Skip to main content

tv   Bloomberg Best  Bloomberg  April 6, 2019 12:00pm-1:00pm EDT

12:00 pm
>> coming up, the stories that shaped the week in business and around the world. >> the no's have it. >> deadlocked at the deadline, the u.k. government pulls out all the stops to get brexit through parliament. >> today, i am taking action. >> the likelihood of a longer extension has risen quite a lot in the last week. >> data from china surprises to the upside, while prospects brighten for a trade deal with the u.s. president trump: this is the grand daddy of them all. >> let's not think this is all done. there are issues remaining. >> bitcoin show signs of a resurgence. blackrock announces an ovehaul.
12:01 pm
the latest jobs report sheds light on the state of the u.s. economy. >> investors can relax. this is a buy stocks report. >> plus, thank santander rolls out a new business plan. >> we will invest $20 billion over the next few years on technology and digital. >> and twitter's ceo speaks exclusively about the challenges facing the tech sector. >> there is not going to be anyone party responsible for fixing this. >> it is all straight ahead on "bloomberg best." emma: hello and welcome. i am emma chandra. this is "bloomberg best." your weekly review of the most important business news, analysts, and interviews from bloomberg television and around the world. let's start with the day-by-day look at the top headlines. on monday, investors braced for a busy evening of brexit votes in parliament, but while they
12:02 pm
waited, an unexpected dose of good news came from china. >> china's economy is showing signs of stabilization after the latest manufacturing pmi numbers showed the biggest month-to-month increase since 2012. just run us through these numbers. what are the key takeaways? >> when you look at the new export orders and orders rebounding back to highs in six months, that is a clear indicator of future activity. it shows demand is picking up. it is a good sign for key trading partners for china. especially with commodity exporters to china. if you consider what is happening with the pmi, the backdrop being a stabilizing business sentiment, the rally on the stock market, and the prospect for trade agreements, it points to the idea that china's factories are heading in the right direction. but as you know, there are unknown variables in this debate, too. >> u.k. lawmakers are taking
12:03 pm
as mps debate brexit plans for the second time today after theresa may's plan suffered its third defeat. >> we are counting down towards april 12, the new cliff edge for a no deal brexit. the u.k. has until been to -- until then to explain to the eu whether it wants a long extension, which would mean precipitating in the european parliamentary elections, or whether it is prepared to leave without a deal, or wants another option. >> members of parliament have begun voting on several brexit options. indicative votes as they are known. it seems the momentum seems to be building for the softness of the divorce model. >> it is the second motion, , whichd, which is dubbed seems to be gaining traction. >> the no's were 276, so the no's have it. the no's have it.
12:04 pm
282, so the no's have it. the no's were 292. the no's have it. >> sterling has fallen as u.k. lawmakers failed to agree to a plan for brexit, rejecting all plans to replace theresa may's deal. the stalemate leaves the prime minister with no clear idea what to do next. prime minister may: today, i am taking action to break the logjam. i am offering to sit down with the leader of the opposition and to try to agree a plan that we would both stick to to ensure we leave the european union and do so with a deal. >> i think finally she has decided the only way to break this impasse is to reach out across the aisle and come up with an agreement that both sides of the house of commons can agree with. basically, i think she has reached the end of the road with her own conservative party. remember, she has agreed she was
12:05 pm
-- will step down after the brexit process has been completed. in some ways as soon as this happens, she is done. >> there are signs the u.s.-china trade talks are edging towards a deal. the vice premier is in washington. how close are we to a deal? >> there are some things to be worked out, but we are getting some insights into where the talks are going. among them is a deal for china would get until 2025 to implement certain parts of it, including commodity purchases and allowing u.s. companies to theirwn -- wholly own subsidiaries in china. the u.s. side is eager to get a deal. the big question is how comprehensive it will be. >> the u.k. parliament has moved to block and no deal brexit before midnight. lawmakers voted to seek an extension and rule out leaving without a deal. it passed by one vote.
12:06 pm
brief us about the possibility of a no deal. >> the chances have diminished massively. we are now faced with the options of theresa may's deal, probably a long delay, and the idea of a general election still kicking around. >> and jeremy corbyn, you have to imagine the dynamics. they sit there, opposite each other. they barely talk. they don't like each other. one of them once a general election to depose the other one. they are stuck. >> president xi jinping saying china and the u.s. have made substantial progress in trade talks, calling for an early conclusion to these negotiations. >> those comments come after president trump talked up and -- talked up a very monumental trade deal. despite admitting there is more work to do before the accord can be signed. president trump: it is a massive deal, could be one of the -- i guess it is, if you think about it, one of the biggest deals
12:07 pm
ever made. there can be a deal like this. no matter where you look there can be a deal like this. this is the granddaddy of them all. >> there are thorny issues remaining. let's not think this is done. there are thorny issues remaining. but this is good news if you're looking for a deal. >> i think the signs you are getting from china and the u.s. are very positive, saying there has been progress made. xi is calling for additional leadership to drive a deal even quicker. the u.s. side is saying four to six weeks for something before a trump-xi signing meeting. there will be something announced when there is a deal done. that is where we are headed, so four to six weeks is our timeline. >> breaking news on brexit, theresa may has written to the european council president to request a delay to the u.k.'s eu departure until june 30. may sights talks with jeremy corbyn aimed at breaking the
12:08 pm
brexit impasse has the reason for the postponement. june 30? if you don't have a deal until now, why would you get one by june 30? >> you hit me out of the blue with june 30. that sounds weird. obviously the eu elections, i can't imagine why the eu would agree with that unless there is a clever wrinkle, that means we can pretend it is the 23rd of may. june 30 seems weird. it seems to me where we are, the likelihood of a longer extension has risen a lot in the last week. >> this is the nightmare scenario in brussels, to get stuck in a cycle where the u.k. every two months decide we don't want a no deal brexit, but we have not figured out the answer. we need more time. can you give us some? this is something the eu does not want to be trapped into, but it is difficult because nobody here, in particular the germans, they don't want to be blamed for a no deal brexit.
12:09 pm
jonathan: u.s. hiring rebounding more than forecast in march, relieving some concerns following a weak february. break it down, mike. michael: the story here is investors can relax. this is a buy stocks report. it is a leave your bond brokerf. 196,000 jobs is a big rebound from february when we saw 33,000 unemployment stays at 3.8%. if there is any disappointment, it might be in wages. they were only up a 0.1%. 3.2% annual rate. larry kudlow: this is similar to what happened last year. you had a weak first quarter. we have had weak first-quarters, bad seasonals for years, but then the economy snapped back. we got 3% growth. it is a repeat and i like it very much, and i think president trump's rebuilding of the economy from the supply side with tax cuts and deregulation
12:10 pm
and trade reform, i think we are still very much in play. emma: still ahead, as we review the week on "bloomberg best," bank santander explains its business plan. plus, an exclusive conversation with twitter's jack dorsey, who says regulation can be a good thing for tech companies. and up next, more of the week's top business headlines. chinese bonds get a game changing boost as they gain inclusion in a global index. >> this is the seal of approval for china's efforts to open up onshore bond markets. emma: this is bloomberg. ♪
12:11 pm
12:12 pm
emma: this is "bloomberg best." i am emma chandra. let's continue our global tour of the week's top business stories. in australia, the government unveiled its budget proposal for 2019.
12:13 pm
>> here in australia, scott morrison is hoping the tax cuts announced in tuesday's budget will help sway voters in the upcoming election. first return to surplus in the budget in more than a decade. it should hand morrison more ammunition ahead of the vote, expected in may. the point is, is it going to be enacted? >> that is the key thing. with the budget, the government has a majority gets passed, and on the go, but this year, there as an election to get out of the way first. yes, it is possible none of what was announced tuesday night will never be enacted. the treasurer did announce in parliament that the country will return to surplus in 2020 and received applause when he announced australia was "back in black." it does contain tax relief for smaller companies, middle income earners as well, so an
12:14 pm
election-year budget. >> one of the biggest concerns for voters and the reserve bank is the impact on the property market on spending and the ability of voters to go out and consume. given the tax cuts pledged in this budget will take years to roll out, is there more immediate way we can look at this budget as helping voters in the economy? >> our plan for income tax relief is part of a broader national economic plan. it is not just a cash handout. it is part of the national economic plan to make the economy stronger to ensure hard-working families have the right incentive and encouragement to work hard. indeed, it builds on the $144 billion of income tax relief we announced in last year's budget. and subsequently legislated. this is the next installment. >> president erdogan's party has lost control of key turkish cities in a series of local elections. turkey's opposition has taken the lead in istanbul and ankara.
12:15 pm
how would this change president erdogan's policies? will he become more populist or will he do more for the economy? >> this vote, president erdogan was not on the ballot box, but what was significant is the fact it is the first election where turkey changed from a parliamentary system to a presidential one. it was a test of president erdogan's popularity. what we need now are economic reforms. that is what investors are looking for. there are some economist who say he will go towards populist policies instead in order to get short-term economic gains. >> the chinese financial markets are taking a big move towards internationalization today with the inclusion of onshore bonds in the bloomberg barclays index.
12:16 pm
a disclaimer, bloomberg is the parent company of bloomberg news and owns the index. you hear all these analyst notes about this is the game changer. how much money are we talking about when it comes to flows coming into china? >> the most important implication of this bond inclusion is that we will see a lot of passive inflows to china for all those following this index, and that will trigger active inflows. a lot of foreign investors in the market are not asset fund managers. they are mostly sovereign wealth funds and central banks. this is a seal of approval of china' efforts to open up the bond market, and we will see more institutional investors in this market, which means china's credit ratings and liquidity problems will likely be solved as more investors come in. >> the imf and wto are increasingly pessimistic about global growth. they are warning momentum has been lost since the start of the
12:17 pm
year. the wto cut its trade growth projections for 2019, the lowest in three years, citing the rising impact of protectionism in the trade war. it is the second consecutive year they are paring back those expectations. >> yeah, absolutely. we are hearing from the imf likely to cut its growth forecast again. christine lagarde saying it has weakened more since its last update. she says we are in a precarious position for the global economy. global growth has lost momentum. the wto also slashing its outlook for growth to the lowest level in three years. it will slow to 2.6% world merchandise trade growth according to the world trade organization in 2019, and 3% in 2020. >> today we have seen data showing german factory orders drop by the most in a decade. the german government slashed
12:18 pm
their own forecast. and a bloomberg report says the italian government will do the same to it economic projection. >> the european economy is a victim to the chinese economy. has been duerowth to exports to china directly or indirectly. it will be several months more until we see a pickup in the chinese economy. that means the european situation remains dull on the economic side. >> i'm sure you remember the enormous pressure the tying assets were under in 2018 because the government promised the european commission they could grow the economy 1% and would keep the deficit below 2% of gdp. we understand the government will you turn on that and cut the forecast to 0.1%. the italian economy will not grow in 2019, and the deficit will go up to 2.4%. >> on to india, the central bank
12:19 pm
has delivered a back to back interest rate cut. this is to support the sluggish economy before national elections kickoff. the repo rate was lowered by 25 basis points to 6%. when you look at india, in the vote, it seems polling and early investigations point to the fact that there could be a rejection of the established political class. how true is that? >> on one hand, there is a story of the economy, where there is a serious debate on jobs in this country. there is another equation with the data on growth has been in question. right now, india has cut interest rates and cut the forecast, and more importantly, cut the growth forecast by 7.2%. so which political party comes to power in the next months, it will be clear they will be faced with a slowing economy and a serious jobs crisis. >> president trump intends to
12:20 pm
nominate herman cain for a seat on the federal reserve board. that is according to people familiar with the matter. what are his qualifications? >> he does have some qualifications. perhaps more than stephen moore. he was a business executive. you mention his experience with the kansas city fed. he was a member of the board, but those are generally honorary positions were local business -- where local business people are on the board and tell members of the fed what is going on in their businesses. it has nothing to do with monetary policymaking. >> the j.p. morgan chase ceo warning investors to get ready for more wild rides ahead in his annual letter to shareholders. he wrote, the fourth quarter of 2018 might be a harbinger for things to come. to put this in perspective, he has usually been bullish, particularly this time last year, so quite a change in tone. >> definitely. jamie dimon talks about how amazing the economy is doing.
12:21 pm
and how much he loves america. this is one of the first times we have seen him to say maybe a recession is not coming, but we 12 guys to be preparing -- but we want you guys to be preparing for one and things ahead don't look as great as they did this time last year. >> the president of the united states once again calling for the fed to add more stimulus. president trump: the fed should drop rates. i think they really slowed us down. there is no inflation. i would say in terms of quantitative tightening that it should now be quantitative easing. >> why on earth with the fed be -- would the fed be cutting rates? >> that is a good question. if the fed is cutting rates and an economy growing above trend, payroll above trend, and inflation moving sideways, in fact, wage inflation, while march was a little bit off the recent peak, the broader trend is accelerating. the fed could risk throwing
12:22 pm
gasoline on to a campfire. that being said, they have to keep their ear to the markets and the yield curve in the economic data and be prepared that may be that will be warranted down the road, but that does not look like the case based on what we are seeing in the jobs report today. ♪
12:23 pm
12:24 pm
emma: you are watching "bloomberg best." i am emma chandra. this week, bank santander announced a new business plan, pledging to cut one billion euros in costs and ramp-up investments in digital technology over the next four years. the bank's executive chairman discussed the strategy and some of its recent challenges with bloomberg's francine lacqua. >> we will invest $20 billion over the next few years in
12:25 pm
technology and digital. it is about $5 billion total per year. of that, $2 billion is in digital. to run the bank, transform the bank, versus investment for the future is a healthy ratio. in terms of scale, we are up there with the biggest bank in the world, so forth or fifth in -- fourth or fifth in the u.s. depending on how you measure that, so we have enough scale to invest, which is one of the ways we are aiming to work more for countries like the u.s. or other countries where we don't have the profitability we want, so we will really take advantage of our size globally. francine: your current chief executive, i asked you in february, is he here to stay? does he have the confidence of everyone? do you feel like it will be settled legally? >> i think we are moving forward. the team is very comfortable.
12:26 pm
we had our top team here yesterday. a digital videocast to the rest of the group. he is a good leader. we work great together. we have an amazing team. we are very optimistic about the future. francine: what happens about brexit? have you considered the worst and are you ready for it? >> we have been working to ensure our customers, retail customers, and the bank in spain, retail customers, small customers, small companies, big companies, that we are ready to serve them. i can tell you we are ready and they can trust the service will continue whatever happens with brexit. francine: will it impact if there is no deal brexit, does it also impact operations in europe? >> we had to do some adjustments, but not as much as others. for us, the rules have been more onerous in terms of costs. we had to move a few people, but not many. francine: your decision on coco
12:27 pm
bonds caused some waves. bring us back to that decision. >> at the outset, we said we would take all stakeholders into consideration. that is what we did. it was the first time since they were issued that the economic rationale made sense. that is what we did. we have flexibility and will have flexibility in the future to do it or not. we believe we did the right thing. emma: coming up on "bloomberg best," more of the week's top stories. it was another soft quarter for u.s. auto sales. carlos ghosn faces another legal setback. plus, more compelling conversations. metlife's outgoing ceo says the company pushing back against regulation, but jack dorsey said government oversight can have its benefits in an exclusive interview, next. >> there are things like that gdpr that have been net positive
12:28 pm
for our platform and the industry in general. emma: this is bloomberg. ♪
12:29 pm
12:30 pm
emma: welcome back to "bloomberg best." i am emma chandra. as social media platforms wrestle with hate speech and fake news and privacy, the ceo's of the biggest tech companies are coming to see the benefits of regulation. the twitter cofounder and ceo jack dorsey added his voice to the growing chorus of support for government oversight as he spoke with us in an exclusive interview. ♪ jack: generally i think that regulation is a good thing, it is a net positive and our role as a company should be about
12:31 pm
educating. helping regulators and legislators understand what is happening with technology, secular trends that we see, how our system works, and the job of a regulator is to make sure protection of the individual and a level playing field. as long as we are working together on that, it has good outcomes. i generally think there are things like gdpr that have been a net positive for our industry and platform with more clarity around privacy and more clarity around how data is being used. and typically a service like ours, our terms of service are a little bit hard to read and hard to follow and not necessarily the most customer focused thing. gdpr put a stake in the ground to bring out some elements and i think that is a net positive.
12:32 pm
if there is more room for that then yes, but they will not be any one party that is responsible for fixing this. putting too much weight on one entity, whether a corporation or individual or government will not work. we have to think about it differently. we have to think about it as a desire. we have a desire, our purpose is to serve the public conversation and incentivize an increase in healthy conversation. for that we can look much deeper, what we are incentivizing and the foundational nature of the service and making sure we are not incentivizing behaviors that would take away from that. today there are areas where i think we are. those are the questions we are asking, and it will lead to
12:33 pm
fundamental shifts in how the service works and how people experience it. ♪ emma: from an embrace of government oversight to the exact opposite, this week on bloomberg television several guests took issue with policy moves from washington, specifically regulatory overreach and the fed. let's start with the outgoing ceo of metlife who told erik schatzker that company should assert their rights and pushback against regulations they consider excessive. steven: precrisis there was light regulation in parts of our financial system, in particular in banking and shadow banking. we saw it go hard the other way, less overweight and we can adjust things later but the problem is you may be out of business before you adjust things if you do not push back. that was our decision. erik: where do you stand in the debate over interest rates right now? the president and other people want interest rates to be lower
12:34 pm
but low rates are terrible for the insurance industry, not to mention anybody else in the business of saving, like pension funds. steven: there has to be balanced, very high interest rates would not make sense in a low inflation environment like today, but rates are extremely low on a historical basis in terms of basic returns over the 10 year treasury and basic returns for the 10 year treasury compared to the underlying growth of the economy. rates are low, and it hurts industries like life insurance and savers in general. i understand the arguments in favor of progrowth and lower interest rates, but there is a trade-off and finding the balance is important. >> you have to take your clue from the bond market, do not follow stocks. i think chairman powell coming into office they have to get used to the power of their voice. you are right, in the fall they
12:35 pm
were too strong and too worried and suddenly they reacted and backed off. i think they should consider tightening later this year. they should be back to data dependent, something we have set -- said for decades and they need to go to the debt and wait to see the economy. the bond market is expecting them to ease this year which is crazy to me. i think they will be neutral to tighten later this year depending on how strong the economy is. >> the german bund has had a massive move, would you be a seller at this stage? >> we are worried about the german interest rates and japanese interest rates. i am old enough that when i went to college the rates could not go negative here we are with consistently negative rates in germany. i am worried that is signaling a recession, particularly in germany and probably will affect france and the eu. we will be underweight all sovereign debt outside the united states, and very worried. we will watch brexit. without question.
12:36 pm
>> in this week's episode of big decisions, david westin sat down with the starbucks ceo who discussed his company's rapid expansion into china. he sees opportunity to continue the current growth many years into the future. >> we can do that at least for decades. i have not calculated. it will go beyond my lifetime. david: the demand is there? >> the demand continues to grow. the chinese consumers are primarily a tea drinking culture who have been introduced to premium coffee and we will build on that and add 600 stores a year in china, i think we are over 3500 stores today. there are 300 million people in china in the middle class and that will double over the next few years. they are consuming more coffee.
12:37 pm
that will continue to grow. over the next three years, we will build starbucks into 100 new cities in china that we are not currently in. every one of those cities is larger than the population of los angeles. we will be building new stores in china for decades. ♪
12:38 pm
12:39 pm
emma: this is "bloomberg best." i am emma chandra. let's resume our round up of the top news in business and finance. the oil giant saudi aramco opening up its books in preparation for a bond sale with
12:40 pm
eye-popping data. >> saudi aramco is the most profitable company on earth, it easily surpassed u.s. giants apple and exxon mobil. moody's says aramco had a net income of just over $110 billion last month, they gave the oil giant the fifth highest investment rating. >> aramco net income last year was around $111 billion, well ahead of apple and other oil companies like exxon and royal dutch shell. another interesting point is that aramco has been rated as the same level as the saudi sovereign, and the next question will be how investors are looking at those ratings and how they want to price aramco compared to some of the saudi sovereign issuances over the past couple of years and we should start to see that develop over the next few days as aramco's bonds roadshow goes on.
12:41 pm
>> unicredit is waiting in the wings. the italian lender is preparing a rival bid. why would unicredit go for commerzbank? they are to have some assets in germany, don't they? >> they do have a big bank there. the german subsidiary is one of the biggest banks in germany and adding more size to that makes sense in a market that is potentially overbanked. taking out another bank and adding it to your network does make sense. the question is how much is it possible? it is difficult because of national regulations. that is one obstacle. vonnie: blackrock is massive.
12:42 pm
how do you reorganize something that big? >> they are making moves in alternatives businesses, the group they have been trying to bolster over the last few years and we reported earlier they had their first close on a private equity fund with $2.75 billion in the first close. they changed the head of that unit, and elevated an executive named jim barry who was head of their real assets. they made it clear they're trying to go more local on the ground, elevating people in regional places to say, we know we need growth outside of the u.s. and in europe, and definitely wanting clients to feel our presence one-on-one. giving more power on the regional level. >> another gloomy quarter for most of the auto industry as carmakers reported u.s. auto sales. honda was the shining star with
12:43 pm
a 4.3% increase. what do the march sales tell us about the state of the auto industry and economy? tough comps or something more? >> a little bit tough comps, general motors had a big sale in march of last year that artificially pushed sales up. it made these numbers look weaker by comparison but still talking about march being down after the first two months were down, a lousy first quarter to put it into perspective. this is after last year. which was flat, but they pulled out a lot of the stops with rental car sales to stay even with 2017. we are on this walk of the market getting softer and softer. >> turning to tesla. shares of the electric car company tumbling after they reported a record decline in deliveries during the first quarter. a sharp fall in deliveries indicating less than expected demand for the model 3.
12:44 pm
how dire is this? >> it's a big deal. that's a cliff. >> let's turn to the courtroom showdown in manhattan, the tesla ceo arrived in the u.s. district court. a lawyer for the sec argued he recklessly tweeted out information after a settlement that prohibited such actions. how did the judge listen to what was put in front of him? >> she had dirt to throw at both sides. she was a little bit critical of the sec, which was interesting. she told both sides to go back to their respective corners and within two weeks come to an agreement and come back to her with something they will be ok with. >> the drama around the titantled auto
12:45 pm
carlos ghosn erupted again with prosecutors arresting him again on fresh allegations he used nissan funds for his own purposes. he dismissed it as outrageous. where are we? >> forget about the battle for control of the companies which is over. this is a battle of control over the fate of carlos ghosn, whether he will spend many years behind bars or not. it is also a battle of control of the narrative. he scheduled a press conference in tokyo one week from today to tell the truth from his perspective. well, the now prosecutors and nissan getting a step back on carlos ghosn, re-arresting him on new charges of aggravated breach of trust, these stem from allegations of illegal payments they say of upwards of 5 million u.s. dollars to a distributor in oman and lebanon. lots of different allegations which carlos ghosn has
12:46 pm
vehemently denied. david: ethiopian authorities have issued their report on last month's crash of a boeing 737 max 8 aircraft and say the pilots follow their safety procedure and are calling on the manufacture to view the control system. >> we had a press conference where the ethiopian authorities outlined their initial findings. they were clear that in their opinion the pilots of this airplane did everything they should have and followed the boeing procedures but still were not able to rescue the flight. it doesn't shift the spotlight on the boeing. the authorities recommended that boeing review its flight control software and the aviation authorities to do the same, that is a process already happening. >> on its second day of trading, lyft shares have fallen below
12:47 pm
the ipo price and investors say it could be an ominous sign for others going public and bringing questions about their growth trajectory. >> it is amazing how a little bit of where the price is set and expectations setting has fallen away from them. clearly the market just has not been as enthusiastic as they had hoped going into the pricing. there was the initial superhigh opening price, and it just fell from there as people are looking at the company and trying to figure out what multiple should it have and how do you think about a company that is a story-based narrative? >> it is a nightmare. for this company for the red carpet is rolled out to drop the second day, the big issue is profitability. scarlet: another mega ipo, tradeweb shares jumped in its debut after raising $1.1 billion in the second largest u.s. initial public offering this
12:48 pm
year. >> another huge demand. sizeincreased the of the offering twice, and it jumped in early trading by more than 25% and now trading steadily. it is just day one. for the next couple of days, it is a positive start. >> bitcoin has surged to its highest level since november, about $5,000, the move brought to an end three months of calm in the virtual currency market. what sparked the rally? >> bitcoin is the immortal undead, every time you think it is dead and buried, it jumps back again. nobody knows what triggered it overnight. there is a lot of speculation. cipro are talking about closing their features contract, which reduces the amount you have to short. people are talking about the
12:49 pm
rewards to the minors next year, and ahead of that you have seen a rally. there is a bit of that but it is a mystery. there is positive sentiment. these things are self-perpetuating. >> the chinese internet giant tencent has completed the biggest dollar bond offering in asia this year. they sold 6 billion bond, beating the $3 billion bond sale by china ever grant earlier this year. they have more than $20 billion of cash on hand. why did they need this funding? >> the first part is tencent has about $3 billion in bonds coming due and using the new money to repay old money is very apparent option. and the funding costs overall is lower now because the treasury yields have come down. it is a good opportunity for tencent to sell. tranch,d their 10 year
12:50 pm
it paid about 30 basis points more than the 10 year sold last year. overall, it is a big deal for investors. other than the 10 year trench, which is about $3 billion, half of the overall sale, there is a for more, a five-year, seven year, and 30 year, and a five-year floater. >> another facebook fiasco, researchers at cybersecurity firm of guard found millions of user data accessible on the amazon cloud computing services. this comes a year after the social media giant came under fire for the cambridge analytica scandal claiming user information exposed. >> facebook user data was in a place it should not have been and they found troves of user data publicly available on an amazon server. that is one instance. the researchers found a mexican
12:51 pm
media company had 540 million different users data exposed, email addresses, names, contact information. in a third situation, an app developer exposed 22,000 usernames and passwords. all this basically fighting in plain sight. -- hiding in plain sight. >> mackenzie bezos saying she has finished dissolving her marriage with amazon ceo jeff bezos, and she is giving him all of her interest in the "washington post" and blue origin and 75% of their amazon stocks and voting control of her shares. what is this telling us about jeff bezos' control over amazon? the biggest company in the world right now. >> unlike a lot of the current generation of technology giants, jeff bezos did not exert voting
12:52 pm
control over amazon. he owns 16% of the company and there were questions when they announced they would get divorced over what would happen. would his wife push for a seat on the board? and this answers that, jeff bezos has full voting control over the 16% stake in the couple jointly owns and he will keep ownership of three quarters. ♪
12:53 pm
12:54 pm
whis, that is the whispered
12:55 pm
anger. add your voice to the debate. you can message your comments to the tv team. >> 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 with a closer look at the malaysia scandal as the former prime minister facing 42 criminal charges related to his role in the 1mdb affair and his trial began this week. perhaps the first of many around the world. here is the explanation of the issues behind the investigation. it was supposed to be a vehicle to attract foreign investment but instead it sparked embezzlement and money laundering investigations across at least 10 countries.
12:56 pm
and a search for an enormous pile of missing money. it started in 2009 and the funds early initiative included buying privately owned power plants and a new financial district and kuala lumpur. it proved better at borrowing than attracting investment. it was $12 billion in debt. investigators are trying to figure out how money flowed through and illegally into personal accounts. the u.s. justice department said more than $4.5 billion went through a complex set of transactions and shell companies. the swiss say $7 billion passed through the company and one of its units. they are charged with criminal breach of trust and money laundering involving related funds of the company. he denies any wrongdoing. goldman sachs is facing criminal charges with prosecutors seeking fines of more than $3 billion.
12:57 pm
malaysia alleges the bank misrepresented how the bond sales to the company totaling $6.5 billion could be used, knowing the funds would be misappropriated. goldman sachs denies it and says it will vigorously defend itself. finally, a financier is in hiding, accused of leading a small group which diverted money into personal accounts designed to look like legitimate businesses. some of that cash is thought to have been used as kickbacks to officials. they have been charged in absentia with money laundering as authorities looked at his assets including a luxury yacht. >> keep watching bloomberg television for continuing coverage of this important story and you can learn much more about this at where you can find all the latest business news and analysis 24 hours a day. that is all for bloomberg best this week. thank you for watching. i am emma chandra. this is bloomberg. ♪
12:58 pm
want more from your entertainment experience?
12:59 pm
just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.
1:00 pm
david: the legend is you began trading convertible bonds out of your dorm room. ken: when you make a few thousand dollars as a freshman, you are rich. david: but the time you graduated, did you say, i am now going to do this full-time? ken: i became boy genius, but i knew i was lucky. david: how does somebody invest with citadel? ken: we have been closed for a long time. david: even from interviewers, you wouldn't take anything. [laughter] david: your parents must be proud of you. ken: i'm certain mom is proud of me. david: does she ever say, where do you think the markets are going, where should i invest? [laughter] ken: mom is all set. >> 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.


info Stream Only

Uploaded by TV Archive on