Rate cuts to come. In london, President Trump does a three day visit to the u. K. As his trade policies feed to growth anxiety. Silicon valley is targeted over antitrust. We will bring you exclusive interviews from Influential Investment figures on the current challenges and opportunities. 10 years into an upcycle. So at some point, the music is going to stop. I dont think we will see a Major Chinese company go public in the u. S. For the foreseeable future. We are playing with a lot of little a risk which is often ethical to trade through. Juliette we sit down with the pboc governor ahead of his meeting with secretary of the treasury steven mnuchin. Yi gang our policy for further hikes in tariffs or the escalation of trade wars, our policy toolkit is ready. Juliette and an exclusive interview with dallas fed president Robert Kaplan, and why he says it is too early to make a judgment on a rate cut. Mr. Kaplan should we be adding stimulus to the economy . That is a question we are asking. I am openminded about it. I think the risk to the downside has increased. Juliette it is all straight 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 interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. The week began with china demanding respect. Beijing released a white paper on the trade war, calling the u. S. Greedy. Meanwhile, President Trump tripled down on tariffs, leaving china, india, and mexico to figure out their next move. Francine china says it is willing to work with the u. S. To end the trade war, but blamed President Trumps administration for a collapse in talks. The commerce minister says there was no backtracking on beijings part during the negotiations. It is just an agreement, there is no backtracking. During the negotiations, everybody often says the method is agreed until everything is agreed. Haslinda it does look like china is laying the blame on the u. S. And demanding respect. Tom absolutely, playing the blame game. As the u. S. Is as well. In this report, the white paper published on sunday, you rightly say, the chinese are taking a swipe at President Trump saying that his policy measures and the response from beijing would not, quote, make America Great again. They talk about the need for the removal of all tariffs. They say that the u. S. Should dial back its demands of chinese purchases of u. S. Goods. The gap between closing the deal or getting back to talks remains far apart. Francine if trump goes after mexico and says, i am ok with the tariffs if nothing changes, does it postpone almost automatically the truce with china . Well, he is clearly putting himself in a situation where there is a lot of pressure to solve really complicated things. Not only do we have mexico, we have china. He is not talking about iran. Three major sets of talks to be pursued by the administration, which is not particular good for negotiations. If he pursues this, and that is a big if, i think people think he will walk this back, in large part because there is so much pushback domestically. It ever at his attention from china. It is less likely we will see any deal in the short term with china even of the president is now fighting a tariff war on two or three fronts. David everyone is waiting for chairman jay powell to indicate anything about cuts. I have not sure he confirmed there would be. But he did not seem to discourage the markets. Look at what is happening on the 10 year. All is good now. Jay powell to the rescue. Hated not promise rate cuts. But in his speech, he said that the fed would act as appropriate to sustain the expansion, whatever happens. For those wanting a fed rate cut, they took that to mean exactly that, and the fed it doe does not know what is going to happen Going Forward. But just the reassurance of the fed understands what is happening in the markets was enough to turn investors sentiment, at least for today. Scarlet it is all on jay powell. Or a big chunk of it. Jay powell is a big thing. The conciliatory tone of mexico and perhaps some optimism that that will not spiral out of control helping the market. I think with powell, the key thing is not so much that he is signaling a rate cut, but that he is a tune somehow to the downside risk. He somehow managed to thread the needle of moving closer to the market view, while saying that everything is fine with the u. S. Economy. Essentially, if you hear whatever you want, there is a bullish message, whether you are bullish because using the economy is on track, or you are bullish because you think the rate cuts are coming to bail you out. Shery coming now on the impending tariffs on mexico. We just learned that talks ended without a deal. We are now seeing reaction in the markets. Futures falling a half of 1 . The president is not around, he is in europe at the moment. There were still High Expectations from the mexican side that they could come to an agreement. Josh yeah. I think part of the uncertainty we have, that no one really knows what the deadlines are, what the criteria are, and what to expect. The mexicans had hoped they could get a deal to avoid the 5 tariffs by monday. They still have time to do that. Todays meeting ended without a deal would not be fatal in that regard. We have mixed views as to whether that is possible, how serious donald trump is. The president tweeted that there was no bluff here, that he is willing to go through with the tariffs if they dont get something done with regards to mexico along the border. But a lot of analysts seem to be looking at the mexican comments, including at the president , saying that they are optimistic that they can get something done in time so the tariffs dont come in on monday. Jonathan the European Central bank leaving is inflation forecast for 2021 unchanged. But mario draghi noting in his initial briefing that the council is standing ready to change that thinking. Mr. Draghi the governing council is determined should act in case of adverse contingencies and also stands ready to adjust all its instruments as appropriate to ensure that inflation continues to move towards the governing councils inflation and in a sustained manner. Guy the market is pricing in cuts by the ecb. Draghi did not deliver. Did he underdeliver today . I would argue that he was broadly online with what we expected, but clearly the market may have been looking for a little more. It is quite hard for the ecb to surprise to much, given the have limited room to maneuver. You get the sense they are trying to keep their powder somewhat dry for when they might actually need it. They are definitely looking at contingencies. Thinking about how they can ease, but i think it are reluctant to pull the trigger to quickly. Annemarie do you think the ecb is doing enough . Frederic i think so. I think there was not any specific surprise in the comments, the slowdown, the relatively modest slowdown. Probably, the ecb will keep its rates as they stand currently. No surprise, financial conditions remain exceptionally good. David we will find out later today where we are with jobs in the United States. Let us put up what we are expecting now. Although, this has been tempered a bit by the numbers. Michael the story here, not many jobs, not much which pressure, just 75,000 jobs created in may. March and april were revised down to 75,000. So no new jobs created, which means no wage pressure. Average Hourly Earnings up just. 2 . So the average pace of wage gains falls to 3. 1 . Unemployment unchanged to 6. 1 , although using just fall to 7. 1 . Nothing unusual in the numbers more people hired than losing , jobs. Labor big drops in the le force. Alix money floods in coupons, particularly on the front end, as yields drop. It feels like the overwhelming feeling is that we will have more cuts from the fed. The curve is still steepening, which is what you would expect if the market is trying to communicate its expectations for a fed rate cut sooner rather than later. Lets say the fed cut rates in june or july. Is that enough to save the economy . Anything that is a big question around that and i think there is a strong possibility that it is not enough. Vice president pence says the Administration Still plans to impose tariffs on mexico next week, with no agreement on halting the flow of migrants. Vp pence the tariffs will be imposed on monday. We have made that very clear to the mexican delegation. But discussions will continue in the days ahead. David we have the threatened tariffs being talked back and forth with mexico. What effect is that having already on mexico and markets . The u. S. M. C. A. Was a done deal. It is being reopened for none economic reasons. The Trump Administration is using tariffs as a weapon. So this is a big deal. It leaves a residual of uncertainty Going Forward on anything the Trump Administration says or does. I think markets are starting to come to grips with that right now. Juliette still ahead, the view from bloomberg invest. Interviews from Influential Investment figures on the current challenges and opportunities. Plus, we speak exquisitely to Dallas Federal Reserve president Robert Kaplan. And up next, more of the weeks top business headlines. The battle over big tex. The d. O. J. And f. T. C. Split up the job of monitoring tech giants. Of a breakup in regulation whipsawing stocks. This is bloomberg. Juliette this is bloomberg best. I am juliette saly. Lets continue our global tour of the weeks top business stories. U. S. Antitrust officials and lawmakers targeting silicon valleys biggest names for a drawn out fight with the government. Alphabet, facebook, apple, amazon even tumbling today after u. S. Antitrust probes after the u. S. Justice department and the federal trade Commission Team to be splitting up oversight of the technology giant. Apple is in some way anticompetitive . This in some way a shock to investors. It is viewed that apple they were not going to go after. This was at the exact time you did not need it, given the china worries as well as other demand issues that have been haunting apple stock. I think part of the problem apple is facing, as well as other tech players, is, what is the ballgame, and where other rules . Is this a baseball game where you start running in the first, or the third . I think that is the frustration in terms of what they do, in terms of strategic moves, do they try to keep it close to the vest . I dont think this will change their business models. But i dont think this was something even in cupertino they were expecting. I think the timing is surprising. Guy President Trump holding up the prospect of a big trade deal with the u. K. He did so during a joint press conference with the outgoing Prime Minister theresa may. That was a really wellbehaved press conference. We always hold our breath, we never quite know what will happen. No fireworks. He didnt really say anything that cross that line but people were looking to see whether he would cross the line. He was, if anything, extremely polite and gentle with the outgoing Prime Minister. He talked about one honor it had been to work beside her, how she he talked about what an honor it had been to work beside her, how she might not get as much credit as she deserves on brexit, which contradicts what he said only a matter of days ago. I think it was important to lead the final meeting between the two of them on a higher note and maybe some of the powder for later. There were a couple of things that got everyones attention. His saying that the National Health service should be part of a discussion on trade, everything should be on the table. And he sent pretty clear signaling to mexico back home. But if anything, with may, he was restrained and for more far more courteous than we have often seen him be. Guy theresa may has resigned effectively as conservative party leader today, marking an end to a tumultuous three years. I suspect whatever is the successor to mrs. May will have a pretty shortlived from your premiership. Why . Because the conservative party has found it unable to agree on the brexit results. In terms of the support within the conservative party from brexit and certainly those who will choose the next conservative leader, it remains strong, that the parliament cant get there and the clock is ticking. The french president does not want to extend beyond october 31. That means the risk of a Nodeal Brexit has gone up. And we have seen the conservative Party Candidates actually campaigning on a Nodeal Brexit. The talk of dissolving it in order to just fall over the cliff. Markets dont think that will happen, but i think the next few months will be pretty bumpy, and that means to me a new general election here in the u. K. Caroline Oil Prices Tumbling today. Take a look at this, we are off the lows, we saw brent crude fall below 60 a barrel for the First Time Since january. Steel prices trading at their lowest since the beginning of the year. Grewpetroleum stockpiles by some 22 Million Barrels last in nearly 30t years. We also saw u. S. Crude production hit a record. All that sparked a selloff but has seen wti tape into a bear market. We are looking at a chart from the recent high set just a few weeks ago in april, down more than 20 since then. The price action in oil today was brutal, essentially ending in a bear market. 22 from this april high levels. And it is thus scale. When you look at total petroleum inventory, it is not just crude oil, it is also refined products. So, gasoline as well, claiming 22 billion barrels last week. The data goes back to 1990, this is the most ever. It is not just the stockpile. When you look at the u. S. Production, it also hit a record. We also saw imports from other areas of the globe rise as well. It comes back to the fact that , if you were already worried about the demand picture, especially as it relates to u. S. China trade, now, we could be facing a supply issue in the u. S. As well. Not that there isnt enough, but that there may be too much. Fiat chrysler has confirmed it is withdrawing a proposed merger with renault, a deal that nissan was firmly against. The french carmaker wrapped up a Board Meeting with, again, no decision. That prompted fiat to walk away. It is the dream of this particular grand alliance dead . Stephen it is looking clear that this is dead. Im not going to say that final, but we are getting signs that this is definitely not a good process towards a deal. In china, you say, tie guay luh, too expensive, walk away. As a negotiating tactic, walking away in this sense could be the final nail in a deal which , which perhaps a few days ago seems like it was heading toward a preliminary agreement at the renault Board Meeting. But they had two latenight sessions at the renault Board Meeting that did not end with a vote on either case. And we are seeing now that the Fiat Chrysler executive team pointing the finger for all this falling apart on the french state government. This is a statement it has become clear that the political conditions in france do not currently exist for such a combination to proceed successfully. Fiat chrysler saying, no, the deal is done. Francine looking at the dday commemorations, 75 years since dday. With President Trump addressing the crowd scattered there. To put it into perspective, the sacrifice. 75 years of european freedom and prosperity. Tom the two president s walking down to the cliffs above omaha beach. Truly extraordinary. What is so amazing is those of us with a collective memory of Ronald Reagan in 1984, and our time has moved on, over 40 years. Truly extraordinary. As the two president s try to understand the sacrifice that was given. Juliette you are watching bloomberg best. I am juliette saly. Fed officials descended on chicago this week with investors looking for signals of possible rate cuts. We sat down exclusively with dallas fed president Robert Kaplan at the conference. He told us the fed is on high alert as a result of trade tensions. Mr. Kaplan i think it is really to make a judgment on that. We are going to be very vigilant about understanding these heightened trade tensions, see if they see through to the economy, most important they, see if they persist. And so i think it is too soon, though, to make a judgment as to whether we might or might not taken action. I would rather be patient and let events unfold a little more. Michael investors have priced in three rate cuts. Wall street economists over the weekend recently joined the consensus that you are going to cut rates. You have been in the watchandwait camp. What would tip the balance for you . When would you think that you need to make a decision . Mr. Kaplan i would need to see some evidence that there is a further deceleration of the economy. We expected that growth would slow from 20182019, what we are still growing above trend, we still see a tightening in the labor market. And our dallas term mean, which is our measure of core inflation, is now at 2 . So i would need to see some evidence that there is a worsening in those trends. We may well see it. I am on watch as to whether we see a further deceleration. But that is what i am watching for. Michael but the data are lagged. Costbenefit, what is worse . Cutting too early, or waiting too long . Mr. Kaplan so it depends on where you are in the cycle and what your stance is. My own assessment of our stance is we are in the neighborhood of neutral right now. If we were to cut, that would be me making the judgment that would be to add stimulus to the economy. That might ultimately be a judgment i need to make. But if, on the other hand, you have a restrictive stance, and you decide to cut, that is something different. Or if you are highly accommodative, it also is a different judgment. But right now, we are pretty much at a neutral setting. The question is, should we be adding stimulus to this economy . That is a question i am asking. I am openminded about it. I think the risk to the downside in the last five or six weeks has increased because of the se heightened trade tensions, so i am watching it very carefully, but that is a judgment and a question i will be asking. Michael they say that the Federal Reserve decides when to raise rates, but markets decide when you are going to cut them. How much pressure do you feel from markets right now . Mr. Kaplan i have spent my entire career in the markets, as you know, and i have learned that markets can change on a dime. For example, there has been a dramatic change in the markets since may 1, or approximately may 1, the last five or six weeks. And as we have seen, you could see a dramatic change in a different direction in the next five or six weeks. For example, what is happening to the Treasury Curve is very much in response to the trade tensions. Some of those tensions could be reversed in the next several weeks. So i have learned to watch markets, but i dont want to over read or overreact to what they are saying, because they can change on a dime. Juliette coming up on bloomberg best, recession risks on the horizon. Apollo Global Management ceo leon black sees a downturn after the 2020 u. S. Elections. And blackrocks Jonathan Gray sees progress ahead of trade. Plus, we speak to Goldman Sachs cfo Stephen Scherr from the european financial conference in paris. Stephen it is a market trading more on Political Risk than it is trading on a macro risk. Juliette this is bloomberg. Juliette this is bloomberg best. I am juliette saly. Influential and innovative figures gathered in new york to this week for the bloomberg invest summit to discuss the challenges and opportunities posed by a rapidly changing financial landscape. Here is what they had to say about the current investing climate. You essentially have this unbelievable economic machine in china and a great, rising power, a rising power economically, a rising power geopolitically, with the relative gap in global influence and Economic Impacts between the United States and china closing very quickly. And theres lots of historical precedent for the dynamics of a rising power, as you know many of which have not ended well. David many of which have not ended well. We have a wellknown political scientist who has written about this, the likelihood of conflict in this circumstance. If you think about the u. S. China relationship, more so now than ever, that would be the defining bilateral relationship of our time. That would be the defining relationship. And it is going to be difficult to manage. Different views of the world, a different way to think about a country, and the dynamics between the two. So thats the headline, and whatever happens in the near term the trade negotiations, it will take place within that arc of a very challenging relationship that could be, on one hand, strategic competition, on the other hand, if not managed well, could be much more combative. Joe if people have confidence that tomorrow, things will be better, and they will make Capital Expenditures or hiring decisions based on that confidence. If they feel very uncertain about the future, they tend to pull back. And i do think the tax cut last year was helpful in building confidence, and i think now theres more wariness in terms of whats going on. I will say this i still think , as it relates to the u. S. And china on trade, ultimately there should be a resolution, because it is in both parties interest, the recognition of a rebalancing that should be taking place. This is really about the pace and extent of that rebalancing. I do think the Technology Side of this is harder to resolve. And we may end up in the Bipolar Technology world. And to that exact point, i mean, rebalancing is one thing, but it feels like on the tech side, we are looking at decoupling in a lot of ways. You work at a place your boss, steve schwarzman, intimately involved in china, a confidant of the leaders of both countries. How worried are you about that decoupling . How is the firm . Jonathan i think everyone recognizes the parties have moved apart, and i think everyone is disappointed that has occurred. But i think there is a sense that it is in the collective interest of both parties to come back together. That is why in terms of trade and reciprocal openness of markets, i think progress ultimately will be made i think the technology is just tougher. Leon we are 10 years into an up cycle, so at some point, the music is going to stop. At the same time, we have an administration, like them or not like them, they have done a pretty good job in extending Economic Growth and Consumer Confidence and kept inflation down, and therefore it is very hard to say whether we are going to have another cycle with Interest Rates where they stand now and with the growth and Inflation Numbers where they stand. We might. It probably wont be until after the next election, but thats not that far off, so the key is to be prepared. You know, we go through hundreds of credits in the industry, and that we like, and study every part of their capital structure, and at what prices we want to start buying, and you are right, we have had the benefit of 30 or 29 years of doing this, so we do have a lot of conviction, and it is a very useful as a Value Investor pathway to finding great value. We have raised our bar in terms of the kind of returns we expect. We think valuation should compensate us for a riskier environment. The fact that we have connected all the dots around trade tension, particularly technology and Economic Growth could be , impacted. It may not be as fast as we have seen. We have seen slowing down and china, but we may see a bit more. Do you need more of what buffett would call a margin safety . Bill we had a china team yesterday, they were hitting the pause button in saying we want to see a little more cushion on valuation, private markets just a bit more, to reflect the reality of this realignment. Private markets tend to adjust more slowly than Public Markets to new information. We are watching its pretty carefully. Erik this is a standoff that has turned into a retaliatory titfortat. What if and its not a crazy suggestion the Trump Administration were to cut chinas access off wall street . Be, it mean, it would would have severe implications. But if we look at two seminal huawei i think is seminal. Alibaba i think is seminal. I do not think we will see a Major Chinese company go public in the u. S. For the foreseeable future. I think what will happen is the Hong Kong Exchange will change their roles to be much more flexible. I think you will see the government in china strongly encourage chinese companies, even domiciles offshore, to go public in hong kong. Closer to home. More under the control of the chinese government, although to a degree independent. But very accessible to Global Investors. What i dont think they want to do is cut off access by Global Investors to their most exciting parts of their economy. Juliette and now for another bloomberg exclusive. We sat down with pboc governor yi gang ahead of the g20 in japan. We spoke to him about u. S. China relations ahead of his crucial meeting with treasury secretary steven mnuchin. Yi gang the trade war would have a temporarily depreciation pressure on the renminbi. But you see after the noise, the room and be will continue to be very stable and relatively strong compared to emergingmarket currencies, even compared to convertible currencies. The renminbi is a very strong currency. I am very confident the renminbi will continue to be stable, and more or less equilibrium. Is there a redline for the yuan . Yi gang i dont think this is an important question. Because, you see, on the numbers, it is smooth and continuous. Number scale. S i dont think allowing this mathematical scale any number is more important than the other number. It continues, and this is a totally market driven, and determined by market supply and demand. The central bank of china, peoples bank of china, is already pretty much not intervening the Exchange Market for a long time. I hope that is the situation that will continue. A little bit of flexibility of the renminbi is good for the chinese economy and the global economy, because it provides an automatic stabilizer for the economy. It adjusts, the balance of line,ts will be along the and then also the peoples expectations will be along the line. I would say a Flexible Exchange rate regime is a very good arrangement, and that we will continue to have this market oriented mechanism. Tom if we find ourselves in a position where we see tariffs imposed on all chinese goods to the u. S. Market, there may be some retaliation from the chinese side. That will lead to a slightly softer, weaker economy domestically, and then a depreciating renminbi. Yi gang for us, i think actually, i see a lot of resilience and robustness in the of chinese economy. The renminbi serves, as i said, as a stabilizer for adjustment and also for balance of payment. And our policy for further hikes in tariffs, for the escalating of the trade war, our policy is ready, as you know, our fiscal policy for this year is tremendous. We have tremendous room if something bad is happening, our Monetary Policy could act in the right direction. We have plenty of room in the Interest Rates. We have plenty of room in requiring reserve ratio rate, and also for the physical Monetary Policy, where the room for adjustment is tremendous. And as i said, also, we are ready for the negative impact on employment, and if people are getting unemployed, because of the trade war temporarily, maybe for six months, maybe for longer, they make sure that they have Unemployment Benefits to raise their family, as well as send them to Vocational School for the job training. Juliette Goldman Sachs hosted its 23rd annual european financials conference in paris this week. We asked goldman cfo Stephen Scherr how the bank is navigating this uncertain business climate. Stephen it is a market that is treating more on Political Risk than it is trading on macro risk, and thats a difficult market for any trader to trade through. You see it obviously in your preamble of what the ecb and Central Banks are doing, and then there is the overlay of tariffs, whether it involves china or mexico. We are playing with a lot of Political Risk, which is often difficult to trade through. Francine and so what does it mean for your business . How do you adapt to this everchanging politics . Do you diversify . Do you need to change your business . Stephen well, i dont think you need to change your business. Any good trading business has the ability to be agile, the ability to respond to a different set of circumstances, and ultimately to be responsive to what clients are looking to do. We are in the end intermediaries of risk, and that changes based on political and economic circumstances, and so we stand ready, as we have for a long, long time, to intermediate risk among our clients. Francine talk to me about the credit card type with apple. Is it actually going to make money for you . Stephen it will make money. It is an investment, obviously, in terms of the investment in the product. Its a new product for Goldman Sachs. But over the long term, we view it as a very profitable business, and the tie up with apple has had a number of different benefits for us. Juliette you are watching bloomberg best. I am juliette saly. Lets resume our global tour of the weeks top business stories. Blackstone bets 18. 7 billion on urban logistics properties. The warehouse is used by amazon and other retailers used to fulfill orders from online shoppers. The deal with singapore will almost double blackstones u. S. Industrial footprint. This is a company that is no the Worlds Largest landlord, trying to invest money, and they have lots of it at the moment, therefore it is very difficult. Is this an indication that blackstone is only going to be looking at massive, massive deals . It needs to get these kinds of deals done, and i guess if you want to invest the kind of money they have, this works. Well, to your point, they are seeing a lot in this pattern. The difficulty is finding assets at the right valuation, that will be good growth stories as we go into an uncertain economic environment. I think this warehouse fits into that. This is obviously been a very large deal, but it has made smaller bets. There was a 7. 6 billion purchase last year, a 1. 8 billion purchase for other warehouse assets, businesses from harvard that fit in this space. You can see piecemeal deals to build up to a bigger overall business, and it has been a great way for them to put their cash to work. David Deutsche Bank once again back in the news. We talked to someone last week at the general meeting, you did not get a resounding vote of confidence from the shareholders. Now the reports are that he is included in this expanding probe. There were allegations of tax abuse. There were raids in the office because of allegations of tax abuse. Garth ritchie is now included in that investigation, what role he may or may not have had in that. He is under seizure. Deutsche bank is under their stock is down its quite stunning how far it has fallen. One of our viewers rode in and said, why arent you paying attention to the difference between market cap on Deutsche Bank and twitter . Twitter has more than twice the market value of Deutsche Bank. Who wouldve thought . Uplink bloombergs scoop, boeing is said to be negotiating one of the largest ever orders for planes with china. The deal could include about the newest and most expensive longrange jets in the catalog. However negotiations could stumble on the escalating trade war. Our Aerospace Team leader joins us. This headline is pretty surprising to me. One, you have the continuing trade tensions between the u. S. And china, two, china was pretty active when it came to the grounding of the 737. How long has this conversation been going on . It has been going on for a while, and even though it has been taking time. Our reporting suggests that no deal is imminent. Obviously the trade tensions are very much weighing on all the discussions. That said, the fact that they are going on at all shows how the u. S. And china are still dependent on each other when it comes to airplanes. You have boeing with the triple seven under discussion, thats a crucial market, and china needs all the planes they can get because air travel is growing so fast as the economy expands. If this works out, how meaningful will the deal be for boeing . Brendan it will be a very big deal for boeing. The first part, they need the business. The second part is that the company is in a huge crisis right now because of the crashes of the 737 max 8. China, as he said, has taken a very proactive role in grounding the plane and in reviewing what needs to be done to let it fly again. Planting a big order from chinese airlines, even for a different model, would be a pretty big boost of confidence for boeing. Not every day you see a stock drop as much as 40 , shery, but that is what we saw with gamestop. But here is a company that is still traditionally selling video games through retail channels, brickandmortar locations, while we are living in the world where streaming and online free gameplay through games like fortnite is the new reality. We saw that in the companys financial picture. It is challenged, especially as we see other Technology Companies get into the gaming business, whether it is apple or google. This company is trying to cut costs right now, but at the end of the day, gamestop shares have lost about 95 of their value since their peak back in 2007. Emily google is looking to expand. Google has agreed to buy Business Intelligence and Analytics Platform looker for 2. 6 billion in cash, giving google a new tool at his campaign for more Cloud Storage and software, and it struggled to compete with larger rivals amazon and microsoft. Theres a lot of pressure on google to do something to expand its size, at least from the analyst community. This acquisition was maybe not as big as people were hoping for, this is just a look at a product that many google cloud customers were already using, and they will be able to sell them together. The biggest was beyond meat, out with its first Earnings Report since its ipo back in may. It beat on all the main metrics that investors were looking for. You can see it is up about 12 . If we look at this company, it is up 300 . And in a way, you can argue that it was sort of underpriced at its ipo. Given its track record, its really not something that is outsized compared to what it has delivered. It has done a pretty rosy performance, rosy results. Maybe this is actually what they are worth. They are the most advanced compared to everybody else in the market right now. You have seen them more than you seen anyone else. They have somehow managed to creep into your normal burger places, where you dont actually think about having a veggie burger anymore. Known as the roundhill bit craft, esports and Digital Entertainment etf, otherwise we just call it nerd. Because that is a mouthful. Two things about this fund that stick out, it doesnt use videogames in the name. Digital entertainment is what they are going for. A look at the price, 25 basis points is cheap, but it is only guaranteed for a year. But that is very cheap. 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. Here is another function you will find useful. Quic. It will take you to our quick takes, where you can get fast insight into timely topics. Here is a quick take from this week. Lets say youve given up your lawabiding lifestyle to pursue a life of crime. Youve just made your first big score, perhaps from selling drugs, taking a bribe, or other corrupt acts. You cant just spend it or deposit it in your bank account without attracting attention from authorities. That pesky money trail could serve as evidence of the crime you committed. So you need to get that dirty money clean. There are three steps to any moneylaundering scheme. First step, placement, where funds are move from direct association with the crime. Then layering, or describing the disguising the money trail from authorities. Finally, integration, where the funds are once again available to spend without worry of being caught. So what are your options . One option is forming a Shell Company. It is fairly easy, and there are plenty of law firms who can help. It should take them only a bit longer than signing up for a new email address. Launderers turn to historic tax may havens like switzerland, or places with Anonymous Shell Companies like the Cayman Airlines were the u. S. States of nevada or delaware. Once the Shell Company is set up, make up some fake transactions for goods or services you pay for with your dirty money. Suddenly, that dirty money looks legitimate. It also helps to find people in banking who dont care if you are a shady client. After the fall of the soviet union, launderers sought out weak spots throughout europe where oversight was poor. Billions have been funneled through banks in cyprus, malta, and the baltic nations of estonia and latvia. If you prepare to use the stock market, you can try a technique called mirror trading. In this method, you use your money to purchase shares, and then you sell shares worth the same amount somewhere abroad. The trades functionally cancel each other out, but youve successfully turned your ruble into clean euros. A similar method is a backtoback deal, where, say, a russian takes out a loan in one country, say, austria, that is guaranteed by a deposit of dirty money back home. She then default on the loan, the bank seizes the deposit, but she still ends up with the proceeds of the loan. No strings attached. Or maybe you like to visit casinos. Another method of moneylaundering is mixing dirty money in with clean. Cash businesses like restaurants and casinos are particularly attractive to launderers. A common scheme is to buy a bunch of casino chips, make small wagers, then cash Everything Else out as winnings, or, finally, there is smurfing, though you wont need anything blue. You hire a bunch of associates called smurfs to individually deposit small chunks of the large hall you were trying to cleanse in different accounts in different places. But beware, u. S. Banks are required to report any transaction over 10,000, so you might need to find a lot of smurfs. So you can see theres lots of ways to launder money. Unfortunately for you, theres no guarantee that you will get caught. 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 for this week. Im juliette saly. Thanks for watching. This is bloomberg. House, andsean within asean is a growing market house. Just like india, we are maybe the two largest economies and it. Ll make a lot of difference its 17,000 islands, the largest population on earth, talking about connectivity and evolution. Indonesia is what asean could be without borders. They have to play the role to make asean really strong an
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