Juliette and a new bloomberg reports shines on Clean Energy Investment. China is far and away the world leader in terms of the most amount of capital being deployed and the most of the equipment. By 2040, about 53 of new car sales globally will be electric. Juliette buckle up, conversations from the north American International auto show. It is a milestone for our future plans, but there is more to come. Our growth is coming from a degree of buoyancy from the markets but this is market share growth. They can have the option of delegating tasks to that vehicle that their grandfather never expected, including never crashing. Juliette it is all ahead on bloomberg best. Juliette hello and welcome. I am juliette saly. This is bloomberg best, your weekly review of the most important business, news, analysis, and headlines from and interviews it from Bloomberg Television around the world. U. S. Markets were closed on monday but the week began with a startling corporate headline from the u. K. Mark the once mighty u. K. Construction giant carillion has collapsed. Carillion has 2 billion in debt. They failed to get a government bailout. Share prices have collapsed in the last year. It is nice to it is not nice to play the blame game, but lets play at who is to blame . Lionel exactly right. The blame game is happening right now. I think you have both sides deserving blame, the government for presiding over a very competitive, too fragmented contracting and procurement market where price, 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 for too aggressively bidding for contracts with the incentive to get the executive and the board on growth, and it should be for aggressive growth. Mark and should the government have awarded them further contracts in the wake of the year where we saw the share price plunge . What kind of message does that send . Lionel it is a concerning one because it suggests they did not know the full health of carillion. Or they did know and did not put and were hoping to put in the right contingency plan in place. I think there is a problem if the government doesnt know the full health of one of the biggest contractors and the supply chain to do with it. Vonnie citigroup is at its highest in nearly a decade after revealing plans to shower investors with profits. The bank is sticking with its plan to pay out at least 60 billion to shareholders. That is even after its larger than forecast charge of nearly 2 billion. This will adjust to the new u. S. Tax structure. Michael turning to tax reform, we believe it will greatly benefit citi shareholders. The charge we are taking relates mostly to the reduction of our deferred tax assets as a result of a lower tax rate, the implementation of a territorial tax system, and the tax on deemed repatriation. Vonnie to a larger extent, this was a gift to citigroup. Alison i think the key thing is with regard 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 return, which is the plan over three years so they did make that announcement before we got the final bill. With the final bill, this was related to repatriation but i think the key thing that we learned today or the one thing that is that better than month thing that is 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, pretty strong. Jonathan Bank Earnings may come up earnings, they cash Bank Earnings, they continue Bank Earnings, they 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 . Alison keep in mind that they had a very strong year. Third quarter stronger than other banks. Expectations were down. 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, gain shares in businesses that are growing and doing better and controlling costs, so showing that there in that they are 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. Charles bank of america tends to not have a big swing that other banks might have. What theyre trying to do is create quarters of predictability 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 revenues were. They will probably have one of the best Investment Banking quarters of any of the big banks. Francine chinas economy has had its first fullyear acceleration since 2010. Gdp growth picked up 2. 69 meanwhile, Industrial Production estimates, but retail figures came in bit softer than expected. Tom 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 in growth. 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. Enda it seems like they have the economy and somewhat of a sweet spot. It is on Cruise Control and they are not willing to step back anytime soon. A big part of what is happening in china is actually the global story. The economy is recovering and is driving demand for exports out of town and escorts are a net contributor growth last year. That given the opportunity to do this, things are looking good, inflation is relatively subdued. Currency is stable. Growth is on track. Jonathan Morgan Stanley topping estimates with brokerage profits sending a new high for a fourth straight quarter. Alison all good. 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. They are coming and within that 9 to the 11 range and that is the key ones. I think investors are really going to focus on how much were getting from the market and where we go from here. Devin we are seeing the Morgan Stanley is the power of their diversification and the strategic decision they made to really push forward in what in wealth 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 a quarter where we can a where we knew the fixed income backdrop would 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. Vonnie congressional lawmakers face the midnight deadline to avoid a partial shutdown of the u. S. Government. This, as the house passed the measure that would keep government up and running until february 16. Senate democrats say they are holding out for a provision that would protect the status of young undocumented immigrants. Marty there is tremendous pressure on Chuck Schumer to not give in on the daca deal. There are republicans, republican senators are throwing up their hands and saying i will not vote for a shortterm cr. We have to stop running our government this way, so there is no clear path for 60 votes in the senate at this point. Dir. Mulvaney 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. Sen. Durbin 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 another battle, the senate will learn that Chuck Schumer is headed to the white house for a meeting at the president s request. Kevin 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 what the administration is ultimately hoping for. Particular with the presence with the president s travel plans to davos less than a week away. Sen. Schumer 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. Juliette still ahead, much more Companies Including a deal that will take nestle out of the u. S. Candy business. Plus, an exclusive conversation with bill mcnabb. Bill the passive investing has provided the everyday investor better returns. Juliette and more of the weeks top business stories, bitcoin takes another dizzying get. Dizzying dip. Edward even if youre one of the most bullish bitcoin investors, you can look at the event of this week and not feel a chill. Juliette this is bloomberg. Juliette this is bloomberg best. I am juliette saly. Lets continue our global tour of the top business headlines. In canada, with the Rate Decision from the nations central bank. Julie the bank of canada raising its overnight Interest Rate to 1. 25 . It sees the need for accommodation to keep inflation on target here. Banks in canada were forecasting 3 growth in 2017, 2. 2 growth in 2018, 1. 6 in 2019. Slowing, obviously. The bank of canada expecting inflation to remain at 2 . Mr. Poloz we are operating at about our potential. Inflation is above our target. Arguably, if you took that as a snapshot, Interest Rates should be higher. Any model would say that. I think what we need to bear in mind is the experience that we have been through has actually depressed potential output. In every expansion, we get to this stage of the cycle and firms say now it is time to invest. But it goes faster than what we have in our model. It happens every time, and we think this time it could be a bigger effect than usual. This is a long, slow cycle. We have to at least entertain the possibility, because to the extent that it occurs, this is a higher level of gdp forever. If you are worried about inflation risk and so on, first of all, you have a tendency to nip that process in the bud. And we are being very careful not to do that. Mark they are concerned. The vice leader saying 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 that say a stronger euro may harm ecb efforts to get inflation to the goal of just shy of 2 . The concern is that it is rising too fast, it could happen in the future, if we carry on these paces, 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 wing of the governing council who are already nervous about unwinding stimulus potentially too fast. Shery bad news for bitcoin, falling as much as 20 today, that amidst the surge of crypto crackdowns. This is a broader january sell off with a Digital Asset down over 35 this month. Why is bitcoin going down again . Is it the jitters of more regulation . Camila yes, that is a main driver for the bitcoin slump. It got to as high as 20,000 last year and it went as low as 11, as low as 11,200 this morning. It is now back up again around 13,000. It is a big slump and the main driver has been regulatory concern. The latest is that south koreas finance minister says showing down Cryptocurrency Exchanges is an option. There are reports of china that they are escalating the crackdown. That is weighing on the markets. Shery bitcoin tumbled below 10,000, bringing its loss to almost 50 from the record set only a month ago. The latest plunge brings more drama to a digital coin market that has lost more than 300 billion in value since january 13. Edward even if you are the most bullish of bitcoin investors, you cant look at the event of this week and not feel a chill about what is happening. I think when you get into everything is going to ok, that is when you look at the everything will be 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 11x 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 deep breaths about it being ok. Betty trade tension between the u. S. And china. They surface again with trump telling chinas leader to tell them that the growing deficit is not sustainable. China is bracing for more trump backlash on trade . Tom they realize that the rhetoric is being ramped up again in washington. It have been floated 2017. 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 and with 2017 increasing u. S. Dollars, they will have missed that the u. S. Is taking a tougher line on these deals. The trade with beijing is being blocked as well. All of those things are being weighed by officials here. The chinese are being very clear, theyre saying if tariffs are imposed, they will retaliate, and therein lies the risk. Harry indonesia and the Stock Exchange was evacuated. This after the floor of the buildings level one in tower two collapsed. Officials said that several people had been hurt. What is the latest there . We just got confirmation that the incident was not due to any bombs or attacks, this is the floor on top of the main lobby of tower to was collapsed, but the reason for the incident is unknown until now. Manus obviously, trading was interrupted at that juncture. That has been restated. Give us a sense of the kind of impact. Harry it happened during the lunch break, so we do not see any disruptions in the trading this. We plan to deliver this by an we plan to delay this by an hour, but we did not have a stuffed up so the trading has resumed. David San Francisco fed president john williams, who is said to be in the running to be vicechairman. This puts him beside lord lindsay and mohamed elerian, the chief economic advisor, they are all three phd economists. How alike are they and how different . Michael they are very much alike in their Monetary Policy views, except the political side of it. Mohamed elerian obviously 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 williams is straight down the center and he has been a member of the fed since basically 1994, the detour to the council of economic advisers, and has voted along with the chair all of the time, 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. Francine 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 up for explosive growth this year. When you look at what they are saying, they are basically saying that u. S. Oil output will increase because the price of oil is increasing. There is nothing really new. Will what is new is that people expect u. S. Shale to accelerate much faster than they thought. All this new supply should be bearish for oil with a couple of other things to factor into the equation. One thing they pointed out on the other side of the equation in this report is the precipitous decline in venezuela production. It lost Something Like 300,000 barrels a day last year. The other thing is will opec hold its line . So far, this has been very so far, it has been very disciplined, but if prices stay and climb, we will hear more and more voices saying that opec should ease its policy stance. Juliette welcome back to bloomberg best. I am juliette saly. Bloomberg new Energy Finance has released its 2017 report on Clean Energy Investment trends. This is based on its wellbeing database of projects and deals. The analysis tracks Global Investment in Renewable Energy and Energy Smart Technologies in the past year as well as the outlook for the future. We discussed the report in detail this week on Bloomberg Television. Julia the world is going greener, spending on green energy last year was up from 2016, but it did not manage to top the 2015 peak. That is according to a new report from Bloomberg NewEnergy Finance team. What were the key drivers . Ethan the biggest driver and headline of course this year was china where we saw an unbelievable volume of new solar build 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 being deployed in the most amount of new equipment be