Skip to main content

tv   Bloomberg Best  Bloomberg  October 23, 2016 5:00pm-6:01pm EDT

5:00 pm
>> coming up, the stories that shaped the week in business around the world. big banks headline a week for corporate earnings, but do their big beats add up to a quarter turnaround? >> i think we will have to get another quarter of data. >> from saudi bonds to russian oil to italian banks. to the latest data from china. we will move through all the news moving the markets. >> that gives policymakers a bit of wiggle room. is verybond issuance much like an ipo for saudi aramco. >> plus, conversations with barclays' jeff daly, bank of america's michael moynahan, and michael dell.
5:01 pm
>> let's not reregulate the banks and great barriers to the free flow of capital. >> consumers are spending and we feel good about the u.s. >> we've see plenty of opportunity organically to consolidate. >> it's all straight ahead on "bloomberg best." hello and welcome. this is "bloomberg best," your weekly review of the most important business news and analysis from around the world. several investment banks released earnings this week and with the sector coming off a string of lackluster quarters, investors watched anxiously as bank of america reported on monday. bank of america in the spotlight reporting earnings that beat estimates.
5:02 pm
profit rising over 7%. revenue from their fixed income trading business was also better than expected, up by 39% year on year. >> you saw them post better-than-expected bond trading revenue, similar to what you saw at jpm and citi, i think it is a good news story given that they are not as big , in the macro products which were such a hit in the corner, this was may be a surprise to the upside given the results. >> is it turned around for banks? we are seeing a pattern. we thought they were out of the business and they seem to be surging back. >> i think we will need to get another quarter of data. we have had a couple head fakes in the past couple years. it has been good for one or two months. certainly, this is more than that. this is the best it has been in a while, but i think investors will want to see a couple quarters of sustainability on this front. alix: goldman sachs reporting a
5:03 pm
47% rise in profit from bond trading. net income rose to $2.9 billion. 49%he bank supported a increase from their fixed trading unit. put into context how important fixed income is to goldman. >> it has been known for a long time as a bond trading shop. they have a lot of money they take from equities as well. it is something where they really need that kind of revenue, and you really cannot discount anything where they have a bad quarter for bond trading and a bad quarter overall. this quarter, we saw an amazing rise in fixed-income trading of 49%, which is huge for them. better than analysts expected better than competitors. , >> what you saw a glimpse of this quarter was a little more
5:04 pm
client activity, people positioning around their views on rates, credit, and you had better quarter on mortgage, better quarter on credit, better quarter on rates. that could go a long way for goldman. alix: china's economy remains stable in the third quarter, putting the full-year gdp target well within reach and paving the way for policies which could reign in excess credit. that 6.7% matching up over the first quarter and the second quarter, in line with the forecast. bank in the middle of the target range. the number gives policymakers a bit of wiggle room, space to tackle those debt problems and reign in some of the credit that has been pumped into the system over the last few months from the end of last year and back to shore up growth. >> china's policymakers have a little bit of time in which they can start making some of the
5:05 pm
painful changes which are needed to prop up stability in the financial sector and to rebalance the economy away from the state and enterprises and towards a larger role for the private sector. the question headed into the fourth quarter is how much progress they will be able to make on those needed painful reforms. >> morgan stanley reporting third-quarter earnings that beat estimates, reporting a 57% rise in profit as fixed income trading revenue almost tripled. >> morgan stanley as a look across the board, great things all around. except for maybe expenses. fixed trading, equities trading, everything to do with revenue. all the things looking really good. investment banking, too, which is a really important business as well as wealth management which is a good beat overall, but if you delve into numbers a little bit further, i was looking earlier in the bank is not at the target it wants to be in return on equity. 9% to 11% as the target, and
5:06 pm
they came in at 8.7%. a little bit better than last quarter but still something they need to do better on. >> as we await this rate decision, the immediate estimate is for rates to remain unchanged and they come through right now unchanged. the deposit rate stays at -40. a marginal lending state at 0.25%. no big surprise. the summary is as follows -- no change on interest rates. no change to qe. scheduled to go to march 2017 or in the word of president draghi, beyond. they did not discuss the qe horizon at all. they did not discuss tapering of quantitative easing and the market wondering what they actually did discuss. >> i think they discuss where we
5:07 pm
are, progress, a couple of interesting points -- growth, you still see downside risk. i think that's what they discussed. and inflation, as a reminder to put the tapering discussion or qe discussion into context. what did they say? inflation picking up because of the content from energy prices. there's no convincing evidence that underlying inflation is on an upswing. that is the bottom line. go back to the mission. my main take away is nothing at this stage will wait for the forecast, for the projections. december is when we are going to have to discuss. >> the eu summit is wrapping in brussels, divisions clearly taking shape among eu leaders. canadian trade minister said it looked like the trade agreement with the eu has collapsed, calling it impossible. let's start with canada. what is going on?
5:08 pm
>> this is a small vision of belgium. less than 1% of the eu population, 3.5 million people, smaller event new jersey, and that is blocking the canadian trade deal with the eu. a few minutes ago, we learned the canadian trade minister has decided to walk out, calling the trade deal impossible, saying that it is clear that the eu at the moment is not capable of negotiating agreement with a country that actually has european values such as canada. >> what about brexit and theresa may? did she sound optimistic that a deal could get done? >> obviously, the sale of the canadian trade deal at the moment is a bit of a warning for theresa may because that puts a question mark on what kind of trade deal she will be able to
5:09 pm
negotiate. >> i am optimistic that we can achieve a trade deal. i think a deal that is right for the u.k. could also be right for the european union. alix: later in the show, we will run through more of the weeks earnings reports for a number of key tech companies in the spotlight. we also sat down this week with two of the world's most powerful ceo's. bank of america's brian moynihan and tech titan michael dell. straight ahead, we have more top business headlines, including a bloomberg scoop. apple is putting the brakes on its project to develop a self driving car. this is bloomberg. ♪
5:10 pm
5:11 pm
5:12 pm
alix: this is "bloomberg best." i'm alix steel. let's continue our global tour of the week's top business stories. in italy, banks have been calling for consolidation and on monday, a long-awaited merger finally went through. >> shareholders and italian lenders have backed the merger. the deal marks the nation's biggest in almost a decade and lands a big win for the prime
5:13 pm
minister, matteo renzi. >> it was the first merger in almost a decade. if the deal had not gone through, it would not have been a vote of confidence in italy's banking industry, which is already suffering under the weight of more than 300 billion euros of bad loans. i think it was the bare minimum needed to restore some confidence in this industry right now. >> how frail are italy's banks? and if we do not have resolution for the other banks, do you think the share price will suffer as a result of investors also discounting you guys? >> yes, i think our approval last saturday was very important, not only for our banks, but for our shareholders, to show a signal to foreign investors that it is possible to have consolidation and growth in
5:14 pm
italy, also without having resolution, soldiers opened the -- so let us open the transaction will go ahead with a bit more confidence, and if this can be sold in the next few months, i'm sure investors will come back to italy and try to invest in a sector which now has really a tangible book value which is very, very low. >> russia's biggest listed refinery expanding into india. they are buying sro oil for $13 billion. >> $13 billion is the contraction that russia's largest listed oil producer along with a consortium of investors is investing in.
5:15 pm
it is a big one for them. they are exiting the company, but more importantly they are deleveraging their books. india is, of course, emerging as an important oil producer and consumer in this region. it is expected to surpass japan as the third largest oil producer in the region. india fromrtant for a book standpoint. alix: now to a bloomberg exclusive. apple is dramatically scaling back its ambitions to take on detroit. >> the apple ceo gave the team of engineers permission to build a car, going straight after detroit and tesla and other electric carmakers. after some struggles internally, there has been a change of direction. apple has put on hold plans to build a car and is focusing on an underlying self driving system that it could potentially market to other producers. >> where do you think they would put this technology?
5:16 pm
could they work with ford, for example? >> it is possible. according to two people familiar with the matter, at the end of next year around fall 2017, apple is going to decide what to do, evaluate the progress of the self driving platform, and i think over the next few years, we will see which carmakers apple is choosing to partner with, if any. >> u.k. inflation came in for the month of september delivering an upside surprise, surging to the highest level in almost two years and fueled by a , plunging pound. does it change the calculus for the bank of england? >> i don't think it should. you have seen two chunks here. you have seen feel prices falling. this is just a base effect from lower oil costs, but you have also seen a pickup in clothing -- closing costs. that is a temporary timing effect. we have had some weird weather, so there's not an enormous
5:17 pm
amount of news for the bank of england. inflation set to rise and the sterling exchange rate is likely to push up on that for months to come. >> saudi arabia is going on a sale's spree. the kingdom planning to raise $17.5 billion as it tries to shore up its battered finances. this is according to people with knowledge of the offering. saudi arabia receiving bids for as much as $67 billion, beating -- $16.5's 16.5 billion sale in april. >> i think important to know that during the roadshow phase of this sale, saudi arabia went to the u.s. and london. it did not actually go to asia. not because it doesn't want asian mark -- asian money, but because that is how confident the kingdom was when securing a sizable backstop for this issue in the asian market. >> here is what a saudi arabia,
5:18 pm
qatar and abu dhabi had to play -- pay above the benchmarks. abu dhabi only issue 10-year, the saudi arabia for 30 years, 235 basis points over benchmark. >> this bond issuance is very much like an ipo because the economy itself is based on oil. this is a first step in a very aggressive step into diversifying outside of the oil space, and bonds themselves are really just sort of a feint for the ipo that the saudi's will ultimately go to to increase their capitalization or recapitalization of their oil assets. >> we are getting yahoo! earnings right now popping across the bloomberg here. third-quarter adjusted eps was $.20. we were looking for $.14. it looks like the eps number, the bottom line figure beating analyst estimates. this is all very interesting, yahoo! earnings, but do not
5:19 pm
really matter that much. the only thing that matters is if yahoo! still wants to pay for -- is if verizon still wants to pay for the company's web access. they recently came out with a bombshell that 500 million customers' databases were hacked -- or a database was hacked with 500 million customers' information. >> i think verizon still wants to buy, but they want to know what they are buying. the question is -- is this hacking a material adverse change to the company such that it would require them to walk away from the deal or give them the option to renegotiate the terms of the deal. lawyers are hashing it out. >> does the hacking incident provide verizon with a pretext to walk away? >> the real question when the lawyers get together, is this hacking issue and the disclosure of it a material adverse change
5:20 pm
to the business such that it would affect the value of the transaction? >> elon musk is on the road to autonomy, at least he says he is. he announced last night he plans to equip all new tesla cars with the hardware needed for full self driving capacity, so he will put a lot of cameras in these cars, as i understand it. >> that's right, going from one camera per car facing out to now eight of them. including three facing forward and 360 degree view. he says basically every car is going to have a supercomputer on board able to make whatever it is -- 40 trillion decisions is second. he is adding all this cost, all this hardware and software and development expense into these cars that you cannot use. most of us are not allowed to let our car do the driving for us in most of america or most of the world. >> how does he pay for that? does he raise prices on the cars he is trying to cut prices on? >> we'll see.
5:21 pm
when he says they might not need more capital this quarter, presumably he already knew that he was undertaking this and adding these expenses, so again, possibly a positive sign. >> bloomberg news is reporting that senior executives at at&t and time warner have in meeting -- have been meeting in recent weeks discussing various strategies including a possible merger. this is according to people familiar with the matter who declined to be named. >> how far along are we in these talks? >> pretty early. no banks have been hired yet. chalk this up to senior executives figuring out the art of the possible here. a full acquisition would be a very large deal, although for at&t standards, certainly not something that would be seen as too large. they bought directv not too long ago and this is in the same general ballpark, but i think they are thinking through
5:22 pm
options, and one of them is a full on acquisition. >> what type of valuations are these assets getting? six times ebitda, 10, 12? ♪
5:23 pm
5:24 pm
alix: welcome back to "bloomberg best."
5:25 pm
-- $3 billion u.s. shaving industry has undergone plenty of disruption in the past few years. gillette still dominates in retail sales, but online sales now account for about 10% of the market. that's one reason unilever bought dollar shave club for $1 billion a few months ago. other young companies are growing fast as the landscape shifts. one of them is the subject of this week cost small to big. >> we felt like the big brand shaving had forgotten about the customer. >> we had this vision around really changing the experience of shaving for guys everywhere. we make our own product, razors, razor blades, shave gel, and we deliver them to people at amazing value.
5:26 pm
>> when we started harry's, the first thing we realized was we had to make amazing razor blades. how hard could it be? we could not have been more wrong, so we spent the next six months trying to figure out everything about razors, how they are made, where they are made and what the magic is in a great blade. we've got a factory in germany that made some of the best blades in the world, and we launched in a partnership and right after we launched, we realized two things -- one is we had ideas to make them even better, and secondly, we were going to have to make even more. at that point, we put together a vision to buy the factory. we are now the only truly vertically integrated company in shaving. we raised over $100 million to buy this factory in germany. while it has been really complicated, we count our lucky stars every day that we get to
5:27 pm
be a company that takes feedback and drives it into making better products for them. when we were learning everything about shaving, we went and learned from barbers, so we launched a barbershop in new york. it is only two chairs, small, intimate, and we have amazing barbers. we believe we should innovate the way that our customers want. you get to know somebody really well when they are sitting in your barber chair for 30 minutes and you are talking to them. in shaving, there's one large company. it is gillette. they essentially control the entire market. we do not know if we are going to be the biggest shaving company in the market someday or not. we are only a three-year-old company. we are still a baby. we want to build a brand that is around for a long time. if that is a stand-alone public company or private company, we do not know. what we are committed to doing is find a structure that helps us achieve our vision for the
5:28 pm
long-term. alix: still to come, companies around the world reporting earnings this week. we sort through the numbers and dig into what they mean for the market. next, some of the week's best interviews, featuring exclusive conversations with brian moynahan and michael dell. >> your time horizon is very different. >> this is bloomberg. ♪
5:29 pm
5:30 pm
5:31 pm
>> let's talk about brexit. are you hopeful that banks like yourself will have access to the eu market? >> the g-20 recognized it needed to re-regulate the banking industry globally, and it has done a lot of that, and it has been a heavy lift by everyone since the financial crisis, but the other important thing they said was let's not re-regulate the banks and create barriers to the free flow of capital, if it's the flow of capital from singapore to china or paris to london or vice versa. i think the european union, the u.k., and the rest of the major
5:32 pm
financial centers will stay connected to this let's let capital flow freely and not put protectionist barriers. there will be some changes that we will have to adapt to, but the fundamental global financial market including the u.k. and the european union i think will be preserved. >> speaking of the u.k. economy, we saw inflation double last month. what do you expect the bank of england to do in the coming months and into 2017? >> our credit card and debit card picks up about 50% to 60% of payment flows during the day. what we saw in september and august was actually consumer spending has grown 4% plus versus last year, which is a pretty robust number. i think the reduction by the bank of england was the right thing. alix: that was barclays' ceo in singapore.
5:33 pm
barclays is expected to report third-quarter earnings next week, but this week, bank of america chairman and ceo brian moynihan saw his bank beat expectations on third-quarter profit, but the environment for large financial institutions remains challenging. he discussed the state of banking in an exclusive interview with our erik schatzker. >> revenue has been dropping. regulation has been increasing. the only way to boost profit is by cutting costs. where are we now? have we bottomed, or is there still further to drop? >> if you think about us coming off the highs of the revenue basis and activity before the crisis, you probably bought them. in our costsrew 3% went down 3%. it is really steady as he -- as
5:34 pm
you go, really driving incremental revenue growth. you can only grow so fast. taking outchnology, paper process, replacing that with digital, and that can go on for a long time. the $20 billion a year we took out did not really move the cost structure. now it is very incremental. >> the economy does remain a question mark. client behavior, particularly loan demand, can be a leading indicator. what is it telling you about the economic outlook right now? >> the u.s. economy is driven by consumers. it is the most consumer oriented economy the world. other countries are trying to get to it, and our consumers and customer base are spending 5% more than they spent this year to date than last year. >> does that tell you the
5:35 pm
1.5% economic growth environment we have been stuck in is going to accelerate? >> the other question is what is going on with companies and things like that. our experts fueled this great platform out here. last year, they were higher. the estimate is pretty much on par to how we are growing now. we do not see disruption in that, but you do not see the catalysts yet that will drive growth rates. it is just taking time, and as a stimulus comes out, that's fine. the economy is growing, consumers are spending, and we feel good about the u.s. alix: erik schatzker also travel -- traveled to austin, texas, this week for an exclusive interview with the dell ceo, michael dell if he had
5:36 pm
plans in mind, and he framed his answer in dramatic terms. >> if you think about this as a play, act i was to go private in 2013, right? act two is the combination of dell and the vmware. you are asking about act three, which you will have to wait to see. >> how long will we have to wait for that? >> we have a few ideas. we are focused on dell, emc, and vmware. all the great things we're doing for customers. we see plenty of opportunity organically to consolidate. we're going to continue to make acquisitions, and alliances and partnerships are also important. we also have our ventures program where we are investing , in hundreds of the companies
5:37 pm
that are 24, 36, 48 months out in terms of the future. >> you have the desire, clearly, but also the financial flexibility and capacity to do these things? >> we do, yes. >> you have been so outspoken about the benefits of being private, right? not having a publicly traded stock allows you to take risks? >> we love being private. we do have two public companies, though. buying -- >> buying emc is clearly a risk that few public companies could have taken. what about now that you own emc and most of the m where. what kind of risks can you afford to take that your competitors can't? as a privately controlled company, your time horizon is very different. you reimagine your business and think about your business in
5:38 pm
years and decades. it allows you to reconceptualize how you are investing and what the real priorities are. as we did that in 2013 as dell, we had pretty outstanding results. i'm talking about cash flow by the way in terms of results. from a market share standpoint, we grew our share in all of our seed markets even if the markets were shrinking. we were growing our shares and generating strong cash flows. now you reimagine emc plus dell as a privately controlled company with a long-term time horizon, it frees up a lot of time and allows us to have a much different respective on our business. ♪
5:39 pm
5:40 pm
5:41 pm
♪ alix: you are watching "bloomberg best." let's get back to earnings. quarterly reports came fast and furious starting monday when netflix and ibm released results after the bell. >> netflix shares surging 20% on better than expected subscriber growth. added 3.6ted they million subscribers in the third quarter. new series credited for gaining new subscribers. they say they will produce 1000 hours of original programming next year, up from 600 hours this year. at what point does this get to -- too expensive?
5:42 pm
>> if i were an investor, it is already too expensive. the fact is it is a good media company that happens to distribute content over the internet. i don't believe it is a go to the moon company. it is a fortunate company that has grouped itself along with the internet community that has gained value for being grouped with these companies. >> how do you respond to that? >> the question is how do they spend the money. if they just wildly throw money into the market just go for more hours, that will fall apart. we don't need more clutter in a video environment. that is the risk. >> ibm beating analyst estimates, reporting $19.3 billion revenue. ceo highlighting that ibm is seeing double-digit growth and in -- in its strategic imperatives, in other words revenue coming from artificial
5:43 pm
intelligence. it is the 18th quarter of revenue declines. tell us the good and the bad here? >> you have to get this company credit. this company has been on a long-term multiyear transformation. we are now seeing really good progress of that. would people like to have seen a little more revenue growth, absolutely. margins took a hit. however 40% of the company's , revenue is now associated with strategic imperatives. they are making progress. you can see that in the numbers. particularly sustained 15% growth, in a nutshell, that is progress. they deserve to be commended. >> we are getting numbers coming through. hayes reporting a total growth of 3%. net cash at the end of the third quarter at 20 million pounds. the headcount was up 2% year on
5:44 pm
year. >> how does the world look to you right now? >> i think outside the u.k. everything continues to be strong. we had an all-time record in germany, and all-time record in france. europe on the back of not a lot of economic growth is a combination of businesses and people getting on with their lives. we have always said there is a lot of structural growth opportunity. on the other end of the world, asia-pacific, a significant pickup and australia, our third-largest business has real positives there. america is looking good. going back to the u.k. -- in this quarter, the day after brexit -- >> johnson & johnson raise its profit forecast after beating estimates on strong drug sales. >> we did have very strong sales results of 4%, but underlying
5:45 pm
sales results of 5.9% growth as products continue. that is very strong. very strong earnings growth at 12.8%. that is primarily driven by our pharmaceutical business. they had another exceptional quarter. the breadth of the business he -- gave us the positive results and confidence that we will end the year in a nice place. >> intel shares are slipping in after-hours trading. they beat on revenue, but they missed estimates. the dimmer outlook indicate may slower pc demand and that manufacturers will again sit on a stockpile of chips. >> we are up almost $1 billion in revenue, and the pc segment is the largest piece of our revenue. what we're seeing is market strength particularly in business pcs and customers starting to put a little more inventory in places anticipate
5:46 pm
sales in the fourth quarter. in the fourth quarter, we are expecting a kind of normal pc market. we think some of that inventory gets consumed so we have a little below seasonal q4 and a much stronger second half than what we thought. >> dropping more than 80% in the first nine months of the year due to rising costs. >> keeping up with its local rivals. >> why are these costs climbing so fast? >> they have to keep up with china mobile. they need to upgrade their 4g network to keep subscribers from moving over to china mobile. they have been successful in getting new subscribers which pushes up the cost for handset subsidies. every time a new subscriber gets a handset, that is subsidized by the company. their success in attracting subscribers pushes cost up. >> will that pay off?
5:47 pm
>> it will eventually. one reason they are subsidizing handsets and upgrading their network is so that when users have the new smartphones, they tend to consume more data. this allows them to push up revenue per user. that eventually flows through profits. right now they are in the investment states. that will pay off. analysts have the profit ready to double next year over what the previous estimate was. it looks like it will pay off in the future. >> nestle, slowing growth in emerging markets, pressure in europe. the world's biggest food company says revenue will rise about 3.5% on an organic basis. sales growth for the first nine months of the year came in below analyst estimates. given your guidance are you -- are you much more concerned about the health of growth now than you were six months ago? >> it is a low growth
5:48 pm
deflationary environment with low material prices that stay longer low. that is what is reflected in our figures. what is behind this is that we are growing in volume. that is what we have privileged and this low pricing environment. since we are at the higher end of the industry, that is what matters. the global environment is slow growth for quite a while. pricing is going to pick up very slowly. slower than we thought, hence our projection for the year. >> microsoft shares going over 6% in extended trading. the windows company releasing better-than-expected results buoyed by demand for software and services. the ceo has been investing in data centers and striking partnerships to bolster sales of
5:49 pm
their main products like office 365. how is the turnaround plan going? >> it looks good. we have seen increasingly improving results on the top line. the company continues to be a prophet and free cash flow machine. we see revenue growth, and revenue is growing at a faster and faster rate. that is where we want to be. making big changes while continuing to have some success with windows and office. >> we're looking at numbers from erickson. we have those numbers coming through. net loss of 233.3 billion swedish krona. that looks to be a little worse than expected. their biggest shareholder joining the throng of those calling for a new ceo to be found quickly for the swedish network equipment maker. >> is the company for sale? >> as far as i know, the company
5:50 pm
is not for sale. it is strongly supported by long-term owners. we are present in 181 countries. we had a challenging quarter, and we will have to manage that in a good way. we will have to do the things we can control, efficiency and cost. >> earnings this morning, ge cutting its 2016 forecast and honeywell posting its first profit dropped since 2011. were there surprises? >> i don't think there was a big surprise. they lowered organic growth. that was 2% to 4% for the year. given the decline of the first half, they were not going to make it. they lower that to 0% to 2%, and that makes a lot more sense. declines were less worse in oil and gas. there were not a lot of
5:51 pm
favorable news. >> the honeywell earnings. they gave us a preview recently. they did not surprise much in the third quarter. they told us what was going to happen. what about going forward into the fourth? what did we learn? >> we learned they are not getting the volume. they have already done a lot of the restructuring. they have got to have some organic growth to get some bottom-line growth. it is not happening with most of these companies. ♪
5:52 pm
5:53 pm
>> [indiscernible] this chart view. >> we had this monstrous flattening. we have turned the corner. great chart. complicated. >> we have a great function.
5:54 pm
this is really cool. you can actually see what companies have been issuing for guidance. this is a great way to summarize where those corporate executives are giving projections. they're keeping cards close to the chest. >> a quick plug for the bloomberg terminal. ilb e gives you a great look at breaking rates around the world. i have the u.s. here. we are seeing exactly what you're seeing. all of these breakeven rates are below the fed target of 2%. alix: there are about 30,000 functions on the bloomberg. we enjoy showing you are -- our favorites. maybe they will become your favorites. here's another function you will find useful. quicgo. it will take you to our quick takes, where you can get important contacts and fast insight into timely topics. here is a quick take from this week.
5:55 pm
>> the new president of the philippines is not afraid to insult public leaders. [laughter] >> mr. obama, you're going to go to hell. >> he has made international headlines for his deadly war on crime. >> we will eliminate the druglords once and for all. extrajudicial methods have stirred outrage the philippines major military ally for decades, the u.s., relations are strange. >> the philippines is made up of more than 7000 islands and 100 million people. their economy has grown faster than their major southeast asian neighbors. the country has high levels of corruption, poverty, and crime. it was duterte's promise to take on the criminals that want him a
5:56 pm
-- helped him to secure a landslide in the election. >> i will take on the criminals, no doubt about it. criminality, drugs, and corruption in government. >> he honed his methods as a mayor. known as the punisher for his vigilante style of approach them approach, he pledged to stamp out crime within one year of being elected as president. 3000 suspected drug dealers were reported killed in his first three months in office. he threatened to withdraw from the u.n. >> maybe we will have to decide to separate from the united nations. >> and asked live laden warning about u.s. interference. >> clearly his a colorful guy. >> his critics see him as the biggest dictator in the philippines since ferdinand marco. >> i do not have any master.
5:57 pm
nobody but nobody. >> it is being matched by a more conciliatory approach to china and russia. he has even discussed the possibility of direct talks with china over territory claims in the south china sea. the philippines won a tribunal ruling against china. what remains to be seen is how much trash talk the relationship with the u.s. can withstand. alix: that was just one of the many quick takes you can find on the bloomberg. you can find them at bloomberg.com along with all the latest business news and analysis 24 hours a day. that is all for "bloomberg best" this week. i am alix steele. this is bloomberg.
5:58 pm
5:59 pm
6:00 pm
♪ emily: i am emily and this is the best of bloomberg technology where we bring you all of the top interviews from our week in tech. we are coming to you from the vanity fair summit in san francisco where we have heard from the most influential voices shaping our future. we will bring you highlights with interviews with alibaba and the most outspoken venture capitalists.

30 Views

info Stream Only

Uploaded by TV Archive on