The rates are held, but swedishs central bank is negative territory. Past the wall for us to go to zero. Kailey the house takes a historic vote to impeach president trump. Article two is adopted. Its an incredibly divided time in congress. Kailey as 2019 comes to a close, investors share a perspective on the global economy. The growth trend is firmly in place for 2020. You do have too much money piled into a lot of higheryielding assets. What were doing is definitely borrowing from the future. We will probably end badly. Kailey its all straight ahead on bloomberg best. Hello and welcome, this is bloomberg best. Lets start with a day by day look at the top headlines. Investors began the week in a risk on mood thanks to a dose of positive news on the trade front. The u. S. And china reaching the must anticipated phase one of the trade deal. 2 sides expected to release the agreement in early january. It involves a reduction in tariffs in exchange for more chinese purchases of American Farm goods, as well as commitments on intellectual property, forced technology transfers, and currency markets. Is this phase one considered a success . What is really interesting is we see a lot of people who you may call doves who had been hoping for something more substantive with the tariffs and trade war we have seen. The china hawks are quiet right now, they are happy because a lot of tariffs will remain in place. We have a deal that imparts the trade deal where it is, but there are still a lot of tariffs in place. Just when they thought it was stabilize, Boris Johnson wants to create a new brexit deal. The leader is looking for a stronger mandate. Sterling has lost most of its appreciation. We are back. No deal is back on the table, because Boris Johnson doesnt want to delay. The door has been opened again a tiny bit to a no deal brexit. Boris johnson is showing off that despite his win, we will not see a new reimagined software boris, we will see him draw a hard bargain. He will not be willing to entertain an extension. Dont think it can be dragged out. We follow and give that, we put it to say that i can. If we dont have a deal by the end of next year, we are going out anyway. Its him trying to set up his negotiating tactic before the talks start in february, so the arrangement is beyond the end of next year. More details are emerging how china would increase imports from the u. S. By as much as 200 billion dollars under the phase one trade deal announced last week. Its an ambitious target. What do we know about how far china is prepared to go . What steps will it take to meet that target . It is an ambitious target. China bought about 24 billion of agricultural goods. That has been a big focus for president trump. Supposedly china pledged to get to 50 billion. Thats a big jump. We are seeing details. One thing is ethanol. China wants to clean up the environment. It will increase the amount of ethanol it adds to gasoline. That is one thing china will buy more of. Another thing, 10 billion of goods routed through hong kong into china from the u. S. It looks like the Chinese Government is looking at ways that reroute that. The bank of japan has left Monetary Policy unchanged as a government stimulus package is helping to brighten outlets. Cutting rates into negative territory remains an option, but the boj is paying attention to the side effect on banks. They kept the key policy doves the same rate. The key is negative. 1. You have the yield curve control, the 10 year jgb anchored at zero. A range at that level. Right now, a big shift. The majority of economists think in the bojs next move will not be adding stimulus, it will be taking it away in 2020. The boe decision, no surprise. The key Interest Rate at. 3 . The vote is 72. They see inflation slowing. And they see the bond purchases unchanged. They do say it is too early to judge the impact of the election and trade war. No big surprise. This was pretty much as expected. The key will be to underline uncertainty about the outlook for the economy, even though we have the clear conservative victory in the election. Even though we know now brexit is going to happen, there is uncertainty about what kind of brexit it is. The most important one probably shortterm is we dont know what the policies of this government are going to be, the fiscal policies, in particular. Boris johnson in parliament announces the agenda for the u. K. After it separates from the European Union. Its not the british people want brexit down, though they do, they want to move politics on and move the country on. His main message was hes going to get his Brexit Agreement through parliament, move on to the trade talks, which he wants to conclude by the end of 2020, and he really wants us not to be saying brexit in 2020. He wants us to focus on health care primarily, but also crime, infrastructure, all of those things important to getting his new voters in the midlands, the north, labor voters that moved to the tories, to keep them on side for the next election. The u. S. House of representatives voted to impeach donald trump for the abuse of power and obstruction of justice in congress. This makes him only the third u. S. President to be sanctioned by lawmakers. The articles of impeachment will be turned over to the senate for a trial, where his acquittal in the republican controlled is all but assured. In terms of the next step, nancy pelosi telling reporters she might actually wait a couple of days to send the articles of impeachment to the senate, therefore delaying the process of the trial. Mitch mcconnell wants to have the trial scheduled by the end of the week. More than 3 dozen democrats who won district trump carried virtually all voted to impeach the president , with the exception of a handful. Republicans feeling unified heading into this trial. This is an incredibly divided time in congress. President trump is one step closer to his new nafta agreement. One day after voting to impeach him, the house passed of the u. S. Mexicocanada free trade agreement. If it were not expecting a free senate vote, what is next for the deal . It will be going on to the senate in january, when lawmakers return from the christmas holiday. Theres really no danger. It passed the house by an overwhelming majority with support from both parties. Democrats in the senate and republicans, as well, have said they are ready to take it on. The problem is they will be occupied with the impeachment trial. Once they begin that, they cannot consider any other issues or legislation. They will be focused on that. It probably will not be until late january, even february, before it gets passed. Theres really no danger of any backsliding. This has a full support of the white house and both parties. The head of the Financial Conduct Authority is to succeed mark carney at the uks central bank. He spent three decades at the boe, what do we know about how Andrew Bailey will navigate postbrexit transition . The first thing, Monetary Policy, he is a bit of a blank check. He hasnt been on the Monetary Policy committee, we dont know his views about Monetary Policy. What we do know is bailey has a lot of experience at the Regulatory Bank of england. That will be interesting as the u. K. Transitions to some form of brexit deal, some new relationship with the European Union. Thats probably ahead of the other candidates, the knowledge of the technical side that has put him ahead of the candidates. Kailey still ahead as we review the week on bloomberg best, an exclusive conversation with robert kaplan. Three legendary Global Investors ascribed the economic risk they see approaching. More of the weeks top business headlines. Hong kongs leader gets a vote of confidence from chinas president. Carrie lam has not really responded in a meaningful way, it continues to have the full support of beijing. Kailey this is bloomberg. Kailey this is bloomberg best. Im kailey leinz. Lets continue our global tour of the weeks top stories in business, finance, and global politics. The eu lawmakers approved a groundbreaking set of financial regulations. The European Union has agreed on a landmark finance regulation. It will define what is green and what is not. We could have implications for investors, all kinds of funds. What exactly is green taxonimy . It sounds very nerdy and technical, but can be significant. The European Union agreed to set out the framework to regulate sustainable. They really want to set out the foundations to really define what is green and what is not. They want to do this in a way to set a Global Benchmark for investment and the sustainable space. You have to look at the political context. The European Commission is determined to get ahead with the deal, get it done in 100 days. It would be a key pillar to define what is Green Investment in europe. Ended half a decade of negative rates, raising the benchmark to zero. Whats passable for us right now is zero. This episode is over. It is a different conversation if you imagine a world where rates stay negative for a long period of time so the perception will be negative rates are natural in the way things are supposed to be. Now we dont have to deal with that. Its also comfortable to get to zero. Chinas economy showed signs of stabilizing and regaining growth momentum in a november, adding to the good news for the nations outlook after a phase one trade deal with the u. S. Was reached last week. Retail sales coming in better than expected. Whats the take away . Significantly stronger on both fronts than the forecast bank had expected retail sales looking strong at 8 growth in november. Industrial production, 6. 2 versus 5 . What officials are saying is it some measures they enacted earlier in the year, in terms of tax cuts and support for parts of the economy have started to play through. Not to say theres not multiple pressures on of the economy, whether it is diverging inflation or exports that remain weak. Australias midyear budget update shows economic realities starting to bear down on government finances. Ministers lowered the forecast Budget Surplus over 12 months through next june and the following three fiscal years on reduced expectations of tax revenues over that period. Is it time to consider may be walking back on the idea of having the budget back in the black and following the example of japan and new zealand and doing what the rba wants to see, thats fiscal stimulus . No. We have delivered a significant income tax relief, we provided a significant stimulus to the economy. If you look at our Economic Growth performance in the first three quarters of 2019, they have been stronger than the last two quarters. We are heading in the right direction. Our outlook is positive. We are impacted by whats happening in other parts of the world. President xi jinping says hong kong has faced what he calls its grimest and most complicated situation since returning to chinese rule in 1997. He urged hong kong to come back to the right path as he hosted chief executive carrie lam in beijing. This is after more than six months of unrest in the city. Carrie lam has historically low Approval Ratings in hong kong. The city last month had a record turnout, 71 of the populace of the citizens who could vote voted for largely overwhelmingly candidates. It shows the populist is still behind the movement, and carrie lam has not really responded in a meaningful way, but continues to have the full support of beijing. North korea has successfully conducted a crucial test at a longrange long site, and boosted Nuclear Deterrent capabilities. What is this latest test implying . The latest announcement was an important, or significant test conducted on a satellite launching test site. We dont know exactly what sort of a test it was. By announcing it constantly and through its propaganda channel, it shows north korea is trying to apply more pressure on the u. S. In the price of north korea denuclearizing. What was offered in hanoi and vietnam was not enough and has given the u. S. Until the year end to bring forth another alternative. The operation to inject cash into the Financial System over the year and was oversubscribed again. Thats a signal participants are still hungry through the start of 2020. Its not a huge surprise. We saw it be the case the last couple of times. Right now, we have done three operations for the end of the year. 25 billion apiece. Those were all oversubscribed. The worrying thing was if it was under subscribed. That would be sending a signal that may be their Balance Sheets were getting a little bit full and the nonprimary dealers were having problems with their Balance Sheet and accommodating liquidity the fed was pumping into the system. They are not, it will be interesting to watch. We have a series of operations that will span the end of the year. It will be interesting to see how they continue to go and whether or not there will be more size adjustments. The top prosecutor in malaysia is ready to ratchet up a criminal case against Goldman Sachs in the one mdb scandal. Goldman is accused of ignoring red flags while billions were looted from the the state investment fund. Two or three rounds of negotiations, but they have not gone anywhere. Bloomberg learned goldman is in talks to settle another investigation. They could pay about 2 billion. They are having separate channels of communications with malaysia, trying to resolve the issue with them. They would like to have a global sediment that includes them and malaysia. The sooner they can get it done, the better it is. There is still a gap between what they are willing to pay malaysia and what they want. Theres not a lot of clarity on when that will be resolved. The Indian Government has banned public protests and shut down communications and the internet in some areas. Anger at the religiousbased citizenship law rages on. What is the latest . Yesterday was a big day. We saw protests all over india. Most were peaceful. There were incidents of violence that broke out. Maybe one or two deaths from gunshot wounds. Pretty much chaotic and bringing a sense of whats next in the movement. It erupted due to the citizenship laws. There are still things that can inflame religious tensions in the month ahead, including the construction of a hindu temple on a site raised decades ago where a mosque once stood. Kailey youre watching bloomberg best. Im kailey leinz. At the feds final meeting of 2019, Jerome Powell signaled the central bank wants to hold rates steady through 2020, no cuts, no hikes. Robert kaplan spoke with Kathleen Hays in new york this week. He sees no reason for rate cuts to move next year, and it would take a major shift in outlook to do otherwise. Theres to be a material outlook, for better or worse. I am baked into my outlook. We will have weak manufacturing next year, sluggish Global Growth, sluggish business investment. There would have to be some Material Change for the outlook. Which way are the risks in your mind . It is balanced. Im hoping for stabilization in trade. The moves the fed has made have been helpful. The risks are balanced. If you see the risks tilting toward the upside and the need for a rate hike, would it be hard to do in an Election Year . Would you consider it illadvised, something the fed would avoid . It will not be a factor in my thinking. Divorce Political Considerations and influences. We will try and make the best decision we can in light of the circumstances, use our best judgment. You repeated this morning, you expect to percent growth. 3. 5 unemployment. It sounds like you dont accept the passage of the phase i trade deal to have much impact on the economy, certainly not out of the gate . Thats probably correct. Ive been hoping there would be trade stabilization generally. This is part of that. I think the trade issues with china are going to go on for years, not months, but years. Most businesses are adjusted to that. These issues of intellectual property, technology transfer, and the deeper issues with china will be going on for a long time. Phase one is better than not having phase one, but it does not mean there will not be trade uncertainty. Kailey coming up on bloomberg best, more of the weeks top business stories. And another setback for boeing 737 max. Plus, forwardlooking conversations in front of the worlds most respected investors. Cutting around to embracing risk again. At least for the moment. Its hard to have any constructive view on the markets risk and the economy. Kailey this is bloomberg. Welcome back to bloomberg best. 2019 is almost in the books and this week some of wall streets most influential investors joined bloomberg discussion. David hunt is c. E. O. , a firm that overseas over a trillion dollars in assets. In an exclusive interview, he said he thinks the long term investors should be cautious going into 2020. You could kind of hear the collective sigh of relief, i would say, over the last weeks events. You had more certainty that were on a path to a reasonable brexit. You had the new phase one trade talks with china. You had the new nafta and a very calming statement from the fed but, like many statements that seem true on the surface this one has a lot of dangers because for the most part none of these tensions are going away any time soon. Were just starting on the brexit journey on how the new trade deals will work out. Were just starting on the negotiations with china about the real issues. Were just starting on a year of probably increased volatility as we head into the election here so while certainly a little collective sigh of relief is understandable, i think that people will rapidly in 2020 see that the uncertainty has not gone away at all. You sound cautious. We are cautious and i think were particularly cautious when you take a longer term view. So, in the last decade, the s p has returned actually 13 compounded annually. And actually a balanced portfolio has returned about eight. That would put it at the fifth best decade since 1880. So weve had a really good 10 years. And so you have to kind of pivot forward and say whats a reasonable expectation for the next decade . Heres the thing. Forecasters have been warning for a while already that returns are going to be lower. But they havent been. What is it going to take, david, for the prudent investor to be rewarded . Thats absolutely true. And if you take yearoveryear returns, people have been expecting growth to be lower, people have been worried about trade and yet the stock market has continued to come in. The high yield market . Its broad, right . If you take the next decade view, here there the head winds youre looking at. First of all, you have lower growth that coming in, also in the developing world. I can talk more about that. You have low rates which we believe are here to stay. Thats not a temporary phenomenon, and third, you really do have too much money thats piled into a lot of higher yieldings assets, particularly private assets, which we believe will start to sow the seeds of the next downturn. Another perspective on 2020 game from the c. E. O. Of marathon asset management. He discussed his outlook for the u. S. And europe in an exclusive conversation. I think the u. S. Economy now is going to have a spurt upwards in growth compared to what was just expected a couple of months ago. Number one, fed did lower the rate by 75 basis points and thats beneficial, but even more important to that is these trade wars have now become have now been settled so the u. S. And china, mexico and canada, and thats clarification for the market, brexit now and the referendum that Boris Johnson has in the uk, is all highly beneficial to Global Growth so i think the growth trend is firmly in place for 2020. So i dont think its going to be a growth recession. I think its going to be an earnings recession, so were starting to see a negative quarter, past quarter of Earnings Growth being negative and well see a couple more quarters of that in the early part of 2020, and when earnings go down, thats going to be a very key point for some of these companies that are so overleveraged when they have lower earnings and meanwhile have to service a heavy load of debt. Right now, there is a new leader, an owl. What does it mean for europe . I think there will be significant change on christine. She doesnt want to be known as a dove. She wants to be known as a hawk. If youre going to force yourself to go dove or hawk, think more hawk but shes not going to be a hawk. I think this is whats going to happen. It will be a huge change for the marketplace and the marketplace is not pricing the market has not discussed this at all. I think when the previous leader left on october 31, he locked in lower rates yet again for a sixmonth period of time. Which takes us through march 31. He also embarked upon another Quantitative Easing Program to get more and more governments rates even further. Thats crushing the european banks. Over the last five years, the european banks are down 25 . If you look at the sx s p, you can look at that index or compare that with the u. S. Banks and say the xbe index, thats up about 45 to 50 in the same time period. So european banks are being punished because every day they have to deposit their excess reserves at the ecb and pay the ecb money losing money. To the tune of several billion dollars a year every year. Which has been the case for a long time. So she recognizes this. And shes going to normalize rates next year. Shell take rates from negative to zero. And with that you will see the german bond go from negative 25 basis points which traded at a crazy negative 75 basis points, youll see that trade at maybe a positive 25 basis points, and so the big story here is, buy european banks. They are underpriced, on a price to book vowel basis, on an earnings basis and the earnings will be increasing as they dont have to pay away negative rates to the central bank which is complete insanity. Heres a perspective from a billionaire. Widely considered to be among the best hedgefund managers of his generation. The man renowned for making bid aggressive bets said he misread the markets a year ago and pulled back from risk. He explained why hes bullish now in this exclusive interview. You have very low unemployment here. You have fiscal stimulus in japan. You have fiscal stimulus coming to britain. We were running a trillion dollar deficit. Apparently were going to have some sort of green stimulus in europe, and we have negative real rates everywhere and negative absolute rates in a lot of places. So with that kind of unprecedented monetary stimulus relative to the circumstances, its hard to have anything other than a constructive view on the market risk for the intermediate term so thats what i have. Because everywhere you turn youre being encouraged to take more . I dont need to take more, i have enough. But i just ive always believed that expansions end with tight Monetary Policy or credit problems, and i think what were doing is definitely borrowing from the future and well probably end badly as the 07 period did, but, you know that could be years. Im 66. I might be dead by the time it happens. So the intermediate term, technicals are good. The economy is fine. If anything, our biggest problem going in once the fed shifted away from their qt and tightening program, our biggest problem was obviously global trade, and wars over global trade, im not saying everything is all peaches and roses now, but certainly on a rate to change basis, i dont see that being, if anything, there is a deescalation, not an escalation there. So for now, all systems go. Lets resume our round up of the weeks top business stories with a blockbuster combination of Auto Companies in europe. Psa and Fiat Chrysler have agreed to combine in a deal that will create the worlds fourth biggest automaker by sales. They signed a binding accord for a 5050 merger of their businesses. How much is this building on the strategy of the late sergio and how important was to it get this done . Its really an unfortunate day. The argument for consolidation are there, especially now that were seeing a transformation in the industry with new technologies, with new electric and selfdriving cars. Expertise in new electric platform. They already develop and ready to use. Fiat is bringing it to the american market, these iconic brands. International has reached an agreement to buy duponts Nutrition Division the u. S. Company beat out irelands group to expand in the fast growing Food Ingredients business. Tell us about the price. Would it have been cheaper if had not been trying to get into there as well . Potentially cheaper. The structure is whats interesting. We understand the carey group is looking at the same structure, ended up with du pont owning 55 and iff owning 45 and the cash payment of 7. 3 billion. One off. Yes, potentially it drove up the price a bit but at the same time they had to do the deal. Boeing is to halt production of the 737 max next month. It deepens the crisis. It will complicate its future. How embarrassing is it that boeing has had to halt production . Well, they were facing a number of fairly unappetizing options. One was, do we keep building this plane at a big cost but were not making money off of it. Building a plane cost a lot of money. If youre not selling them that cause as huge problem in terms of cash flow, or do we stop production right now, stop the bleeding, as it were, but then see how and when we can get the plane back in the air. Now after this Board Meeting the company has decided this is the least disruptive option, but it will be disruptive Going Forward no doubt. The question is, when will these planes be sold to customers . How long might they languish in storage . A lot of unresolved questions for the company and we still dont have a date or even a window of when this plane might be freed up again by regulators, so a lot of Unanswered Questions there. Airbus is grappling with a very different problem. Airbus needs to lift deliveries by 75 this month from heaven for airbus. But it isnt because of these delays that they are seeing with the a320. The heart of the issue is that is highly customizable plane. What they are doing is having to move around things inside the planes, things like toilets, emergency exits, to customize them for the various orders. Just the way they have got the manufacturing set up, only one main line for doing this, is the result of these delays. China has threatened retaliation if germany excludes huawei as a supplier of 5g telephone equipment. Beijings ambassador to germany said there will be consequences in the event of a ban. They also cited the millions of vehicles german carmakers sell in china. German lawmakers and the chancellor have been trying to make their security rules concerning 5g for months. It will spill into next year and what you have, on one side, chancellor merkel and the ministry and the industry that are much more open to chinese involvement with huawei. On the other side, intelligence agencies and security types who have really warned that huawei could pose a danger. So these comments by the Chinese Ambassador here kind of put it right out in the open that there will be consequences from beijings perspective if germany goes ahead and poses a full ban on huawei when it comes to its 5g network. Final stretch of Holiday Shopping season and shipping deadlines loom but amazon is blocking its Third Party Sellers from using fedex for quick prime shipments. You have a big fat vote of no confidence on fedex from amazon as we enter the critical Holiday Shopping period. These are the days when people decide, you know, am i going to buy this thing online and hope it gets here in time for christmas or not . And amazon has really, you know, increased the amount of time people, narrow the amount of time that people are willing to you know, make that call, you know. Rub right up against almost christmas day. So amazon is saying fedex cannot deliver its pledge for prime delivery, which is usually one or two days. Fedex is in a bit of a funk. The company suffered another blow yesterday when it missed earnings estimate. Its cut its profit forecast blaming Weak International demand. What can they do to get back on track . Amazon was a big factor although fedex itself is claiming it only affect add small part of their business. The main problem is the slow adjustment to the boom in ecommerce. For fedex, delivering to business is much more profitable than delivering packages to homes. Their sevenday delivery schedule turned out to be much more costly than fedex expected so they are seeing 2020 as a transition year but analysts have been shocked by the latest results. Shares of micron rising in premarket. The chipmaker reporting better than expected top an bottom line numbers for the fiscal First Quarter and forecast strong numbers for the current quarter. Give us the numbers and what it means for the semis, in the midst of these record rallies . You have to imagine well see the chip stocks move higher. The number, 4. 8 billion in revenue beat analyst expectations but it wasnt just the numbers that were remarkable. It was the commentary from micron saying the slow in demand had finally bottomed and it was all up from here. Taking most points off the stock 600 this morning and thats after it lowered its sales growth outlook. The company cited challenges in the quarter and some markets including the economic slowdown in south asia. You get punish when you cut your Sales Outlook . Youre seeing the new c. E. O. , who took over at the start of this year. Hes backing away from his predecessors growth targets. In the release this morning they cite west africa, north america, they previously in the last quarter cited slow t sales across much of the developing world. Cited slow ice cream sales in europe because the summer wasnt hot enough. That doesnt leave a whole lot of other markets where things are going well. So thats the problem here. Wework has a fundraising drive led by Goldman Sachs. Bloomberg learns the deal would free up roughly 800 million in cash for the struggling Office Sharing startup. How soon could weworks see this capital . Weworks has access to it as of next month which is january. As we discussed in the story, 1. 75 billion is part of a bigger 5 billion finance package that they have agreed is part of the bailout and the other 3. 3 billion will come in 2020. Ubs plans to restructure the unit that serves as the banks top billionaire clients. This is first sweeping change. What exactly have we learned today . Uba is planning to restructure. They are planning to dismantle the same structure. It will ruffle some feathers in zurich and a reduction in management layers. Taiwans mission to retake the global tech supply chain aid mid the trade war looks like its paying off for investors. Stocks in taiwan closed over the 12,000 mark for the First Time Since 1990. How sustainable are these gains . The broad consensus among strategists is that they can be sustained. And that things are hooking pretty good for taiwanese stocks into next year. Even as the Global Industrial sector kind of limps along, taiwan has really done a great job inserting itself deeper into the Global Supply chain and pulling manufacturing from some of its competitors. Its the next wave of the electronics cycle with 5g. Seems to be benefiting taiwan in particular. There are forecasts from banks including j. P. Morgan, that suggest record highs, alltime record highs in taiwan next year for the first time in a generation. Essentially. I clicked in here to the bi market share chart. I think its interesting to look at this because orange is the biggest, gray is just all others. But then in green you can see renault. If fiat had combined renault nissan, it would have leapfrogged everybody else. There are about 30,000 functions on bloomberg and we always enjoy showing you our favorites. Maybe they will become your favorites. Heres another function you may find useful quic got. It will lead to you quick takes where you can get fast insight into timely topics. Heres a quick take from this week. Air pollution has become such a menace that head of the World Health Organization calls at this time new tobacco. According to the who outdoor air pollution kills 4. 2 Million People per year. The economic toll is also rising, with billions of dollars spent on medical care and missed work. Some countries are fighting back. Take china, where social media outcry in 2013 pushed authorities to tighten environmental regulations. Scrap some polluting power plants and switch millions of homes and businesses from coal to natural gas. The worlds emitters of gas is investing in Green Energy Spending over a hundred billion dollars in 2018 albeit still building plants that burn coal. In 2013 beijing experienced air categorized by w. H. O. Has unhealthy on the majority of days. Five years on, the share fell to less than a quarter. India, which is home to seven of the worlds 10 most polluted cities, can only dream of such improvements. Industrial and vehicle emissions combine with the illegal burning of farm stubble to shroud such cities as new delhi in hazardous smog unlike in china where a powerful Central Government can enforce rapid change, indias complicated blend of local and National Government agendas has blunted efforts to clean the air. In developed nations, fumes from diesel vehicles are an increasing concern, particularly as recent studies link them to infant mortality and heart disease. European capitals such as paris and madrid have banned some diesel vehicles. Many cities are holding carfree days and public transport is slowly shifting to electric power. The fight against smog has also turned legal as a new generation of activists pushes governments to take action. Giant leaps in Sensor Technologies which track air pollution in realtime can help pinpoint industries, companies, and countries that throughout rules, helping to build a solid case in court. Following legal action by the Environmental Charity client earth the European Court of justice issued final warnings to improve air pollution or face hefty fines, to the uk, france, germany, hungary, italy, and romania. That was just one of the many quick takes you can find on the bloomberg. You can also find them at bloomberg. Com along with all the latest Business News and analysis 24 hours a day that. Will be all for bloombergs best this week. Thanks for watching. This is bloomberg. Carol welcome to bloomberg businessweek. Im carol massar. Jason im jason kelly. Carol happy 90th. We celebrate without the magazine covered business through the decade. Jason in the headlines, owing halting production of the 737 max, thats been granted for many months. We look at what went wrong. Carol more from the bloomberg 50