tv Bloomberg Best Bloomberg March 17, 2019 4:00am-5:00am EDT
♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. the u.k. parliament votes and votes and votes on brexit, answering questions about -- answering some questions, but much is still in doubt. >> we are getting the whole story. >> appear to have taken over the asylum. >> global crisis around the boeing. the fallout from a deadly crash spreads far and wide. >> brand-new jet crashing after takeoff. >> there is definitely pressure building up on the f.a.a. kailey: in a wild week for market and politics, exclusive perspective from j.d. dimon who
dimon, who has a message from russia. >> trade issues are real. they need to be resolved. kailey: the shale revolution shakes up the global market. the implications. >> u.s. production is dominating. >> i think we have a very workable relationship with the membership of opec. >> i think opec has a role to play. >> and is all still ahead on "bloomberg best." ♪ kailey: hello and welcome. this is "bloomberg best," your weekly review of the most news,ant business analysis and interviews from around the world. let's start with a day by day look at the top headlines. investors began hoping the u.s. and china could be on the verge of a trade deal but signals from the two governments were mixed.
tom: officials in washington and beijing are indicating progress is being made in trade talks, although, china continues to push back at some u.s. demands. shouwen: any enforcement mechanism must be two way, fair and equal. you asked about the outlook of trade talks between china and the u.s. i feel hopeful. john: underlined this two-way fairness issue, it is a very domestic audience-focused event, the npc is. china needs to sell the deal looked really. they want a deal but cannot be seen to fold to u.s. pressure. that wouldn't go down well. in his briefing he said the agreement on the deal was a build off of what they agreed to at the g20, that they would mutually agree not to devalue competitively. anything china does, they want to make sure the u.s. said they
agreed to the same thing. >> there's already a framework of understanding on how we manage the exchange rate. we will not go further than that existing framework of understanding. so we are still optimistic that china and the u.s. will find a di, a way of living with each other. but what we are hearing from the comments on the exchange rate, there are still some distance separating the two. >> theresa may has one changes to her brexit bell after a chaotic day in london. the prime minister had talks in strasbourg with au commission leaderh au jean-claude juncker. around midnight the leaders announced the new deal. pm may: the backstop cannot be indefinite, permanent. pres. juncker: it is an insurance policy, nothing more, nothing less. rosalind: she got clarity on the question of a continued border, or avoiding a border
between the u.k. in ireland. it may be enough to bring the eurosceptics over. because what they fear more than anything is being bound indefinitely into the role of the european union on trade. the question is how many of those skeptics can she bring over. >> the attorney general of the u.k. said the legal risk of being trapped in the backstop remains unchanged. the lawyers have rejected the deal. geoffrey: in my letter of the 13th of november remains unchanged. has gone a double blow, first from the attorney general, and two, from lawyers that make up the hardliners for brexit. it is unlikely she will get a deal. mr. speaker: the ayes to the 342, the nose to the left, 341. so they have it.
i am passionate about delivering the result, but are good believe the best way to do that is in an orderly way with ideal. guy: a lot of mp's will have to decide what they want but what they will really accept. i would love to have a second referendum but i will accept a new deal, or i would like to have a deal that not the referendum. >> voting going on in westminster. key vote is whether parliament votes on order to do the european union without a deal. would take andment no-deal brexit option off the table permanently. it was basically a concern in the house of that the government motion was not clear enough. the government is whipping its mps against this, and we would find ourselves in a situation where a no-deal brexit becomes a
possibility. >> the ayes to right, 312. left, 308.o the [cheers and applause] mr. speaker: order. guy: theresa may is defeated a third time. the government is defeated, the u.k. parliament votes to reject a no-deal brexit in the long-term, permanently. guy: this is a major shock. nobody expected this to go through. to have this happen is obviously a significant evolution to the story. pm may: the long remains the long remainsy: the that the u.k. will leave the e.u. unless, unless something else is agreed. the onus is now on every one of us in this house to find out what that is. danny: the lunatics appear to have taken over the asylum. the u.k. does not appear to have a functioning government.
and i can't answer your question about what is coming. i have no idea. but theresa may not only has no idea what is coming but no idea what is coming tomorrow. >> the u.k. parliament preparing to vote on theresa may's motion, her own motion, it was not amended. lost, corbyn lost, theresa may lost. we have no amendment to the overall motion. it goes in and stands between tories backing her deal next week with a short, technical extension to get everything sealed off, or a longer delay which could mean a soft brexit, or a second referendum. theresae people in may's party who don't want to see either of those things. now we are headed into voting on the overall motion. we are watching to see whether they give it is backing. [indiscernible] >> here we have the speaker of the house announcing that for
once, the u.k. government has won their proposal, a small win for prime minister may. opposition leader, jeremy corbyn, once again reiterating his call for a second referendum. anna: there are two strands to keep an eye on, one is for theresa may's deal coming back vote next week, and members of the conservative party meeting to talk about another option going forward, which could lead as to another unknown territory and a much longer delay. would the european commission actually given extension, and what with the terms be? week, i willxt propose a longer extension. he didn't clarify whether it was one year or two years. at this point you could argue it is really two traces. the you force a no-deal brexit or do you accept this extension, which the prime minister said
she just wants a short, technical one? i think it is likely that we will see that e.u. agree to it. mostly because they don't want to be blamed at this point for a no-deal brexit. >> the chinese government has announced measures to counter slowing growth and encourage more foreign investment. annual national people's congress said the new legislation would put companies registered in china on a level playing field. tom: this is a real focus for foreign investors and carney executives looking at the events evolving over the last 10 days. they fast track to this foreign investment law, that will allow foreign businesses to be viewed by governments and others as on equal footing with chinese companies. there will be an appeals system, for foreign businesses if they get denied a contract, for example. we heard from the premier and he said the focus and priority for officials was fiscal support the private sector.
he talked about the tax cuts outlined 10 days ago, worth about $300 billion u.s. he also talked about the fact that they want to focus on these targeted measures, he talked about additional cuts to the reserve ratios for the banks. we have seen five of those since early 2018. he said that could be another option as well. caroline: what has been set up to be a quiet week, one of the quietest this year, all suddenly, volume spiked. scarlet: yes, we have consumer staples, technology leading the way higher, the best weekly gain for the s&p since november. caroline: yeah, this year. kaylee: still ahead as we review the week on "bloomberg best," an exclusive conversation with a conversationd on brexit with former u.k. prime minister, tony blair. and sparking debate over safety in the skies. the grim saga occupies a great deal of airspace. >> the future of the company rests on this aircraft, since no
kailey: this is "bloomberg best." the second crash of a boeing 737 max jet resulted in more than 150 deaths and reaction by regulators, carriers and investors remained a top headline throughout the week. >> china has grounded its fleet of 737 max 8 jets after a model operated by ethiopian airlines crashed. chris: a brand-new jet crashing soon after takeoff, circumstances unexplained. we had china ground its weight -- fleet of 737 maxes. other countries saying they
might do similar but the airlines so far mostly saying they have faith. the future of the company rests on this aircraft. it is no wonder shareholders are getting queasy. >> boeing responsible for a fall down on the points dow yesterday. the list of countries grounding the 737 max is getting longer. christopher: we had carriers in europe, north america, saying that they were taking boeing's advice and continuing to fly the plane. today with singapore and australia saying the 737 max 8 is no longer welcome, that is a big deal. these are two very respected aviation authorities. that could be a game changer. shery: the e.u. regulator also suspended all 737 max flights. are we expecting more countries to follow suit?
why isn't the u.s. moving? brooke: at this point we have seen a significant number of major countries come out and call for grounding. i do think that puts a lot of pressure on the faa. ony are out there almost their own holding up this begin. for boeing, maybe to get in front of it and say we are being transparent, we don't know what happened, we will ground these planes while we look into it. benjamin: boeing has taken the dow jones average down for two days as countries around the world ground the 737 max 8 except for the united states. ,>> with canada and the european safety agency taking these steps, followed by many countries, you have seen the map across the world to ground these planes. there is pressure building up on the faa. >> regulators have changed course and now grounding the 737 max 8 and max 9. the u.s. with the last domino to -- was the last major domino to
fall after countries across asia, europe, the middle east and others ordered a ban after the disaster. david: should we thank donald trump? now that we are talking about the faa. stephen: donald trump made the unusual step of announcing the faa would be grounding the max 8 and max 9. what the faa said they have new , evidence, satellite flight tracking data combined with newly discovered evidence from the ethiopian air crash suggesting parallels to the lion air crash. romaine: max jets, potentially being grounded through april, depending on software fix. -- pending a software fix. that is according to house lawmakers who were briefed by faa officials. >> is that an accurate timeline? rep. graves: we don't really know. hopefully it will be sooner than that. shery: in the last few hours the company said it was pausing deliveries of all 737 max aircraft.
>> on top of the 737 maxes for deliveries, boeing says they will keep building them but they will be watching if there is any of demand -- any hint of demand. >> boeing has reaffirmed by email the now grounded 737 max -- timing of a software update for the now grounded 737 max jet. they said the software update will be deployed in the coming weeks. brooke: the question is whether or not the faa requires additional steps. to know that we have to have the outcome of the investigation into the ethiopian airlines class -- crash. regardless you want to see the faa requiring bowing to go hoops.ng go through some they have their reputation on the line. kailey: let's continue our global tour of the business stories in washington where the white house sent congress an initial 2020 budget proposal. vonnie: president donald trump releasing his request with at least $8.6 billion in funding
for the construction of a wall on the border. this is the so-called skinny budget, the opening salvo, and it is a request. what happens and what is in it? >> skinny budget but it landed with a thud. many democratic staffers say it is dead on arrival. a 5% discretionary spending cut $8.6 billion for the wall on and noexican border balanced budget for 15 years. they also are arguing and banking on a 3% growth model. >> u.s. retail sales stabilize in indicating january, consumers can help support economic growth after a weak end to last year. does it show the unexpectedly weak december sales report was an anomaly? >> it may be. it's not getting everything back
because the december figures were revised even farther down. december was a much worse month than we even thought. so if you accept the numbers are accurate there will be questions , raised about that. they could have been a one-off. we will have to wait and see. we saw some good news in the numbers. eight of 13 categories went up. we saw the biggest jumper building material since late 2017. we have seen a comeback in home sales. best rise for food and beverage stores. things look a little bit better. shery: u.s. core inflation pulling back amid falling prices for auto and prescription drug prices. does the risk we could see faster inflation of the fed mean they're forced to hike rates sooner than expected diminished now? >> it is diminishing by the day with each report we are getting . the price numbers, they are just the fed invision six
months ago. the idea of the fed moving to shifting at the end of last year is paying off now because now we are seeing slower retail sales, slower employment and slower -- lower inflation data. rishaad: let's get to the data because it is largely benign continuing slowdowns indicated. line withes are in the forecast. what are the key takeaways? >> i think it comes down to a half glass empty or full kind of person. let's go through some of the more negative details. industrial output as you say coming in at 5.3%. as you point out that is the worst since 2009. sales,s of the retail not a pretty number. any other country, this would be decent. 8.2%. but it is the weakest number for china since 2012. unemployment rising to 5.3%, the highest in two years.
on the upside fixed asset , investment it did increase as expected and property investment jumped 11.4%. david: wells fargo ceo tim sloan is on the hot seat today before maxine waters and the house financial services committee. there is a drama unfolding on capitol hill. does this matter? isaac: we take the bipartisan bashing he is getting and his -- and couple it with his relatively meandering answers there is a clear signal the , wells fargo issue is going to stay on the congressional front burner for some time. my view is this hearing and the headlines coming out of it make it difficult for the federal reserve to lift its asset growth cap on wells fargo. with each successive scandal and days like today where we see both sides of the aisle beating up on wells fargo, the timeline for lifting the asset growth cap is pushed out further.
haidi: president trump should -- says he should have news on a china deal in three to four weeks and he said people have been talking about it for a long time. what is going on behind the scenes driving this timeline? it's interesting president trump said either way we will have news in three or four weeks. >> he did. the original timeline of having a meeting with president xi at the end of march was always optimistic, given the complexity of the issues involved. going forward we are looking toward able, some sort of -- april, looking for some sort of announcement in the coming weeks of a meeting. ♪
with an exclusive conversation about global markets with chairman and ceo jamie dimon. she asked what will survive as a -- if london will survive as a financial center after brexit. >> i think under a soft brexit or hard brexit, london's financial status will finish overtime because countries will demand certain things be done risk, legal,logy, credit, compliance, i think it changes the forecast we expect for london. hopefully it will still be a financial center. it will not be what it is today. francine: how should we look at china and what kind of business in china? >> they need to resolve trade issues, they need to resolve across all issues. we expect so. we think both parties wanted but they are complex. they talk about having hundreds of pages of memorandums. if it doesn't get resolved, it
would be something to be worried about. china will be a fully developed nation in 30 years, its economy will be bigger than the united states. they are very smart but don't have enough food, water and energy, huge corruption, don't have an open, transparent -- the markets you have here in terms of research, rule of law. you don't have all of that there. it is not a criticism. they have a way to go. they will grow, but there will be times in the future where there will be road bumps. francine: what does it mean? as an investor in china, you slow down until you see the lay of the land? jamie: we are all in. we are not slowing down. people are slowing down because of trade, not what i said. when they do have problems they , might have a future bounce in the financial system. that'll come home to roost one day. right now they can handle it. china can micromanage, tell people, companies what they need to do, who they need to higher.
-- hire, but that won't always be true. one day this could cause a disruption. francine: a financial crisis? >> it could be. in america we had a financial crisis and markets panicked. they can handle it today. five, seven years, they have to be careful. the bigger markets get, the more -- the less they can control that they would want to control from happening. i'm not going to say it will happen. but china growing at 6%, 7%, at -- and the second they don't i think the world will be more scared than they should be. kailey: that was the j.p. morgan chase chairman and ceo jamie dimon speaking with francine. coming up, more compelling conversations. tony blair on brexit and more on -- and bob dudley on opec. and investors tell bloomberg where they are going out growth -- now that growth is slowing. bruce: the four largest economies in europe slowing and slipping towards recession. josh: it is time to be cautious.
kailey: this is "bloomberg best." it has been another week of high drama on brexit with experts in business and politics joining us to talk what lies ahead for the eu. let's revisit our most interesting interviews, starting with our exclusive conversation with former prime minister tony blair. mr. blair: if britain is prepared to think again, then europe should think again. the issues that gave rise to you brexit are europe issues, not british issues. immigration, fear of communities left behind, casualties of globalization, a feeling that europe was integrating in a way that people lost control of.
similar themes all over the world at the moment. and the smart thing would be for britain to think again, and europe also to think again and put forward a package both on immigration and on the future of europe that meets those concerns. >> are they prepared to think again? what is their game plan? will they make more concessions? mr. blair: i do not think they will make any more concessions on the essential nature of the deal. what britain has been trying to say to the europeans is we want to be in your single market in terms of access, but we don't want to abide by the rules, which is what people describe as the cake and eat it position. that is never going to work. >> what do you think of the actual chances of this deal getting through the u.k. parliament next week? >> i think that will only become clear if prime minister may decides, when she decides, to hold a vote.
from our point of view, what is really important to us in the european union is that if we do get into a decision regarding a further extension period, that we are all clear what that extension period is for, and of the availability of that extension period doesn't in any way heighten the economic risk we are looking to avoid. >> has the irish government spoken to the dup about a way forward? >> that's a matter for the british government. i know we are talking intensively with the dup with the main negotiation body on behalf of irish interests, michel barnier and the european commission. this is both an irish in the himthis is both an irish in the european challenge. >> do you think relations are improving? you must be briefed on this. you are at the end of the day the collateral damage of what's going on. >> precisely what we are trying to avoid is becoming collateral damage in any of this, and of course we are aware of the levels of contact that are going on with the dup and in the
engagement that has taken place from the british government. from our perspective, we continue to abide by the principles of respect, for understanding the needs and concerns of unionism, but we strongly believe the backstop is only an insurance policy, and having that insurance policy is in the best interest of everyone on our island. kailey: slowing growth and political turbulence in europe and around the world is registering with wall street. this week, leading investors told bloomberg how they are adjusting their portfolios to meet these conditions. let's start with bruce richard, who spoke exclusively with vonnie quinn. bruce: you are talking about the four largest economies in europe slowing and slipping toward recession. the ecb, instead of normalizing rates, the ecb just recently set up keeping rates low for a very long time, which means they are pushing. rates are negative, treasuries are negative, and of the central
bank actions are going to have no impact, zero impact, as it relates to gdp and economic expansion, because their tools have been spent. vonnie: but you had several investments in europe based on what the ecb might do. are you holding onto those? bruce: we hold the nonperforming loans we bought from big european banks. we have taken over property, and the property is performing well. because, what you have to remember is earning cash flows are pretty high, funding is the lowest cost in the world. and so we are earning a really nice spread, and as cap rates are coming down a little bit, as interest rates are moving lower, we are able to exit these assets at nice profits. it has worked out really well. we have made our clients a lot of money already and we will continue to make a lot of money despite the problems we've seen in europe.
>> we saw the fragility of the market in december, and we think there are a lot of warnings and the overall macro economy that are more than just noise. you are seeing fundamental weakening in china, fundamental weakening in europe. you have really seen the limits of monetary and fiscal policy, in its ability to extend out along boom period. rates are low, everywhere, it is hard to see rates being any lower than they are today. mario draghi, when he spoke about interest rates and pushing off any reversal of quantitative easing, you could read that either as a bullish signal, great, rates will stay low, or as a sign of fear about the slowdown in europe. and we are part of a global economy. i think it is time to be cautious. >> how do you express that? josh: first of all, by lowering total exposures.
by having shorter duration, event oriented situations where they are much less market dependent. and by adding hedges, like what we talked about on cbx. generally constructing a portfolio that is going to be less correlated to things like duration, interest rates, overall beta, overall market exposure, etc. i watched the daily fluctuation of our pricing versus, for example, almost any market index, any type of beta, and we have really consciously dropped that dramatically. >> we have some u.k. banks that you are not happy with now. is it a profitability issue? is it a revenue issue? is it a management issue? or is it just they can't compete? >> look, the european banks generally, i think, have impaired this model because they are still 1.5 to 2 two times more leveraged in less profitable. i think over the long-term, if
you want to make a bet, you could buy jpmorgan and short european banks. my bet on the u.k. banks is a brexit play. >> can you explain why sterling went up with the chaos in the meltdown we saw yesterday? are you surprised by the advancement of the currency, given what we've seen? steve: i am a bit surprised in the sense that none of the outcomes here are great for the u.k. if you get a long delay, who was going to invest in the u.k. if there is a 20 month delay over brexit? no company i know will put money into the u.k. until they have certainty on what the end result will be. and since no one can seem to coalesce around any solution whatsoever in the u.k., i think look, i think it's negative for
the u.k. one way or another. it's just a matter of degree. kailey: lots of news this week on oil. the international energy agency predicted that opec would be squeezed by the u.s. shale producers until the middle of the next decade. meanwhile, shale industry executive and opec officials met this week at the annual energy conference. alix steel spoke with several key players about the shifting balance of power in energy production. >> our numbers show in the next five years about 70% of the global oil production growth comes from the united states. the big number, it means that u.s. production will dominate the game. it is very good, but there is a second part of the story, which is the following. the u.s. is not the only major producer, but also becoming a major energy exporter, not only in terms of oil, but also for natural gas. in terms of oil, our numbers show that in three years time,
the united states will overtake russia, and in five years time, will catch up to saudi arabia. in terms of natural gas, in the next five years, 25%, lng exports will come from the u.s. only. we will see the u.s. emerging as a major sector in terms of energy trade. alix: so what role then does opec and saudi arabia play over the next five years? >> i think they have to -- first of all, my very humble advice would be to understand the nuances of the oil market. number two, they are, especially in saudi arabia, still a very important country and will be for many years to come, especially feeding the growth in asia. but at the same time, in my view, in the history of oil, this is the highest time for those whose economies are almost exclusively relying on oil need
to be broadened. alix: what is your relationship with opec now versus a year ago? what's the conversation like with them? sec. perry: i think we have a very workable relationship with the membership of opec. i try not to get confused about the political side versus the production side of the oil and gas industry, and we may not always have the same interest in mind, but i look at it, particularly with saudi arabia, that we have a lot of interest, whether it's the partnership that we have with them dealing with iran, whether it's the businesses, the american businesses, that are in riyadh. i try not to get too
confused about the politics side of what goes on, the oil and gas industry, and continuing to make sure that we have a very stable gas market. i think that is the most important, as we talk about pricing, to have a stable market so that the global economy understands that we are going to have the energy that we need, we are going to have production that allows for the stability in the oil and gas market. bob: my own view, if opec wasn't around to moderate prices high or low and keep them within the fairway that is good for producer and consumer countries, we could go back to the days of high oil price spikes and then very low prices and crashes.
so i actually think opec has an important role to play. alix: i thought that shale was supposed to fix that. bob: what shale will do is him increase production. actually, opec is reducing production, and it helps the shale remain economic. if it weren't around and suddenly the opec countries started to produce, you're in for another price and then you would see the boom and bust. i think opec moderates the highs and lows, and it really has helped the shale industry. kailey: you are watching "bloomberg best." ♪
joe: operation: varsity blues. the $25 million plot to get your kid into college. today, u.s. officials charging him dozens of parents, university coaches, and him admissions counselors in a sweeping criminal conspiracy that helped kids get into the top schools in the country. >> there was bribery, there was people cheating, there was the creation of fake sports profiles to make it seem like these kids were on sports teams. admissions directors typically have spots for athletes and it was just a whole conspiracy that involved many intricate networks of people changing the tests, arranging for kids to go to certain test sites because they had proctors, and it was a very coordinated effort like we've never seen anything like this before. >> goldcorp shares getting a boost today after the company dropped its takeover bid of newmont when it announced a new joint venture instead. first they were trading insults,
now they will work together. >> definitely things seem to be thawing. one of the questions everybody is asking right now is was this the plan all along. certainly, you can track the domino effect since the first megamerger was announced. both of these companies have tried in the past and failed to make progress in terms of closer cooperation. mark bristow said the situation was very static and the win i -- when i spoke to him this morning he said, when newmont came along and made its own play for goldcorp it really unlocked things and allowed barrick to come in and make its own play, arguing that it was a better deal, and then in turn newmont countered with this jv, which is where they settled. >> nvidia agrees to buy mellanox to help push into the growing market for data center components. and it was good news all around as shares from both companies got a significant boost.
this is nvidia's biggest purchase ever. why is it choosing to make this transformative deal now? what's the logic? >> what they are saying is that the data centers of the future are factories full of computers used by amazon, used by google, and will be really designed in a different way in the future. and really all of the computers that are crammed into the place, they will all have to be linked together and architected. that is where the technology comes in. they make the interfaces that channel and a speed in the data between all those components and make everything work together. >> tesla reversing its decision to close all retail stores, instead adding 3% to the price of the vehicles. >> tesla announced they were closing most of their stores, not all, and switching to online sales just on february 28. six days later they announced late on a sunday that they are reevaluating, that they will not close as many stores as
originally announced, but because they are keeping stores open they have to raise prices again. this is sort of a complete u-turn after what was already a u-turn, and the sales and customers have a lot of questions. >> ceo elon musk told a new york judge that a pair of tweets he sent about the company last month were not improper. the sec wants him held in contempt for violating restrictions on his social media post. what is musk saying about his defense? >> he is kind of bringing two tracks to his self-defense. the first one has caught the most attention. he is taking a kind of how dare you attack on this, saying it is my constitutional right to say what i like about my company. and in these circumstances. the second track is a little more conventional, where he is saying i haven't actually violated these provisions. clearly he is trying to hit on both sides, on offense and defense.
>> deutsche bank and commerzbank not faring well amidst the downturn, sailing a u-turn turnaround, the two moving closer to a merger. so many people have heard of this so many times. why is now the time when this happened? >> amid a lot of pressure from investors, the chairman, the government, deutsche bank's management is now holding exploratory, informal discussions to see what the deal would look like. i think the management would have preferred to have given its own plan more time, in particular to show that if they were to integrate in germany, and i think with interest rates now staying lower for longer and the trading businesses remaining under pressure, they don't want to wait around and see if deutsche bank is getting into more trouble to hash out a merger. and at that time seems to be now. >> china's biggest insurer is planning to buy back as much as $1.5 billion of shares after a four-year profit estimates.
>> earnings were up 19%, close to $16.8 billion, u.s. dollars. you our customer numbers grew by 11% last year to 184 million customers. and at the same time, our profits per customer grew by a very strong 18%. >> what is your outlook for the rest of the year when it comes to premiums, not to mention new business value growth? lee: i think that we are encouraged by the improving prospects of the china insurance market. and we think this year will be a better year than last year. >> adidas says slowing sales growth in the coming year as it looks for new drivers and momentum. global revenue growth in 2018 was driven by training and running categories, and the reebok brand returned to profitability. the worry is that we will see the biggest material slow down in 2019?
>> we had a record year in 2018, topline 8%, 10.8 the highest in the history of the company. the growth drivers in 2018 was north america and china, i think we will continue to see those. online came out with 36% growth for the year, north america 17%. while there is a slight slowdown, partially due to supply issues, we still see a solid 2019 with the bottom line growth of 10% to 14%. so we are optimistic about 2019. not the same growth of 2018, but still solid. >> the prime minister of new zealand called it one of the darkest days in the country's history. a shooting in christchurch left 49 people dead. the alleged shooter live streamed the attack on social media. the motivation appears to be racial. >> scott morrison was very quick to come out today to confirm that the alleged shooter was australian, and also to condemn
this attack as a vile and terrible act of terrorism in the strongest possible terms. the prime minister picked up on that as well, saying that such acts of extremist violence in such vile ideology had no place in new zealand, and indeed had no place in the world. >> it was announced on hm, live streamed on facebook, replayed on youtube. what, if anything, are companies doing to stop the dissemination of hatred? >> this is not the first time this has happened, that a live streaming platform has been used to broadcast an act of violence. i think you will see people asking the question, should live streaming be canceled? that's a question that has been asked. the answer from the company has been overwhelmingly that most live streaming is good, and can sometimes lead to positive social outcomes. and so they have decided to continue doing it.
>> i pulled up the m&a function on the bloomberg, and i'm just looking at where we are in these deals taking place in north america. all of them are here, but north america looking much bigger in size than europe in terms of the deals we have seen. kailey: 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. let's wrap up this edition of "bloomberg best" with a new series we recently introduced on him bloomberg television, looking at the ramifications of maritime rules that will disrupt the global shipping market when they take effect next year. alix steel explains. alix: 15 large container vessels
give off as much pollution as and 760 million cars, and that's about to change. new international maritime organization rules hit january 2020, limiting maritime fuel. there's a grace period, but the rules are here to stay and you can't cheat. if you do, you pay a big fine and risk your vessel being labeled as unseaworthy. here are your options. you can buy an exhaust gasoline scrubber, which cleans out sulfur dioxide. the most popular are scrubbers that release a sludge into the ocean. the issue, more than 2800 vessels will still need to make that switch, and certain countries like china and singapore are banning them at a high price, $2 million to $4 million, $500,000 per year. or you can use imo low sulfur compliant fuels like diesel and maritime gas oil. demand for these products could grow as much as 2 million barrels per day.
the problem, those supplies are tight. refiners can run this crude and get diesel, but you get this creating a glut. or they can get heavy crude from china and venezuela, but that crude is in tight supply. so anyway you slice it, the result is not enough product, too much demand, and skyhigh diesel margins. here's what it means for companies. shippers lose money, or worse, go bankrupt. it is good for some refiners who can use lots of crude, but it is bad for others. products roads go haywire, and you have to turn to alternatives like lng. anyway you slice it, this has the power to change the shipping world. kailey: keep watching bloomberg television for more in our seachange series. you can also find episodes at bloomberg.com, along with all the latest business news and analysis 24 hours a day.
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♪ jonathan: from new york city and our viewers worldwide, i'm jonathan ferro. bloomberg real yield starts right now. ♪ jonathan: coming up, risk assets mounting up higher. despite few signs of economic recovery worldwide. very little in the economic data, testing the fed's patience ahead of next week's meeting. and investors bullish europe. a contrarian trade. we begin with the big issues. markets meltin -- mounting up wh few signs the global economy is bottoming. >> goldilocks. >> goldilocks. >> ul