tv Bloomberg Best Bloomberg June 1, 2019 7:00am-8:00am EDT
viviana: coming up on "bloomberg best," the stories that shaped the week in business around the world. elections in europe send political and economic shockwaves across the block. >> the pro european majority -- what does it mean for who is going to succeed theresa may? viviana: trade tensions continue to move markets. investors seek safe havens as the mood music darkens. >> people are saying let me get into safety, and then see how this uncertainty shakes out. viviana: an alliance of carmakers may shakeup the auto industry. alibaba and an asian ipo. viviana: the ecb wants to
normalize policy, but rising risks challenge that plan. exclusive insight on volatile markets comes from the top this is makers at pimco and morgan stanley's ceo. >> we think we are entering an age of disruption. >> around the world, we are seeing things that are all triggering market reactions, and it is more negative news than positive news. >> plus, huawei's founder and ceo speaks exclusively to bloomberg. he says he thinks he will come through the u.s. blacklist with flying colors. >> the tough battle environment just reflects how great we are. viviana: it is all straightahead on "bloomberg best."
hello and welcome. i am viviana hurtado. 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 day by day look at the top headlines. last weekend, voters across europe went to the polls. at stake, the makeup of the european parliament and, ultimately, leadership of the european commission and ecb. results of the vote came in sunday evening. >> mainstream political parties in the you -- in the e.u. have held their ground against assaults from populist groups, according to results from the european parliamentary election. they saw the highest turnout in a decade. it looks set to reward the green and pro-e.u. liberals, but the notable couple of exceptions, with the far right winning in france and italy. >> the big take away is the political fragmentation in the
-- fragmentation. but the pro european majority is holding in the european parliament. there has been a shuffle vote. the social democrats did particularly bad. the christian democrats of angela merkel also lost seats, but the greens and liberals did gain some. so that balance of power has changed. when it comes to the populists, we concern was worry -- could see a search. but that did not fully materialize. nejra: the populist attack falling short, exceptions in france and italy, but also the u.k. was an exception, and brexit was a big part of the story. maria: the times are leading with voters -- this is the take away from this story. the british main parties really lost their share of the voters here. we sell those votes go to the brexit party and the liberal
democrats. the next big question is what does this mean for who will succeed theresa may? it will likely galvanized hardline brexiteers, like boris johnson. viviana: president trump saying the u.s. isn't ready to make a deal with china on trade, although he claims beijing is, and he has repeated his threat to further increase tariffs on chinese imports. >> they are ready to make a deal paid we are not ready to make a deal. we are taking in billions of dollars in tariffs, and that number could go up substantially, easily. viviana: the president not only speaking about china but also about north korea's recent missile launch. it seems those two issues may have overshadowed the u.s.-japan relationship. >> yeah, which is a little odd given it was a state visit. he did come and pay his or specs to the japanese emperor, the new wine, but really shinzo abe and donald trump talked extensively about that relationship being the cornerstone of stability. while issue of china and north korea, those two issues really dominated the press conference yesterday afternoon. north korea, he said i'm happy with the way it is going.
no hurry. viviana: a key slice of the yield curve falling deeper into inversion. the gap between three years and 10 years dipped into a -9.2 basis points, the most negative since march of this closely watched segment inverted for the first time since 2007. >> i think today is really more a refraction of haven demand. i do not think it is any surprise we are seeing this deepening inversion after trump himself said the u.s. is not ready to make a deal with china. that is really driving investors into the 10 year treasury, which is the section of the curve moving today. viviana: china could be gearing up to use its dominance of rare earths in a trade war with the u.s.. that is according to commentary in china, including from the state planning agency. >> we had the and official saying last night that china isn't going to let the u.s. use
the products it makes from its rare earths to contain china. and we had commentaries today in the people's daily and the global times echoing that same line. no doubt about the fact that china sending the signal that it is ready and willing to use its rare earths as a tool in the trade war. obviously, that would be a nuclear option, just like what the u.s. has done with huawei. >> chinese dominance in the rare earths market could be devastating if beijing pushes forward with threats to use the metals in the trade war. the united states gets 80% of its rare earths supply from china, which is used in everything from cars to dishwashers. how much does this hurt the u.s. on the foot side and on china as well? >> the big impact will be on the u.s. as you say, the u.s. relies on china for 80% of its rare earths supplies. so if that is suddenly cut off,
there are not a lot of options for the u.s. they have only one rare earth mine. they cannot make enough domestically to meet the demand. in terms of the impact on china, probably more limited. china consumes most of the rare earths it produces domestically, and we would also probably see a big spike in rare earth prices, which will help domestic producers, so definitely the big hit would be on the u.s. >> what about the u.s. sparing china from the tag "fx manipulator?" that would have been a very demonstrable ratcheting back against china. do you take heart from that? >> it is certainly a sign that talks are still on the table, or both sides don't want to escalate things too much. there is no real reason for the u.s. to do that. china only meets one of the criteria, and the u.s. tends to use this as just a rhetorical thing. there are no real penalties involved if they were, in fact, to do that. but certainly, in the current
environment, that would have been a significant ratcheting up of tensions. right now, everything we are seeing is rhetoric on both sides. we are not seeing actions yet. it all seems to be pointing towards a potential meeting between trump and xi jinping at the g20 in japan next month. >> in bonds, a crucial part of the treasury yield curve has become the most inverted in more than a decade. the gap between three-month and 10-year rates. it dipped to a -12.3 basis points, sounding alarm bells for analysts on the street. >> i think right now people are saying "let me get into safety and let's see how this uncertainty shakes out and then i will adjust my positions accordingly." it is not necessarily a super bad time to be in treasuries, given that you are earning some sort of yield, especially on the short end. but again the ten-year rally has , been dramatic. >> we talk about that three month, 10 year and the inversion -- do you think this
is a reliable signal, not so much of recession, but of a real downturn, sustained downturn, in the economy? >> historically, a reliable signal, but with qe and qt, it has been distorted, so even though it is probably a good signal, it is probably over-emphasized today in terms of how good it is. nejra: the mexican peso has slumped as donald trump vowed to impose a 5% tariff on goods from the nation and said the move would stand until the country stops immigrants from entering the u.s. illegally. mexico's president responded, saying "from the start i expressed that i don't want confrontation," and added that the nation's foreign minister will visit washington tomorrow. but the decision throws the stability of the rebooted nafta pact in focus. >> donald trump says he and the u.s. will post 5% tariffs on everything that comes in from mexico in mid june, and then, if mexico does not do enough to curb illegal immigration into
the united states, trump says that those tariffs are going to ratchet up, step by step by step, until you get to 25% on every thing coming into the united states from mexico by october 1. this is a massive escalation. >> a tit-for-tat america versus to america'stive strength against china, but we are so integrated with mexico that if we got into a tariff battle with mexico, that it would be more costly to the u.s. economy and have a more direct effect on business confidence, which would cause them to retrench, and that could lead to an economic slowdown. david: earlier today, chinese state media announced that the government would establish a list of what it called unreliable entities based on whether they obey market rules, violate contracts, cut off supply for noncommercial regions, and generally damage the interests of chinese economies. what do we know? >> it looks like it is pretty much in response to the u.s.
entity list it in essence, looks as though china will target those companies that have cut off supplies, those u.s. companies that have cut off supplies to chinese firms, and huawei is obvious the example. that is the obvious example. china is getting serious about retaliation and flexing their muscle to show they have some options. >> u.s. stocks tumbling, as you can see there, the dow losing 1.4%, the nasdaq losing 1.5%, the worst performer of the bunch. the first weekly loss since christmas. treasuries rallying, oil tumbling. we are at a 12 week low for the s&p 500 and the nasdaq, and the president is threatening to put tariffs on mexico two weeks after moving tariffs on steel and aluminum. >> to see the 10-year yield hit 2.41% overnight -- we entered may at 2.5%. so treasuries are overbought on a number of different measures right now.
but people still want to own bonds. viviana: still ahead, as we reviewed the week on "bloomberg best," exclusive interviews with morgan stanley ceo james gorman, manny roman and dan ivascyn, and the founder and ceo of huawei, plus the vice president of the ecb says he is worried about a full-fledged trade war. up next, more fallout from the european elections. angela merkel's handpicked successor does not appear to be succeeding. >> what you would have expected a fresh face and a boost to the polls, and that has not happened. viviana: this is bloomberg. ♪
party in greece puts the prime minister's future in doubt. stocks in greece climbing this morning after the prime minister, alexis tsipras, called for a snap election following a crushing defeat in the polls. we have also seen that 10-year yield in greece hit a record low. why are markets are reacting like this? >> basically because, while polls had shown from a few months ago until just before that tsipras was set to lose the election, we did not expect that loss to be as big as it was. the 10% difference with the main opposition party was where the loss was seen at the beginning of the campaign. it gradually was reduced and reduced to around between 3% and 5%, so the loss was bigger than expected, and markets welcome
that because they feel that it will be hard now for tsipras to make up that lost ground in terms of the national election. >> german chancellor angela merkel has concluded her well laid secession plan is unraveling. her designated successor, the person she thought would lead the party after her, seems to have other notions about that. ask plaintiff that what is going -- explain what is going on. >> her successor, annegret kramp-karrenbauer, has been at the top of the party since december, which you would have expected with a fresh face is a boost in the polls. that has not happened. in the european election, the cdu had its worst showing since the war, so things aren't going the way they were supposed to go.
annegret kramp-karrenbauer, akk, as she is known, has committed quite a few gaffes. she picked a fight with some activists before the election, so a lot of people are wondering whether she is up to the job. we are wondering whether angela merkel feels the same way. >> europe's most influential leaders are already tussling over who should be the next european commission president. angela merkel failed to win support for her pick. the picks.er led emmanuel macron pushed for chief brexit negotiator michel barnier, who ran an unofficial campaign, even though they are in the same party. >> it is clear that macron and merkel do not see eye to eye on the issue. they will have to clarify who becomes commission president before they can focus on the european central bank. we could see a delay or a transition that becomes very long. the problem is mario draghi needs to leave the central bank by the end of october.
vonnie: the standoff between e.u. and italy continues. italy set to respond as it faces a multibillion-dollar euro penalty from the commission due to the country's failure to rein in debt. it does seem like we have been here before. why is this time different? >> it is different because the balance of changed inside the coalition. theow have the league, who dominant force in the coalition because of this massive win in the european parliamentary elections, and he is taking a much more brussels-bashing stand, and the latest we have is he is preparing for a collision course with brussels. >> the chinese government's first seizure of a bank in more than two decades is piling pressure on shares of small lenders, which are already trading at rock-bottom valuations.
the bloomberg index of hong kong banks dropped to a four-month low monday after regulators assumed control of the bank, citing serious credit risks. tell us about the fallout from the seizure. >> we see a lot of negative impact, not just in the equity markets. we also see that in the bond market and money market in terms of repo rates. so, as you mentioned, the shares of hong kong listed chinese banks have dropped to a four-month low, and interbank repo rate has hit a one-month high, and smaller banks coco bonds also failed on monday. this is the first time that the chinese government seized a bank since 1998, so the market participants are still very nervous. they do not know what is going to happen next. vonnie: special counsel robert mueller about to make a statement on the russia probe. this is the first ever public statement the special counsel robert mueller has made or will
make on this matter, or any matter related to the probe. >> if we had had confidence that the president clearly did not commit a crime, we would have said so. we did not, however, make a determination as to whether the president did commit a crime. david: president trump was out quickly. when we see in -- insufficient evidence that person is guilty, that person is incident -- innocent. case closed. do you think it is close? >> no. it is almost an incitement from robert mueller to congress that it is in your hands. this is the way the constitution is organized. if there will be the prosecution of a president, does not come from the executive branch, it is up to you. so the case is, by no means, closed. >> 5g, the new communications network has arrived in britain. bt is rolling out the next generation mobile technology today through its ee carrier, with rivals vodafone, o2, and three all set to follow in the
coming months. what does this mean for the controversy over huawei, which, obviously, for a lot of countries, is the preferred 5g equipment maker? >> absolutely. huawei is the elephant in the room when it comes to the 5g rollout. bt relies on huawei for a lot of the radio and antennas needed for 5g. it had to pull huawei's new 5g smartphone from the glitzy launch last week. while they are able to roll it out, there are uncertainties as the government is making up its mind. >> we have china manufacturing pmi dipping further into contraction territory. >> the forecast had been for 49.9, so certainly firmly in contraction. you look at the subindex of new export orders, that fell into further contraction as well, so a combination of weakness in terms of domestic demand, external demand, and trade pressures as well. nonmanufacturing data came in line with what we saw in the
viviana: you are watching "bloomberg best." i am viviana hurtado. this week, bloomberg's china correspondent tom mackenzie sat down for an exclusive interview with huawei ceo and founder ren zhengfei. the company is caught in the crosshairs of the trade war. despite sanctions from president trump, ren zhengfei said
decisively and defiantly that huawei will find a way to survive. ren: the u.s. manages its own companies. the u.s. is not the international police. they can't manage the whole world. the rest of the world decides whether they should work with us based on their business interests and positions. if some companies don't want to work with us, it is like a hole in the airplane. we are working to fix the hole, but the airplane is still able to fly. of the chips we have been using, half are from u.s. companies, and half we produce ourselves. if the u.s. imposes further restrictions on us, we will reduce our purchases from the u.s. and use more of our own chips. if american companies have permission from washington to sell to us, we will continue to buy from them.
--: what exec i've you put what exactly have you put in place in terms of contingencies? ren: we might have contingency plans for the core of the airplane, the engine and fuel tank, but we may not have a plan for the wings. we need to review the situation all over again and fix those problems. you can come back to interview us in two or three years to see if we still exist. if we are gone in two or three years, please remember to bring a flower and put it on our grave. tom: what extent of damage, how much damage do expect to be felt in the consumer division of the business, so smartphones and laptops, which depend on u.s. chips and software? ren: we might miss our expected growth target, but we are still growing.
being able to grow in a tough environment reflects how great we are. tom: you have talked about having a two-year lead in terms of 5g on your competitors. does that need get eroded? ren: definitely. if we slow down, it is because the wing of the airplane has lots of holes. if we fly slowly but others fly fast, of course they can catch up, but we will keep fixing the holes. we will fly fast against once all the holes are fixed. viviana: you can find much more of that exclusive interview with the founder and ceo of huawei at bloomberg.com. and check your local listings for a bloomberg television special, "huawei: connected and contested." it airs throughout the weekend. coming up on "bloomberg best," more compelling conversations. the ecb vice president discusses the bank's latest financial stability report, and morgan stanley ceo, james gorman, speaks exclusively on markets.
♪ back bloomberge best. andan stanley's chairman ceo does not expect a full-blown trade war between the u.s. and china. issays anxiety about trade having a negative effect on markets. with bloombergs tom mackenzie at the morgan stanley china summit in beijing. >> the markets psyche is fragile. i would say the market itself on core fundamentals is fine. is 3.5%.ent who thought this was possible a decade ago? we have muted inflation.
there is plenty of liquidity in the market. the issue is the market's psyche. there is more downside risk than upside risk. more people think the market is heading down and we are potentially heading into a recession which inverted yield curve would suggest. that is not a good thing. that is why you're seeing at any point in time, when these macro stories hit the news, whether it is theresa may announcing her around the road, you are seeing things that are triggering reactions and it is more negative news than positive news. inversion, how concerned are you when you look at that? >> is concerning. it is the leading indicator of recessions over the last 50 years. on the other hand, i saw the former chair, yellen, say it could mean that or it could be
time for the fed directs to cut rates. that surprised me. i think the fed is being decidedly neutral at the moment. which, i personally feel is the prudent thing to do. they don't have a lot of firepower. pimcoa: on wednesday, published a new global economic outlook. it predicts lackluster growth and a likely recession within the next 3-5 years. jonathan ferro spent the day at the company's headquarters in newport beach, california. he spoke exclusively with several top executives. are seeing the end of an era. hadlast 5-10 years, we have massive outperformance of financial assets. we think that era is coming to an end and we think we are entering an age of disruption. >> just going over the last 5-10
years, you underlined this in the piece, it would be a mistake to extrapolate forward the non-micro environment and push that out over the next re-five years. why is that such a big mistake? >> it seems like the market has become used to central banks being powerful. one of the things we talked about is that that era is coming to an end. the u.s. is the only central bank was able to normalize policy rates. there is no monetary firepower left. a broad assumption that we could engineer -- the federal reserve could engineer a soft landing. is that starting to unravel? >> i think the downside risks to growth have increased over the last couple of weeks. the main downside risk is, with respect to trade, we have seen escalation in tensions between the u.s. and china again.
the economic impact of the tariffs, the direct impact is estimated to be relatively small. we think it is 3/10 of a percentage point. the more important point is it is happening during a time where global growth and u.s. growth was on a decelerating trend. doeslowing growth in china spill over into the u.s.. in that kind of background, when you create uncertainty, it creates a broader environment where you could see a bigger deceleration. >> what we do think is that there are opportunities because of what banks used to do that they don't do anymore. from lending against real estate to buying securities tohousing two being able opportunistically do direct transactiono credit
, which if managed properly and constructed the right way should give us business benefit. >> they are big returns. it is an incredibly competitive environment. is there an area where it might be better for us? --that is in terms of direct corporate issuance outside the space. we look at commercial real estate, residential real estate, private or public. we continue to see considerable opportunity. that is a sector that despite the global financial crisis being 11 years past, where we see frictions in markets and opportunities for investors on the private side as well is the public side. you can check out many more
interviews from jonathan ferro's day at pimco on bloomberg.com. check your local listings for a bloomberg television special featuring his complete conversation with manny roman and dan iversen. the european central bank presented its financial stability reports. zone's risks to the euro private and public finances has risen. vicesat down with ecb president and asked him about 's key findings. there are downside risks. mainly related to situations outside the borders of the area. that is something we have to take into consideration. >> when you watch what is
happening between the u.s. and china, are you concerned about the sure to come trade war between the u.s. and europe? isi think now, the focus immunization between china and the u.s.. risks are thein trade tension. what we have seen are some announcements. the real risk would be an escalation toward full-fledged trade war. over the past few days and weeks, we are pretty much there? >> i hope that will not be the case. i hope that at the end of the day, common sense will prevail. if that is not the case, there would be risk that we have for
the european economy. staying with central banks, donald trump has two open seats to fill on the federal reserve board. a possible nominee, trump economic advisor judy shelton. she joined david westin on bloombergs balance of power and discussed the role in maintaining a balanced playing field during the trade dispute with china. with itsis able, state-controlled apparatus, to bring everything to bear. the can intervene in currency markets daily. they do so as a matter of policy. they can engage in fiscal stimulus at the drop of a hat. i think it is tempting. the united states wants to fight fire with fire but we do not do it that way here. we believe in the private sector. i would not what the fed to be a burden and to do the wrong thing
at this time and undermine some of the good growth prospects that we have ahead of us. >> did it do the wrong thing in december when it raised rates? >> i think, by its own admission, we have seen almost a complete turnaround. i think the fed itself went from being quite inclined to raise as quickly as possible to now rethinking and sitting tight and even hinting that it could go the other way. humility this newfound on the part of the fed of watchful waiting. i think it is an admission that central bankers are not always omniscient in knowing exactly what -- where interest rates should be. i think it would be healthier if we had a more organically determined interest rate that reflected market thinking. ♪
>> this is bloomberg best. let's resume our roundup of the wii's top business stories with a focus on company news. european carmakers fiat and renault announced plans for a cross-border megamerger, delivering the latest jolt to the global auto industry. formally proposed a merger with renault that would make the world's biggest -- third biggest carmaker. how well do they fit together? >> there is a range of places they might overlap. they are making a lot of different types of cars, including competing brands. the key here is that is where they have a good fit. certainly in electric cars. good technology
and very good selling models and fiat, not so much. that would be good for fiat in terms of acquiring electric car technology. the same goes for nissan. they have great electric car technology. those are good areas. fiat itself claims there will be 5 billion euro in savings from this merger. inse will primarily be product development and those kinds of things. it does look like there are good reasons to make this fit. >> the finance minister was on the rate of -- radio and he thinks this is a great deal. he thinks comedies have to bulk up to deal with the challenges of the future. pretty much a green light from the french government. told bloomberg
the alibaba group is considering raising $20 billion for a second listing in hong kong. it would bring china's largest company to -- closer to investments in its home country. they try to strike a deal before the 2014 ipo so why are they revisiting it now? >> there was lobbying in hong kong, trying to get the partnership structure done in hong kong. at the time, they were not quite ready but since then, we have seen the hong kong stock exchange relax its rules so that they have done a listing in hong kong. with the trade war going on, there are threats that the u.s. may shut off china in the capitalist market. there must be some concern in alibaba that they should bring it to the home investors which know their product and platform
best. >> if they do come, it is not a surprise to us because i have said when you travel far, you come home. every body does that. that does not mean you give up on your new home. i'm sure they will come back and keep whatever they are doing in new york and other places and they will be coming back to asia. industriese payment third megamerger of the year. the deal is valued at $21.5 billion. why now? why did it take until now? >> a few things. the pace of innovation and payments has accelerated. for example, in new york, contactless cards coming to the subways. if you look across parts of china, the necessity has more skill to make the investments to
compete. to further fund innovation is driving a lot of transactional activity you are seeing. small suppliers and longtime vendors on amazon.com are holding their breath for what could be a purge that would favor major brands like procter & gamble. they are expected to reduce amazon's overhead and increase revenue. what is behind the purge, why are they considering such a thing? >> e-commerce business has two parts. they have a retail side where it wholesale and resells them at a markup at a place like walmart. they have this marketplace similar to ebay where there is a website as a matchmaker between the seller on one hand and the buyer on the other. what is happening is amazon is trying to shift more of its to thisvendors
marketplace model where suppliers will be selling directly to amazon shoppers one shopper at a time. unveiled its first updated ipod touch. way toa new chip and a tap into apples services. why is apple revamping a product that is 20 years old? >> the last time the ipod touch was updated in 2015. so, four years ago. conference is next week where they develop new software. in order to get the newest features, you need the newest hardware to make it work. are of these features processor intensive and require a lot of speed. because it has not been updated in four years, it needed a new chip to take advantage of services like minted reality. -- augmented reality.
they did not go too far. they went to a faster chip. there is nothing else new going on here. a big week in european football. according to the valuation report, realogy has taken -- reality madrid has overtaken manchester united. it has allowed the spanish club to grow their venue. enterprise at the and projected revenue streams that the clubs generate. madrid,ioned with real they have managed to move ahead of manchester united because they have not performed so well in the competition. a lot of that has come from champions league performance. we have seen u.k. teams hit by a decline given that the leak is based in dollars. we have seen at barcelona moving
down because of player wages. >> retail stocks are getting taken to the cleaners today. , abercrombie and itch and michael course falling after weaker than expected earnings. do these just each have their own story? >> each have their own story. i do think this is consistent when we look across retail earnings season more broadly. we see trouble in apparel. we did not see that same trouble at walmart and target. best buy and home depot were fine. bearel was a tough place to in the quarter and we saw that show up again today. >> the u.s. justice department is demanding that t-mobile and sprint lay the groundwork for a new wireless carrier, a fourth with its own network.
merging t-mobile and sprint would take away but leaving sprint on its own, it is not clear it would survive. how would any force survive? >> what the justice department is looking is trying to preserve some form of competition. they are saying maybe you could then out this brand and give it its own network. we are not sure how the structure would work. what they want is to preserve another brand in the markets. >> amazon is interested in buying prepaid phone service boost from t-mobile. it would be a wholesale deal that would give amazon access to t-mobile's wireless network for at least six years. if t-mobile and sprint are allowed to combine, they need to get rid of that. is this a perfect solution? >> everybody and their mom is
interested in these assets. it is because of the wholesale agreement. would sprint and t-mobile really want to sell this to amazon? or, would they prefer to sell it to someone like charter or comment -- comcast. who would be the better competitor? from the doj's perspective, they want this to go to somebody that will create a genuine fourth competitor in the market. >> uber shares are getting a boost after its fourth warning -- earnings report. they reported first-quarter $1es be estimates but lost billion, among the largest loss of any company. >> they performed better than expected on the top line. they gave us unaudited results and the booking look strong. the platform margins are going
maybe they will become your favorites. there is a function you will find useful. it will lead you to our quick takes. that is where you can get important context and fast insight into timely topics. there is a quick take from this week. going from a to b is so easy that it has some urban dwellers bother white owning a car when you can get where you want at the price of a button -- press of a button. travelers say goodbye to their own cars and sign up instead for transportation on demand. imagine a commuting plan that charges by the mile or through a monthly fee like netflix. ownership, his ace prospect -- a prospect they are getting ready for. it will not happen right away. to subscription
transportation requires two things to fall into place. the first is well underway. the explosion of ride-hailing apps like lyft. quitecond part is not there yet. that is driverless cars. removing the human from behind the wheel. that will make mobility as a service cheap but it will not not makend it will financial sense to own a car anymore. asobo sees projected to cost little as $.70 per mile. thinks he can lower that to $.18 a mile. that will turbocharge demand for a service that is destined to become a 10 trillion dollar business according to ford motor company. that is why tech giants like google and apple are developing
their own self driving systems leadingon the world's automakers, including general motors and toyota. eventually, a single smartphone app could connect us to options like robotech sees, self-driving shuttles. two thirds of the global population is projected to live there by mid century. a day inhave to spend the country to cap shake limbs of the 20th -- capture the glimpse of the 20th century show pony known as a private car. >> that was one of the many quick takes you can find on the bloomberg. you can find them at bloomberg.com along with all of the latest business news and analysis 24 hours a day. that will be all this week for bloomberg best. tanks for watching. thanks foromberg --