Transcripts For BLOOMBERG Bloomberg Best 20240713

Financial impact. My guess is it is going to be worse than people think. We are confronted with a conditional supply and demand shocks. It will have effect on global gdp, that is for sure. But it is not like the world will end tomorrow. Nejra meanwhile, president s trump and modi meet in india. The country did sign defense deals were 3 billion, and they pledged closer ties on Maritime Security. Nejra jpmorgan lays out goals on its invest today. They said u. S. Wealth is going to be one place where they can still grow. Nejra and the iger era comes to a close. Disney names a new ceo. I intend to double down on the same strategies bob has established. Nejra its all straight ahead on bloomberg best. A hello and welcome. Im nejra cehic. This is bloomberg best, your weekly review of the most important business news, analysis, from Bloomberg News. Lets start with a day by day look at the top headlines. The dominant story throughout the week was the global spread of the coronavirus, and on monday, as reported infections climbed, Financial Markets felt the pressure. Coronavirus continues to spread beyond china and outside asia, raising concerns about the prospects of a pandemic. South korea, which raised its Infectious Disease alert to the highest level over the weekend, just confirming 161 new cases and two more deaths, and now seven deaths and over 750 new cases, all in south korea. We heard from the finance ministry. They will be announcing, they say, extraordinary measures for the economy. And italy as well this is the epicenter of where the outbreak has been in europe. More than 140 cases there. Indeed, milans stock market opened down 4 this morning. Spreads are spiking already, and italy was already in a fragile economic situation. The economy contracted in the last quarter in 2019. It was preparing for a recession in the beginning of 2020, and the government is fragile. Francine stocks plunging around the world. President xi jinping has urged china to spare no efforts to contain the coronaVirus Outbreak. T as the nations top guy northern italy grinding to a halt today. This as the government imposed a regional lockdown to contain an outbreak of coronavirus that has it has already affected over 200 people. Milan, the countrys financial schools, museums, all closed, with many staying away from work. Investors starting to price in the risk of a recession. We estimate that the northern swaths of the country, like in an arc from here east toward the venice region where venice is, probably accounts for Something Like 1 3 of the economy. So as you can imagine, just shutting that down for a number of days or even possibly a week or more would have a devastating effect on the economy for sure. U. S. Stocks having their worst day in more than a year, the dow and s p erasing their gains for the year. And it is a third day of losses. Lets not forget that the momentum is to the downside. I do not think it was panicky. It did not feel like at any point we were about to just keep selling. Nonetheless, the fundamental news out there is not great, because people, i think, just feel like they have no sense of where this virus could be. Francine the spread of the coronavirus outside china, including south korea, iran, and italy, has seen the number of cases worldwide top 80,000, but, for now, the World Health Organization is not yet calling the outbreak a pandemic. We are now seeing transmission in countries where we had not seen transmission before. And we are now seeing clusters or chains of transmission where we do not know what the originating factor was. We do not know did someone travel and spread the virus . How has it arrived in that country . We have another sea of red. Yesterday, we were down sharply. Every single sector here in europe is off today. Ftse 100 down 2 . The dax down 1. 8 . The madrid market, where we have seen more cases of the coronavirus in darrelle revis, a hotel has been quarantined, the market down by 2. 32 . The impact of the coronavirus is being felt worldwide by big businesses. United airlines, mastercard, and apple all emerging as latest companies saying that profits could be hurt. More than 300 companies in the s p 500 have recorded downward revisions to their First Quarter estimates, so we have gone from an anticipation of about 2 , 2. 5 growth in q1 to negative growth expected already. I think that is only going to get little bit worse as long as the coronavirus continues to extend, the duration extends, and it continues to ramp up globally. U. S. Centers for Disease Control and prevention is warning americans to prepare for a coronaVirus Outbreak here at home. We cannot hermetically seal off the United States to a virus. And we need to be realistic about that. It is all eyes on the bond market. The 10year treasury yield finally broke that record low it has been flirting with. Your new record is now 1. 3155 . And there you have the closing bell. We are looking at losses of more than 3 for the dow and s p. This is a fourday selloff for the major indexes. The russell 2000 off by more than 3. 5 . The dow, the s p, and nasdaq have all erased their gains for the year. They are all negative for 2020. Jonathan the coronavirus wreaking havoc on markets, despite President Trump and the administrations best efforts. Pres. Trump you may ask about coronavirus which is very well under control in our country. As far as containment is concerned, we have tightly contained this. So it is an early success for our side. Jonathan the cdc sounding less optimistic, telling reporters in washington the last 24 hours it is not so much a question of if this will happen anymore but rather a question of when this will happen and how many people in the country will become infected. Is the president emphasizing the degree to which the disease is under control or contained . Which is correct, but the cdc is making the point that, given how rapidly it is spreading across the world, given the particular characteristics of this virus, it is pretty unlikely it will stay that way for too long. Pres. Trump because of all weve done, the risk to the American People remains very low. What we obviously saw was an attempt by President Trump, the administration, along with their Health Experts to try to align their messages. There were clear areas of disagreements, though, between the president and his Health Experts. Just after the press conference, you got confirmation from the cdc that one person in the u. S. Has been confirmed to have the virus with no known links to any areas of outbreak, suggesting that could be the first instance of persontoperson infection within the u. S. More coronavirus cases were reported in countries other than china for the first time, a Significant Development highlighting the spread of the epidemic around the world. Markets are lower this morning. Strategists from Goldman Sachs warned against buying the dip in the s p 500. And on the company front, microsoft and hp joined the ranks of other corporates, from apple to united airlines, warning of a hit on the outbreak. This is the first time we have had more new confirmed cases on a daily basis outside of china than inside of china. Saudi arabia does not have any confirmed cases, but they are taking the precautionary step to temporarily suspend pilgrimages to mecca. Japan also has more than 200 cases now, and we just heard from shinzo abe, the Prime Minister. He is going to cancel or at least suspend, i should say, for about a month, through midapril all schools across japan. Their is a lot of red out there. Markets down 3 , 3. 5 . The main markets in europe all down over 3 . This is possibly the worst thing i have ever seen in my career. And, you know, i have been through a lot. Ive been through the stock market crash in 1987. I went through the financial crisis. This has the potential to reel into something extremely serious. It is very hard to imagine a scenario where you can actually contain this thing. It is getting worse by the second, more or less. Nasdaq now looking for declines almost 4. 5 . S p a little better, 4. 3 . Scarlet but session lows. We are going straight for session lows. The 10year treasury yield is still below 1. 3 . The vix is off to the races. These virus headlines, it feels like they are not slowing down at all. This is still a really jittery and panicked market. Nejra wipeout on wall street. Global stocks head for their worst week since 2009. A painful day in asia. Francine european stocks are tumbling. This comes as new cases of coronavirus keep appearing outside of china. New zealand and lithuania have reported their first infections. So has nigeria. Bank of america said this could be their worst week since the Global Financial crisis. Citi is expecting zero growth on global earnings. And they say even that is an optimistic view. So as we move money out of commodity commodities getting hammered. The implied probability of recession has gone basically through the roof. This is not as bad as 2008. But it is worse, i think, than anything we have seen since then. Now pricing in a 100 chance of a 25 basis point cut next month and a 40 chance of a 50 45 chance of a 50 basis point cut. But everyone in the market seems to be telling me this is a shock that policymaking on the monetary side is going to have very little impact upon. I would completely disagree with that assessment. The central bank absolutely has ammunition to at least help deal with the crisis. My own team trimmed our first half Economic Forecast by 50 basis points, based on the equity route alone. And it gets us to gdp growth of about 1. 5 in this quarter, 1 next quarter. That is going to convince the fed that they do need to step into the picture sometime soon. Fed chairman jay powell issuing a statement on the coronavirus and the impact of the economy, saying the fed is closely monitoring developments and the implications for the economic outlook. We will use our tools and act is act as appropriate to support the economy. I think the markets really wanted to hear something, anything, from the head of the fed. His statement was not that encouraging, i think, to markets. It extended a rally in treasuries. The s p is battling that 2900 level. It is not a huge pop, but i think it at least gives a little bit of relief that there is a fed backstop in some capacity. It is hard to believe, in a century spanning the Great Depression all the way up to the financial crisis, the current correction that we are in is the fastest ever. The dow, s p, and the nasdaq all slowing the most this week since 2008. Nejra still ahead, as we review the week on bloomberg best, much more on the impact of the coronavirus. Ubs chairman is among the experts who believe the longterm economic effects may be severe. Likely, in our estimate, this is going to bring Global Growth from 3. 5 to. 5 . Nejra the shadow of the outbreak hangs over earnings season. Up next, executives review their results and explain how their businesses will weather the epidemic. We are expected to have null earnings for the second half. I think the uncertainty for the moment is in which markets it will affect things. Nejra this is bloomberg. Nejra this is bloomberg best. Im nejra cehic. Earnings were top of mind for investors this week as Companies Project the Coronavirus Impact on their profit outlooks. Lets begin our report with the results from metals and mining giant rio tinto. The worlds secondlargest miner is weighing the impact from the coronavirus. Rio tinto says there could be a significant uncertainty, but there could be a second half boost from chinas efforts to combat the virus. So far, the virus has primarily impacted the service sector, the construction sector, and in manufacturing. The heavy end part of the industry, the aluminum smelters and copper smelters, have not been impacted. Because they are difficult to stop or slow down. At this point in time, the impact on our part of the business has been very limited. However, the situation can evolve quickly. But we are absolutely confident the chinese are taking the right steps to contain the virus. We are monitoring very carefully in terms of traffic jams in shanghai, beijing. Consumption of coal for the energy sector. We start to see a small uptick. Bluescope steel has reported a 70 drop in first half net profits. Due to a slack in commodity steel spreads. Australias largest steel producer warrants that the coronavirus will heavily impact its business. What we have said for our second half outlook is that we are expecting to have no earnings out of our China Business for the second half. Of course, the second half in china is seasonably softer anyway. Typically one third of our earnings. To put that into some context, from a year ago, we had earnings from our China Business in the second half of 69 million. We reported today a half earnings of 302 million. So that is the relative impact we are currently forecasting on h2. Standard chartered says the coronaVirus Outbreak will hurt this years results. The asian focused bank has also reported a buyback. The lender has reported 2019 fullyear underlying profit slightly behind analyst estimates. So you have warned about the impact of coronavirus. Can you give us a little bit more detail on where you see the biggest touch points for your business . We have actually seen, for the first couple of months, actually, the business performed very well. Although clearly the impact of that will probably come through in march and beyond. I think the uncertainty at the moment is in which markets it will affect things. China, peers, to be settling a little bit. Obviously, outbreaks in other countries. We will have to see how long those go. We have come off the back of that, caution that this year may be a little bit more challenging. Time will tell how challenging it is, but we will continue to do what we have been doing before. Some things we can influence, some things we cannot. The rates giant has beaten on analyst earnings, but the call was dominated by coronavirus, which could hit the firms operations in china. The ceo, bertrand camus, spoke exclusively to bloomberg about how much visibility he had regarding the virus effect. China was pretty straightforward for a while. Most of our activities were down between february and part of january as a consequence of low industry activities in china. We see today is the request from the Global Demand of restarting operations. For example, we have 16 generators. Put back into operation. So we have a very precise order march in front of us with our operation, and we were able to assess impact on our accounts. Of course, assuming that things will resume and go back to normal from now on and into q2. Basfs warning of a Second Annual profit drop due to the impact of an ongoing slump in autos amid the coronavirus. The worlds biggest carmaker said the outbreak will have a Significant Impact in the first half, and it does not expect a be able to offset the effect during the second half. How bad, first off, is your visibility due to the coronavirus . What we expect, certainly, is we will now also see the impact globally. Because there are global value changes so far, the stocks are sufficient, but i think over time, the logistics, the supply chain will transform the topic globally. I think we will see disruptions and we will see, also, a slowdown from the demand side. Bayer is painting a grim scenario over losses over roundup weed killer. For the first time, the company says it might have to sell assets, issue stock, or borrow money at unfavorable rates. Bayer is working to settle claims roundup causes cancer. In the u. S. , it faces more than 48,000 lawsuits. Tom when will you need a cash call to deal with the roundup issue . When do you have to go back to the market and find a new confidence to bring in money to pay for all of these legal issues . Werner the stop line, whether it is ebitda, u. S. Court. We have done quite well, coming done a point, we have little bit better than anticipated. More than 4 billion in free cash flow. I think we have a quite solid balance sheet. Also for some of the challenges ahead. Tom so are you saying you do not need to go for a cash call . Werner i think it is way too early. We are working diligently with the dual path approach that you know about. And we first have to know where were going to end up to answer that question specifically. Chinas top internet search engine, baidu, says total total sales in the Fourth Quarter grew 6 from last year but are expected to decline due to virusrelated shutdowns. Is there a sense baidu is getting ahead of the concern over coronavirus, or is it just not possible, at this point, to be able to accurately model what kind of impact that we are going to see from this issue . What we have to know is that generally, First Quarter is a seasonably weak quarter for advertising anyway. Usually, merchants wait until after Chinese New Year to have a more clear idea of how much they will spend on online advertising. So, yes, i would say it is still a bit too early and premature to assess the impact. It was a happy holiday for macys thanks to a lastminute holiday surge. I think macys is in a tough spot. Just last week, it was cut to junk, because s p analysts do not think that its big turnaround plan that it also touted this month is really going to work. The company has already said that it plans to cut about 2,000 jobs. It is shutting its most underperforming stores, about 125 of them. So the company has a really tough road ahead, and i dont think the results really gave an indication as to whether that strategy is succeeding or not. They were a bit of a bright spot in a lackluster year. Nejra this is bloomberg best. Im nejra cehic. Finance ministers and Central Bank Governors from the Worlds Largest economies met this past weekend in saudi arabia for the first g20 summit of the year. And, of course, the coronaVirus Outbreak was a major topic of discussion. Ubs chairman axel weber sat down with bloombergs manus cranny on the sidelines of the summit. He believes the Global Economy will take a massive hit from the virus, and he says markets are underestimating the risk. Axel the market has basically the view that the glass is halffull, the world will pass that stress test, it is a temporary one quarter impact on gdp and trade and we will move on from there and rebound. And that is also paced into our projections. Manus the g20, the language being used is about a potential coordinated response to a slowdown in the world as a result of this new black swan. Axel, what is a coordinated g20 response, 2020 style . If 2019 was rates, what is 2020 . Axel just to get the numbers right, likely, in our estimates, this is going to bring Global Growth from 3. 5 to. 5 , which is a massive drop. It will bring chinese growth from 6 to 1. 5 . Its the first time in postwar history where china will post a negative number for the First Quarter. That requires a response. And the global number basically tells you it is not just china. It is very strongly impacting neighboring countries. Hong kong, singapore. The support that the rest of the world can give with fiscal policy is to keep the door open for export and for trade with these countries rather than chatting things down. Manus when i look at markets, 10 year treasuries are at a 30 year low. Equity markets are only just sort of slightly shaking. Are equity markets underpricing those kind of numbers you just pointed out . Axel they definitely at a downside risk. At the moment, they look at this as sharp decline, sharp, vshaped recovery, and we are done. That is not going to be the case. Nejra that was ubs chairman axel weber speaking before the sharp downturn in Global Equities at the start of the trading week. Up next, more conversations about coronavirus as the outbreak spreads and the markets reel. It seems like we have moved from extreme confidence in the markets to extreme panic, all in the space of one week. Nejra 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. Nejra this is bloomberg best. Im nejra cehic. Throughout this week, guests on Bloomberg Television have shared insight and analysis on the coronavirus crisis. Lets revisit some of the most interesting interviews about the weeks most Urgent International topic. Oliver theres a lot of panic at the moment. Its really not warranted. If you think about the fundamental health impacts, they are significant, but its not like we have a real pandemic. It is like a strong flu. The issue is really that people do not know what to do, and we are behaving in a very disorganized way. A lot of societies have problems to organizing themselves. We dont have medical supplies, people fear when they show up at hospitals for testing, they cannot deal with them. That exacerbates shortterm reaction. Anne is it having an impact on any parts of your business . Are there parts of your business in asia, you took a stake in a baking business. A beijingbased business. Are they having an impact . Oliver we took a halt for a certain period of time, but people are sort of normalizing their behavior. We believe the next few weeks, you will see an increase in activity and problems, but over time, things will normalize. We are not here to increase panic, its very important the Public Administration takes it very seriously and is organizing itself properly. What you can see in italy and other cases, their administration is not prepared, then people get panicked. Thats what we need to avoid. Anna you dont see a global recession . Oliver shortterm Economic Activity will contract. It will have an effect on global gdp. That is for sure. But, it is not like the world will end tomorrow. Jon what do you say to the people that have hope about stimulus, federal reserve, chinese policymakers, what is your response . Nouriel on the fiscal side, we will be behind the curve. We are not going to get much out of the u. S. , germany, and the rest of europe. Japan is going to have some stimulus, china is going to have some stimulus. It will be delayed by politics and so on. On the monetary side, we have eurozone and japan. How much can the ecb do . 10 or 20 basis points . It will be peanuts. I do believe the fed will have to act, and i think the fed will act in march, because they will realize its becoming a global pandemic. But again, they will do 150 basis points, 25 in march, 25 in june. How much given the negative supply shock. This is not a negative demand shock Monetary Policy can create , demand shock. The impact will be impact positive. As you know, the fed is going to act, but it is going to fizzle out over time. Erik is the coronaVirus Outbreak the black swan you have been preparing for . Mark there usually arent monsters hiding under the bed, and sometimes, there are. I dont think we can really determine which is which until, you know, it is too late. Clearly this is a bad human and economic thing going on, and it is made all the worst by far by the valuations we see in the market and by the fragility. The reliance on central bank liquidity. A bad thing is made far worse by this situation in the marketplace. Erik no one can predict when a pandemic will start. And because of the complexity and inconsistency of the health system, no one can really predict how far it will spread. Mark well, certainly not, a prediction and forecast should not be part of your investment thesis, your Risk Mitigation strategy. If it is, youve got a problem. Erik but why, then, do so many investors spend considerable sums of money, devote time and energy and effort trying to predict the unpredictable . Mark and how they go about doing this, how they go about protecting themselves from the unpredictable, thats the problem. They go through it by diversification. It is sort of the koolaid were are drinking from modern finance. Diversification, lowering the volatility of our portfolio will somehow protect us from these things, but it doesnt. It is just making us poor at the end of the day. It doesnt provide enough protection when we need it, so we need to invest so much in this strategy that it costs so much. This is the problem with hedge funds as a Risk Mitigation strategy. Kewsong shorterterm, there is going to be a financial impact. My guess is it is going to be worse than people think. Because we are really dealing a bit of the unknown. As this evolves and continues to evolve, i think people will understand how disruptive lack of travel, how disruptive when the logistics and supply chains get terribly affected. There are 60,000 containers that are in the wrong ports, the wrong cities, because the supply chains have been disrupted. It is going to take time for that to get back and going in the right fashion. My guess, and, look, i would be remiss if i didnt say this, im not an expert. No one is an expert. We are doing our best to care for people. We are monitoring it carefully. The shortterm impact is real, but im hopeful that over the longerterm, we will navigate through it. Raghuram it seems we have moved from extreme confidence in markets to extreme panic, all in the space of one week. It would seem people want to have a sense that there is a limit to the spread of this virus. Perhaps because of the containment measures, or because there is some hope that some kind of antiviral solution can be found. Shery will there be a Lasting Legacy from this coronavirus when it comes to the Global Economy . Raghuram well, there certainly will be a legacy in the sense of businesses rethinking their long supply chains. Coming on the back of the trade disruption, now we have this. I think globalization in production is going to be hit quite badly. Jens i would expect that we will have to press slightly with our downward, with our forecast. But then the most likely assumption is this is an effect, vshapedped a effect, so the coronavirus will have an effect, but once contained, the recovery, the normalization, will happen quite quickly. Matt do you have to act now with some sort of monetary support . I know that philip lane, for example, argued you need to do that kind of thing preemptively, and the markets have priced in cuts. Jens i think we have to carefully assess the situation. At the same time, acknowledge we have supply shock and demand shock. So our target is the stability, price stability, and this negative supply shock could lead to a hike in prices. This is one. The other question is how effective are our instruments to counter any possible demand effects that we are observing . The question i asked in the press conference was are you , more likely to go out, eat out in a restaurant with negative Interest Rates in the case you are restraining your consumption due to the growing virus . Scarlet how likely is a global recession . Before you answer that, how do you quantify global recession . What kind of numbers does that mean . We have to make sure the chinese arent lying about their output numbers. I went on record two weeks ago saying that i thought the gdp in the First Quarter for china would contract by 6 . Yvonne straszheim, who is much more familiar with it then i, is saying 14 . I dont think the Chinese Government is going to actually put up that kind of number. If that is the substance of the number, we are in global recession. Scarlet right now . Scott yes, at this point. I think europe would easily lose. 5 to 1 of output, which would put most European Countries into recession. For the United States, it is a little bit different. I think that for the moment, where we are, we should expect about. 5 drag on gdp. I have seen other experts say 1 . That is certainly not a u. S. Recession, but over time, it has the potential to cascade into that. Nejra this is bloomberg best. Im nejra cehic. Lets resume our global tour of the top stories in business, finance, and politics, starting with an unexpected transition at the top for disney. Emily disney named bob chapek as its new ceo, ending years of speculation of who was top bob who was to succeed bob iger. He led the companys theme park and consumer products, businesses, and will take over the role immediately. Iger becomes chair. What do we know why they chose this route . Crayton igers contract was up at the end of 2021. We were expecting to hear somebody about who would succeed him at disney, just not today. Che pack is officially ceo. The way they say they are going to split this up is bob iger will handle the creative responsibilities, while chapek gets up to speed on the tv side of the business. He has been up in the parks side for his tenure. Bob in bob chapek, we have someone that not only knows the company very well, having run a few of our important businesses, including parks and resorts, but hes also someone we know very well. We couldnt think of a better candidate to take over the company at this time. I intend to double down on the same strategies bob established 15 years ago that have served us so well. The thing i have taken away from bob igers legacy is get the content right, and Everything Else kind of follows suit. Hong kongs Financial Sector announced a 120 billion hong kong release package announced with tax cuts and a cash handout to ensure Economic Confidence in a city battered by political unrest and coronavirus. Sec. Chan although the cash payout involves a huge sum of pocket money, in light of the current situation, it will not impose a burden on the longterm fiscal position. Eric i think the expectation is that this cash infusion, they are going to go into the economy and spend the money, and not sit on it. The overall relief package for the hong kong budget today is about 120 billion hong kong, 15 billion u. S. Everything from the recurring tax breaks we get each year, we have also some money earmarked for the technology industry, the growing Research Clusters there. Theres also money earmarked for the tourism board, 700 million hong kong, to promote hong kong if and when the Virus Outbreak dissipates. Sherry the impact of the coronavirus forcing the bank of korea to downgrade its growth forecast, but surprisingly, it didnt cut benchmark rates. Was it the right decision . Daniel the first thing that has to be said is it is not so much whether this was a decision that was unexpected decision, it is the discordant note that it strikes with the rest of Public Policy in korea and how that is responding to the virus. President moon called this an emergency, and instructed his officials to draft a new stimulus package. Ok, if it is an emergency, lets have Monetary Policy also respond. Instead, what do we get . Not only do we get no response, we get a jarring response from the market perspective. Anna italian Opposition Leader Matteo Salvini accuses Prime Minister Giuseppe Conte of underestimating the threat of the coronavirus. . The italian the Italian Economy was already the weakest in europe, in terms of growth. 27 out of 27. After the virus, which will eventually slide us into a recession, a government disagreeing on everything the past six months cannot be the one to give answers. Maria we have already heard from the Italian Central Bank that there will be a Significant Impact on the Italian Economy. There will be damage to gdp. They are working on a plan, but we dont have the details. Have been many reports of looking at a moratorium of payments, perhaps tax relief, but they really want to get to the bottom of just how much the impact of the coronavirus is, and the extent. Courtney a trade deal with india could happen at the end of the year. In new delhi, Prime Minister narendraesident said modi is urging the minister to lower tariffs on american products. He said the leaders understand each other on the issue. Ruth the president has chanted tremendous progress on the deal with india. It is clear he wants to strengthen ties with the country he sees as key to americas efforts to a blunt chinas influence in asia. While officials have tried to hammer out trade deals between india and the u. S. Before the visit of the president , it is yet to materialize. While trump is optimistic a deal can be reached, it may not happen until the u. S. Elections. Still, the countries did sign defense deals for 3 billion and pledged ties on Maritime Security in order to deal with chinas growing power in the indo pacific. Noticeably, the u. S. President was lavish in his praise of Prime Minister modi, even as the indian capital, again, erupted in deadly protest over modis new religionbased citizenship law. Those protests happening kilometers from where they were meeting. Haidi a long power struggle in malaysia boiled over on monday with the Prime Minister mahathir kicking off a leadership race that can finally determine his successor. Mahathir submitted his resignation and exited. Was it the most strategic move . What could have led to him doing this . Daniel it is not clear, but what is clear is whos in the drivers seat. He is the interim Prime Minister. The cabinet has been dismissed. He is basically the whole government right now. Hes had all the parties feuding behindthescenes and that spilled out yesterday, all of them have backed him publicly. The real question is how does that stake out . Does he stay on, does anwar take over . But, yes, mahathir is definitely in the drivers seat. Two turkeys president meeting with top Security Officials after an airstrike left 33 turkish troops dead in syria. Those loyal to bashir assad it is the deadliest yet. Tensions between russia and turkey at an alltime high. Turkey is now turning toward nato and the eu looking for support, because they are not keen to jump into such a hot conflict in syria. We also have a refugee crisis. Hundreds of thousands of syrians now trying to flee idlib and heading towards turkey. And now the turkish president , is saying he may have to open its borders with europe unless and let of refugees go there. This would be an absolute political crisis for european leaders. 33 turkish troops killed in syria, and the crisis is nowhere nearing an end. Scarlet lets take a look at whats going on with jp morgan, because it had its annual investor day, with pitching to the company pitching to investors its goals. What was your big take away . Sonali it was a long day of granularity in the businesses. Some are not going to see skyhigh margins as the Asset Management wants to be investing, but they highlighted growth areas. They said u. S. Wealth was going to be big. The Investment Bank is another place they think and gain more shares. Middlemarket lending and loans to consumers, so you are starting to see the branch. Those Branch Networks pay off her j. P. Morgan chase co. Haidi jean pierre mustier is said to have voted himself out of the running for the top job at hsbc. He emerged as the main external contender for the role against an interim ceo. David it looks like he is not interested in the job. He informed the board on sunday, thanks but no thanks. It adds to the uncertainty around hsbc and prolongs the search in many ways. He seemed like an ideal candidate. He turned things around at unicredit, cut a lot of jobs, cleaned up the balance sheet, and was rewarded with some of the best returns in europe last year among other banks. He also has a lot of agent experience. He had asia experience, we know hsbc wants to pave more towards asia. In many ways, he ticked a lot of boxes for them, but hes not interested, so the search continues. Vonnie the Software Giant behind turbotax says it is buying credit cards of about credit karma. Of about 7. 1 billion in cash stock. Are you worried about antitrust concerns . Sasan we are not concerned, because it is good for consumers. It creates a platform for more competition. Consumers will have power of data to be able to understand what is right for them. Better savings accounts, better loans, better credit cards, and ultimately to improve Credit History and credit score. We think it is all on the upside for consumers and creates more competition. Manus bloomberg sources say saudi aramco is starting early preparations for internationalists just months after the oil giant turned its record ipo into a domestic affair. Yasir we are looking into it to have more offerings. These offerings continue to be. Could continue to be in saudi. If we have any good Stock Exchange we think can bring some Value Investors to us, we will definitely consider it. Manus they might need the international banks. Would they . Anthony well, all of those banks were involved in the ipo. They decided in the beginning not to go for the International Listing because of many issues. Legal issues, compliance issues, manus whats in it down to the fact that they didnt hear the valuations . Anthony that is the big thing. There are those roadblocks. The big thing was the valuation. Those banks did the groundwork, they will have to do more groundwork, but they have to be ready in case the Saudi Crown Prince decides, all right, lets do it. Haidi dont forget, bloomberg subscribers can run the function vis u. S. On their terminals. See our landing page for the coronaVirus Outbreak. They, you find our headlines from the Bloomberg News room, numbers from the cdc, and analysis on the companies affected. Nejra there are about 30,000 functions on the bloomberg. We always enjoy showing you are we always enjoy showing you our favorites on Bloomberg Television. Maybe they will become your favorites. Heres another function you will find useful. Quic it will lead you to our quicktake for fast insights into timely topics. Here are the quicktakes from this week. We are entering an era in which our enemies can make it look like anyone is saying anything at any point in time. Jordan peele created this fake video of president obama to demonstrate how easy it is to put words in someone elses mouth. Moving forward, we need to be vigilant with what we trust from the internet. Not everybody bought it, but it is rapidly improving, even as worries increase about the potential for harm. This is your Bloomberg Quicktake on deepfakes. Deepfakes are audio gaining realistic looking video and audio gaining popularity as a means of adding famous people into quarantines. They are easy to make and find. There are names for the deep learning artificial algorithms that make them possible. Input real audio or video of the person, the more, the better, and the software tries to recognize patterns in speech and movement. Introduce new elements like someone elses face or voice, and it is born. The most popular and widely available for making deepfakes means dozens of hours of human assistance to create a video that looks like this rather than this. In august, researchers revealed software that accurately rendered not just facial features, but changing weather patterns, and flowers in bloom. This advance is not yet available to the public. With increasing capability comes increasing concern. In a world where fakes are easy to create, authenticity also becomes easier to deny. People caught doing genuinely objectionable things could claim evidence against them is bogus. Fake videos can also be difficult to detect. Researchers around the world and the u. S. Department of defense said they are working on ways to counter them. Deepfakes do have some positive uses. Take this firm that creates digital voices for people who lose theirs from disease. Synthesis is the artificial product of human speech. There are also products that applications that can be considered good or bad, like the many deepfakes that exist solely to turn as many movies as possible into nicolas cage movies. Two oh, hi mark nejra that was one of the many quicktakes you can find on the bloomberg. You can find the latest business, news, and analysis 24 hours a day. That will be all for bloomberg best this week thanks so much for watching. Im nejra cehic. This is bloomberg. Emily im emily chang and this is the best of bloomberg technology. We bring you all of our top interviews from this week in tech. The coronavirus spreads across countries and continents. Markets tumble, investors grumble. We will have the latest on the virus impact on Global Supply chains. Passing of the torch at disney. Bob chapek has been named ceo. Bob iger will continue to direct creative endeavors