Transcripts For BLOOMBERG Bloomberg Best 20180210

Together. The bank of england says it may be time to tighten soon. More like two and through. Scandal forces steve wynn is from the helm of his empire. And, a tsunami of earnings reports. I am pretty confident with the capacity to deliver in our business. We will stay disciplined within the capital framework. We are interested in being the most profitable. It is all ahead on bloomberg best. Ramy hello and welcome. I am Ramy Inocencio. This is bloomberg best, your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. Investors enter the week on edge after the dow dropped 2 , then on monday the plunge continued. The Dow Jones Industrial average losing 1175 points, a 4. 6 decline, now off 1. 5 for the year. Last week we had the selloff occur in the context of a monotonous rise in treasury yields, whereas today yields have come off a little bit. That suggests for the first time it was about Risk Management and position reduction. Cta trend the followers. This is about earnings, and it has been about earnings for the last week and investors are saying maybe tax reform is not a great story for all companies. They are starting to really dissect that. That created a little selloff. That got investors spooked. We are getting some price discovery right now. I think this kind of selloff, this disorganized selloff, this will only go on before someone steps up and says there is an opportunity in the selloff, and it does not have to take that long. We did not think things could get worse. Overall Global Equities from this time yesterday have lost 2 trillion in market cap. We are on the verge of markets getting a little disorderly. And you get Central Banks interested in regulators interested as well. The equities selloff extended to asia and europe after stocks in the United States recorded their biggest oneday drop in more than six years. Credit suisse buying back one of its Exchange Traded funds, triggering losses on muted market swings. Pretty interesting story. It has ironic element to it here all in investment banks have been waiting for in recent months and years is the return of volatility. Now volatility is back and the first product is blowing up. This was a Credit Suisse Exchange Traded note. We had reports earlier they were considering buying it back because of the rise in volatility, so this was a bad bet against volatility. Now the bank is confirming we will fight back this note in the next two weeks. The implication of that is that investors will lose money. The stoxx 600 worst day since june 2016. Big drop, far cry from the drops and asia and the u. S. It is a global contagion. We have gotten ourselves into a moment to market. When you in a momentum market all it takes is a little prick , and the air comes back out. An aboutface for volatility today. The vix tumbling after its biggest spike ever, but the spike already did its damage. Right now we have not had a normalization in the vix curve. If you look at the second to first month futures spread versus active truck active contracts that is what it is , tracking today. We are trying to get this normalization and volatility. It hasnt worked yet. We are still working on normalizing and we are not there yet. What a difference 24 hours next. The Dow Jones Industrial average recovered from yesterdays drop. It was not a straight up move, it went down, up, down, little changed, but then we close to near our highs. The market selloff sorry, we rebounded. At what point do market selloffs translate into real economic ramifications . Where would it have to go to see show up in Consumer Behavior . I think there is a sigh of relief at the Federal Reserve. The market is finding out stocks dont only go up. We just eliminated a significant amount of shortselling, which was a proxy for picking up yields, which was a reflection of Interest Rates being low for quite some time. The short answer is i still think it is early and the implications are not significant. Nomura has apologized to customers that brought those Exchange Traded notes, writing, we sincerely apologize for causing significant difficulties to investors. This is a list of products we believe can be bought that individuals and institutional investors. If you look at some of these products advertised in the vix, where they were a few weeks ago is a tremendous shift. Is this shakeout done . We will see. Half the assets are gone because of the inverse side. You still have the long side doing fine. These are popular products. That nomura statement was interesting because it is basically apologizing and saying we think it is ok for individuals. I think these should be labeled or made clear these are power tools, or you could call them exotic, but there are a couple that made the news this week. There are about 300 etfs that are leveraged and track volatility. I even put oil futures in this category of products that use derivatives and are hard to understand. I think they are trading tools, where as the large majority of etfs are investment products. Thats the distinction you will find with the issuers trying to make right now. Bank of England Holding rates unchanged. Sterling surging as the boe turned more hawkish, suggesting it may need to raise rates faster than previously indicated. I would say the market is interpreting this as a hawkish hold. Very different to the dovish hike back in november. What was interesting about the Market Reaction was in november, you saw sterling drop, gilt yields drop. Today, you are seeing the exact reverse of that in other direction. Markets have started pricing in a rate hike in august and the probability of a rate hike in may was just over 50 . Now it is roundabout 75 . Is may likely . We have been looking at that for a while. So they did not say one in done. , more like two and through, so the central bank has given us fair warning another rate hike is coming. The sense thatbe that is honored now. U. S. Markets entered a technical correction yesterday as the Dow Jones Industrial average and s p 500 fell 10 from the closing highs in january. Stocks were hit hard in asian trading. The buzzword of the day is still that this is a healthy correction. We are somewhat in line with in alignment with 1987. We did decline a little additional, then we rallied. We have a good chance today could mark below. The low. Ideally we close down the day and start up next monday. To even bring up 1987 is farcical. That was down 23 in one day. The s p is still up 70 over the last five years, and unchanged over the last three months. The motion is adopted with out objection. The u. S. House of representatives voting to pass a to having your budget deal ending a Government Shutdown , that started at midnight. The bill raising federal spending by almost 300 billion and extending the debt ceiling for one year. President trump is set to release his 1. 5 trillion infrastructure plan on monday. Pluss blueprint for the 2019 budget. No one is showing any fiscal restraint whatsoever. It is basically Congress Giving the government a home equity line with no upward limit. I would not discount the bipartisan nature of this. 72 democrats went along in the house, and this will pave the way and we look for to the daca debate that will dominate the conversation next week. Ramy still ahead as we review the week on bloomberg best, banks oil producers, and , automakers among the Companies Reporting earnings. Plus we dig deeper into the , turmoil that shook markets with three officials from the Federal Reserve and some of the most respected voices and finance. Up next, more of this weeks top business headlines. A south korean court there is a sure throws a curveball here at jay y. Lee goes free. If you can be stunned and not surprised. That is the reaction here. Ramy this is bloomberg. Ramy this is bloomberg best. I am Ramy Inocencio. Lets return to our global tou of this weeks top business stories. Starting with the formal transition of leadership at the Federal Reserve. Jerome powell has taken over. He inherits a u. S. Economy in its third longest expansion on record, with unemployment and inflation both near historically low levels. Powell inherits the fed at a great time, but there will be a lot of challenges. The main one is how the fed will manage the next crisis. Because powell will most likely preside over the next downturn in the economy. In the previous extension the , fed raised rates by 3. 5 and 4. 25 , then they lowered rates in the downturn by 5. 5 and 5. 25 , so big moves. They dont have a buffer this time around. They will probably have to play with unconventional Monetary Policy tools and this will be up to the new fed chair to manage. Yellens final act, the Federal Reserve slapped wells fargo and their board with a ceaseanddesist letter. The vendor had its rating cut by three analysts and felt by the most in two years after the fed banned the bank from growing until a convinced authorities it is addressing shortcomings. This is a harsh order and unique. The fed itself called it unprecedented. Typically you see the fed talk about board oversight come but the asset cap is what was unique here, saying wells fargo cant grow its assets until it shows it has made progress on this, and that could have some longerterm effects. It also seem to indicate it was not happy with the pace of wells fargo cleaning up its act. They have had some time to clean it up, and i think the fed is looking for them to speed that have. That help. That up. A south korean court has suspended the prison sentence of jay y. Lee after he appealed the jail term. The sentence was cut by half, although he is now free to go on four years of probation. If you can both be stunned and not surprised, that is the reaction today. We are stunned the high court which was reviewing the Appellate Court process in the Seoul Central District Court behind me, they have not exonerated jay y. Lee. He still has a sentence, but they have allowed him to walk free. He has already left the courthouse by a bus to the detention center, where i suspect he will collect his belongings. He has been there for nearly a year. Yonhap news agency saying the man who was convicted in the same courthouse in august to a fiveyear prison sentence for various corruption charges, he will be able to go home this evening. It is a stunning reversal because this of all the different options the Appellate Court could have come up with, this was the one that legal experts said was the least likely, second to only being completely exonerated. The bitcoin slide continues, the currency declined and lead currencies lower as the selloff deepened and investors migrated towards havens. What is the biggest concern right now . Is it just more regulations coming . Is this why we continue to see the selloff . There have been a couple of big regulatory questions coming up. All over the world you have regulators starting to send subpoenas and ask some tough questions about some of the big problems we have seen in bitcoin recently. On top of that, you have big banks and credit card issuers putting freezes on by best buy on buying cryptocurrency. It appears there is said general feeling it could be too risky to allow credit card users to buy on credit, cryptocurrencies, especially some that are more suspect or less well known. Bitcoin is marching towards its second day of gains and comes as u. S. Securities regulators spoke yesterday, calling for greater oversight of cryptocurrencies without proposing industrykilling measures. The message was, we have this under control and they understand these technologies pretty darn well. There are a lot of interesting areas on the margins where legal clarity could benefit innovation, but the hearing was really quite a success. Broadcom is trying to force qualcomm to come to the bargaining table for what would be the Biggest Technology deal ever. The chipmaker raised its takeover bid to 121 billion from 105 billion. They call this the best and final and are not willing to negotiate up a higher offer. The question is is it enough to , get qualcomm to the table . The short answer seems to be no. Qualcomm turning down what broadcom called its best and final offer at 120 billion and leaves the future of the proposal to be decided by shareholders next month. How do you say we dont like the deal when the deal is 82 a share and your stock is trading at 62 and is not going higher . Qualcomm is saying broadcom is not appreciating the value of the acquisition the potential , resolution of its licensing dispute with apple, and the the opportunities to expand as 5g Technology Becomes a thing. The founder of wynn resorts has stepped down amid allegations of sexual harassment. The board said it appointed the current president to the role of ceo and remains to committed to upholding the highest standards. Help us to understand the events leading up to this moment. These social sexual these Sexual Misconduct allegations have been circulating and regulators have voiced their concern about the issue, and they have reached out to wynn, wynn macau executives, and key directors to make sure they are fit for their roles. Macau is an important market for wynn and where the company nets most of its earnings. Im sure the gaming regulators in macau are watching this closely as well. Even as the company has let go of steve wynn, it is still facing pressures because of that linkage to steve wynn. In particular massachusetts regulators are aggressively continuing their probe into wynn. This is significant news. Both nevada and massachusetts said they are probing allegations of sexual harassment. Massachusetts said it will be taking a look at steve wynns personal stock holdings. If massachusetts regulators find some systemic blame or reason why he should not continue to be a shareholder, he would have to sell it and that would further put the company in a position where it would be vulnerable to take over. In germany, the political stalemate that has lasted since september appears to be over. Chancellor Angela Merkel reached an agreement on a Coalition Government with the social democratic party. Among the positions, the finance ministry, which has gone to the spd. How much of a concession is not from Angela Merkel . Might there be some grumblings within her own party . It is a big concession. It was seen at her party the cdu should keep the finance ministry considering they were ahead in the polls in the election. But the spd made a strong case they want to have this powerhouse so they can make their mark in european policy as well. The currency weakening as much as 1. 2 in shanghai, the biggest move since the 2015 devaluation after data showed chinas trade surplus was cut by half. Do we have a twoway trade finally . Has exactly what we have. Even the path of true love is not smooth. Nothing goes in a Straight Line. This was going in a Straight Line and is a reversal. Volatility is infectious. What i mean by that for a given , event like the bank of england new zealand, you are getting , bigger moves in the currency than we would ordinarily see. Import numbers from china did not look pretty. Basically the pboc are talking about current account liberalization, particularly the bond market as well. So we are getting some twoway moves. Ramy welcome back to bloomberg best. This week Bloomberg Television spoke exclusively with the president s of three regional Federal Reserve regional banks. Bill dudley has been outspoken first, in his view the recent fluctuations in equities will have no impact on Monetary Policy. Kathleen hays caught up with him on thursday. The little decline we have had today has no implications for the Economic Outlook. It proceeded a very large rise, so it stops here, the implications for the Economic Outlook are very marginal. So probably not change our thinking about the Economic Outlook. If it were to go on further and be much more persistent, then it could start to affect household and business spending behavior. That could influence the Economic Outlook. So far, i think it is small potatoes. I want to put on the table that as i was thinking about this today i was thinking about 2015, when we came into the year and the fed was going to hike rates in march and then there was brexit and a big selloff in the chinese stock market. The fed passed in summer and in september, only one that year, so clearly there is a point where markets and market volatility have an impact on the feds path. It depends about why the market is doing what they are doing. In the First Quarter of 2016, it was not just the markets. Commodity prices were falling very sharply. This was putting pressure on emerging market economies that were dependent on commodity exports. China was going through a pretty difficult adjustment, so it was not a market event or market event per say. It was the things happening in the Global Economy. The Global Economy is doing fine. On friday in the jobs report wages finally started to accelerate. More inflation, not just three rate hikes, four in 2018 now possible. What do you see . I think it would depend on how the economy evolves. I think it is premature to make dictions about it t about if there will be 1, 2, 3, 4. Three rate hikes in 2018 seems like a reasonable projection. If the economy looks stronger, could three turn out to be more . Perhaps. On the other side if the economy looks softer or inflation does not materialize, then the fed could go slower. I think the jury is out. Ramy coming up, more conversations with fed president s Robert Kaplan and neel kashkari. They shared their Economic Outlook in bloomberg exclusives. Plus, more exclusive insight from the biggest players in Global Finance putting volatilities comeback into context. I think the markets are still a little bit vulnerable to a slowdown in growth momentum. Ramy this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. I am confident that we will achieve our objective to ensure price stability. All of the ingredients and requirements are on the table. We have a robust growth. Broadbased growth in the euro area. We have a rising investment activity. We have a decrease in unemployment. We have very generous financing for private households and corporate. Inflation will come in the mediumterm and that is our goal. Price stability will be there. And that is why i think that, in this year, we can accept the net purchase of our program in order to balance and start coming back to a more normal Monetary Policy. Ramy that was ecb executive board member sabine loutenschlager speaking exclusively with matt miller about the progress of the bank towards inflation targets and its timeline for concluding qe. Let us get back to the u. S. And fed policy. On monday, we sat down with neel kashkari. She asked him if rising bond yields and jitters in equity markets have raised the risk of recession. One of the recession risks i was looking for was the flattening of the yield curve. It has now steepened which is a good news sign as opposed to stocks falling. And the fed pushing up the front and backend being anchored. That would be more concerning to me. That fact takes a little pressure off and says, ok, if the bond market is seeing Inflation Expectations creeping up, that may give the fed more room to tap the brakes. If necessary, if it actually materializes. What do you think is the biggest risk to the economy . It is hard to say. Oil prices if Oil Prices Take off that could be a big shock to economic growth. The dollar i think is going to put some inflationary pressures if it continues to trend down. At the same time were seeing growth around the world. Europe is doing better. Japan is doing better. Thats a pretty positive Overall Economic environment to be in. Hopefully, we have slightly stronger inflation and wage growth. Those would be good problems to have for the Federal Reserve. I know you tweeted out some nice words to janet yellen. D think she deserved for more years at the fed . I thought she has done an outstanding job and is an a plus public service. At the end of the day, it is the president s call and every president gets to make his own appointment. I think the president made an outstanding choice in jay powell. Ive had the privilege of working with him for the past two years. He is not an ideologue. Hes very pragmatic. He is a consensus builder. I think he will do a great job. We have gone for about 15 months without a 3 correction. That is historically unusual. That has been a very abnormal period. I think there is obviously some Market Mechanisms that probably need to be looked at in hindsight, but i think more volatility in the markets may be addressing some of the excesses and imbalances in the markets by having more volatility. That is probably a healthy thing. I will be watching carefully to make sure it does not transmit to tighter financial conditions that spill over to the economy. At this point, i would be optimistic that it would not. This is one of the things we chatted about. Where and how quickly might that manifest itself . Many people come into the studio and they say financial conditions are loose. The fed has a loose backdrop and can afford to tighten a little bit. Let me tell you what i am watching. I watch for example credit spreads. Investmentgrade credit spreads. Highyield credit spreads. Other Financial Products to see whether for example are credit spreads widening, is there other volatility in other markets . So far i do not see that. It is something i am watching for it have been watching for. The fact that have not seen it is notable to meet. We track fx volatility. It really has not shown anything aggressive despite the fouryear high in yields. That tells you something. What does it tell you . It tells me that this may well be a stock market event, it may have been accentuated by some structural issues in the market that probably need to be looked at. This is six days in and i have found that it pays to take a little more time and be vigilant. I will be watching for that in the days ahead. Ramy without question, the return of volatility to equity markets was the dominant business story and bloomberg was able to get exclusive perspective from some of the financial industrys most prominent figures. Let us start with the top executives at goldman sachs. They were in hong kong. They were leading the companys global macro conference. Tom mackenzie sat down with several. First, the president and cocoo, harvey schwartz. Our clients sensing opportunity at this stage . When i talk to clients around the world, they have struggled with the fact that have lots of liquidity and the have felt valuations were a bit stretched. Not surprising when you see the s p 500 was up more than 20 including dividends. There were certainly people looking for buying opportunities. When you see a big spike in volatility like that it might , make people more cautious. They may be looking for a second or third order effect. Certainly people are looking at this as a buying opportunity. Thats why saw the Market Reaction on tuesday. We expect to see more money put to play at this stage . I think it is possible. I think again you might not see a rush. But here at the conference that the mood is pretty high because the real economy in the world is moving at a pace, and everyone talks about synchronized gsp. Synchronized gdp. Synchronized gdp is good for companies. It is good for employees and wages. It is what we all route for. Root for. If that translates into earnings, yes, people will feel confident and will be looking for buying opportunities. I think it was important for the volatility to reestablish itself because the markets were getting carried away with a very goldilocks environment in the last year. Global growth was accelerating. Expectations were being beat. In terms of growth. It was very synchronized. We had very low, unstable bond yields and extremely loose financial conditions. Bear in mind, until this correction, u. S. Conditions were looser than at any point since the financial crisis. That was really interesting with low volatility. Having some volatility come back into the market and having valuations coming back to it at a more appropriate level is quite a healthy thing. I think the markets are still a little bit vulnerable to a slowdown in growth momentum. And any further rise in the bond market. Is the fed still going to be on track . Are you changing your view at all . Has it made you rethink your view of the fed . No, it hasnt. We still think the fed will hike four times this year. That is all baseline. Of course, that could change but what we have seen to date has not really changed that picture. The basic reason is that even with the downturn in equity prices and the tightening in the financial conditions we have seen, that has only brought us back to where we were at the turn of the year in terms of overall financial conditions. I thought that was consistent with an expectation of good growth and gradually tighter Monetary Policy. About a hike per quarter. That is where we are at the moment. We are obviously not in a bear market at the moment. It has been a correction. If we were to slip in a more radical selloff in the market, without be something you have to refactor into your forecast . It certainly could. If we had a much bigger decline in equity prices, widening of credit spreads, more evidence that the turmoil is spilling out of the equity markets into other financial markets, then that would mean broader tightening in financial conditions. More like what we saw in the early 2016 areas and it would call for a monetary response. We have not seen that to any significant degree. What was interesting, even with the rapid decline in equity prices, we still did not see a lot of spill over into other Asset Classes or other market functioning. So far, it has not happened but of course it could. The market has shown an unprecedented amount of complacency. Volatility was down to an alltime low six months this year. And so, a correction was waiting to happen. But i also said do not assume that volatility will creep back into the system. When it comes back, it will come back with a vengeance. I did not expect it to happen so soon but it did. Many people were wrongfooted. If you had a strategy for you are selling low volatility, that came to haunt you. The market was very complacent. There is a big disconnect between sentiment and hard data. That is directed by sentiment coming down somewhat. It has still been a very good year. It is the spillover effect we should be more concerned about. Im watching how with the new Federal Reserve president the 10year treasury will reprice. I think that will be a bigger driver for what we are doing as a business, which is wealth management. We still strongly believe that the u. S. Has some momentum to go. We think u. S. Markets still have some momentum to go. This correction is a transitory correction. Imo the view is a healthy correction and we should not take it too seriously. Ramy youre watching bloomberg best. I am Ramy Inocencio. It has been another busy week. Our roundup of reports the image results of some of europes largest banks. Bnp paribas says its biggest lender is seeing an uptick for its 2020 targets despite the Challenging Market are last year. Overall, if you look at the economic evolution, you see a pickup in demand for services. That is what you see. On top of that, we are digitizing and adapting to accompany those changes. That is why we believe we are off to a good start. We still have a low Interest Rate permit. That weighs a bit on the top line. But it also means the cost of risk is lower than what you would expect. That is what the bottom line is up 5 . Frances second largest lender has been estimates with a fourthquarter net income of 69 million euros. It has been expected to post a loss for the period. The company also saw a surprise comeback for the Equities Trading business in the final three months of the year. Fourth quarter we did better than our peers. It is a very modest decline. When i look at the full year compared to banks, we are doing better. Our decrease is lower than the others. It means we are gaining market share. It seems to me, at the beginning of the year, at least when i look at the markets, we are progressing out of the extraordinary monetary policies which probably also meant low volatility. A lot of money available. I am pretty confident with the capacity to deliver our Business Plan which is a sustainable and profitable growth. Shares in commerzbank are trading to the upside this morning after the Group Reported fourthquarter net income of 90 million euros. That is ahead of analyst estimates. The german letters sent in a review payments for the first time in three years. Indeed, we had a pretty successful 2017 as the first year on our way to rebuild commerzbank. We have been pretty successful there. We have overachieved some of our targets which gives us confidence to resume Dividend Payments in 2018. By the end of the year, you will resume Dividend Payments . It is formally decided by our agm. They will decide finally spring of next year. Three p has reported adjusted net profits of 2. 11 billion in the Fourth Quarter, ahead of estimates. But with an increase in net debt. It also tightened its Capital Spending targets this year. It continues to rise. How do you manage that . We have a framework that we work within. Ng. And 30 geari we were up around 29 and now we are down to about 27 . It is heading in the right direction for us. To your point, we will stay very disciplined within the capital framework that we have. We have generated a lot of cash this year. I think we are on the right track. Rio tinto shares. Positive territory today. The Group Reported annual profit is at a threeyear high. Buoyant Commodity Prices have helped that. The worlds secondbiggest miner raised Dividend Payments by 71 . Total cash returns to investors in 2017 have raised 9. 7 billion. We have a very disciplined capital reallocation. We begin in the capital intensity it is about rewarding our shareholders. With a cast return and that is what we did today. And it is about investing in the longterm. When we say growth, it is about growth in cash flows. It is not about volume or market shares. It is not about being the largest. It is about being the most profitable. Disney reported firstquarter earnings, beating estimates. Bob iger had his the parks to thank. This time, it is not star wars , it is avatar. It is the avatar theme park. The theme park business, every single year continues to put out earnings. Its a very unsung hero. It is not unsung within disney. They just continue to invest a tremendous amount of capital. The returns are very solid. It is in a discussion with a stake sale with softbank. It is also planning to list a stake in its mobilephone unit. What do we know about softbanks ipo plans . Much of the news is already out. Alibaba, spring have reported its earnings by them. But they always give you something to talk about. This time it is about an ipo. Not much is known other than the Company Seeks to list all of its Domestic Telecom assets which will also include broadband operations sometime within the year. We do not know the amount of stake they want to sell or how much debt it will take on but one interesting takeaway for softbank shareholders is that the ipo will be focused on the dividend payout. G. M. Announced its earnings for the Fourth Quarter and for the full year of 2017. It beat estimates. Take us to your numbers. The Fourth Quarter was a great quarter. Another strong quarter. Record 3. 1 billion of profitability over 8 margins. Underpinned by strength in north and, are at a record an improvement in our international markets, primarily south america which was profitable for the second straight quarter. We are pleased with the resilience of the Business Model the traction we are getting in , our core business. We are pleased with the overall results. U. S. Tax cut giving toyota a boost. If forecast a record profit of 22 billion. Tax cuts adding about to the 3 billion bottom line. What is the company doing right at the moment that is creating this good story . I think one of the reasons markets are loving the results so much it is a basic result in some way. Just to look at a couple of aspects. One analyst pointed out that the Quality Assurance spending is looking like it is down quite a bit. It is a back to basic improvement. Japanese quality is back. And incentive spending. They are still spending a lot to try to move cars in north america in the tough market there but they are spending less than the competition. This sort of classic good operating income, good margin result which people have been looking for for a while from toyota. Tesla is jumping around in afterhours trade after reporting fourthquarter earnings that have beat expectations. What a week for elon musk. Lets tackle tesla and these results that show they are not burning as much cash as before. Is this really good news . I think so. The most important thing is tesla reaffirmed that they plan to hit their latest Production Guidance which is 5000 cars by the end of june. There was some concern that it would be delayed once again but they are sticking to their most recent guidance. If they can stick to that, in general i think people will be happy. The other thing that was positive for tesla is customer deposits are up. Despite all these delays that has not been a rush of people canceling their orders. If you look at the bloomberg, emergingmarket nations have lost more than 750 billion in the last week. For today, you can see that brazil for instance is much higher. The bright green indicates a sharp advance. Sharper than what we are seeing in the United States which is a darker green. Red indicates losses. The european markets have closed. The red is across continental europe. Ramy 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 one that is useful quic , go. He will lead you to quick takes. Here is a quick take from this week. There will be one notable absentee from the nations at the winter olympics. Team russia. The reason, they got caught doping, bigtime. Here is the situation. The World Antidoping Agency started investigating the russians after the head of the Moscow Laboratory for olympic drug testing blew the whistle. The independent report concluded that between 2011 and 2015, russia ran a huge statedirected doping ring involving about 1000 athletes. Peaking at the 2014 olympics in russia. In december, the International Olympic committee barred the russian team from competing in this years olympics. Even though performance enhancing drugs have been banned since the 1960s, the authorities are under a constant struggle to keep up with the latest advances. Popular methods of doping include blood transfusions and injecting anabolic steroids and taking various stimulants. Now, antidoping officials have a relatively affective if belated way to catch cheats. Retesting samples from previous olympics. Some 90 f blitz athletes, including 40 medalists were snared after the beijing and london summer olympics were 2012 retested. Ede top dopers includ weightlifters and no surprise russians. The east german athletes that dominated the olympics later sued the government for feeding them anabolic steroids. Here is the argument. Critics say the crusade against doping has failed. The authorities completely missed the russian conspiracy until a whistleblower stepped forward, but antidoping enforcers argue that some athletes will always seek an advantage via performanceenhancing drugs. They say what is really needed is Greater Authority and funding to investigate the cheats. But even that might not be enough. According to the former head of the World Antidoping Agency, sports remain in a state of denial and too many people involved are happy to look the other way when it comes to doping. Ramy and that was just one of the many quick takes you can find on the bloomberg. You can also find them on bloomberg. Com along with all of the latest Business News and analysis. That is it for this week. Thanks for watching. I am Ramy Inocencio and this is bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. David did you always know you that you wanted to run fidelity . Abigail i never felt any pressure to. David did your father say if you worked hard in 20 or 30 years, you will be the ceo . Abigail he was not the guy to make promises to anybody. David what do think investors mostly want . Abigail everything. 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