. all industrial companies aren't the same. we play in different markets and segments, and we have a different mix between short and long cycles. we can't always compare that broad-based industrial indices. >> all four segments of honeywell seem to be doing well. what most concerns you for the rest of this year? >> obviously the short cycle, particularly industrial solutions. we did see some level of d estocking, but we expect that to dissipate. we are still planning for q2. but we are planning on recovery in the second half of the year. we have a couple minor trouble spots, but overall, the business came in very strong.
♪ >> i'm curious what your view is on the economy right now. lots of anxiety about whether there is a slowdown. what are you seeing right now in terms of recreational travelers, domestic business travelers, and the global business situation? since it feels like a lot of the weakness is more on that. >> there is a lot of different viewpoints. our view of the future is fairly limited. we are not long-range forecasting. our demand is close in. the insight that we do have is relatively strong compared to where we have been. we had a very strong year last year, and we provide the fact that we will grow the top line and deliver financial. -- financially, and we stuck to that guidance. ♪ >> monetary policy was also a topic of much conversation this week.
economists are assessing the decision to pause tightening trajectories. goldman sachs goes a step further. in a note, it is claimed the central bank is delivering the most accurate take on the economy, but now outside forecasters are closing the gap. it is explained on "bloomberg daybreak: america's." ♪ >> the finding on data from the 1980's and early 1990's has been that the fed really outperformed systematically, and recently there's less of a difference. >> does technology play a role? do forecasters have more access to data more readily? >> that make sense as one potential contributor, and learning about the structure of the economy. you average out some errors. if you look at the consensus,
one person being wildly off on a particular theory has less weight. >> does it also make it appear like the fed is reacting more to market conditions than it is? >> one implication that it has is that when the fed lowers its view of the economy, it may be sends a dovish monetary policy signal. markets can take this more as just a change in the policy outlook. it is something that should boost financial markets, maybe not as much as a sign that they have private information about the economy, and we should all get more bearish about what's going to happen. for me, that is the main implication. if you think the fed looks at the same kinds of things we all look at, and we are all in a similar position in terms of probability of getting it right, if they get more dovish we should respond to that policy signal, as opposed to get
nervous about something we didn't know. ♪ >> the fed have done a beautiful job bringing interest rates to where they are now, which is why they can take this resting period, as it were. u.s. inflation rate is around 2%. so if the fed didn't do what it did, and the rate stayed close to zero, inflation close to 2%, i think we would have seen a panic in the bond market and a lot of problems, because people are realizing the fed could go for abrupt tightening, which yellen warned so many times. even powell. but because they took this very difficult step, tightening when inflation was not obvious, now they are at 2.25% and inflation is around 2%, no one is panicking, which i think was a beautiful job. that allows the fed to wait and see what happens next. ♪
>> this week, the leading conservative candidate in next month's european parliament elections officially launched his campaign. he hopes to replace jean-claude juncker as president of the european commission. in an exclusive conversation in athens, he said he would like the eu to treat china more as a partner than a competitor. he also emphasized the need to reshape the bloc's trade relationship. ♪ >> for my part, it is a party of trade. we voted for the trade agreements with japan, with canada, always a party of trade. the socialists and greens are not so much. we believe in trade, both sides of public development. and on the chinese side we should be in favor of trade, but the option remains for what is going on in china. they define key industries,
especially in the traffic field, and you must allow companies to grow and to establish something that gives you the chance to compete on a global level with big companies from china. that is why i think we have to change the competition law to allow for the future. generally i'm a friend of competition, but in special markets, you need to understand that competition legislation must also adapt at the global level. >> so you would agree with relaxing, perhaps, some of those rules when it comes to antitrust and competition in the national interest? >> it must be in the european interest, that is clear. i love and enjoy competition, it is good for us as consumers. but on the global stage, europe must define our key industries,
viviana: this is "bloomberg best." let's continue our global tour of the week's top business stories. in japan, the central bank reaffirmed its long-standing commitment to stimulus. ♪ >> the bank of japan says it will keep interest rates extremely low through at least the spring of 2020, saying it won't hit 2% inflation target for another three years. they tweak some of their forecasts i don't know whether , the market took any notice, we didn't see that much movement in the yen. the idea that inflation -- it
will take a long time to get back on track. >> i think that's the thing, they said they would keep accommodative policy until the spring of 2020, but did anyone think they would track it? they didn't. yes, they have changed in the language to make it more specific, which is nice, but they didn't really change anyone's expectations. and japan has this consumption tax which could be quite significant, another reason why the market didn't expect anything from monetary policy. ♪ >> occidental petroleum has made anadarko which , has just now confirmed the receipt of the proposal, saying that the board will carefully review the proposal. >> going back two weeks, they made the announcement that they had reached an agreement by anadarko. we confirmed reports that occidental did also express an interest at a higher per share offer that has been rebuffed.
if occidental had come out in been public, and it is in honors -- in anadarko's court. >> we feel very strongly as we've looked at on a darker that -- at anadarko over the past couple of years that they have incredible assets. and combining their assets with our assets further enhances our dividends and production growth. ♪ >> president donald trump has said he will not nominate herman cain for a seat on the federal reserve board. in a tweet the president said this. "my friend herman cain will not be nominated for the receipt of the federal reserve board. i will respect his wishes. hermann is a great who truly loves our country." kane has said he didn't want to go through the arduous vetting process. would he have made it? >> it doesn't look like he would have and that is why he was able , to get through it.
four republican senators had said they would vote against him, 53-40 seven margin puts him below 50%, he wouldn't have been confirmed by the senate. that was a message the republican senators were deliberately sending to donald trump who had not vetted him , when he said he's the man i want to nominate, the vetting process is proving to difficult, particularly with the sexual harassment claims against him prior to his presidential campaign. ♪ >> samsung will delay the release of its foldable smartphone until at least next month. reviewers have found defects in the $2000 phone. the flaws include some displays ripping off the phone. all of which is scuttling the launch. >> it seems like we are finally moving on with the exploding phone. how much damage will this do to their reputation once again? >> this is a reputation and a pr marketing nightmare. quite frankly this thing should
have never been announced until it was ready. it is utterly shocking to me that it has come this far without employees raising the issue for the launch to be postponed. companies are supposed to have quality assurance tester is an all sorts of things in place to -- and all sorts of things in place to avoid specific situations like this. ♪ >> the people's bank of china has injected more than $250 billion of liquidity into markets via a targeted medium from london facilities. it reflects an effort to support an expansion in credit while trying to avoid building up for the financial bubbles. talk us through this particular operation. i think it is only the second time ever we've had one of these. what exactly is the rationale from the pboc? >> this comes on the heels, of course, of the statement from the politburo, in which the market interpreted signals from
china that they will dial back the stimulus, and seeing that big stockmarket rally. what authorities look like they are doing is try to dial back the expectations of stimulus, going away from the universal liquidity injection to more of a targeted injection. we are going to get those one-year funds at 3.15%, and we spoke earlier this morning to mark cranfield, who said this is not the big bazooka of an official rate cut. it should be received by the market well, but the amount is not necessarily a game changer. ♪ >> we are waiting for south korea's finance chief to hold an emergency meeting after the economy shrank the most in a decade. we know the government has been spending a lot in order to support the economy for 2019, up 10% from their original members. -- numbers last year. why is none of this helping? >> it is certainly something of a wake-up call for the debate of
the global economy picking up, and here we have one of the key bellwethers for the world economy going through a rough patch. it is mostly due to the slump in the technology sector, the export of semiconductors. there's also a slowdown in china and weaker global demand. there is also slowing domestic business investment. all that combined is weighing on south korea's economic growth. there's a view that perhaps things will pick up in the coming months as china's stimulus helps boost business investment. it does indicate they have a bit to go yet. ♪ >> kraft heinz gets a new ceo. the incoming chief of ab invev will replace bernard heath. they are looking to break out of a product slump since buying unilever. who is the end where did he come from? >> he came from anheuser-busch, another 3g company.
not a totally unexpected pick. he has been there six years as global chief marketing officer , he has been selling beer, now he will sell oscar meyer deli meat, and the question is will he bring a new strategy. the outgoing ceo has had a hard mainly because they haven't had to buy something since unilever fell apart. the real question we will have to look for is whether he embarks on a new strategy. ♪ >> the new indictment accusing nissan's former boss of redirecting millions from the company to his personal accounts may not only extend his time in detention but threaten to undermine his arguments that he is a victim of corporate intrigue. these charges are quite different from the previous ones. we are talking about real embezzlement here. >> the nature of the allegation is quite different, in that initially we were talking about situations that could be
described as poor judgment or exceeding his authority in some way or taking advantage of his position. whereas this would look much more plainly, like as you say, embezzlement and fraud. >> a japanese court has confirmed that they will be granted bail of ¥500 million and could be released today. bring us up to speed. >> this would be the second time that he has been released on bail. this could be a sign that the prosecution is quite confident now that they have the documents they need to proceed with this case. another interpretation that is equally valid could be that they have given up on trying to compel a confession. ♪ >> it has been a peaceful leadership transition for ukraine after the most popular comedian got the presidency in the last landslide victory. it's good news for the currency, which has extended to 4% in three months, the fourth best
performance of the world against the dollar. investors are on the lookout for what policies will be. what do we know about this comedian? what do we know about how he plans to govern? >> good morning. you are right, the campaign was very light on substance. what we do know is that he has made it known that he is pro-europe and wants to continue ukraine's cooperation with the imf, and his main message was he wants to stamp out corruption. that was the biggest issue for ukrainians in this election. in terms of policy details, policy specifics, we don't know much, and we will be waiting with interest to find out about his exact plans as he builds out his team and as he makes it known how he wants to govern. ♪ >> u.s. economic growth accelerated more than expected in the first quarter.
it was a big boost from inventories that offset the slowdown in consumer spending. are we taking from the second half? >> we are and we are not. the real question is do we see the consumer come back? because consumer spending really fell in the first quarter. in january,hat there was a feed over from december. but what wasn't week was the -- weak was the inventories and trade numbers. we saw the biggest change since 2013 from those, because what happened was companies bought stuff ahead of the trade wars and stockpiled it. we should see those subtraction -- subtract from growth in the second quarter, but we will see if the consumer comes back and offsets that. ♪
>> if you come inside the bloomberg, this is the function that shows the oil curve. the green line is where we were a month ago. where we are now is the orange line. this shows the rating we've seen over the last four weeks. how much higher we expect markets to be in the short term. >> about 30,000 functions are on the bloomberg. we love sharing our favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful. it leads you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. ♪ >> at its worst, beijing's air quality looks like this. in 2013, the air quality was deemed unhealthy or hazardous for over half the year, peaking
in beijing at 35 times the world health organization's recommended limits. it was so bad that the premier declared a war on pollution at china's annual high-profile national people's congress. five years later, in march 2019, as the premier again opened the meetings, the smog outside was still 10 times worse than what the who defines as healthy. even as china cracks down on pollution like never before, the country remains one of the world's worst polluters. this is your bloomberg quick take on china's smog. china overtook the u.s. is the -- as the world's biggest source of greenhouse gases in 2006, helping put the globe on a path to miss united nations targets aimed at stemming the rise in the earth's temperature. >> the cheap power from coal, cheap factory production powered by coal, has helped china turned
into this economic giant, that has helped produce cheap goods for the rest of the world and help drive the world economy. so in a sense, chinese people are paying a tax and breathing this bad air for the benefit of consumers all over the world. >> the who estimates more than one million chinese die from dirty air in 2016. another study puts the tally even higher, at 4000 deaths per day. pollution is said to have been the main cause of social unrest in recent years, with social media helping to amplify complaints. on china's twitter like online platform, people blame factories for polluting the air, in the -- and the government for not doing enough. in february, 2015, a chinese investigative journalist publish a self-funded documentary about the country's air pollution problem. more than 100 million people watched under the dome before it
was banned from chinese video websites six days after its release. shortly after the president an iron handleash to punish polluters. the government spent billions tightening environmental regulations, scrapping coal-fired power plants, and switching millions of homes and businesses from coal to natural gas. >> the regulations and policies have worked. the state department monitors the air around the beijing embassy, and recordings show 2018 was the lowest level in a decade, and the winter of 2017 was one of the best as far as air quality goes. it is not perfect but it is much better than the 2013 pollution problem. >> china is now the world's biggest investor in green energy. it spent over $100 billion in 2018, which was 56% more than the u.s. initiatives have included
supporting the electric vehicle industry by providing subsidies for ev buyers and helping build out infrastructure that allows electric cars to drive in charge around cities. >> ev sales are huge in china, it's the biggest market in the world for electric vehicles. it is not just cars. electric buses are huge deal in china. >> china is betting big on solar energy as well. in 2019, over a third of the world solar panels are estimated to be installed in china. but the war on pollution promises to be a long one. decades of breakneck economic growth has turned china into the world's biggest carbon emitter, and it is still going to depend on coal for years to come. ♪ >> that's just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis, 24 hours a day. that's all for this week's
♪ david: your father was in the agriculture business? randall: do you know what animal husbandry is, david? david: i started out as a animal husbandry major myself. randall: i'm getting a robocall too. [laughter] randall: it is literally a robocall. i said in spanish, the next person to speak to me in english is fired. i don't care if the building is on fire. david: you are trying to rapidly build 5g. randall: it is conceivable we will move into a world without screens. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪