Weight. These annual letters are going to be Agenda Setting for wall street. Earnings season kicks off with the biggest banks in the spotlight. Numbers we saw this morning in fixed income are staggering. Top executives from health care and Drug Companies spot key issues facing their industry. Biosimilars are an important part of the health care system. Technology is an enabler of innovation, accelerator of innovation. We are trying to bring down outofpocket costs for consumers. Even as equities climb to alltime highs, howard marks thinks it is not a great moment to be in the market. The odds are not, in my opinion, in the investors favor. It is all straight ahead on bloomberg best. Hello and welcome. I am juliette saly. This is bloomberg best, your weekly review of the most important Business News and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. As the week began, tensions remained high in the middle east with irans government feeling the heat from the u. S. And its allies, and its own citizens, as well. Antigovernment protesters rallied in iran for a second night after tehran admitted its military shot down a ukrainian jetliner after days of denying it had anything to do with the incident that killed 176 people. Manus we now have internal insurrection in iran. This is a feeble situation domestically. Definitely. It comes on the back of demonstrations in iran a few months back, as well, which were put down violently. To show the pressure iran is under and this unhappiness with the way the government initially lied about what caused the crash of the airliner. It is kind of hard to tell how big these demonstrations are and how the regime will manage in cracking down as it did previously. The u. S. Is lifting its designation of china as a currency manipulator. The treasury, saying beijing has made enforceable commitments not to devalue the yuan and it removes another obstacle of the signing of the phase one trade deal. In a lot of respects, this seems to be the righting of a wrong, given there was criticism designating them last year was a political move. I think that is right. There was also opposition within the Trump Administration to the president making that move. That move came at a time when the rmb went through seven to the dollar. That is a symbolic level, but things have changed since then in the currency and now, we have this phase one deal which includes a currency chapter. That is clearly a big, symbolic move. Wall streets biggest banks are reporting the latest round of earnings and it was an especially big quarter for jp morgan, as profit jumped 21 , fueled by a rebound in fixedincome trading. Earnings of 36. 4 billion, the largest of any bank in u. S. History. The fixedincome trading revenue was a standout. It was a billion dollars above what analysts expected and citigroup was not far behind. About 600 million above what analysts expected, but they were able to shake off a lot of the worries about net fixed income. I want to caveat that by saying the cfo of citigroup had mentioned they will take some sort of hit maybe this year. We dont know what that will look like really, but right now, it is not something investors are overly concerned about by any means. Existing tariffs on billions of dollars of chinese goods into the u. S. Are likely to stay in place until after the november president ial election. Any move to reduce them would hinge on beijings compliance to with the terms of a phase one trade. Beijings compliance with the terms of a phase one trade deal. I think it took a lot of people by surprise to see the headline the day before we get this thing signed maybe. Maybe. And that did take the steam out of the stock, but we are drifting toward new highs. These tariffs will stay in place until there is a phase two. If the president gets a phase two soon, releasing tariffs as part of phase two and if not, there will be no relief. It has nothing to do with the election or anything else. Bank of america joins wall streets trading come back with revenue climbing 30 in q4. Goldman sachs performance was marred by a 100 million legal charge for Goldman Sachs over it settle over the 1mdb scandal. Does it begin to get cleaner from here on out . That would be the hope for investors, right . The big news was the big charge. They took a 1. 1 billion charge related to 1mdb. Obviously it is difficult , because they cant necessarily say where they are versus the total potential cost. We have to basically have to wait for the final settlement to know what the final costs are. For bank of america, the disappointment today is clearly they are guiding to flat expenses, and perhaps less optimism on the revenue side. It is tough to say at this point who is being conservative or not, but bank of america less optimism than other banks. Historic day. We are 30 minutes away from the signing of the phase one trade deal between the u. S. And china. It will leave significant tariffs in place, but it will punish beijing if it fails to deliver on key pledges. Pres. Trump china has made substantial and enforceable commitments regarding the protection of american ideas, trade secrets, patents, and trademarks. It provides a baseline of a better world economy, and i think you are seeing in the markets the Business Community globally telling you things are better now in terms of prospects than they were before this agreement was entered into. It did outline the specific purchases china is going to make, this 200 billion of american exports it has agreed to, things like manufactured goods, and that is over a twoyear period. How it is going to happen is the big question right now. It is hard to imagine china forcing its companies or its importers to buy American Goods and how that system will take place. That still raises a big question. Everyone agrees this deal reduces tensions between the two countries but doesnt achieve a lot of what the Trump Administration set out to do, which would do from the beginning, which is crackdown on ip theft and forced technology transfers. Even if the deal goes smoothly, be it after the election, i dont think anyone is expecting any nearterm breakthrough there because that is where you are getting into issues that go to the core of chinas own economic and industrial strategy and ambitions, further owned national champions, state ownership, and their ambitions to develop china into a leading worldclass Technology Driven economy. All those issues, all those matters pose redlines that will be tougher for the u. S. And china to reach a deal on. Shares of morgan stanley, opening with the biggest rally in three years after the rivals boosted profit target for the next two years. They are saying institutional securities revenue is the best it has been in a decade, so the numbers we saw this morning in fixed income were staggering. At one point, 3 billion. 1. 3 billion they are right behind goldman at 1. 8 billion and they have risen at a higher pace. Business last year at the same time, they had the worst performance on wall street, so the street is asking whether the performance is sustainable. They are investing in that business and Overall Investment banking figures beat estimates. It has been a massive week for trade in washington. Yesterday, it was the phase one china deal. Today, usmca. The bill is passed. Clearing the senate, it will replace nafta. This was an overwhelming support in the senate. A bipartisan vote in the senate, much like the house. A big bipartisan vote to pass it. It was a Major Campaign promise for President Trump. It is not a radical departure from nafta. There are a few things are tweaked, but he promised it would do some things and now he can say he has done it. Chinas economy last quarter after slowing to the weakest pace in almost three decades. Fourthquarter gdp rose 6 from a year earlier, matching estimates. Meanwhile, industrial output retail sales and fixed Asset Investment figures all beat estimates. Key takeaways . The data was better than expected. What we really care about here is Industrial Production and fixed Asset Investment, this number will keep slowing down. Every six months, every year, we are going slowest since the 1990s. Who cares . The last time the u. S. Saw growth like this was 30 years ago. This is a high level of growth for an economy that is exceptionally large and sends a message the pboc is doing a good job of managing the growth slowdown. It is a very slow slowdown in terms of the rate of deceleration very moderate and overall this is a positive story for risk assets. [bell] ending the week on a high note here. The dow, s p, and nasdaq at record highs. The dow firmly above that 29,000 mark. Now a five day winning streak for the dow. Still ahead as we review the week on bloomberg best, conversations from the Jpmorgan Health care conference. Plus, an exclusive interview with dallas fed president Robert Kaplan. He thinks the central bank should rein in its asset purchases. Growth in the Balance Sheet is not free. There is a cost to it. Juliette next, more of the weeks top headlines. U. K. Inflation data at a threeyear low in december. Juliette this is bloomberg. Juliette this is bloomberg best. Im juliette saly. Lets continue our global tour of the top stories. Taiwan reelected their proindependence president in a landslide. Taiwans president has won a landslide victory to clinch a second term. The win is being seen as extending the Fourth Quarter market rally we have been witnessing. What most have been saying over the weekend is this is pretty much a referendum against what they saw as chinese interference in the selection or and this election or attempts to interview in that interfere in this election as well as a rebuke for the desire for more closer ties with the mainland. Those strategies pretty much backfired, so the kmt did pick up a sevenseat gain in the legislative, but the party keeps the majority in the legislature. The pound dropped, following another member of the Pboc Monetary Policy Committee citing a potential vote for an Interest Rate cuts this year. What should we expect when the boe meets . When we get to mark carneys last meeting at the end of this month, it had been considered previously a pretty dead meeting, but now we have various policy makers coming out. We already had two of the nine voting for rate cuts. Now weve had two more saying if the data doesnt improve, they will vote for a rate cut. One as soon as this month potentially and we had mark carney himself saying they have the space to cut if they need to and he hears that argument. This morning, we heard gdp data which was unexpectedly worse than any of us expected. It was a contraction in november. There will be a lot to look at before we get to the january 30 meeting. You u. K. Inflation data slowed to a threeyear low in december, clearing the path for a potential bank of england Interest Rate cut at the end of the month. Inflation came at 1. 3 , well below analyst forecasts of 1. 5 and below the boes 2 target. Today, we heard from michael saunders, the leader in charge for lowering and he says the bank needs aggressive stimulus to take the cut have the risk inconsistently lowinflation. In the last few minutes, gdp data from germany confirmed the extent of 2019s slowdown. Gdp grew at 0. 6 last year, the weakest in six years. Despite the sluggish data, the governor says the risk can almost be ruled out. There is no doubt that the German Economy had a horrific year last year. It is heavily dependent on exports, especially manufacturing, cars. Exports have grown only slightly. On the other hand, we are seeing quite robust demand domestically. Both private and government consumption has grown. Also, we are seeing construction growing, so it all speaks about domestic economy still going strong. The inflation rate hitting a fiveyear high in december, far above the rbis target and prompting expectations of a further pause, even as the economy loses momentum. What is driving prices up . Dots the prime reason for that is of course reason for that is of course vegetable prices and within the vegetable prices, onion prices. 60 jump in vegetable prices if you look at the cpi index. That will take time to ease. Economists, which means we are in to april and we will see the cpi headline inflation easing, and that doesnt end there because youve got volatile oil prices feeding in. The Telecom Price hike we saw in december will also play out in the next few months, so what you are seeing is a very sticky headline inflation and gives very little room for the bank reserve of india to cut rates because unless it falls below the 4 mark, the target, there is not much they can do about Interest Rates. The ecb, releasing its releasing accounts of its meeting with Christine Lagarde at the helm. Seeing initial signs of are we seeing initial signs of stabilization through the slowdown . Are we seeing any subtle signs of pushback from the governing council about where Monetary Policy setting is now . What stood out was this point made on vigilance. It seems several members are arguing you need to monitor the potential negative side effects that could come from this current policy stance, even though they have agreed to keep it what it is at the moment. Going forward, there might be more reluctance to take Interest Rates lower than where they currently are. In a way, what it also shows is the ecb will be taking its soulsearching mission in the context of its proposed strategy review very seriously. The Trump Administration is planning to change how Economic Data is released in a move that could affect access to figures such as the monthly jobs report. The Trump Administration is looking at changes to the way it releases Economic Data out of the Labor Department, including taking away computers that reporters for decades have used to get the data on embargo ahead of the release, digest it, make sure it is accurate in terms of what they are releasing and report it out. We dont know yet what their plans are for how they would release it. Would it go straight out to the internet at a prescribed time when everyone can get it at the same time . That opens up other questions as to whether there could be a logjam with the servers at the Labor Department being hit at the same time at once when things like the jobs report released on the first friday of every month. Treasuries are going to start issuing a 20 year bonds for the first half of 2020, looking at different ways to fund the ballooning deficit. Steve mnuchin said the government will look into other products that finance debt at the lowest cost over time. It is going to be interesting to see who steps up to buy these 20year bonds. Typically, when you look at the 30 year treasury, your pension funds, your insurance companies, so it will be interesting to see if those are the natural buyers of 20year debt. With that said, europe and japan have 20year bonds, so it makes sense the treasury went within the existing Market Structure and we could see domestic funds really interested in these bonds, as well. Could Vladimir Putins grip on power continue beyond 2024 . The russian president has replaced his Prime Minister and called for sweeping constitutional changes which could reign in his successor. Putin is due to step down in over four years, but the shakeup could see him take another powerful post to ensure his influence. How much of a political earthquake was that . It was completely unexpected. Putin was giving his annual address and there were no signs of the changes until the end of the speech when he outlined constitutional changes, which he said at the time were very important. It was only after that the bombshell news arrived of Dmitry Medvedevs departure and putins decision to have a new government. It is very rapid, very swift. The incoming Prime Ministers appointment was pretty much a formality. The impeachment trial of President Trump kicks off in the senate next week. The most controversial issues will be tackled behind closed doors. Chief Justice John Roberts will preside over the proceedings. What do we expect . I spoke with Top Republicans about a timetable for how long it will last. They are saying anything from a couple of weeks, so the anticipation, at least from the white houses perspective, is they will be able to get the trial completed before the president s state of the Union Address on february 4. Meanwhile, democrats doubling down trying to push for there to be what they say more transparency. They would also like to see some key witnesses. However, if you look at the math in the senate and im not sure the democrats are going to be successful based upon my reporting in their efforts. Juliette you are watching bloomberg best. At its meeting in early december, the fomc signaled it does not expect to raise rates in 2020. Since the announcement, the s p 500 has gained 5 . This week, dallas fed president Robert Kaplan spoke exclusively with bloombergs michael mckee. Kaplan says he worries the feds position is helping push cap asset prices. I do, and i think there are three aspects. Rates are lower and we lowered rates last year, and i was a supporter of those rate reductions because i was worried about weakness in the economy. Then there is a perception that the bar is higher for future rate increases. I dont know if i completely agree with that, but thats part of our communication, and the third issue is in order to address this repo issue, weve grown the Balance Sheet. I think weve done what we had to do, but im very sensitive from here that we need to be finding ways to limit and temper the growth in the fed Balance Sheet. I am confident that all three of those, all three of those actions are contributing to elevated risk asset valuations, and i think we ought to be sensitive to that at the fomc and i certainly am. You say it is not qe. A lot of our guests in the market say it is qe. Is it qe because they believe it is . It is not qe because we are not buying along the curve. My own view is it is having some effect on risk assets. It is derivative of qe in that we buy bills and we inject liquidity, it affects all risk assets and im of that view. For me, this is why i say growth in the Balance Sheet is not free. There is a cost to it, and we ought to be very disciplined about it and sensitive to it. I think weve done what we needed to do up until now. But i think it is very important , that we come up with a plan and communicate a plan for winding this down and tempering Balance Sheet growth and im very hopeful we will do that. Juliette coming up on bloomberg best, more perspective on markets from oaktree capitals howard marks. His message, this might not be the best time to invest. Plus, conversations about Health Topics in health care. There is support for a singlepayer system in the u. S. The only way singlepayer controls costs is by withholding services. Juliette this is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Juliette welcome back to bloomberg best. After a standout 2019, investors are poised for larger returns in 2020. At least one leading figure on wall street is urging caution. In an exclusive conversation with bloombergs erik schatzker, howard marks explained why he thinks the present moment is not a good time to be investing. The market has been up for 11 years. We are in the longest bull market, longest expansion and history. Profits are not rising, stock prices are. It is a liquiditydriven rally. It comes from people having a lot of money to spend. If you put those factors together, it does not mean the the market is going to go down tomorrow. It does mean the odds are not, in my opinion, in the investors favor. Is that to say that now is the time to be a contrarian . As we know the economy is , growing at a reasonable clip. Forecasters say the odds of a recession in 2020 have declined. Stocks brushed off the threat of iranian hostilities in surged to a new record. Highyield spreads keep edging closer and closer to a new postcrisis low. The way i would phrase it, eric, this is a time to have less risk than you did three or five years ago. Juliette this week, Global Leaders in the health care and pharmaceutical sectors gathered in San Francisco for the j. P. Morgan health care conference. Bloomberg spoke with several top executives about the most important issues facing industry. Lets start with bill anderson, who told taylor riggs his company is not concerned about competition from biosimilars. We dont worry about biosimilars. They are an important part of the health care system. They bring lower cost and choices for patients. Thats great. Our real focuses on innovation our focus is on innovation and we will continue to be successful there. There has been a lot of talk about drug pricing and transparency. What are your thoughts on potential changes this year or the next four years for new drug pricing transparencies and how you make sure you are clear about the pricing . One of the issues we have as an industry, almost half of the cost of medicine is borne by patients. Cost that is borne by patients go to the innovative does not pharmaceutical companies. It goes to the middlemen. Rebate reform and transparencies are ways of ensuring that people understand where the money is going. Where do you see the intersection in technology in health care . At gsk, innovation is the first of our three priorities. Innovation, performance, trust. Whether it is positive data for patients, or what we hope will be six new approvals in 2020. Technology, for us, is in enabler of innovation, accelerator of innovation. Fundamentally it is so exciting , to see the advances coming in biology, but also in technology. That is why we have been new partnerships, whether that be with 23andme, this is a fantastic ecosystem. We see a lot of opportunity fundamentally to improve through genetically validated targets the probability of success of our medicines. And therefore, the productivity of r and d. Mid2019, you introduced a halfpriced insulin. Why has that not been as successful in the retail marketplace . I think it is a case study in how the Drug Distribution and reimbursement system works and why this is not just a matter of manufacturers changing their list prices. We launched a halfprice version of our insulin. Today we are launching two more sellers at half price. For a patient to get it, they need to buy it in pharmacy and wholesalers and pharmacies need to carry it. That is mostly happening. Insurance needs to reimburse it. That is less so, that is happening. We would like to see more progress on that front. I guess it does not work if it is just you. You really need this conversation to include the whole supply chain. That is the system. The system today has not been oriented toward consumer level pricing. Everyone hears loud and clear the message, we want to address that. Orchestrating that and getting that together is taking our time that we all want. We are trying to bring down outofpocket costs for consumers. I think the other actors are, too, but we need to accelerate our progress together. To make a difference for. Atients sta how do you run a business . How do you plan for what could be a very different environment one year from now . We make decisions based on the facts as they are today. That is what we do. Do you expect medicare for all to be implemented . No, we cannot afford it. It is a soundbite. Even some of the candidates say, we will do it in our third or fourth year of office. We cant afford it. The only way singlepayer controls costs is by withholding services. In canada, what i have heard and i have not documented it, there in the city of philadelphia than the country. Even asthe u. S. The eu and china discuss trade negotiations, vonnie caught up with the u. S. Tothis is the objective understand the relationship. Trying to understand each other. Find Common Ground with the United States. We start on a positive note on tuesday, where the United States and European Union and japan said we wish to have an issue around industrial subsidies and forced technology transfer, dealt with this at the basis of a level playing field. And all of the players in the future and through the wto process improved the wto this was a positive agenda. You did have another bilateral meeting today. Did you receive any assurances there will not be new tariffs . We did not get any assurances and we did not expect any assurances. He has a very big trade week. In terms of the Statement Released between the European Union and japan, the deal that was done between the United States and china, and the passing of usmca in the senate. It is a very big week for him. We are going to be in touch because we expect to be in davos together next week to continue the discussions. Juliette this is bloomberg best. Lets resume our roundup of the weeks top news in business, finance, and politics. Several stories this week on sensitivity to Climate Change is playing a larger role in corporate and investment strategies, starting with a major announcement on the starting with a major announcement from the Worlds Largest fund manager. Larry fink wrote in his annual letter that Climate Change has become a defining factor in the companys longterm prospect and he believes we are on the edge of a fundamental reshaping of finance as result. These are fine words. When do we actually see them into action . Where is blackrock now . If this happens, where does it go . This is a great pr moment. Pr moment for blackrock. As was joining the Climate Action 100 group, pushing for Corporate Governance around social and environmental issues. Larry fink has a lot of weight and these annual letters are agendasetting for wall street. Blackrock has an enormous amount of resources. It is now talking about embedding sustainability into construction, talking about a comprehensive embedding of sustainability into its business model. That, in theory, sounds like a pretty big deal. Siemens says it will go ahead with a contract to supply an australian coal mine. Environmental protesters in germany had called on the company to abandon the project. Ine ining systems for a m queens land, especially as bushfires linked to Climate Change ravage the continent. Why is siemens pushing ahead with this plan to help burn coal . Two the easy answer is is they havenswer a contract and they have an obligation to fulfill for the customers. Siemens is not to building a thermal coal power plant. They are merely supplying technology for rail line that is supposed to connect the future coal mine with the coal so the quantity can be moved. Still what is happening in , munich at the headquarters, people camping there protesting for 24 hours, putting pressure on the ceo. Anything that is burning coal is scrutinized in these times. Allstar deal creating one of the worlds Biggest Aerospace and defense suppliers. Why the merger now . They say this does not have to do with the 737 max. Of course, that is on everybodys minds. Even the production cut. They say they are more focused on the engine of the future. There is a big push toward greener engines and reducing emissions and they want to be at the forefront of that technology. This, of course, is the latest in a long line of consolidations among aerospace and defense suppliers. You will think this will give them some Pricing Power down the road. I would expect to see more consolidation in this space. Goldman sachs plans to double its headcount in china for the next five years as china continues to open its 45 trillion financial market. What do we know about this plan . Our sources say goldman is planning in the next five years. Increase headcount in the next five years. That is contingent if china continues on this path. , thisf goldmans strategy china deal is very important. Our sources say when David Solomon took that top job, one of the first things he asked for was a fiveyear plan to sketch out their plans in china. A plan to increase its stake to more than 50 and plans to take full control of that unit by year end if they are permitted. Are planning to drive growth in other parts of its business and asset management, particularly important as ubs is slashing jobs at its Global WealthManagement Unit in asia and europe. Targeting dismissal of performance across the board. China, though, is the rare exception. The bank says it is on track for double in the mainland over the next 35 years. We are looking at some teams in europe, 20 cuts. What the real focus is on ensuring that there is management that has stripped out when it is not needed, it is happening in asia first, that clearing out of some of the management and then it will shift to europe and the middle east and africa as well. We are looking at job cuts at around 500 personnel according to our sources. Ranging from managing directors all the way down to systems as well. We have seen thousands of cuts in terms of jobs at the bank. As it tries to prevent away from Investment Banking to private banking. Pivot. Barclays is planning to cut about 100 senior jobs. This across its corporate and investment bank. 100 people does not sound like a lot, why should i care . Two that is 100 highly paid people. [laughter] senior people. Barclays, we had all of these u. S. Banks report earnings. The return at these u. S. Banks are quite high. Barclays, with that 10 return, they need to improve. This is better for investors for them to manage those costs. Hopefully, they can do more with less. Boeing has lost its title as the worlds top plane maker as the 737 max grounding hands the company its biggest defeat in its 45year duel with competitor airbus. This point, it seems like one thing after another. Is there any Silver Lining . Two on the surface this is bad news. On the surface this is bad news. On the delivery front, airbus has twice as many deliveries. Signs of improvement in the Fourth Quarter, they delivered 45 dreamliners and that is more than expected and that should bring in some more revenue next year. It is definitely not great. But it is ok. What happened . Target reported their holiday sales for november and december and it was well below expectations, from a target perspective and the investment community. 1. 4 samestore sales is up against the 5. 7 from last year. It is a worrying type of result. As a result Fourth Quarter sales , expectations have been slashed, although the company did hold firm to its eps expectations. It was a disappointing quarter. Going into 2020, what is target going to do with regards to its strategy . Is there a pivot that needs to happen . They have an investment to coming up in february when they should be getting some of those answers. Taiwan semiconductor beat out earnings well above estimates. The results show how it is investing in the future. And looking ahead to rolling out a five g network worldwide. This is their net cash flow from investing. Why is this company so important for a read on the space . It is a manufacturer of semiconductors. Come when apple releases a new iphone and brags about the latest chip, that is a chip that is made in taiwan. It includes one of its biggest customers, huawei. As we know, while by is very much in the center of u. S. Chinese tensions right now. Customers, huawei. There was concern it would be caught up in some of the crossfire. They are saying that not only was the most recent quarter better than expected but the outlook was better than expected. They expect to take orders from others building out the 5g network to offset any potential decline from huawei. Plaid connects popular apps like venmo to Customer Data in the banking system. The price has doubled. Evaluation in the round. Plaid has 2600 fintech customers. Venmo, acorn. It gives visa these customers. To sell into. Plaid has been a u. S. Based company. Visa is in a great position to add fintech customers internationally with plaid services. Longerterm, visa sees an opportunity to sell payment services, payment capability to fintech. That will mean more Payment Transactions go across visaa™s global networks. The British Royal family spinoff is taking another turn today. Senior members of the family met today to discuss the duke and duchesss decision to step back from royal duties. We do have a letter from the queen saying, we had constructive discussions. We respect the fact they want to step back even though we wish they would not. Dr. The queens statement iss kicking the can down the road for a few more days. It seems likely prince harry and the duchess of sussex will be spending a lot more time in canada, even in this transition period. It is pretty extraordinary times. . We are getting remarks from the secretary of state mike pompeo speaking in San Francisco at the commonwealth club. The u. S. Is increasingly at risk from chinas actions. He spoke earlier at stanford. He said killing Qasem Soleimani were part of a deterrent strategy we will be leaving that there. There are 30,000 functions on the bloomberg and we enjoy showingu fvories. There are 30,000 functions on the bloomberg and we enjoy showing you our favorites. Heres another function you will find useful. This will lead you to our quick takes where you can get important content and fast topics. Heres a quick take from this week. 5g, or fifthgeneration mobile service, promises a lot. Nothing short of a revolution in the way we connect to the real and online worlds. It is the first big upgrade to the Global Mobile network in a decade. It is not smooth sailing. Debates about security have put the u. S. And some of its allies at odds with china. It could delay the rollout of 5g. This is your Bloomberg Quicktake on 5g. 5g should be light years ahead of 4g. The current topoftheline Network First introduced in 2009. It is designed to be 100 times faster than its predecessor with data speeds reaching 10 gigabytes per second. Very low latency. That would allow you to download a movie in a matter of seconds. South korea switched on nationwide 5g. In april 2019 and is expected to achieve top speed by years end. Japan and parts of china are not far behind. In the u. S. , some cities already have the service. Elsewhere in europe, some operators are questioning the Business Case for an allout rush to the new service which would cost billions to deploy. When will 5g be the new normal . Dont hold your breath. Even if you live in one of the countries where carriers are already rolling out 5g, it will be a couple of years before the Geographic Reach will let you use your 5g phone without relying on 4g. Or even previous 3g networks. Furthermore, you will need a 5g phone. Huawei and lenovo are releasing 5g phones soon. Apple wont market a 5g phone until 2020 at the earliest. What are the security worries . 5g will connect more devices to more critical parts of our lives, meaning that if it is hacked, it we have more to lose. The current conflict focuses on the Chinese Company huawei. The Worlds Largest polluted producer of telecom equipment. They worry that chinese 5g equipment could be used to spy on them, a kind of trojan horse. That has not been proven but concerns are serious. Huawei wants to keep the company away from what it sees as Critical National infrastructure. President trump has curbed the companys ability to sell equipment in the states. 5g networks are expected to cover more than 40 of the population. The question is not if you will get 5g, but when. Get ready for a lot of controversy along the way. That was one of the many quicktakes you can find on the bloomberg. You can also find them at bloomberg. Com, along with the latest Business News and analysis 24 hours a day. That will be all for bloomberg best. Thank you for watching. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Taylor im taylor riggs and this is the best of bloomberg technology. We bring you all of our top interviews from this week. Coming up, a deal three years in the making. The u. S. And china signed the phase one of the trade agreement. More on what it means for American Technologies and huawei. Plus, climate control. Microsoft makes a major puh