Business is over 40 of earnings, that should only increase from here. Lets now, the shutdown showdown with washington. This is deadline bloom, it feels like they have the economy on President Trump. Apple prepares to bring home overseas cash and announces plans to spread it around. This is 20,000 jobs. , this is business from a political perspective. This is Clean Energy Investment. China is far and away the world leader in terms of the most amount of capital been deployed and the most of the equipment. About 53 of new sales will be electric. Conversations from the north American International auto show. There is more to come. Our group is coming from a degree of buoyancy from the markets but this is market share growth. They can have the option of delegate intact to that vehicle that their grandfather never expected, including, never crashing. It is all i had on bloomberg best. Ahead on bloomberg best. Hello and welcome, i am juliette. Is bloomberg best, your weekly review of the most important business, News Analysis and headlines from television around the world. U. S. Markets were closed on monday but the week began with a startling corporate headline from the u. K. U. K. E once mighty construction jobs has collapsed. Carillion has collapsed. Carillion has 2 billion in debt. Share prices have collapsed in the last year. Who is to blame . Sideshink you have both deserving blame, the government for presiding over a very competitive, too fragmented contracting and procurement market where the bottom line is everything. Not enough attention is given to the health of these companies and other blame will be carillion itself for to aggressively bidding for and goingh the for aggressive growth. And should have the government awarded them further contracts one we saw when we saw the share price plunge . This is concerning because it suggests they did not know the ofealth of the carillion. Problem ifre is a the government doesnt know the full health of one of the biggest contracts. Citigroup is at its highest in nearly a decade after revealing plans to shower investors with profits. This will pay out at least 60 billion to shareholders. This will adjust to the new u. S. Tax structure. Turning to tax reform, we believe it will greatly benefit city shareholders citi shareholders. This is as a result of a lower Corporate Tax rate, the implementation of a territorial tax system and the tax on repatriation. Extent,ger sent this was a gift to citigroup. I think the key thing is with regards to the charge and capital return, they made this clear in early december, we will have a huge charge but it will not stop us from that 60 billion capital return which is the plan over three years so they did make that announcement before we got the final bill with the this wasl, repatriation but i think the key thing that we learned today or the one thing is that better than expected results in the card unit. We do get a little better than expected so credit coming in line with expectations and growth, prestrong. Bank earnings may continue to roll out this one, bank of america reports bond and equity trading that beat analysts but Goldman Sachs saw its worst bond trading in a decade. This is down a massive 50 . What happened . They had a very strong year. Strong with any other banks. I think the expectations were then and it was delayed his appointed member, is important for goldman because they are more from that business than other banks but on the bullish side of things, Investment Banking, kill you, gain shares in businesses that are growing and doing better and controlling costs so showing that there in businesses that are very transactional driven, equity training, to the extent that they can keep the cost variable, that is hopeful to the bottom line. Whats bank of america tends to not have a big swing that other banks might have, what theyre trying to do is create quarters of desperate ability rather than swings from one order to another and that is what theyre laying out now, the sequential quarters of steady earnings, the bottom line number looks good, the top line number was a small miss in terms of revenue, what was surprising is how strong the Capital Markets revenue were. They will probably have one of the best Investment Banking quarters of any of the big banks. China has had its first for your acceleration since 2010. Gdp growth picked up 2. 69 meanwhile, Industrial Production estimates but retail figures came in the bit softer than expected. No big surprise, it is noteworthy given that the economy has come at the beginning of 2017 saying that they expect to see a moderate slowdown, that hasnt happened but these were noteworthy given the expansion in credits starting to slow in china and you have a very focused tackling in terms of the Regulatory Environment on financial risks. They have theke economy on Cruise Control and will not step back anytime soon. A big part of what is happening in china is they are global. If fungus economy and recovering your is driving demand for exports out of town and escorts are a net contributor growth last year. Dot given the opportunity to this, things are looking good, inflation is relatively subdued. Every thing is on track. Morgan stanley topping estimates with brokerage profits sending a new high for a fourth straight quarter. This is the one area they miss with six income training, i would say if investors would go to dictate area for them to invest, that would be the one and still in life with her annual target so Morgan Stanley is executing on plan, theyre coming and within that night to the 11 range and that is the key ones i think investors are really going to focus on how much health were getting from the market and where we go from here. We are seeing the Morgan Stanley is the power of their diversification and the strategic decision they made to whaty push forward in management and that business is over 40 of earnings and 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 and 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. ,here 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 passes and other battle, the senate will learn that Chuck Schumer is headed to the white house for a meeting at the president s request. Quite 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. Particular with the presence travel plans to dive as 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 discussionsumber of that will continue. 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 exquisite conversation with bill mcnabb. The passive investing has provided the everyday investor better returns and riffs all the way. And more of the weeks top business stories, bitcoin takes another dizzying get. 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. Canada raising his overnight Interest Rate to 1. 25 . It sees the need for accommodation to keep inflation on target here. Growthe forecasting 2. 2 in 2018, 1. 6 in 2019. Slowing, obviously. There expect and that remain at 2 . Inflation is above our target. Arguably, if you took that as a snapshot, it would be high. 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. It happens every time and we think this time it could be a bigger effect than usual. This is a long soul 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 that process in the bud. I am concerned about sudden movements that dont reflect changes in fundamentals, look at fundamentals, inflation is declined slightly in december. This is one of several officials that say a stronger year may help efforts to get inflation to the goal of just shu shy of 2 . Future, happen in the if we carry on these places, inflation doesnt show much signs of underlying strength in particular. There will be increased concerns on the dovish week of the governing council who are already nervous about unwinding serious potential too fast. Bad news for bitcoin, falling as much as 20 today, that is the cryptic crypto crackdowns. This is a broader january sell up with a Digital Asset down over 35 this month. Why is that 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. The 10,000,mbled bringing his loss to almost 50 from the record set only a month ago. The latest plans 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 what when 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. Volatilitystory of 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. China is bracing for more trouble\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 , theysing u. S. Dollars 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. The incident was not due to attacks, this is the floor on top of the main but the reason for the incident 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 lindsay and the chief economic advisor, they are all three phd economists. How alike are they and how different . They are very much alike in their Monetary Policy views except the political side of it. Thinker,sly is a big 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 is straight down the center and of the has been a member 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. Williams might make a difference with longterm strategy because he has been arguing that the fed needs to take another look at the 2 inflation target and maybe inflation targeting instead. 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 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 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. Is thing they pointed out the decline in venezuela production, it lost Something Like 300,000 barrels a day last year. So far, this has been very 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 the outlook for the future. The world is going greener, energy was up from 2016 but it did not manage to top the 2016 p, 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 builder that 53 gigawatts of new 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 wasthe pack and it everybody else that came a distant second, including the United States. This is compared to about 130 in china. Ask 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 roadr meets the world in terms of tax credit and other things, the market was generally fine. We had about 57 billion worth of investment, that is where have 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 has 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 places like that are important and we are predicting 53 of new0, about car sales globally will be electric. Straight ahead, we will revisit some of the weeks most compelling conversations, bill 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. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And ask how to get a 150 prepaid card when you buy a new lg x charge. Its a new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com what does the u. K. Have to do to retain access to the Single Market . Well, i