A new bloomberg report shows trends in the clean energy and business. Leader ins the world the amount of capital being deployed. Salesut 53 of new car will be electric. There is more to come. Degree of coming from the markets. Delegation. Have the its all straight ahead on bloomberg best. Abigail hello and welcome. This is bloomberg best, your weekly review of the most important Business News analysis and interviews from Bloomberg Television around the world. U. S. Markets were closed on monday. Carillion has collapsed. They have government contracts from everything to high street rail. They failed to get a government bailout. They had 2 billion in debt. The share price collapsed. Who is to blame . It is happening right now. Youve got both sides deserving blame. Price is everything. The supplyis paid to chain. Forit aggressively bidding contracts with the incentives . Its all about growth. Should the government have awarded contracts in the year where we saw three profit warnings. What message does that send . Suggests they did not know the full picture of the health of the company, or did no and were hoping to put in the right contingency plan to avoid any embarrassing tag on its face. The government doesnt know the full health of the supply chain. Highest after the revealing plans to shower investors with profits. They will pay out 60 billion to shareholders after the forecast. We believe this will greatly benefit city shareholders. This relates to the reduction of the value of our deferred tax assets with the lower Corporate Tax rate. On repatriation. Charge is a gift to citigroup. I think the key thing is the capital return. They made clear in early december they were going to have a huge charge. That is the plan over three years. They did make that announcement. Included 3 billion in repatriation. The key thing we learned today is results. We did get trading a little the better than expected. Growth is pretty strong. Bank earnings rollout. Beatof america had estimates. Goldman sachs is worst on trading in a decade. What happened . The had a strong year. That was still disappointing number. They do earn more than other banks. Investment banking is killing it. They are controlling costs. They are in businesses that are very transactional. That is helpful to the bottom line. Not to of america tends have the big swings that others have. What they are trying to do is create predictability rather than swings from one quarter to the other. Thats what they are laying out now. The bottom line number looks good. The top line number was a small miss in terms of revenue. What is surprising is how strongly Capital Market revenues were. They have some the best. Economy has had its first year acceleration. Gdp picked up. Retail figures came in a little bit softer than expected. Noteworthy given the economists expected to see a moderate slowdown in growth. In credite expansion start slow in china. You have a focus on the regulatory environment. Thet feels like they have economy on cruise control. A big part of what is happening is global. The economy in europe is driving exports out of china. That contribute to chinese growth last year. Things are looking good. Currencies are stable. Growth is on track. Morgan stanley is topping estimates with kroger brokerage. The one area they missed was executive trading. Still, in line with their annual target. Morgan stanley is executing on plan. That 9 toming in 11 range. How much help are we getting from the markets . Power of their diversification and the decision they made to push forward in wealth management. That should only increase from here. So you are seeing the diversification benefits and this is the corner where we can a fixed income trading backdrop is going to be difficult and they still and of having a good result because of management is a much bigger driver today. So i do think that there executing and it is the strategic push toward wealth management. Congressional lawmakers space face a midnight deadline to avoid a partial shutdown of the us government, this effort has passed the measure that would keep government up and running until the very 16th. Senate democrats say they are holding up for a position that would protect the status of young undocumented immigrants. There is tremendous pressure on Chuck Schumer to not give in on the docket deal. Daca deal. There are republicans, republican senators are throwing up their hands and saying i will not vote for a shortterm cr. Have to stop running our government this way so there is no clear path for 60 votes in the senate at this point. We dont want this, we do not want to shut down but if mr. Schumer insists on it, he is in a position to force this on the american people. I hope the president will join us. If he will, we can solve this problem. If he stands on the sidelines, we cannot. Just as a spending bill faces an uphill battle in the senate, Chuck Schumer is headed to the white house for a meeting at the president s request. All morning long i have been speaking with senior is to lawmakers in both parties who suggest that this is going to come down to the wire and the idea of having a shortterm deal, a mini deal if you will that would just give the government couple more days may not be the administration is ultimately hoping for. With therly president s travel plans to davos less than a week away. We had a long and detailed meeting, we discussed all the major outstanding issues, we made some progress but we still had a good number of discussions that will continue. Still ahead as we reviewed the weight on bloomberg best, much more Companies Including a deal that will take nestle out of u. S. Candidate is plus an candy business, plus an exquisite conversation with bill mcnabb. The passive investing has provided the everyday investor better returns and riffs all the way. Up next, more of the weeks top business stories, bitcoin takes another dizzying get. Dip. Even if youre one of the most bullish bitcoin investors, you can look at the event of this week and not feel a chill. This is bloomberg. Juliette this is bloomberg best. Lets look at the top business headlines. In canada, with the decision from the nations central bank. The bank of canada raising his overnight Interest Rate to 1. 25 . It says it sees the need for accommodation to keep inflation on target here. They are forecasting 2. 2 growth in 2018, 1. 6 in 2019. Slowing, obviously. The bank of canada expects inflation to remain remain at 2 . Operating our potential. Inflation is above our target. Arguably, if you took that as a snapshot, it would be high. Any model would say that. I think what we need to bear in mind is the experience that we have been through that has actually depressed potential output. In every expansion, we get to the stage and said now it is time to invest. Capacity begins to go up faster than we have in our models. It happens every time and we think this time it could be a bigger effect than usual. This has been such a long, slow cycle. This is a higher level of gdp forever. If you are worried about inflation risks and so on, first of all, you have a tendency to nip that process in the bud. We are being very careful not to do that. I am concerned about sudden movements that dont reflect changes in fundamentals, look at fundamentals, inflation is declined slightly in december. He is one of several officials who say a stronger euro may help efforts to get inflation to the goal of just shy of 2 . There is no concern the euro is too strong or rising too fast. It could happen in the future, if we carry on these places, inflation doesnt show much signs of underlying strength in particular. Headline inflation is down because of oil. There will be increased concerns on the dovish week of the governing council who are already nervous about unwinding stimulus potential too fast. Bad news for bitcoin, falling as much as 20 today, that is crypto crackdowns. This is a broader january sell up with a Digital Asset down over 35 this month. Why is bitcoin going down again . Is it the jitters of more regulation . Yes, it got to as high as 20,000 last year and it went as low as 11, south of 200 this morning. It is now back up again around 13,000. It is a big slump and the main driver has been regulatory, the latest is that south koreas finance minister says showing down of the currency exchanges is an option. There are reports of china that they are escalating the crackdown. That is weighing on the markets. Bitcoin tumbled the 10,000, below bringing his loss to 10,000, almost 50 from the record set only a month ago. Latest plunge brings more trauma to a digital coin market that has lost more than 300 billion in value since january 13, even if you are the most bullish of bitcoin investors, you can look at the event of this week and not feel a chill about what is happening. I think where you get into everything being ok, that is when you look at the blockchain story and how you continue to see a lot of adoption and research and development into the underlying Database Technology in bitcoin and you look at the fact that bitcoin is still up 11 x from where it was today. It has a history of volatility like this, sure, the stakes are higher right now but there has to be a lot of fear out there and also a lot of deep breath about it being ok. Trade tension between the u. S. And china. They service again with trump telling chinas leader to tell them that the growing deficit is not sustainable. Is china bracing for more trump backlash on trade . They realize that the rhetoric is being ramped up again in washington. They know now that this is coming out of the white house and the administration from officials there suggesting that theyre going to be taking a tougher line and of course they are aware that President Trump has failed to reduce the deficit with china and with 2016 increasing u. S. Dollars, they will have missed that the u. S. Is taking a tougher line on these deals. All of those things are being weighed by officials here. The chinese are being very clear, theyre saying it tariffs are imposed, they will retaliate and that holds the risk. Indonesia and the Stock Exchange was evacuated. This after the floor of the buildings level one and tower two collapsed. They said that several people had been hurt. Once the latest . The incident was not due to any bombs or attacks, this is the floor on top of the main lobby but the reason for the incident itself is unknown. Trading was interrupted at that juncture, lets see the kind of impact. It happened during the lunch break so we do not see any disruptions in the trading is this. We plan to deliver this by an hour but we did not have a stuffed up so the trading has resumed. San francisco fed president john lands who plan to be planning vicechairman. This puts him beside lord him lindsay and the chief economic advisor, they are all three phd economists. That is one thing they how seven common. How alike are they and how different . They are very much alike in their Monetary Policy views except the political side of it. Muhammad ali are in is a big thinker, comes from the wall street background, larry lindsey, a longtime republican would bring the supply side view of the economy, maybe it would be a bit more dovish, john lands John Williams is straight down the center and that he has been a member of the fed cincinnati 94, the detour to the council of economic advisers and has voted along with the chair of the time, he has been a member of the open market committee. You would not see much difference with him. Williams might make a difference with longterm strategy because he is been arguing the fred needs to look at its 2 inflation target. Oil slipping as the International Agency became the latest to see a jump in production in the United States, the group said that u. S. Oil output is looking for an explosive growth. When you look at what they are saying, they are basically saying that u. S. Oil output will increase, there is nothing really new. What is new is that people expect them to go much faster than they thought. All of this should be bearish for oil with a couple of other things to factor into the equation. One thing they pointed out is the decline in venezuela production, it lost Something Like 300,000 barrels a day last year. The other thing is well opec hold its line. So far, this has been very disciplined but if prices stay and climb, we will hear more and more voices saying that opec should use its policy stance. Ease its policy stance. Welcome back to bloomberg best. Bloomberg new Energy Finance says it released is twice mt and report on Clean Energy Investment trends, this is based on his wellbeing database of projects and deals. The analysis tracks Global Investment in Manila Energy and Energy Smart Technologies in the past year. As well as well the outlook for the future. We discussed the report in detail this week on Bloomberg Television. The world is going greener, energy was up from 2016 but it did not manage to top the 2016 peak, that is according to a new report from Bloomberg NewEnergy Finance team. What were the key drivers . The biggest driver and headline of course a beer was china where we saw an unbelievable volume of new solar build, about gigawatts of new 53 solar capacity added in all kinds of places, china is far and away the world leader in terms of the most amount of capital been deployed in the most amount of new equipment being deployed as well. Again, it was a year where china led the pack and it was everybody else that came a distant second, including the United States. We saw about 57 billion of investment compared to 130 billion in china. If we look at the key countries, you have pinpointed the u. K. , germany, japan, to what extent do think United States could suffer as we push through into 2018 as a result of the president s decision over the paris accord . The paris accord in terms of the symbolism of the u. S. Pulling out certainly sends a negative sign to the rest of the world about the u. S. s commitment on these issues, however, if you look at where rubber meets the road in terms of tax credit and other things, the market was generally fine. We had about 57 billion worth of investment, that is where we have been. In 2017, bloomberg estimates that sales will be posted 1. 59 in 2018 and china, leading the way. China is the most Dynamic Market and we think it will continue in 2018. It has a lot of government muscle behind it, they want to establish china as the main Manufacturing Base for electric vehicles and the batteries that go in them. We will be seeing the same thing happen where chinese policy is pushed the adoption there. They have subsidies in china that will continue for a while that will be scaled back later in 2018. At the moment, it is the biggest market but places like that are important and we are predicting that by 2040, about 53 of new car sales globally will be electric. Straight ahead, we will revisit some of the weeks most compelling conversations, bill bill mcnabb shares his thoughts on opportunities in china. And carmakers gather at the north American International auto show. Find out how they view the road ahead for the industry and for their companies. The coal industry was not around the notion of nafta and i think we have to be very careful with how much we take the risks. This is bloomberg. What does the u. K. Have to do for its banks to retain access to the Single Market . Well, i think the whole situation, in a way, is dramatized excessively. You think overdramatization is hindering . Oh, yes. It is never good. We have to dedramatize and look at things as they are. What have we seen the last 18 months . Lots of players in Financial Services that are only based in london that do need to have a subsidiary, they need to have substance in the u. K. Single market, because they will lose automatic access. Everybody realizes that now. When i talked to a few 18 months ago here in china, that question was still open in many peoples minds, that the u. K. Could eventually have a cake and eat it. Everybody realizes now it is not possible. Juliette that was pierre gramegna. In detroit this week, executives from Automobile Companies around the world gathered at the north American International auto show. Bloombergs david westin spoke with several of the industrys top leaders, starting with jim hackett. David can you give any sort of timeline on when you will hit a Tipping Point for av and ev . When will that come . Three years, five years, longer . I spoke to bill gates who said you really overestimate the arrival and underestimate the impact. I really believe that. I think the impact is onceinalifetime history. Bill and i talked when i took this job, it was the most important thing in the last 80 years that the Ford Motor Company has to address, which is the integration of this capability in the design of vehicles, coupled with a smarter world. This is what we said at ces, that it didnt seem like the thing that would come from an auto manufacturer, but the major nature of Edge Computing or internet of things is evolving so fast that the vehicles have to couple with them in ways to do Something Like this. You know, you waste more fuel in trying to find a parking spot than you do sitting in a traffic jam. Well, there is no reason for that. If the vehicle is smart enough and the parking spot can ping its available. In that world, there is no need for a city meter maid, because the intelligence can meter out parking fees, and the vehicle can pay for it without the customer having to do anything. For a child born this year, 2018, well they have to learn to drive in 2034 . I think a child born today, 16 years later, i think they will have the perfect option. They can drive, because it would be a world where the passion for these vehicles never ends, but they can have the option of delegating tasks to that vehicle that their grandfather never expected, including never crashing. We have to talk about nafta. We have a big negotiation coming up later this month. Right. You have talked to the president in the past. Have you talked to the president to get a sense of where we are with nafta . I havent. To you have a sense whether there is a real danger to pull out of nafta . The canadian government well, to do something that drastic would not be something we would prefer. Nafta could be modernized. We could get some currency into nafta. But nafta has been in place as a while and has served the industry well. How badly would it hurt Ford Motor Company . I mean, i think whole industry. The whole industry. Our industry was really built around nafta. So it depends what you mean, too. There is a continuum here, there is a complete blowup and then theres a modernization, something we would not be opposed to. But again, this whole industry was built around the notion of nafta, and i think we have to be very careful with how much we tinker with it. Volkswagen has had some difficulty in recent years. We are coming back. How much of that do you think was driven by the atlas suv . We believe it was a key model for us. It is probably the most american car we have ever built, designed in the United States. Month by month, it has seen tremendous growth and the attraction coming into the showroom. We are proud of the achievements we have with atlas. We had a strong opportunity in 2016 because the car really fits well on the streets of america. It is a car that is perfectly blending with the American Culture and actually has all the ingredients that people love about volkswagen. They love the details, High Technology in the car, sort of beautiful execution, and the reaction of the customers is extremely positive. So atlas, i think, is just the milestone for our future plans, but there is more to come. This is just the first shot. How big could this get for cadillac in china. You are what, 125,000 vehicles . We will probably do 200,000 this year. I think when we roll out our new product portfolio, which will drive a lot of growth domestically in the u. S. , we will continue to see an acceleration in sales. But we have performed well in other markets in china as well. Export markets grew by over 10 last year, and particularly on financial side with transaction prices continuing to grow, 2017 was a bumpy year for cadillac, the second highest in terms of sales. It sets us up well for 2018. So that pace of growth in china is quite remarkable, the projection of over 200,000. Where is it coming from . Do you have a larger market or are you taking it from other people . In particular view it, because i think buick has been your main brand in china, going back to the last emperor. For general motors, buick is the big brand, one of the largest in the Chinese Market overall. But theres obviously a very clear stratification and differentiation between cadillac and buick in terms of Distribution Networks and pricing. Its a different customer, and our growth is coming from a degree of buoyancy from the market, but there is market share growth. We are taking it from other competitors. Juliette another exclusive interview this week took place in beijing, where bloombergs Tom Mackenzie sat down with bill mcnabb. They began by discussing his companys prospects in china, as the nation opens its financial system. There is a lot of opportunity for what i would call lowcost investing. There is still a lot of very highclass product in the asian market, and whether it is passive or low cost active, you could make a case for both. So it is likely you will see us doing both over time. The likes of fidelity are starting to push back and lowering their fees, becoming more competitive. What changes are you seeing in the Fund Management industry . So i think for the first time, there is widespread belief that price actually matters. Theres a couple things driving that. One is our success, blackrocks success in the etf space. People arent coming to us just because we are lower cost, they are coming because the net return to the investor is better, and that is the whole driver. I think people have awakened to this, the data are overwhelming. You just cant charge if you are an active fund and you charge 100 basis points, you have very low probability of outperforming in the long run. Money management has been a very lucrative profession for asset managers, and it is getting less lucrative. I dont know what to say about that except people have to reinvest themselves and get smarter about how they actually run money. There are skeptics out there that say this huge embrace of passive investing poses a significant risk to the markets. How do you defend against that . The data just dont support it. What passive investing has provided the everyday investor is better returns of the risk in a risk controlled way. You think about it, it is a zero sum game at the end of the day. We have to add up to the market, so the only difference in returns is cost. I think the cost differential is really the only thing that is driving the growth of indexing, and that was not always the case, and is not the case in every market. There are markets where there is a big retail presence, where the Retail Investor owns a huge part of the equity market overall. Some of the asian markets, certainly. Active managers will do really well in those markets, particularly if they are lowcost, because it is not a zerosum game. The source of alpha, if you will, will come from irrational Retail Investors. I would also say to the skeptics, because index providers are longterm in nature and longterm in outlook, it is much better for the economy and much better for corporate governance. I actually think it reduces the risk rather than increases it. Juliette you are watching bloomberg best. Im juliette saly. Lets return to our roundup of the top business stories with a focus on company news. General electric entered the new year with a new ceo and new hope for a turnaround, but this week was rough for ge. Shares of General Electric are falling today after the company said it would take a 6. 2 billion charge in the Fourth Quarter because of lingering problems with its insurance business. In a statement, the ge ceo said, at a time when we are moving forward as a company, a charge of this magnitude from a legacy endurance portfolio in runoff for more than a decade is deeply disappointing. There has been increasing concern among analysts about ge capital, because even after they significantly reduced, this is still a behemoth. One estimate from an analyst puts it as a top 20 u. S. Bank, with over 140 billion in assets. I mean, this is huge, and very opaque in nature. We dont totally know everything in here, as evidenced by the extent of the charge, and there could still be more to come with different pieces of ge capital in terms of liability. All of this is not john flannerys fault, obviously, he has only been in this job since august, but we have had the bad news in october, the bad news in november, and if you are an investor you have to be saying, when is it going to end in terms of nasty surprises . Apple will return hundreds of billions of dollars in overseas cash to the United States. In a statement out wednesday, the company says it will pay 38 billion in repatriation tax. Apple also claims that investing tens of billions in domestic jobs, manufacturing, and data centers in the coming years and give employees a 2500 bonus. 20,000 jobs is quite good news from a political perspective, but given they have 84,000 employees already, thats quite a big bump. What is interesting to me is if you really look at the numbers, the big number they want everybody to talk about is 350 billion in the u. S. Over the next five years. The odds are they were going to spend most of that money already. The new money is 38 million for the tax bill and 30 billion 38 billion spent on the tax bill and 30 billion spent on the u. S. If you subtract that from the 252 billion they have offshore, they still have a huge pile of cash, and that is what shareholders will be excited about in terms of buyback. Workers at one of apples largest chinese suppliers have made allegations of harsh factory conditions. The main manufacturer of the iphones distinctive brushed metal casings is now under fire over claims made to Bloomberg News and a Chinese Labor watchdog. The company has now responded, saying it does meet apples code for suppliers. But tell me about some of the details of the allegations and what we have learned. The Advocacy Group is making allegations for 14 separate violations of either apples code of conduct or local law. They kind of run the gamut from labor violations such as forcing workers to pay for their own uniforms or equipment to certain environmentaltype violations. Although as you mentioned, he company is denying it violates any sort of code of conduct or requirement. The worlds number two maker of construction and Mining Equipment says sales in china nearly doubled last year. Turnaround in chinese demand has helped drag their stock to a record high. We heard from the likes of caterpillar in the u. S. , a lot has to do with china. Absolutely, and it is not just komatsu in japan. It is also Companies Like hitachi construction. They are all benefiting from these twin engines of growth. One is the Infrastructure Investment in highways and bridges, china has just entered the last half of its latest fiveyear plan, so theres a lot of push to get the projects done. The full run in commodities has been a big story last year and we expect it to continue this year. It has been a big driver of growth for all of the heavy equipment makers. Lets talk a little bit more about asml. They have had their First Quarter sales that trailed estimates. Europes Largest Semiconductor equipment maker said its firstquarter revenue came in at 2. 2 billion euros. They also have a new chief financial officer. We just finished an absolute record year. We did over 9 billion in revenue, which is 33 up from the prior year, and earnings topped 2 billion, which is 44 of the prior year. We have a very, very positive outlook going into 2018. We will see Significant Growth in both revenue and in earnings. We have such Strong Demand that we pulled over 400 million in the last quarter, therefore the revenue guidance for the First Quarter is slightly lower, but if you take the two quarters combined, it is significantly better than what they expected. Nestle will sell its u. S. Confectionery business to an italian nutella maker ferrero. We have confirmation, what is the deal about . This is really about the shift away from unhealthy snacks. Nestle wanted to get out of this business, had been veering away from chocolate and sugary sweets. They are now the leader in mercs consumer unit. They want to take themselves away from that. The relatively new nestle ceo, this is his biggest divestment to date as he repositions the company away from suite. For ferrero, this is about buying into the u. S. Market, but nutella, much as i love it, they do not see it that huge in the u. S. So they need to diversify it here. Airbus closed 2017 on a high. The european playmaker announced this morning it booked a Record Number of contracts for 1000 jet lines, 52 more than 2016. It is in many ways a record for us, but in nine of the last 10 years we outsold our competitor in seattle. It is more a continuation of a trend, i would like to say, but it was a very good year, and it was back end loaded. This industry is going through a very good time, 7 growth in the world airlines. Youve got about 35 billion in profits being forecast, airport congestion, high load factors. It means more airplanes and bigger airplanes. Airbus has ordered 36 airbus a380s. Do we have any idea of how much no way is he paying 16 billion, he had a massive discount. John leahy a, wanted to get it done before he left. Keep his legacy, hes handing over the job next week. And b, they want to keep the program alive. So tim clark is in the drivers seat. Amazon announcing they have narrowed the field of cities for the proposed new headquarters to 20. Contenders include new york, boston, chicago, miami, austin, texas any surprises here . One of the ones that was interesting was raleigh, north carolina. In that research, Triangle Park area, sunbelt, surrounded by a lot of universities. Duke, n. C. State, but the question is do they have a big enough airport . But that is one of the interesting ones that is outside the bigger markets. I think observers are looking for something on the east coast to balance the Pacific Northwest of seattle, but there is a lot of interest in all the cities, and we will see over the next several months those cities put their best foot forward to make themselves standout. Uber has completed its deal with softbank, triggering a series of governance reforms. The japanese conglomerate is now ubers top shareholder. Tell us about the changes expected now that the deal is done. The biggest impact will come in the form of an expanded board, which will be increased to 17 seats. That is quite a lot of people by any companys standards. Softbank will have two of those seats, strengthening the companys influence on decisionmaking going forward. The big difference is that the deal eliminates this twotier voting structure for shares that heavily favored early backers as well as early employees. It will also put an end to a lot of internal strife that has handicapped the company, specifically ending a loss by a benchmark capital, one of their biggest backers. If you take a look at the bloomberg and the various business lines of merck, vaccines in blue, Animal Health in orange, and pharmaceuticals in white. Overall, what you are looking at is tepid, if any, growth for the various revenue lines, particularly when you put them all together. Juliette 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. Heres another function will find useful, q uic go. It will take you to quick takes, where you can get fast insight into timely topics. Here is one from this week. Used to be when a colleague emailed you to say they are working from home, you might not have envisioned the most productive day. Maybe he was doing some personal chores. Maybe he had a bit too much to drink. Maybe he was just slacking off. Uh, whats your dads job again . But telecommuting is legit. Currently, over 60 of u. S. Companies provide the option, and it is often promoted as an extra perk to attract and retain talent, allowing companies to consider candidates in different cities or countries. But are Remote Workers productive workers . Heres the situation. Even as telecommuting rapidly expands as an option offered by u. S. Businesses, a number of early adopters are beginning to secondguess the concept. When discussions on telecommuting began in the 1970s, the focus was less on productivity than it was on pollution. It was suggested that reducing the need to commute might curb the environmental damage caused by cars. In 1990, an amendment to the Clean Air Act required companies with over 100 people in severely polluted areas to limit vehicular commuting. Telecommuters didnt take off until the internet, especially if companies noticed unimportant ancillary benefit, dwindling real estate costs. Between 1995 and 2005, ibm, an early adopter of telework, reduced its physical space by 78 million square feet, which created at least 200 million in annual savings. But as more and more companies offered employees telecommuting benefits, some of the earliest pioneers have become skeptical. After 20 consecutive quarters of falling revenue, ibm calculated that its Remote Workers that its Remote Workers performed better in close proximity to colleagues. In 2017, thousands of remote ibm employees received an ultimatum move near an office or lose your job. Best buy, once lauded for its innovative approach to scheduling, scaledback in 2013, as did yahoo . So why the change of heart . Well, heres the argument. A survey conducted found that only 38 of companies in the world Group Employees by job type. The growing trend is to Group Employees with various functions into teams. Critics of remote work argue this structure requires a level of collaboration that simply cannot be attained without facetoface interaction. Some bosses also suspect that Workers Abuse remote benefits. On the other hand, studies show employees who telecommute are happier. Theyre also more productive, though that might be true for only certain types of workers. The most widely cited study was looking at callcenter employees, whose jobs require little teamwork. Some advocates argue that telecommuting could narrow the gender pay gap by allowing mothers to balance childcare with work duties. One study found that a spouse working from home is given more chores. So while certain aspects of telecommuting can be attractive for workers and businesses, just like anything else in life, everything in moderation. A review of studies concluded that the most successful arrangement requires at least some face time in an office. Juliette that was just one of the many quick takes you can find on the bloomberg. You can also find them at bloomberg. Com, along with all the latest Business News and analysis, 24 hours a day. That will be all for bloomberg best this week. Thanks for watching. Im juliette saly. This is bloomberg. David at one point, your father left your mother. Ginni it was sudden, and my mother found herself with four kids, no money. David lets talk about ibm for a moment. Ginni we are the champions for business. David when you are meeting with President Trump or other president s, do you see that ceos are willing to say, mr. President , that is not a good idea . Ginni my experience is people are respectfully honest and give their opinions. David do you feel a certain responsibility . Ginni women do need role models. We are still a small minority that run these companies. David in the stay fit category. Ginni i do box with a person. The difference is he does not get to hit me. [laughter] would you fix your tie, please . David people wouldnt recognize me if my tie was fixed, but ok. Just leave it this way. Alright