What will be the next coalition in germany . What will happen to the terms and conditions of brexit . Michael donald trump continues to promise big reforms, but opinions differ on if and when he will pull them off. I dont know when it is going to happen. If i knew that, if i would be pretty rich. To accomplish something in that area, there has to be something taken away. Michael it is all straight ahead on bloomberg best. Michael hello and welcome. Im michael mckee. This is bloomberg best, your weekly review of the most important Business News from Bloomberg Television and around the world. With several major banks reporting earnings on thursday, investors were poised for big news from the Financial Sector this week. They certainly did not expect the news about barclays that came out on monday. Francine Barclays Says they made a formal, written reprimand and they have made a significant cut to the ceos pay after he tried to identify a whistleblower in 2016. The bank says he made an error in not applying perfect governance. We know that in 2016 he tried to and this came to the attention of the board this year and it seems to be a violation of rules surrounding whistleblower protection. He should have saw it to find out the identity and in the statement today, they are there were repeated attempts to find out the identity. That led to action by the board. Staley will be reprimanded. He has admitted his error and apologized in a staff memo. He said he should have let compliance handle the matter. He may lose 1. 3 Million Pounds of his bonus to show the appropriate amount of contrition. Why is he still in the building . Obviously, the board thinks he can survive this. They presumably they think you might be given a sympathetic hearing. The wells fargo accounts scandal is rearing its head again. This time after a sixmonth independent investigation found wells fargos executive shrugged off the scandal. They lay the most blame on the former bankhead. Today, through her lawyer she , struck back rejecting the boards conclusions saying we saying we strongly disagree with of the report. When did they know things . One of their main conclusions is that the woman that ran the community bank, that she knew of a lot of things and she was really this hard person who would not allow a lot of other people to make changes into the bank and they also had john stumpf, the former ceo, her boss directly. He had been slow to fire her and did not really given enough guidance at that time. What else are the additional consequences today . Or is that it for now . In terms of compensation, they also voted on friday to call back in compensation from 47 million her. In terms of other firings, the board found earlier in this investigation, they did fire for four people. Some were deputies, others worked in the regional banks, less strictly under her. Jonathan Federal Reserve chairman janet yellen spoke at the university of michigan and said the fed is no longer putting the pedal to the metal , but has shifted to hold in gains in growth. Chair yellen what we want to make sure of is that we sustain the progress that we have achieved and that the appropriate stance of policy now is something closer to what we call neutral. Jonathan we all love a story, but does the story ultimately matter . They tell us it is not tightening. It is the removing of accommodation. Do the words count . They do count when you get into the markets because the fed is still accommodative. It is still putting some stimulation into the economy. Just less of it. What we should start to see as time goes on is the effect on the markets of Rising Interest Rates and less juice for the stock market. We have not seen that so far, which is the interesting conundrum here. Michael geopolitics continue to take center stage for business and markets today. Secretary of state Rex Tillerson meeting with foreign minister lavrov in moscow secretary. Secretary lavrov is meeting with Rex Tillerson right now. What are we looking to come out of these meetings . The u. S. Has low expectations for these meetings. What they are basically hoping for is for russia to say basically, we will think about it with the u. S. Proposal which is that washington really wants moscow to reconsider its support of the syrian president , bashar alassad. The current state of u. S. Russia relations is at a low point. There is a low level of trust between the two countries. Russia is open, not only for dialogue also joint action , aiming for the results where it is mutually beneficial for both countries. Kevin heading into this, there were questions about whether or not foreign minister lavrov and secretary tillerson would be able to play nice, so to speak politically. , rhetorically speaking, they vowed to Work Together to remove terrorism from syria and to Work Together to denuclearize north korea. But on policy, there was a marked difference. A difference that will no question reshape and mold President Trumps time in the white house. President trump says he is is likely to back away from a key campaign promise, saying he is unlikely to brand china a currency manipulator. Speaking to the wall street journal, he also said the u. S. Dollar is too strong. He suggests it is because people are too confident of him. It would suggest tough trade rhetoric has faded. What does it really mean, domestically . This is actually a very big deal and a very big step for donald trump. He said he would label china a currency manipulator on day one if he were elected president. So, this marks a major reversal from that campaign promise. He also, in this wall street article journal article that , a strong dollar is not good, a bad thing. That is a real move for the u. S. As a whole. For the past several decades, president s have said a strong dollar is in the u. S. Interests. Stepping back from that and reversing that position is pretty significant coming from donald trump. David we have heard from three of the five largest u. S. Banks. Are there any themes consistent across the banks that we should take away . The theme that i see is that the wall street side is doing quite well. Trading is buoyant. Even equities trading, which some people were not expecting to do so well is doing really well. Citigroup had its best quarter for fixed income trading in three years. That is all great. But, the consumer, the main street side is not as strong. The loan growth is not what people would have hoped, given the optimism in the market. There are a variety of reasons being given for this. Also expenses are not going down , sharply. In some cases, you are seeing some expenses rise, like at wells fargo, for example. A stronger quarter for jp Morgan Capital markets really drove the better part of that, fixed income trading. Equity trading also better than expected. We also saw some fees at citigroup that are than expected. Everything else seemed to align. What is interesting is actually we saw at all the Banks Reserve , releases this quarter. A lot of that was driven by energy. Last year, that was a big headwind for the company. They were being conservative in terms of reserving for losses. Now we see some of that being released since the outlook has improved. Michael still ahead as we review the week on bloomberg best, Christine Lagarde assesses the big risks to the World Economy in 2017 and Stephen Schwarzman explains why the devil is in the details for Donald Trumps tax plan. Plus, ford ceo sees Growth Opportunities in china and up next more of the weeks top , headlines. A viral video sets off a social media explosion and United Airlines deals with the fallout. The economics may have to be that they are willing to raise the price they are willing to pay passengers to get off the airplane. Mike this is bloomberg. Michael this is bloomberg best, i am michael mckee. Lets continue our global tour of the weeks top Business News with a story involving a commodities giant facing a challenge from an activist shareholder. Bhp targeted for an overhaul. The Investment Firm called the worlds biggest Mining Company to unify its corporate structure, spin off its assets, and improve capital returns. Give us the details on what exactly paul singer is urging they do. There are three things the hedge fund is calling on bhp to carry out. One of them as you say there is a demerger of the u. S. On shore and conventional oil assets. Elliott reckons those are worth about 22 billion. He wants to see those assets bundled into a single entity on that would then be lifted on the u. S. New york stock exchange. Theyre looking for bhp to simplify their quite complex structure. Bhp, essentially two companies, one in london and one in melbourne and the trade as a single entity. That has all manner of legal complications. It also brings up quite a number of complexities in the issuing of dividends. The third thing and wont be a surprise, here is another investor calling for improved returns to shareholders. Bhp says it is not worth the cost and rejected the suggestion of an overhaul to their business. What does it mean about Shareholder Activism in the Mining Industry . What does it tell us about where we are in the cycle . I think it tells us that management of these Companies Need to be acutely aware in the environment where Commodity Prices are Going Forward is a seems to be stagnant. Investors will be looking at these hard, finding pockets of value they think management should be addressing more closely. This is a perfect example of that. Keeping u. S. Manufacturing jobs onshore has been a priority of the Trump Administration. Earlier this year, toyota pledged they would invest 10 billion in the United States and now they followed through with a first involvement, a 1. 3 billion installment at a plant down in kentucky. The president went out of his way to say this is a great investment that reflects real confidence in the economy. Under his administration, how long has this been in the planning stages . Is this something thats happened since the election . The tnga program for toyota is not brandnew, it is just an opportunity for us to start introducing it here in north america, there are only a couple different manufacturing plants and vehicles on this new platform right now, so we are honored to be the first one in america to be able to get this program. We have been working on this camry for more than three years. This is not something that is just brandnew and picked up recently. Today, at t made a deal with a health care provider, and in talks with the drugmaker alcorn. Whoever heard of Straight Path . Essentially, it is just a spectrum buy. I think they have nine employees. So they are not the Biggest Company in the world. This is all about 5g. At t is trying to get ahead of where networks are going. Its also about the internet of things. Sometime down the road, you can use your phone and start your car before you get to it so it is warm. In general, at t has been very acquisitive. They bought directv and time warner. They have done a lot of these 1 billion and 2 billion deals through the years. Conglomeratee text has been forced to drop its 2 billion acquisition of visio. To thee latest setback Global Expansion plans. It is facing some huge challenges. I am talking about the u. S. And the plot of that is the sales pitch, looking distinctly murky. Absolutely, it is a pretty grim picture for the ford echo in the u. S. We are talking about the chinese conglomerate that does everything from smartphones to video streaming to electric cars. They set themselves a target of 100 million in u. S. Dollars in revenue by the end of 2016. The got 15 million. As a result, they are cutting jobs by about a third. They are pulling the plug on this deal. They have tried to push through to buy u. S. Tv maker vizio for 2 billion. That deal was really going to be part of their attempt to grow the brand and get a real foothold in the u. S. Market because in terms of brand recognition, it is still pretty weak. It really speaks to the cash crunch problems facing the country articulated by the , billionaire founder last year in a letter to his employees. It seems the situation is actually getting worse for their u. S. Business. Billionaire Patrick Drahi altice filed for an ipo. They are hoping to exploit stock market gains to create currency for further expansion. So, what is going on here . Why now and what would they potentially do with this money . Altice is a Cable Company in the u. S. Formed through the acquisitions of cablevision and sudden link, which are two smaller cable companies. With this ipo, they can raise funding to potentially do other deals in the cable space. I do not think many people are thinking they would stop at acquiring those two smaller cable companies. One company they have expressed interest in is a Cable Company called cox communications. Cox has repeatedly said it was not for sale. That would probably be one of the last big targets for alstice. United airlines off by 3 as right around the lows of the session off by 3 as a video of United Airlines personnel dragging a passenger off an overbooked plane went viral. Walk me through what the real issue is here for united aside from pr. I think all the u. S. Fullservice airlines are looking for ways to make their operations more efficient. Filling the airplane more makes them more efficient. I think we are probably getting close to the maximum overbooking and what we call load factors, the amount of people on the airplane. We are getting to the maximum that they can put or sell into an airplane. Thats the challenge here. Alix if they are hitting against their max load factor, what does that mean for their bottom line . George i think it means we are not going to get a benefit to their bottom line from selling the low factor even higher. I think the challenge here is the airlines have to think about if they are going to oversell the airplane to the degree that they are right now, the economics may have to be that they are willing to raise the price they are willing to pay passengers to get off the year planes they can get the priority passengers on. We can see it is a man of asian descent. What is the ramification in terms of passengers in asia . There is a blowback here. There is a very potential blowback here because if the chinese population feels united was discriminating somehow against this passenger because of his race, that can be a severe problem because united has the most nonstop flights to china from the u. S. Among the u. S. Carriers. Mark bombardier and said to be in talks to combine train operations. That is according to people familiar with the matter. What is the logic . What is the industrial logic . Does this combination makes sense . It absolutely makes sense. It is a capital intense industry. It requires a lot of capital to roll in stock from producers. Joining forces does makes sense. We see a clear pattern over the last couple of years. Two years ago, china was the formed the Worlds Largest producer of Rolling Stock and then we have seen hitachi snapping up an italian peer. There is a clear rationale for combining those players. Toshiba shares are slumping in tokyo after it warned it may not survive the enormous losses at its Westinghouse Nuclear unit. The stock down 2. 7 . The warning came as it reported delayed earnings reports not approved by auditors. How good or bad is this . It is a very unusual step for a company to take in japan. They have been trying to close the books on the december quarter. We are quite a few months past that at this point. They missed two deadlines. This was their third deadline for filing financial results. They said they could not get auditors to sign off on Financial Statement so they did it themselves. They made the disclosure and did cite the risks of their ability to go as a growing concern. This is a big deal stemming from the billions of dollars in losses at their Westinghouse Nuclear business in the u. S. Mark tesco shares lower today, after the uks biggest supermarket vowed to keep prices low. Ratcheting up the pressure on an industry beset by shrinking bond profitability. At the same time, the company posting an adjusted operating profit rose. It rose 30 to 1. 2 8 billion pounds. They say they plan to resume Dividend Payments in 2018 fiscal year. We have beaten our expectation slightly which is good and pleasing. We are confident about the year ahead and confident that we are on track for the 3. 5 to 4 operating margin which we highlighted in november as our ambition. Michael welcome back to bloomberg best, i am michael mckee. International Monetary Fund will hold its annual spring meetings next week in washington, d. C. This week, bloombergs Francine Lacqua sat down in brussels with imf managing director Christine Lagarde to get her thoughts on the state of the global economy. Francine what is the one thing we should worry about more . Is protectionist measures as bad as we thought a couple months ago . Christine protectionism is clearly a threat. And one that if it was to be realized, it would really be a break on growth, a break on productivity, a break on investment. We are seeing both innovation and trade are conducive to productivity. Productivity is the agent for gro