Shrinking, they make a key decision on stimulus. The European Central bank has one way to go and that is lower when it comes to rates. , how fasts reports and furious. We have been successful. The teflon company. , the weeks top interviews. Small probability it could be dangerous. What is happening is not entirely driven by brexit. It is all straight ahead on bloomberg best. 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. Monday, optimism grows on signals that the u. S. And china might be preparing to restart trade talks. Could beiations restarting soon after a number of goodwill gestures by beijing over the weekend. That is according to chinese media. Looks likeare seeing , they are about to start buying again, soybeans and possibly some pork and other agriculture commodities. That is goodwill measures if you will, but we should not take that to mean a deal is suddenly at hand. Major Tech Companies paid a visit to the white house to discuss the economy and status of the u. S. And on while way huawei. What was the outcome of the meeting . According to the white house, the ceo of the company expressed report support for National Security restriction for huawei. They also asked for timely decisions on when there would be exceptions to that. We still dont know how the companies are making distinctions between what the National Security risk is and what isnt. Boris johnson will be the next Prime Minister, promising to take the u. K. By the u. K. Outn deadline of the eu by the halloween deadline. We are going to take advantage of all the opportunities. Majority a razor thin behind me. It is going to be a very tall order for Boris Johnson to deliver. The only way i can see this if he canugh is persuade the European Union to thenmething which she can sell to his party as removing the backstop. This is the brexit deal they dont like. My mental image is a very small jungle ina dense which he is trying to land a large plane. Trade officials fly to china on monday for facetoface talks in may. There for talks about china. Cautiousness . I would be very cautious. This is the first talked since announcing the temporary truce in the trade war, but Administration Officials have been cautioning not to expect a whole lot. It is something of a breakthrough. Closingve equities right around session highs and it all changed just before 2 00 p. M. Nothing like a sprinkling of earnings to help galvanize the risk. Bank, germanys biggest lender lost over 2 billion euros in the Second Quarter. It dropped to 12 in the Second Quarter and again underperformed its biggest u. S. Rival. Theith the execution comes recognition of the steps we have taken. This quarter, we are recognizing about 3. 4 billion in costs, so we get a good portion of the accounting impact already behind us and the balance of the year we are working to take restructuring charges in the second half as we execute on the restructuring. Facebook out with secondquarter earnings, proving again the company can grow. Just hours after facebook announced a settlement with the federal trade commission to end a probe in the companies Privacy Policy and practices, the company confirmed it is now being investigated on antitrust as well. With all of these controversies and scandals, how did facebook keep the key beating the odds . Every quarter, i say the same thing. They have been able to grow revenue and user base despite mounting challenges and this quarter, more of the same. Thehey keep raking in dough, they are brilliant advertising platform, especially for smaller businesses, there is not another place to go word else results can be achieved. That is a great thing for the but longterm, is a going to affect them . Absolutely going to affect them, no question about that. Boris johnson has wasted no time in shaking things up. The former home secretary making a big promotion for the home office and another one has been made [inaudible] this is essentially him doubling down on his brexit commitment. Him shaping a cabinet that will help them deliver brexit. He is bringing alongside all those people who were rebelling against him. Remember, he has to have every single one of them in order to get a deal across, so it will not be incredibly challenging to do that. The ecb is dovish as the Central Bank Issues a rate cut and lower inflations. Necessaryinues to be to ensure financial conditions remain very favorable and support the expansion. He made it clear the European Bank only has one way to go and that is lower. He also made it clear they will look at all [inaudible] he did not give any details on qe2 or elaborate much on what it could look like. Of course now, we will look at a situation where they will be speculating the entire summer of what will happen. How big is the rate cut going to be and do we actually get other policies . By theet clear guidance rate cut . Google having a bounce back quarter. Top analysts estimate that hasles phone operating [inaudible] thehey were able to stop decelerating for the first time in year. I think the story remains from the last quarter which is that the Digital Advertising is more significantly competitive and it is a year ago. Obviously, facebook and amazon being the new entrants, the thirdlargest that is out there to put the dollars into, so i think there is more competition and that is what is feeding this new normal that they were going to expect when you look at googles ranks Going Forward. Amazon fell after reporting a lower than expected forecast. They say they will continue to improve topline growth and delivery. Spending is back at amazon. They told us they will spend some 800 million on trying to today delivered pledge into a oneday delivery pledge and it is going to continue at least for the next and to try to increase the speed of delivery in the core retail business. U. S. Mobile has won the approval of the merger with sprint. Does it mean they can go ahead with the deal . Pretty much. They still have some steaks they ,eed to be in front of, but yes it is a momentous occasion for the two country two companies five years in the making. We see who can provide the best 5g. We feel very confident combined we will be able to do that , it is Sprint Spectrum called the midband combined with tmobile gives us the ability to build an advanced network, so there will be some great competition and i think the big beneficiary of this will be the American Consumer with more choices and better prices. U. S. Growth slowing in the first quarter, but not much as analysts expected including pushing gdp growth to Business Investment taking it on the chin of an escalating trade war. I would be more encouraged if we were looking at diversified growth, meaning contributions from exports and a whole array of categories, but that wasnt the case. It is consumers going it alone which would be good enough to territory, but certainly would be much more encouraging in you see a bunch of contributions. And you see a bunch of contributions. And assistive conversation with Alan Greenspan, plus bank brexitand governor says is not britains only economic problem. What we are seeing is the business growing. This is bloomberg. Best. S is bloomberg the Earnings Report could be heard loud and strong this week. Ubs saw a revival in his fortunes in the Second Quarter after what Sergio Armani called one of the worst starts to the year in recent history. Record profit and Wealth Management business and a stronger performance have helped them pose the highest net income in almost a decade. It is a strong one, but that does not make us complacent about the environment. The Investment Banking activities and the revenue pressure is there. We are acting from a position of strength and a position in which we constantly look to improve our business and it is not one of the initiatives that make a difference. We also need to take advantage of our position in the market. Secondquarter profit hit by cost cuts along with a restructuring. The bank reach an agreement and the lender is also closing hundred 140 branches. They have delivered the strongest performance in years, reflecting the progress we have made in our digital transformation. It is clear they are changing and customers are channeling more and more than through the physical Distribution Network and we have to continuously adjust through the new way of the relationship. They have reported the slowest inflows in at least seven years. Switzerlands thirdlargest bank missed its mediumterm goal from 4 to 6 . From the core Wealth Management is this, particularly from asia to the middle east. You are right we had some outflows and we are within the target range. And look at margins have an they have we accident from better markets and i think it is important going isward that the cost program on track. Manager said 4. 2 billion euros in inflows in the quarter, so it was actually a big bright spot for deutsche bank, the Parent Company and the Asset Management business says has really turned around 700 billion euros in Asset Management. What is going right for dws . We have a diversified and we can respond to our clients needs and we see strong inflows with alternatives in particular. Shares of cocacola of 5 , posting their biggest gains in four years, pushing close to a record. The beverage giant got another boost. I want to ask you about the north american unit. We did see a little bit of a weakness. Are you losing sales in north america and what to do about that . When you look at the north american business, we have a strategy we have been pursuing which is driving engagement with consumers and one of the legs of that is using smaller packages where we are looking at transaction growth, even if it means less volatile. We would like to see the volume increased and the strategy is really about expanding and creating value and growing the revenues and i think the sign of it working is you will see more households buying more of our products in the households in the u. S. Going up. We are seeing the business growing, yet the report going down. Tumbling of tesla are and doubledigit losses down 11 . Reported ac carmaker larger than expected loss and is cutting capital expenditures. The Company Pushing ahead with expansion in china. At least they cap their forecast for delivery. They also kind of walked back from the idea of making profits in the thirdquarter and later this year, but we see from the results the model three sells for less than the model x and now the makeup of the company is one where it is selling three to four times model threes and the margins are really under pressure. Volkswagen fell 8. 1 on fading demand in key markets come a but the worlds biggest carmaker is sticking to its fullyear outlook. Sales being down, we have still been able to grow operating profits. We have to ben is successful with the pricing and we are forecasting a potentially and have second half to stick to our guidance for the full year. The suns troubles are far troubles nissans far from over. What is the issue with the jobs cuts plan . Sales,an see from the the way that incentives were being used, especially in the u. S. I think some job cuts are necessary and the problem is where the cuts are located. Far, north so america, the talk of indonesia as well, to some extent as japan. The japanese operation is about half of the revenue in the mix. L next global you are watching bloomberg best. All eyes will be on the fed next is expected to cut rates. This week, Alan Greenspan spoke exclusively with bloomberg and said an insurance cut could make a lot of sense. Certain forecast have four more negative effects than , yous, so in that sense will act to reduce the risk of those types of events and that is a valuable thing to do. I remember on a number of rates notwe cut wasuse we thought it probable or necessary but the probability of what would happen if it indeed it happen was very events. Elative to other small consider there is a probability of events that can be dangerous, it pays to see if fend itsend it off off. [no audio] growth as slowing global. Remedyr rates help or slowing growth . Something i recall being very active. Not. Might and they might i dont feel like in another ,tself it is a reason to act but there is a relative trade oaks to this day. Up, more news investor business and finance. Congress works out a deal to raise the u. S. That feeling that no one is very happy with. The former bank of england governor is that up with the battle over brexit and he says itws why it is been has been dragging on. The parliament has voted for nothing. This is bloomberg. Welcome back to bloomberg best. Week, the new nass textile Stock Exchange opened in china, market, thetar first day for a training frenzy as 25 companies that made their 140 ,rose an average although the exuberance faded a bit as the week went on. Selina wang, with the China Renaissance Group at the launch of the new exchange, and asked how this new stock menu will distinguish itself. Its allfferent about the sponsorships. Neednot about whether you a certain requirement, at the end of the day. Us, with a lot itchinese Tech Companies is quite interesting. How much do you see this shifting the balance of listing from new york in hong kong to Mainland China . The u. S. Is still a very attractive place given the opportunity to raise u. S. Dollars and get capital control. I think these are different markets. Theyllng kong, china, have a different focus. Company,e a large cap the u. S. Is a perfect home. Broadestt liquid, Capital Market in the world. It hasng, obviously, connections to the china markets, and if you are a company with unique Business Model, hong kong is probably your topic. And if you are hard tech semiconductor, china is probably the best choice. It isur perspective, always good to have more options. I think eventually the chinese Tech Companies entrepreneurs they will group toward different selections. The u. K. Has a new Prime Minister, but it faces the same question it did before Boris Johnson took office on wednesday. What will happen to britains economy as it headed towards an uncertain voice from the European Union . Former bank of england governor mervyn king tells bloomberg how the country might use fiscal and Monetary Policy tools to meet its challenge. In terms of the macroeconomic response, if there were a weakening of the u. K. Economy, and i think it is important to make clear that what is happening to the u. K. Economy is not entirely driven by brexit. One of the great mistakes of the past three years amongst many commentators is just to assume that everything thats happening in britain as a result of brexit. It isnt. We are part of a bigger World Economy which itself is slowing. Other parts of the world europe, the United States are thinking about how much policy space they have. I think we have quite a lot, if it were thought to be appropriate to ease either monetary or fiscal policy. But that is a judgment to be made by the respective authorities further down the road. It is there if we need it, that isnt the big challenge. The big challenges for parliament to come to a view as to what we are going to do, and so far the thing that matters more than anything else is that parliament has voted for nothing. It has voted against everything, voted against remain, against h different varieties of brexit, against the no deal brexit. It hasnt voted for anything. That is the source of the deadlock in which we find ourselves. So what is the solution . On the demand side of things, you can say that demand is impervious to Monetary Policy, that it cant stimulate demand, but thats the Global Economy slowing argument. On the political side of things, we know the u. K. Has already entered a technical recession. What is to be done . Can the boe do anything by using . Greater cooperation within the World Economy i think the Federal Reserve is quite likely to ease Monetary Policy, to see continued growth in the u. S. The bigger problems i see lie within the European Union. They are exporting deflation to the rest of the world. They have a very large surplus. The trade surplus of china has for the moment disappeared, is the big issue on the international front. The issue is the current account surplus of the European Union. I see no prospect of them being willing to face up to tackle that for some considerable time. If trade tension is the leading Downside Risk for markets, geopolitical shocks are certainly close behind. This week Kevin Cirilli sat down with the u. S. Secretary of state, mike pompeo, one of the worlds most influen