wide. if we use the imap in the bloomberg terminal, on the russell 1000, lots of green. the only down sector is energy, down 0.2%. in sympathy with oil, but all of the other sectors are higher. that is especially true for sectors.hier let's lift the lid on what is driving those. i want to start with consumer discretionary. tesla now up 4.8%. a market cap of greater than $1 billion since the may-june lows. may-june ibm up 1.4%. they put up a strong earnings report in terms of revenue, growing for the first time after five consecutive quarters. the red hat acquisition really paying off. netflix down 3%. missed thebscriber marker, despite the fact that international payment strong. the results not perfect. finally, rounding it out, i was mentioning that energy was the one down sector. some of the individual movers also not doing so well. chesapeake energy down 2.8%. overall, a risk on mood around the world. haslinda: looks like a market that wants to keep going up. thank you so much for that. crackdownovernment's on huawei has created an opportunity for companies .ompeting in the 5g space one of which, nokia, under reggie surrey -- under rajeev suri. us now.uri joins when you expect 5g to make a meaningful impact? the nextt will be in few years. we are already rolling out 5g in the u.s. and south korea. japan is next, many nordic countries, a little bit of china has begun, and the middle east and so on. market security at the scale of many companies will likely be in 2021, although 2020 is also a big year. haslinda: this will play a critical role in your profit going forward. rajeev: it should. haslinda: what challenges do you see in growing the 5g space? rajeev: there are plenty of opportunities. we think 5g is about a number of things. it is about low latency, 1000 times more capacity, but it is not only for consumers. it is also for industries. a number of verticals will benefit from whirling out 5g, and not just 5g -- from rolling out 5g, and not just 5g. you can do a number of things with 4g. we have 130 private wireless networks that industries use. haslinda: when you take a look , how isis happening now it impacting the industry? rajeev: i think this is for policymakers to decide, which vendors will be used. on our part, we want to make sure we have the most competitive technology, and we have an end-to-end portfolio like you said. 5g isn't just about radio. circle oft a virtuous multiple elements of the network. backhaul, transport, software applications, fixed wireless well,, and 5g radio as and the core network. we want to benefit from the end-to-end strategy and portfolio that we have. haslinda: there's a sense that the scrutiny could delay the 5g rollout. do you agree with that view? rajeev: it's actually been brought forward as an industry by almost two years, and continues to scale nicely. 63 contracts prove the fact it is really happening. haslinda: but i do different pace, right? europe is lagging behind. rajeev: because of spectrum not being available in every market in europe. if spectrum was available at reasonable cost at a longer lifecycle, europe would move fast as well in comparison to asia and u.s.. but u.s. is moving forward. i would say our experience in early networks is that adoption is four times faster than the adoption we saw in 4g. set targets for your operating margins. what could be the challenges to achieving those targets? rajeev: i can't talk much about q4. we will report in a couple of weeks. have 12% plus operating margins, and that is what we are working towards. haslinda: what do you view as the biggest risk for the company right now? rajeev: a number of challenges, but a number of opportunities as well. in terms of risk, the pace of investment and adoption of 5g, the opportunities in terms of how fast that will move. ,pportunities in enterprise opportunities in software. we want to dig advantage of this virtuous circle i talked about. at the same time, we are building a standalone software business, so the opportunities lie in diversifying. the risk is that 5g moves a bit slower, of which we are not sure yet. . haslinda: we have to leave it there. the ceo of nokia joining us here in davos. still ahead, coca-cola ceo james program.oins the this is bloomberg. ♪ ♪ jonathan: live from the world economic forum in davos, switzerland, i'm jonathan ferro. the conversation continues right here with the coca-cola ceo, james quincey. great to see you. -- greateat to see you to be here. jonathan: a single $40 share from 1919 worth more than $18 million today. isn't that remarkable? james: it's an amazing story. it is a great american story of building an incredible business and going around the world. i just with my grandparents had bought a share and hung onto it. jonathan: who would've thought that for john pemberton, 100 years later you would have a guy from england running the company? james: it is really a fantastic global business that has gone from that one small idea to 500 brands most everywhere. jonathan: your insight into the fantasticrldwide is a position to begin. what do you see now in terms of consumer strength? james: we still see the consumer doing pretty well. it was pretty stable through 2019, and while the economic forecast came down a little, we see us going into 2020 with the consumer doing pretty well. i know there are some sectors out there that are a little more ropey. it seems some part of the consumers doing well globally. give us consumer -- u.s. consumer, still seems to be some strength there, but globally, it seems look a stable outlook. jonathan: appetites are changing. there's a younger generation that is far more health conscious than a decade or so ago. how do you adapt to that? james: i think there are two adaptations. they want choice. different categories, different beverages. we offer a wide variety of different drinks, juices, teas, waters, and they also want the original and the zero sugar version. cook's zero is having -- coke zero is having one is its fastest growth moments. jonathan: single use plastic is still a big concern. in fact, increasingly so. what can we do to adapt, change the packaging? or will would be stuck with the same way of consuming drinks? james: i think the first thing we need to do is reframe the idea of the packaging material. there's two types of material, that which can become part of a circular economy which is single use -- economy and that which is single use. andles, plastic bottles cans are very high value items, and we can collect them back. we set a goal of climbing back at package for everyone we sell by 2030, reusing that material to make new bottles. sweden in the coming months will be the first market where every package we sell will be made from recycled materials. then you achieve not just zero packaging waste, but a much lower carbon footprint. so we can solve two problems in one go. jonathan: when does it come to the united states? james: the united states is behind on collection. we are working city and state in the u.s. to see how we can rebuild segmented collections to get the high value streams and reconvert them into bottles. jonathan: these issues have dominated the conversation in davos. a conversation has happened in the united states about seltzer water and flavored seltzer water. all of a sudden, this has become the big drink. for you sitting here at the moment as a ceo, as you see these fads, when they start to take off, how difficult is it for you to make a strategic decision to either make an acquisition or invest, and do it fast, to get on this trend? james: or weight, and that is the choice. in this case, we waited too long. there's no doubt about it. the flavored sparkling water business go up and down around the world. sometimes it peters out. the frank answer is we waited too long. we are coming in strong this year. we got some great products in the marketplace. we are coming in with a more mainstream offering later this year, and hopefully we will be disruptive in the market place and bring something new and interesting to the consumer. jonathan: you are sitting there around the board room table. you've got all these committees, all these groups trying to work it out. apart from the branding, what could possibly be new about flavored water? james: no one has given you a flavored water with caffeine yet. jonathan: caffeine. guy: why not -- james: why not? you are in the afternoon, you want to pick me up. you don't want the calories. you have some flavor, and you have the caffeine. jonathan: caffeinated flavored water. james: something new. jonathan: why not through acquisition? james: clearly, i am going to jump further forward faster, but i'm going to have to pay for it. it is really a trade-off decision between the capital cost of buying that company and paying the premium, and really, you only want to pay the premium you can accelerate much quicker and generally expand internationally, or you do it with your own brands and urine system. we have a great business in the u.s. that's been gaining share for a very long time. we think we are going to gamble and make this bet, make this investment on our own cap abilities. haslinda: what kind of numbers --jonathan: what kind of numbers can we expect? what kind of revenue? james: i hope it makes a part of continuing to grow our share gain. we have some internal targets we don't disclose, but i have of how ossipee that if we always search for every project to be perfect -- have a philosophy that if we's always search for then project to be perfect we will always succeed. jonathan: i want to round things that was a delicate conversation, if i may. i had a conversation earlier in the week about multinationals trying to please progressive consumer bases at home, and at the same time maintain access to the space that doesn't quite share the same values. is it a tricky position to be a multinational right now, where you have a consumer base that increasingly wants to see the brands they consume on a daily basis reflect the morals and values they also share? do you feel the heightened pressure to go down that route? each brand has to stand for something, and it can't stand for different things in different countries. that's going to be a very complicated journey to try and take under. our brands have clear positioning's, clear brand values, and we stick to them. the strength of the system is ultimately the products we make, as global as we look, it is truly a local business. all coke for that country were made there. it is really a local business. jonathan: is it more prudent as the ceo of a multinational to stay out of politics, to stay out of these big arguments over values and morals and ethics? james: we've drawn into some conversations, particularly as it relates to -- i'm not a politician. i'm here to run the company and represent the enterprise and the brand. if there are issues that cross over the company's or brand's core values, we will have to have a position. we will take them, and they will be what they are, staying consistent and staying true to what you believe in and what you stand for. it is key to consistency, and that is what consumers will ultimately look for. it is as important to stand for something as it is to be consistent. jonathan: james quincey, , and as i also understand, an aston villa fan. tough year. don't forget, bloomberg green. . you can find it on the terminal, here on bloomberg tv and on bloomberg radio. from the world economic forum, this is bloomberg. ♪ >> we have breaking news. lemaire says france in the u.s. agree on a digital tax framework , dellien, not withdrawing the digital tax. is thete bank of india country's largest lender has been at the forefront of india's debt problem, helping to clean stagflation among the world's biggest economies. it's chairman rajnish kumar joints me. have we seen the worst of debt loans in india? rajnish: that loans are very under control. ,n my analysis of the situation 2018 was the worst year for us in the banking industry because , and all the bad loans got declared in one single year. haslinda: companies are defaulting, and some say that after the companies, the individuals may be the ones defaulting as well because the economy is growing at the slowest paste in at least 10 years, and jobs will be at stake. is a steady source of income, so it may be some of that. be that from a state bank perspective, the market segment is very different. largely, we cater to the people who are employed in the government sector. maybe that is a defense which the state bank has a sars its loan book goes. -- state bank has as far as its loan book goes. it will have some impact on the personal loans. haslinda: speaking about loan growth, what are the prospects? you are the biggest lender in india. how do you lend to companies when they are uncertain about their future, and they are pretty risk-averse right now? rajnish: i've always maintained that i've it sector investment needs a big boost in the country , and what i am finding again is in many capitalization sectors is still low. is greatly needed. that is precisely what the state bank of india is trying to do. we came up with an ip that outlines the almost $1.5 trillion structure spend -- trillion infrastructure spend. that, you could add 200 points to our gdp. infrastructure contains a lot of jobs. at the same time, the private sector investment, to requirements. .ne is definitely the returns the second is the business and sector specific issues. haslinda: how do you prevent the deterioration of asset quality? there are always two reasons. macro economic factors, and the other is internal factors. the internal factors is at the bank that we have improved. we have improved our monitoring of the loans, the cash flow lending. there are many steps which banks are taking internally on the warning signals. macroeconomic, of course, you don't have much control. the factors on the entire industry. so what happens if the bigger ones get wiped off? the stronger ones are still somehow able to manage. haslinda: there is a risk that the bank may go down. what is buying the bank means saving the industry? the bank is significant in the market, with almost $40 billion balance sheet. i have a feeling that it will not be allowed to fail. there has been an effort by the bank -- haslinda: should it be allowed to fail? guy: it would not be good -- rajnish: it would not be good for the economy as a whole. a bank of that size, if it is allowed to fail, there is a problem. i'm sure that some solutions will emerge. haslinda: we have to leave it there. rajnish kumar, we thank you for your insight today. rajnish kumar, state bank of india chairman. stay with us. our coverage from the world economic forum here in davos continues. ♪ sometimes your small screen is your big screen. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. hey. ♪hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network... only with xfinity xfi. download the xfi app today. ♪ haslinda: live from davos, i'm haslinda amin. the world is watching efforts to contain a respiratory virus that has killed nine and infected hundreds. spreadbreak has beyond china with the first reported case in hong kong. let's bring in the ceo of sun, and spicejet chairman ajay singh. this could potentially have a profound impact. it?, what is your take on jane: i think the hospitals and communities are much better prepared. we are working very hard with doctors and industry. ctrip has just announced that if our customers are diagnosed to have the virus, we will cover all the cost for the cancellation, changes, and delay of their trips. haslinda: it's all this about sentiment? the fear is that it could happen to me. if you take a look at how tourism contributes to gdp in india, it is 9%. in china, it is 11%. what kind of impact, even initially, could we see? ajay: it can be really devastating, there's no question about it, but these are early days yet. let's see how things develop. we know this can have a tremendous impact. people coming in from outside, so much of tourism happens for word-of-mouth. when you see everyday in newspapers and outbreak or some incident happening, you have so many alternatives and options and places you could potential he go to. why should i go to this one particular place when there is a problem? i think we need to contain it as soon as we possibly can, and communicate that it's been contained. the communication is almost as important as controlling the problem itself. haslinda: the timing couldn't be worse for china or hong kong, leading to the lunar new year holiday. in terms of bookings, are you seeing any sign at all that is impacted? jane: i had for the impacted area, people are very careful not to travel out. is not necessary to go inside that zone, we don't encourage people to go there. ofever, if there is no sign being infected, no sign of being contacted by the patients, it is probably ok now. haslinda: what is the psychology in india right now, of the indian traveler? ajay: indians are a little more adventurous, i would think. none is impacted and is quickly impacted as many travelers around the world. but indians go to hong kong don't and those flights seem to be affected by this particular problem as yet. -- host of problems and kind of problems inside hong kong have affected travel to an extent, but we haven't seen the impact of this particular outbreak at this time, so i say it is early days. a looka: i want to take at the strategy of trip.com, changing your name recently. is that a way of combating the expected slowdown in china? jane: trip.com originated from china, so we viewed our scalability from the market. last year, we sold one than 300 million tickets around the world , more than 700 million tickets of high-speed tickets. we also negotiate very good deals not only for chinese customers. people around china like to use our product as well, such as japan, korea, singapore, etc. we are not only serving the customers from china, but also people who enjoy the package tours and transportation. haslinda: but it is also increasing opposition in china for you. if exit really difficult to do business -- it makes it really difficult to do business. jane: not really. every year there is a newcomer. many came, many failed. i think the barrier of entry trip.com has built up is quite high, so we make sure we serve the customers very well. for example, business people like you, if you want to make a reservation and your flight leaves in one hour, we can make the reservation, issue the ticket, issue the boarding pass, get you on the plane within one hour. i don't think anybody else can do that. so a high level of service is our key. haslinda: it is quite a challenging time for you. you built the business based on the 737 max, which may not even come back to service. what are you looking at? what is the strategy? 737 has been grounded since march. it is the single longest and largest grounding in aviation history. so of course, it has caused a lot of trouble for us. we are hopeful, however, that the plane will be back in service this year. that is what boeing has said to us, and we hope that this can happen. of course, it's had a tremendous impact. we were one of the largest customers of this aircraft, 200 planes. it is a wonderful aircraft. we flew it for six months about incident. very happy to fly it. we just hope it can come back fast because this is having an impact not only on us, but airlines around the world. haslinda: can you quantify that impact? ajay: the aircraft itself saves , so every2% in cost time we fly an old aircraft versus a new aircraft, there is a significant difference in what that means. also in terms of distance, because these are aircraft which consume less fuel, they can fly longer. so certain destinations from india that are more than the are not the max that within the range of the existing aircraft. it's been a huge dampener, and by now, most of our old aircraft have been replaced with new aircraft. beside the cost, it is also a brand impact, of course. haslinda: and it is all about trust. if the max comes back into service, how do you gain the confidence? would you fly first to show the people? ajay: absolutely, no question about it. after all that this aircraft has gone through and the time that the faa and all of the regulators are taking, there's no question this is going to be the safest aircraft in the world. i am confident of that, and of course we will fly on the very first flight there is. haslinda: talk about a second listing in hong kong. is that happening? why do you need it? ajay: there's a lot of daft --jane: there's a lot of rumors. people like to speculate. but we want to do the right thing to make sure we protect the best interest of our shareholders, our partners, and our customers. haslinda: i want to talk about quickly the impact that the protests in hong kong have had on the business. what are you seeing in terms of those numbers? down i think it is teaming right now, so we hope the best for hong kong. ctrip always wants to do the right thing to support the tourism between hong kong, mainland china, and the rest of the world. haslinda: interns of flows between the two sides, have you seen a negative impact? jane: last year was a tough year because many things happened. the trade conflict had impact. nonrecurring items has quite a significant impact. .opefully the new year comes haslinda: very timely to be having this discussion. trip.coms to jane sun, ceo, and rajnish kumar, spicejet founder and ceo. let's get the first word news with ritika gupta. ritika: the u.s. and france have struck a deal on digital taxation to avert a trans atlantic trade war. france agreed to delay collecting a tax until the end of 2020, and the u.s. will refrain from imparting punitive tariffs on french goods. >> we are ready to postpone until the end of the year with the view of finding an international solution. if there is no international solution at the end of 2020 -- if there is an international solution at the end of 2020, we would take the international solution. ritika: president trump lashed out at his accusers in the senate impeachment trial. he called it "bad for the country." he says he would like witnesses to be called. democrats are likely to begin presenting their case against the president today. in italy, there is talk of another election. resigned as the leader of the anti-establishment movement. that calls into question the viability of the coalition government. plans to stay on as foreign minister. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. haslinda: thank you. much more from the world economic forum in davos ahead. this is bloomberg. ♪ ♪ live from beautiful davos as the sun, i'm haslinda amin. state owned oil producer petronas is a key source of revenue for malaysia with a dividend of $13 billion in 2019. it has been under pressure to return more as the government struggles to rein in its budget deficit. president and ceo of petronas datuk wan zulkiflee bin wan ariffin joins us. speaking of dividend, how much pressure are you under to provide more dividend to the government, whose covers are depleting? datuk: as far as our shareholders are concerned, we are very grateful that we have very responsible shareholders. whatever amount we agree on does not impact our operational requirements, if there are any financial commitments, and also our growth strategy. i'm grateful that we have a very responsible shareholder. are you under pressure to return more to the government? wan: we try to create maximum value for the shareholders, but what is important i think is our business model, or business growth plans are not jeopardized. need at: do you see the some point to raise assets, to sell funds -- to raise funds, to sell assets? wan: i don't see that need at this point. haslinda: what are some of the key takeaways from the aramco ipo? wan: it is a very progressive company. it has been preparing for this for a long time, and it has been a successful exercise for them. haslinda: let's speak about the focus on climate change, sustainability come up being in the oil business. talk to us about how petronas is making that transition to cleaner and renewables. firstly, the energy demand is growing. my view is that we should ,evelop all forms of energy including renewable energy. last year we announced a new statement of purpose for renewables. what i like to point out, this is our new statement of purpose, and as a result of that, we are ,eally looking at our portfolio and this year, we have located fornd 5% of our capex renewable energy, which is solar and wind. i think this is part of future .roofing the organization gasill think oil and will play a major role, but become limited by other forms of energy. haslinda: where do you see a rise in demand? east, there, in far is demand for the next five years. we think it will be around 3.5% to 4% every year. china is a big contributor to the demand. tensions we are seeing between the u.s. and iran. is that impacting your operations in iraq? wan: today, it has not impacted our operations, but we are closely monitoring in the event that there is any escalation of risk. the safety of our staff is the priority. haslinda: what safeguards are you putting in place, and at what point would you make an exit? wan: of course, there are signposts that we watch out for. we are also in communication with other operators in the area. we are always up-to-date on what is happening on a daily basis. haslinda: i can't let you go without asking for your projection for oil. oil prices have swung between $28 to $122. what is a sustainable oil price in 2020? i forgot what you this is. [laughter] -- what year this is. [laughter] wan: we don't predict oil price, but we use basis for our planning purposes. we take a long-term view, and as we've discussed before, we are very comparative -- very conservative a planning concerns. this year, our planning bases will be in the high 50's. haslinda: ok. we will come back and see. are think to president and ceo of petronas wan zulkiflee wan ariffin. coming up, more from the world economic forum. we will hear from the ceo of san tori -- of suntory. don't forget bloomberg green. ,ou can find it on the terminal online, and on bloomberg tv and radio. this is bloomberg. ♪ ♪ from davos, i'm haslinda amin. about five years ago, the worlds largest premium spirits maker acquired -- willyear, the company increase bourbon production in kentucky. joining me now to talk more about the expansion plans is takeshi niinami, suntory holdings president and ceo. good to have you with us. talk to us about the plans for the u.s.. takeshi: american business is doing very well. we would love to pile up more stock in kentucky, increasing production and storage, and root to market -- the route to market for the consumers. premiumize our beautiful brands. we are very optimistic about the market. haslinda: what is driving growth, what is driving demand, and who is buying? takeshi: millennials living in cities, they like premium whiskey, and mostly a good berman. we have a -- good bourbon. we have a lineup of good bourbon brands, so we want to enhance emotion and reach out to those millennial generation. haslinda: so that is a new market for you? takeshi: it has been quite a while. it is a new market, and they american whiskey and bourbon. haslinda: there have been geopolitical develop its before. do you see that happening given that geopolitical concerns in the world are rising, between the u.s. and china, in the korean peninsula, in the middle east? what is your take on it? what kind of risk are you seeing? takeshi: on the plus side, the tension goes away a little bit between china and the u.s.. that helps a lot of business in china. that is good. but there's still an issue between europe and u.s. tariff one is bourbon. it is very difficult to take price because of the economy overall in europe is not so good. we don't believe that taking price is easily accepted by consumers in europe, although we are doing gradually. issue isgeopolitical more or less less important than now, so it is good. haslinda: it is an election year in the u.s. are you focusing on anything in particular? how upbeat are you about the economy? we heard from president trump, gloating about the strength of the u.s. economy. takeshi: first of all, we believe the u.s. economy is still good. invest.good for us to that, we want to make use of this great economy of the world. i believe the economy is fairly good this year, so we would like to expand to asia more and southeast asia. that is the growth potential so much, so we would like to focus on asia more. haslinda: in asia, you're also looking to expand in india. what is the potential of that market? takeshi: huge potential. consumption of whiskey in the world is india, amazingly. we want to expand our put front -- our footprint. there is huge potential in india. we started to sell scotch whiskey five or six years ago, and now we entered into the business of indian whiskey. that is doing well at this moment. we want to expand in their usingy more and more, cressman ship. -- using craftsmanship from there. younger generations, they want to do something new. something new from japanese whiskey flavor and bourbon flavor. so those in the younger generations love something new, and we have something new. [laughter] haslinda: good luck with that. in the m&a space, you purchased jim beam six years ago, and since then there has been a lack of m&a activity. can we expect anything in the next 12, 24 months? what would make sense? takeshi: not as big as $15.3 billion, but we are thinking to acquire some brands. not huge acquisitions at all. because we have beautiful brands, we should premium eyes -- we should premiumize those brands. haslinda: so if you were to make an acquisition, where would it be? asia, southeast asia? would that be the market you are looking at? takeshi: not really because we have production sites already. we just need to maximize that production, like kentucky, like japan, like scotland. example, ahave, for cognac that is a great brand. haslinda: we have to go. our thanks to takashi nami, suntory holdings president and ceo. coming up, i will speak with to massac -- speak with temasek holdings' ceo. from the world economic forum in davos, switzerland, this is bloomberg. ♪ and they lived happily ever after. the end. the end might not be as happy as you think. after all, 4 out of 5 people who have a stroke, their first symptom is a stroke! but the good news is you can rewrite your ending and get screened for stroke and cardiovascular disease. life line screening is the easy and affordable way to make you aware of undetected health problems before they hurt you. we use ultrasound technology to literally look inside your arteries for plaque that builds up as you age- and increases your risk for stroke and heart disease. so if you're over 40, call to schedule an appointment for five painless screenings that go beyond annual checkups. and if you call us today, you'll only pay $149-an over 50% savings. read it again, papa? sure. i've got plenty of time. life line screening. the power of prevention. call now to learn more. two.davos day the ceo of temasek and the governor of the central mike of kenya. the french finance minister agrees to delay his new digital tax until the end of the year. did paris just cave to america's demands, and will the u.k. be next? live from london, i'm guy johnson, with vonnie quinn in new york. we are counting you down to the european close on "bloomberg markets." ♪ vonnie: checking u.s. markets, we are seeing a nice rebound, about 0.3%. there are maybe 150 companies reporting this week, but also the idea that china is moving to curb the coronavirus from spreading even further has taken that fear away from markets today. 1.77% year yield still at , though, so there is still some