About industry issues. We are going deeper than normal and i think that is good. We encourage that. There is always politics in the background steady. , you need to keep going. Plus, facebook reveals the project that goes beyond social. The coo says the company is ready to embrace it. Companies like ours should not make as many decisions as we do, we know that. It is all straight ahead on bloomberg best. Emma hello and welcome. This is bloomberg best, your weekly review of the most important Business News and interviews from Bloomberg Television around the world. Lets start with the day by day look at the top headlines and last weeks protests against an extradition law in hong kong continue over the weekend. The government responding to extreme public pressure. Hong kongs leader made a rare apology over her proposed extradition bill, this after hundreds of thousands of protesters took to the streets for a second sunday in a row. The government suspended the bill saturday, but that did not stop more mass protests, demanding complete withdrawal of the bill. We have not seen a full withdrawal of the bill, but we have heard from some over the weekend. Regina one of them. She said a suspension is equivalent to a withdrawal, because in a way, they dont have enough time to get this through in the current session. Many watchers are saying this could be a facesaving option for carrie lam in a way, a way to back down from all of this and basically let this law die a natural death. Mario draghi closer to pumping more stimulus into the economy, highlighting the case for action. Mitigating measures to contain any side effects remain part of our tools. He is certainly using his final few months to hone and even nudge the governing council in the direction he wants to go, which traditionally has been in the direction of more stimulus. It was a very clear message that this talk exists and by the way, you might have to use this soon. Dovish comments from mario draghi. Germany is negative. France at 0 , a record low. The u. S. Tenure hovering just above 2 , that key level. Taking a look at global Interest Rates, now down to 157, the lowest since december 2017. Equities really getting a boost from the idea there is more easing in sight. The euro is down. Catching the attention of President Trump. Donald trumps tweet then followed and i dont think it is wrong to say it was widely ridiculed among the central bankers, but now the macro man column comes out and says maybe the move was designed to preempt the fomc rate cut, to preempt a lift of the euro versus the dollar and that would maybe be the start of the currency wars. The g20 meeting next week in osaka, already the most recent most eagerly anticipated gathering of World Leaders in recent years. When donald trump talked about he and xis expected meeting, that raised the stakes higher. Seeing basically a big rally here. The prospects of easing Monetary Policy, and of course, we had trump saying he will meet with xi jinping. How is the market reacting . Is it trade, is it the fed . I think it is the trade news. The market rallied on the ecb news, but more post that tweet. The first day of the fomc meeting and the white house has grabbed some of the spotlight, President Trump exploring the legality of demoting jay powell, that is that is according to people familiar with the matter. The headline came out at 11 23 and the equity market stay calm. Stayed calm. There was not a ton of movement. Please tell me we are taking this in stride. It seems to be the one thing we are taking in stride. Trade headlines still seem to very much move the market, but this does not. And i do not know if it is because this is less likely to transpire or it is just the notion that they are convinced that the fed is Strong Enough and that any succession would be not enough to tip the balance in the Central Banks. Facing pressure from wall street, the fmocs latest decision and it jay powells address. Rising expectations that the fed will hold Interest Rate steady. Opening the door to perhaps a rate cut in the future. The fed doesnt cut rates, but they come close. Eight members of an open Market Committee saw the need for rate cuts this year, one voted to cut today. A majority of the Committee Sees to rate cuts, 50 basis points as appropriate by the end of next year. Although some wrote down cuts and others did not, it was clear that those who wrote down a flat rate path see additional accommodation has strengthened. The message is clearly we are getting more dovish, but at the same time, the fed avoided signaling a july rate cut, so at this point, i dont think it is a done deal. The market is priced at 1 for july and the only thing is whether it is a 25 basis for 50 basis point cut for july. For those types of odds, it if the fed disappoints on those types of odds, it wont be pretty. You wonder what the future for jay powell will be. I think the law is clear that i have a fouryear term and i intend to serve it. The president believes he can still get rid of jay powell. Jay powell not taking the bait in terms of making the calculations. He feels hes not going to respond to political criticisms or the president s thinking. It could have been a lot worse in terms of what the fed ultimately does. It was not ideally what the president wanted, but it couldve been a lot worse. We are waiting for the bank of england, coming out with a Rate Decision right now. They will want to keep the key rate at 75 basis points. The vote was 90. You did not see any dissension today. There was tension. The fed is talking about of the ecb is talking about easing and the market is pricing in the easing into the expectations for the bank of england. That is really what the bank is noting when it talks about the tension. The market is clearly pricing at a much bumpier view of how the brexit story will develop. The market sees a completely different way at the moment and it is putting the bank of england in the context of a Global Economy at the moment, and in the context of a tougher brexit. Tensions between the u. S. And iran escalating, as iran shot down an american spy drone near the entrance to the persian gulf, which supplies one third of the worlds oil. The president tweeting out that iran made a big mistake. All eyes are on the white house and the president s twitter feed. As you know, late last night and overnight a flurry of briefings for the u. S. To try to understand what happened. The iranians insisting this happened over there airspace. Their airspace. The usa saying clearly it was over international space. The expectation is it will require a more substantial response by the president right now. President donald trump seems, earlier today, to downplay the attack, suggesting that a loose individual may have been responsible. You do not hear washington giving tehran the benefit of the doubt frequently, but i think there is an effort to dial back some of the tensions that led oil prices to surge on this latest attack. I think the president has, for now at least, calmed fears that a military strike is imminent. As we hear that closing bell, we are closing the books on another day of gains. This after yesterdays fed driven advance. You see stocks rallying, but im looking at bond yields. The tenure down 2 . How significant is that . It is a psychological level, as i like to say. Something that everybody is watching. And i think the real key will be on the front end because the market is getting far ahead. Every time the fed gives a little bit, the market pushes it further. What is to stop the market from going back again and again . Nothing, unless jay powell says that is enough. Protesters in hong kong resumed demonstrations today. Thousands gathered outside the city headquarters. Demonstrators are calling on carrie lam to stop to step down. What are the chances that because of the protests, carrie lam actually resigns . She has given no indication she has any intention of resigning, and that is not sitting well with many of the protesters here. They not only one carrie lam to resign, but they also want her to withdraw, retract the controversial bill. One protester told us, the point is to paralyze the government today, because they do not respond. So far, fairly peaceful and police have stayed at bay. In a series of tweets, trump said when he was told the planned attacks would kill 150 people, he stopped them. You have john bolton and secretary of state mike pompeo who are quite hawkish and believe the u. S. Needed to send a very firm message to iran, but you also have the president , in 2016 in no uncertain terms, he campaigned on the idea that he would not bring the u. S. Into more costly wars. I think one way to think about this is these are all negotiating tactics. What the president wants is a new deal with iran and all of these moves he sees as a way to achieve that. Emma still ahead as we review the week, interviews with top executives in aviation at the paris air show. Plus, blackstones Steve Schwarzman and a conversation with Federal Reserve vice chairman, richard. Why are we speaking of cutting Interest Rates . Especially in the last six or eight weeks, there have been elevated uncertainty about the outlook. Emma coming up, more of the weeks top business headlines, norways and centralbank hikes rates. The policy is expansionary. Emma this is bloomberg. Emma this is bloomberg best. Lets continue our global tour of the weeks top business stories in the u. K. , where there is a field of conservative contenders to replace theresa may narrowing to a final two. Boris johnson versus jeremy hunt in the title round to be final round to be britains next prime minister. They will spend the next month battling for votes from the conservative party before a winner is announced in late july. Boris is very much the pick. Some have suggested that the battle was deliberately crafted to give boris an easy ride. He is the overwhelming favorite, although polling data we have suggests that boris will be the runaway winner in this contest. It is interesting, he had a broad amount of support. He has been trying to unify the party, but ultimately i think he will be relatively pleased going up against jeremy hunt. He looks like a continuity candidate. Lets focus on iran now because they may be close to breaking a landmark agreement. That was, of course, meant to keep it from developing nuclear weapons. They say they will exceed agreedupon limits on june 27. What exact part of the agreement is it about to overstep . Iran has warned it will pass the agreed limits on low enriched uranium. This is about a 3. 7 . This is not material that can be used in a nuclear bomb. It is material that could be used in a nuclear reactor. A much more provocative step will be if they say they are going to start seeking to produce highly enriched uranium. That will be a major red flag for the United States and all the partners in the iran nuclear deal. Bloomberg releasing its forecast for the power sector. Among the findings, europe will make the fastest transition to renewables with china and the u. S. Playing catchup. That is the main highlight, that europe is well ahead of the pack. We might have known that already, but what is taking so long for other countries and continents to catch up . Europe has certain things that help it to get a bit of a lead, namely that they have put a price on Carbon Emissions to start with. In other parts of the world, there are other reasons and china has an enormous amount of coal generated power built that will be economically competitive for years and in the United States, an enormous amount of natural gas and that will continue to be very price competitive for the next several decades. Generally speaking, about two thirds of the country, we see renewables as the lowestcost source of generation in terms of adding megawatt capacity. Todays bank of japan giving keeping Monetary Policy unchanged, but for the first time in more than two years, a majority of economists predict the Central Banks next policy move will be to increase stimulus. The 10 year Government Bond yields falling. The banks governor was not too concerned. There is no need to take an overly strict view on the 10 year yield range. I think it is appropriate to allow a degree of flexibility. With the dollar dropped, the dollaryen, how does that play into what the boj will do next . People have to realize that he was in charge of the Foreign Exchange for five years and he intervened around 500 billion during the late 1990s, so he is a tactician and an expert on global foreignexchange markets. If the dollaryen breaks 105, the boj is going to have to ease quite significantly. The central Bank Delivering its third Interest Rate hike in september and signaling there is more to come. The move further widens the gap between the bank and other Central Banks. Many other global Central Banks talking about easing. You are hiking. Does that worry you . The short answer is no. Of course, we are affected by everything happening internationally and we follow closely the expectations going forward. But then the background for the increase is in the policy we have made, that growth in our economy is happening. Inflation in our case is above the target. And i will add that Monetary Policy in our case is expansionary. The policy rate is still quite lower than the neutral rate, normal rate, so we are stimulating the economy and of course, our policy rate and Interest Rates are definitely affected by what is happening internationally. European leaders have abandoned the formal candidate for the next Eu Commission president and it will start from scratch with less than two weeks before the selfimposed deadline. We are back to square one. And all the front runners, they are out of the competition. They cannot be the Commission President and the fundamental continues. The only agreement and this is between the french government and a german government. Angela merkel continues to thank the parliament and an and a Emmanuel Macron thanks it should be a much more open competition and we are back to square one with two weeks ago. The deadline is now seen as july 2, but there will be a summit on june 30. Facebook unveiling its own cryptocurrency called libra come expected to debut in 2020. This is huge news, not just for the niche of cryptocurrencies which have a market value of about 500 billion, which is minimal compared to the foreignexchange market. This is facebook taking that technology, infrastructure and applying it to payments and potentially has very big consequences. Facebook has over 2 billion active customers, which is more than china and the u. S. Have citizens. If this can be plugged into an Online System like Facebook Messenger or whatsapp, that is a big deal, not just for , but the Global Economy is slow. As well. When facebook announced plans to launch a cryptocurrency, washington pushed back with calls for hearings. Meanwhile, facebooks chief operating officer at a festival in france, along with many leaders. In an exclusive conversation with bloomberg, she insisted facebook is not looking to avoid regulatory responsibilities or restrictions. What we are calling for regulation, not just saying we are dealing with it reluctantly. We are working with people around the world on meeting a gdpr like privacy. We not just want to be at the table, but notice and acknowledge. Companies like ours should not make as many decisions as we do. New rules need to be written for the internet and we want to help make that happen. You think that realistic rules are being talked about . It seems like the eu has the blueprint. The legislative process is never linear and so we will see. Heres what we know. We do think it is a blueprint for privacy legislation and we are also not waiting for legislation. In the united they there was a bill that is not passed and what it said is that in political elections with political ads, you should be able to see who is paying for the outcome how much they spent, who is behind your ad. That build enough past, but we built the tools. It was up and running for the e. U. Election. The gdpr controls, they passed in europe coming out around the world, but we made them around the world available. We are very much trying to usher in the next era. Until then, we are going to keep working and try to move ahead because we know people need protection and we want to be part of that. You can find much more of that exclusive interview with Sheryl Sandberg at bloomberg. Com and coming up on bloomberg best, more of the Weeks Company news, including slacks venture into the Venture Capital market. Boeings ceo struck a tone of optimism. We are making good, solid practice on breaking max back up. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Emma welcome back to bloomberg best. I am emma chandra. Aviation executives came together this week for the paris air show, an annual opportunity for aircraft buyers and manufacturers to meet and make deals. The spotlight was on boeing, still reeling from the grounding of its 737 max, and airbus, hoping to take advantage of the setbacks and trade tensions to gain an edge on its u. S. Rival. Bloombergs guy johnson was in paris and spoke to ceos of both companies. Dennis we are maki