Transcripts For BLOOMBERG Bloomberg Best 20240713

I feel like we are playing this exactly as we should. Ritika the Global Travel slow down sends shock waves around the aviation industry. I think the airlines will definitely fail. This is a huge amount of money the airlines are going to lose for 2020. Ritika in the u. S. Politics, super tuesday shakes up the race for the democratic president ial nomination. This was a big night for former Vice President joe biden who beat expectations. Ritika the u. S. Jobs report tops off a week brimming with data. The economic base is strong, the fundamentals of the economy is strong. Ritika plus an exclusive conversation with nissans ceo. He said job one is to listen and learn. Its important for me to know reallyrency, what is going on down to our employees. Ritika it is all straight ahead on bloomberg best. Ritika hello and welcome. Rupta. Tika give to, this is bloomberg best, your weekly review of the most important Business News, analysis and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. With cases of coronavirus still mounting and equity markets coming off their worst week since 2008, investors were already on edge. After weak Economic Data didnt help from china. Bracing for more market turmoil after a weekend of negative coronavirus developments. Manufacturing activity in china falling to the lowest level on record in february. Nations around the world. Pmi data way worse than we were expecting. Give us the breakdown. Just tumbling in china on this data. So 40. 3 was the number we got. We have never seen a print that low since the series started. The official number we got by the way on saturday, that also came in well below the estimates. You are looking at a number of about 35. 7. Nonmanufacturing, so services and construction, 29. 6, another record low. Ut sinceorst stock ro the Global Financial crisis showing a bit of signs of pausing this month prompted by optimism that Central Banks will once again save the day. Fed chair jay powell said he is prepared to cut rates if necessary. In japan meanwhile the boj offered to buy 4. 6 billion in sovereign debt. When you look at what a lot of banks are doing, are they saying recession is very, very likely . Certainly, the financial markets, turmoil of last week in tightening financial conditions. What you are seeing is Central Banks, led off by jay powell on that signal alert. Friday, we get it. We are on it. The bank of japan and bank of england, very much on this. It looks like we are going to get a meeting tomorrow that could lead to coordinated fiscal action as well. There is nothing that cheaper money can do to cure any of us from a respiratory virus, but we have had an asset price shock. Central banks can attempt to address that and they probably should. And that is what the markets will want to hear. Quite a rally in the markets here today. Today. 4. 6 on the s p 500. The gain on the doubt, the biggest since march 23, 2009. Four more patients have died in the american state of washington. And a top u. S. Disease expert says the coronavirus is likely to become a pandemic. The World Economy faces its greatest danger since the financial crisis more than a decade ago. The reserve bank of australia cut rates as widely expected by. 25 . Leaders convening on a Conference Call earlier this morning to discuss the response to the coronavirus impact, promising to act if necessary, but making no firm commitments. What actually happened . Very little happened compared to market expectations. Basically the g7 came out and said they would use all appropriate policy tools to achieve strong, Sustainable Growth and downside guard against Downside Risk. They did not say what those tools are. They did not say when they would be applied. A market that had come into the morning expecting some announcement of rate cuts or at least a promise to cut rates is disappointed. The fed made an emergency benchmark rate cut of 50 basis points and says the virus poses evolving risks. Lets get straight to the markets. Turned around. We are now seeing positive markets. What prompted this particular emergency rate cut . We have a combination of a supply and demand shock here. The best thing is to throw strong medicine at the situation here. If you are going to take you the emergency move, you might as well do a bigger step rather than a smaller step. The last couple of weeks we have seen a broader spread of the virus. We have seen it begin to spread here in the united states. We saw a risk to the outlook for the economy and chose to act. I think the market was going to do what it was going to do today regardless of whether the fed acted or didnt act. I see a decline from where we now are in stocks. When i turn to the bond market, i believe that our target of 25 basis points on the 10year note or. 25 and 1 on the long bond are almost inevitable at this point. U. S. Treasury 10 year yields falling below 1 for the First Time Ever on those virus fears. The market certainly thinks the fed knows something that everyone else does not. That is a reason why you have 10 year yields below 1 and equities falling off a cliff at the moment. Former Vice President joe biden performing well on super tuesday with a string of victories. Bidens win puts him in a fight with Bernie Sanders. Challenging President Trump in november. Mr. Biden just a few days ago, the press and the pundits declared our campaign dead. Call him the comeback kid this is a big night for as , President Joe Biden who was even able to pick off texas in the super tuesday prize. It is not over yet. This fight increasingly becomes a twoperson race. News today, we have michael bloomberg, the founder and majority owner of bloomberg lp he is pulling out. , he is pulling out and he is addressing joe biden. We have seen since South Carolina the coming together of the democratic establishment, the center of the ideological wing of the Democratic Party rallying around bidens campaign. It is not over yet. One week from now, a lot of big and important states, and this endorsement by Mike Bloomberg will help a great deal. The bank of canada following the u. S. Said cutting interest , rates by half a percent as the coronavirus darkens the Economic Outlook around the world. Officials saying they would act again to reduce rates if necessary. This is a pretty dramatic reversal for a large. Pollard. He was one of the few central bankers who did not cut Interest Rates last year, but clearly the concerns around coronavirus, the concerns around the global Economic Outlook have now begun to outweigh any Financial Stability concerns the bank of canada may have had. Mark capitol hill negotiators have agreed on a 7. 8 billion emergency spending bill to fund the governments response to the coronavirus outbreak. The bill provides much more funding than President Trump requested from Congress Last week. Spending bill and stimulus. Stocks rallying, bonds rallying on the hope the government will fight the coronavirus. Havent we seen this movie before . Up 4 monday, went down, up again, down on balance, we are , higher than we were on friday, but it has been a bumpy ride. I think it is probably safe to conclude it is going to remain a bumpy ride. There is still so much uncertainty out there. I find it difficult to credit we are just going to ascend right to the highs. Opec ministers conclude their meeting in vienna, agreeing to a Large Production cut by 1. 5 Million Euros a day to offset the demand hit from the coronavirus. Russia not get on board. One and a half million barrels. Why is wti not much stronger . Because we do not know that the russians are on board with this. Saudis, the kuwaitis, they are shouldering the burden. Will the russians come on board . The russian minister arrived tomorrow. Maybe that is when the real paingritty of the pie of is discussed. How much will saudi do, how much will the russians be prepared to do . Theyve got to do something large in size and substance. With the markets stocks , resume their slide, bonds continue to bounce strongly. The u. S. 10year yield, 12 basis points lower today. Hsbc has partially evacuated its london offices after a member of its Research Staff tested positive for the virus. Cases globally continue to rise. To me, there is no certain amount of money you can spend on the fiscal side or Interest Rate cut you can do on the monetary side that will solve this problem. What is more needed right now is, get those test kits out there. Lets do the blocking and tackling that government is supposed to be good at. Government needs to act like government when there is a crisis, not just sprinkling money here or cutting Interest Rates over there. There you have it. The closing bell. We are closing with less than 3 on the dow. The nasdaq and the s p the russell 2000. What are people moving into . Are they moving out of the market . What is the price action telling us . Price action people are , selling everything that is not nailed down and going to treasuries. It does not matter whether you are that defensive or offensive. Everything is going to get dumped. Everything is going to get dumped hard is the message the market is sending. Treasury yields heading deeper into uncharted territory. Left reeling from a week of brutal economic volatility after a monster payroll report does little to reset expectations. Does this payrolls report matter . It matters to one extent. It tells you about the underlying resilience of the economy. It doesnt tell you what normally the job reports tell you, which is what is ahead. It tells you ultimately about resilience. The economic base is strong. The fundamentals of the economy are strong. We are going to see some issues coming up from the coronavirus. I get that, but i think for the united states, this is going to be a temporary problem. We have seen the rate cuts from the federal reserve. What is the Administration Working on to complement that . We are looking for targeted measures that will do the most good in a short period of time. Not large macro kinds of solutions which do not help the economic incentives and dont have permanent impact on growth. We want to get through this and help folks as much as we can in a targeted way. Crude is also getting crushed. This as russia is said to oppose the saudi led plan to cut production. Seven plus, down to 2017 lows. Work is continuing, i can assure you. Of course the meeting has been adjourned, but work is continuing. It does look like we are heading to are we . I would not go on the record saying we are. When you remove basically the markets entire confidence on the profit outlook is going to be for this year, it is like you have a house of cards, and you just took out a bottom card. Everything else just sort of collapses on top of that. Still ahead as we review the week on bloomberg best, Robert Kaplan and James Bullard on what comes next for the fed. Plus, an exclusive conversation with the new ceo who has been tasked to turn around nissan. And coming up, more of the weeks top headlines. The imf creates a 50 billion fund to help nations deal with coronavirus. And hopes it will set the stage for a coordinated global response. Better to do more than to do less than what is necessary. Ritika this is bloomberg best. I am ritika gupta. Lets continue our global tour of the weeks top stories in business, finance and politics. A new chapter in the brexit saga opened this week as the u. K. And e. U. Began talks to define their future trade relationship. British and European Union officials will start hashing out a postbrexit trade deal today as negotiations on the future e. U. U. K. Partnership formally opened in brussels. Bloomberg sources raised concerns that red lines on both sides could put the chance of an agreement to danger. Already by early no one is april. Surprised to hear the Prime Minister says he can get a canadian style deal by the end of the year. That he doesnt see a full need for convergence. When you look at the european rules, and then june is really what he says will be the deadline. He is prepared to walk away without a trade deal if that is what it takes. The europeans have said they see this as a full package. Nothing will be agreed until everything is agreed. Turkey says it will not stand in the way of refugees. That want to go to europe. It is igniting fears another wave of migration could mean a delicate recovery for the region which is already grappling with the spread of the coronavirus. It does seem as if we have heard a lot of rhetoric on both sides. A lot of heated words from president aragon and the president erdogan and the greeks and some clashes on the border. The turkish side is saying that up to 100,000 refugees have actually left the country. But of course, it is unknown whether they have actually managed to enter the border with greece and bulgaria or whether they are stuck in no mans land. Erdogan for months now has been threatening europe with opening its borders saying it , can no longer look after such a high number of refugees. Turkey is already home to 3. 6 million refugees. More are coming across the border because of the conflict in the idlib province. The International Monetary fund held a News Conference earlier today on its projections of possible economic fallout from the spreading coronavirus. Saying outcomes remain very uncertain but it has seen a shift to a more adverse scenario for the global economy. Besides the News Conference this morning, you also had a Conference Call, the 24 top central bankers and finance ministers. That includes steven mnuchin, the secretary of treasury mark , carney from the bank of england, and we had madam lagarde as well. What was the tone on that call . If you can recall it . Very serious. Commitment to take actions in a coordinated manner. We prioritized actually collectively with a great degree of consistency. First, Funding Health systems, second, fiscal measures that are well targeted, third, a great deal of attention on liquidity. So the message from the call was act, better to do more than to do less than necessary. South korea has joined the likes of italy and hong kong in announcing an economic aid package including an extra package of 8. 9 billion. You are seeing a flurry of new activity across asia and korea is just one that is particularly newsworthy today. This budget is being rolled out on top of an annual budget that was already the biggest on record. They are planning to fund this stimulus with a new flurry of government bonds. It really looks like what others in this region have already rolled out. Targeted Financial Support for the medical response immediately as well as a package for businesses. And that separately for households especially low income and to support jobs. Governments around the world have pledged more than 54 billion in budget support to fight the spread of the coronavirus. Europes spending is almost entirely confined to italy which has been hit hardest. We also see increases in france and belgium. The e. U. Is saying we are seeing coordination between member states, but at this point each individual nation is doing its own testing. They are doing their own rules. We are not seeing a coordinated response, at least not on the fiscal front. After a week of political turmoil in malaysia, there is a new Prime Minister to succeed the one who abruptly resigned last week. The new was sworn in after the one king decided he was the politician who was most likely to leave a majority for the parliament. He gained power with the support of the party of exPrime Minister, who has been prosecutor over the 1mdb scandal. What does this mean . Is event out of the picture . Is he then out of the picture . He was never really out of the picture. In fact, he says he has the support to form a government. He says, you know he has got 114 , people that back him. That is two more than you need in parliament. He wants a noconfidence vote called right when Parliament Convenes again. He was a bit taken aback by the kings decision. He expects to challenge it right away. Now whether that means he goes to the king and says i should be Prime Minister, or whether it means collision has a snap election, that is where this thing looks like it is heading. Senator Elizabeth Warren ending her president ial campaign today, speaking with reporters outside of her home in cambridge, massachusetts earlier. An Important Development particularly where her supporters go. Even before an endorsement that likely will be coming. It is unclear who she will endorse. It is also unclear where her supporters will go. But with her out of the race, it now becomes a twoperson race between senator Bernie Sanders as well as former Vice President joe biden. You are watching bloomberg best. This week nissan ceo machida sat ritika you are watching bloomberg best. I am ritika gupta. This week nissan ceo machida sat down with Reed Stevenson for his First Exclusive interview since taking over the troubled automaker in december 2019. Machida said he says he plans to said he plans to unveil a turnaround plan in may. In the meantime, he is he is focusing on cost cuts. When i look at the individual nissan ability, it is much more than what i know today. So therefore i am saying that once you have very Good Companies way of working for a while directionally how we , can set up properly, the result will be much better than what we are showing in terms of performance. In terms of cost cutting, which everyone likes to talk about what sort of investment to , do you think needs to be made . With investment there are many kinds of areas. For instance, for our human assets. That is continuously what we have to seek for. And also when we talk about the new business and what direction nissan, the competency has to be further enhanced. Then definitely will be the area we have to further invest. As you consider everything that has happened with nissan over the past 18 months, it is not an easy challenge for any executive. You have just come on at the end of 2019. Can you tell us a little bit about how you view the challenge and whether it has sort of changed your view on whether reachable or not . It is probably going to be absolutely necessary, but was there anything that surprised you about the scale of the challenges facing you and the company right now . Definitely it is my first time to be a ceo. It has a lot of challenge which were unexpected. Day by day, i would like to further discuss with our employees and trying to understand how they feel about the company, what has been on the way that they wanted to be. And it is important for me to know, transparently, what is really going on from the older executives down to our employee. Then after having those united or something to be together, then i would believe the power would come from there. And once we have internal better strength, that would be deflect to the external. Ritika coming up on bloomberg best, compelling conversations with a global slant. Hong kongs financial secretary explains why the government is handing out cash. The head of Indias Central Bank says he has policy space to combat further shocks from the coronavirus. And what a week it was for the fed. Perspective from two important insiders up next. This is not about conditions now. It is not about the current stock market. We can meet at any time and move at any time in this kind of situation. Ritika this is bloomberg. This is bloomberg. Welcome back to bloomberg best. Hong kong got another dose of gloomy Economic Data this week. Retail sales in january declined for the 12th straight month. Falling more than 21 by value. That comes days after the government announced it will give cash handouts to all adult citizens and permanent residents in a bid to stimulate the economy. We spoke with hong kongs financial secretary paul chan about those exceptional budgetary measures. Exceptional measures in exceptional circumstances. People are suffering, businesses are suffering. So, given still we have a pretty handsome fiscal reserve, i think spending some of the reserve to help business and to help people is in line with the expectation of the people. With a cash handout of this size, what will stop people from saving it in a bank or spending it overseas . People will spend depending on their circumstances. But we would encourage them to come out and spend, and encourage the business sector to come up with inventive programs to attract people to come out. What do you say to economists that say, this cash handout is not targeted enough, that it is a drop in the ocean for many and you could have used the same amount of money to help people in need . What do you say to people with that view . The people of hong kong like to have choice and given this difficult situation, i think the individual circumstances vary. By encouraging people to come out and spend at businesses and encouraging businesses to have incentive programs to accompany this initiative, i think people would, of course depending on their own personal circumstances, would support us and hong kong. As a Central Banks around the world consider policy responses to the coronavirus, the governor of the reserve bank of india spoke exclusively with bloomberg this week. He told Stephanie Flanders that he expects to work with other Central Banks on a coordinated action in coming months, and also believes the r. B. I. Has room to cut rates if Indias Economic situation warrants it. In a situation like we have today, coordinated policy action has become that much more important. One of the things we might be looking at is inflation coming down quite sharply from the relatively high january number, maybe even falling by a full percentage point between january and february. Does that take some of the pressure off and give you more room to respond . The Central Banks response will be decisions which are outside Monetary Policy. That is outside of the Interest Rate cut. We have said it very clearly, we want a policy committee. Ive also said it in my minutes. There is space for another rate cut. That is one option available. Another option is in terms of supporting the markets by liquidity, creating confidence, or using various other tools and instruments to deal with emerging challenges. The r. B. I. Is ready. Perhaps the most consequential news of the week was the feds decision to cut rates by 50 points. A few weeks before the next scheduled fmoc meeting. Officials talked with bloomberg about the unusual move and the path ahead. Lets talk with the Dallas Federal Reserve president , Robert Kaplan. If you had asked me two weeks ago, i was saying publicly, lets see how this unfolds and i will make a judgment at the meeting. It is too early to comment. What happened once the virus got to south korea and then to italy and it was clear there were diagnosed cases in the u. S. , for me at least, the probability of a material deterioration in the u. S. Economic outlook, the probability of that increased to a point where i came to the view we were going to need to take action at the fmoc meeting. Then i felt that the situation was changing so rapidly that i thought it would be wiser, and i will explain a little bit why, to act now and boldly where it could make an impact. Here is what i mean by that. It is not going to help with the number of diagnosed cases. It will also not get people to want to go out. It will not do anything about the containment reaction if the diagnosed cases spikes. What it will do though is if we enter a period as a result of containment where we have a severe slowing in the economy that lasts for some period of time, that is likely tightening to be in financial conditions. What Monetary Policy can do is if we go into this with somewhat easier conditions, i thought and i still believe, it will help to moderate or mitigate some of that inevitable tightening of financial conditions that will happen as a result of this spike in cases and the containment. So the judgment about the wisdom of this is more looking ahead to what is going to happen in the next six to eight weeks, not what is going on right now. In that regard, i feel as confident today that we did the right thing as i did on tuesday, and i will say one other thing a number of people had a reaction because the market on the day we did it sold off. I will tell you, if the market had gone up that day, that would have given me no comfort whatsoever that we made the right decision, and by it selling off, it did not make me feel it was not the right decision. This is not about conditions now, it is not about the current stock market. It is about mitigating a tightening of financial conditions that will likely happen some number of weeks from now, and increasing the likelihood that as we come out of this situation we can come out more strongly. The markets have done a lot since your 50 basis point guard. Basis point cut. The s p down by 2 , 40plus downward move on the 10 year. Anything changed for you since four days ago . Obviously theres a lot of volatility in markets. Not surprising. Everyone is trying to get a handle on how to price in trillions of dollars of stuff all around the world. I think we are all struggling to understand what the effects of the coronavirus are. So i am not surprised by volatility in markets in that kind of situation. As jay powell said, cut to restore confidence, not to be rude, but you failed. Is there anything a central bank can do to save face out there . I think we correctly positioned the policy rate given what we knew as of the mondaytuesday timeframe. Everything is on the table. We are willing to do more but we are monitoring the situation. We can meet at any time and move at any time in this kind of situation. So, i feel like we are playing this exactly as we should. There is Downside Risk to growth and we will see how it plays out. It kind of seems like the market is pricing in the very worst case, ok, but we will take that on board and monitor this day by day. Have you ever had less visibility on an economic outcome than you do right now . There are times of uncertainty you can point you in the past that are similar to this. We have had viruses in the past. H1n1, h7n9, sars, ebola. There are precedents, and i would prefer to stick to those precedents for this case and not make the jump over to other types of crises we have gone through in the past. Youre watching bloomberg best. Lets resume our roundup of the weeks Top Business News with a focus on companies and industries. Airlines are taking a big hit from the coronavirus as companies restrict Business Travel and consumers put off their leisure trips. Carriers around the world are feeling the pain. Ryanair is cutting some shorthaul flights, mainly to and from italy. Europes Biggest Discount airline says it has seen a significant drop in bookings in the late march and early april period. It is just the latest airline to warn over the effects of the virus outbreak. British airlines owner says it can no longer given earnings forecast for this year. Lufthansa says it will cut up to 25 of shorthaul flights in the coming weeks. Some of the developments in the last couple of months have demonstrated some airlines are disappearing. I think airlines will definitely fail. It will accelerate the demise of a number of weaker carriers. All of my experience suggests this will be a reasonably shortlived phenomenon. There is a little bit of hysteria at the moment. The International Air transport association warned that the virus could cost 113 billion in lost revenue this year. Regional Airline Flight be entered into administration. We are seeing a customer demand crisis for the airline. We have been tracking it and a lot of European Airlines have done this already and now we are seeing it in the u. S. United saying theyre going to slash domestic flights by 10 and International Flights by about 20 . A lot of it has to do with transpacific flights. Jetblue is cutting capacity 5 . Southwest is cutting the revenue view. They are saying they are seeing a decline in customer demand. The air Transportation Association bracing for 113 billion in lost revenue. Just two weeks ago that was 30 billion. This is a huge amount of money the airlines are going to lose for 2020. In a surprising move boeing is apparently going on a hiring spree in anticipation of the return of a seattlebased factory. Boeing is hiring in anticipation of a resumption of 737 max production . That is exactly right. Boeing has made a big point of not laying off its 737 max workforce. It turns out that not only are they not laying anyone off, they are adding people. Theyve brought in about 730 machinists in the middle of december. The Company Thinks it will have a lot of work on its hands the next few months. It has said it will start production on the max a couple of months before the end of the grounding. At the same time it will have about 400 planes in Company Storage that need to be delivered to customers as well as roughly another 400 in the hands of airlines that need to be prepared for flight. General electric is warning investors it will take a hit from the coronavirus. Ge just came out with adjusted firstquarter profit forecast that misses estimates and sees about a 2 million cash flow from the industrial division. What we dont know outweighs what we do know and we do know relative to the First Quarter is we are going to see roughly 300 million of headwind, and then operating profit pressure because of the effects of the coronavirus, principally in aviation and into our health businesses. For several years hna group , was the poster child of chinas rise in the world stage, stepping up stakes in everything. The government has stepped in to take charge to help hna repay debts of about 75 billion. What does this mean for hna . The end of an era, really. The beginning of the end, as we have known it. They can no longer manage the big pile of debt that they have. Over the weekend the government stepping in and saying they are going to form a working group with the company to better manage the financial liquidity of the company as well as adding Board Members to have a better say on their operations. A big challenge ahead of hna but it remains to be seen if they can steer the boat. U. S. Laboratory equipment maker Thermo Fisher making a 10 billion purchase. I think coronavirus is the link. Is there a lincare . Is there a link here . There absolutely is, scarlet. Coronavirus helped this deal happen. The companies were in talks late last year when we broke the story, and they came out and said we are not reaching an agreement we like so we will call off the talks, call off the process. That was on christmas eve. You can imagine that ruined a lot of peoples holidays. Shares tanked. Then thermo went back to them in recent weeks and reengaged. One of the reasons the deal is happening now, the ceo said uncertainty helped the parties get to a price that was in between and helped get the deal done. Shares of twitter surging today. Bloomberg reported at the weekend that Elliott Management is pushing for changes after taking a 1 billion stake in twitter. Those changes could include replacing the cofounder and ceo, jack dorsey. How much of this is about jack and how much is about the product itself . I think it is quite a bit about jack, actually, and part of the reason i think that is because it has been brought up that he has two jobs right now, and being a huge issue and one of the reasons elliott is taking the stakes. Jack dorsey runs twitter but he also runs square and is splitting his time between two publicly traded companies. There is some believe that if someone were to be a fulltime ceo at twitter, they could capitalize more on the business and usage growth they are seeing right now heading into a really important year. Twitter is in a position we have looked at quite some time. We have a lot of respect for elliott. The governing structure at twitter, having a ceo that is the ceo of two Different Companies is highly unusual. Is jack dorsey special enough to be the highly unusual ceo . He might be. Jp morgan says Ceo Jamie Dimon is alert and recovering well after emergency heart surgery yesterday. He suffered an acute aortic dissection, a potentially fatal condition involving a tear in a large blood vessel branching off of the heart. Jamie dimon felt chest pains before work and checked himself into a hospital. It may have saved his life, and investors were concerned, especially given the fact that we have Turbulent Times right now. With the coronavirus right now jp morgan shares fell. Jp morgan shares fell. The company says it placed pinto and smith in charge as dimon recovers. Edward jones analysts said the bank is in capable hands, adding that jp morgan has perhaps the deepest bench in north american banking. Jack welch, former ceo of general electric, has passed away at age 84. At one point, he was the epitome of managerial excellence. He was a personification of six sigma. Some of those decisions he made came under scrutiny, but he significantly expanded ge and pushed ge into a variety of businesses, whether that was finance, media it was at one point the most valuable american company. I think that has to be a part of his legacy and looking at his choices in retrospect. Jack welch, dead at 84 years old. Dont forget, bloomberg subscribers can run the function on their terminals for our quick takes landing page. There you will find the latest headlines from the Bloomberg News room, and analysis on companies affected by the coronavirus. There are about 30,000 functions on the bloomberg and we enjoy showing you our favorites on Bloomberg Television. Maybe they will become your favorites. Here is another function you will find useful. Quic will lead you to our quick takes, where you can get important contacts and insight into timely topics. Here is a quicktake from this week. Decarbonization is a key factor in the fight against climate change. The goal is simple, to reduce Carbon Dioxide emissions around the world as soon as possible. Our planet cannot be saved unless we leave fossil fuels in the ground where they belong. Decarbonization requires both Sweeping Change and incremental steps, working industry by inustry, process by process, every major country in the world. Sound expensive . It will be. But the Science Community agrees that to avoid global catastrophe, we have no choice but to mobilize and take on this monumental challenge. Renewable energy like Wind Turbines and solar panels as well as electric cars are popular topics. There are other key sectors that are less discussed. Changes there are equally important for decarbonization the planet. Here are 3 cement, steel, and agriculture. These sectors combined makeup almost 40 of Carbon Emissions in the world. What will it take to revolutionize these industries without bankrupting them . Cement is the most widely used manmade material in existence. When combined with water and aggregates, it can be poured into whatever shape is needed for construction. Cement has been used for millennia to build roman aqueducts, the pantheon, highways, and lots of parking garages. Globally, the production of cement accounts for about 7 of yearly co2 emissions, largely because of how it is created. The main ingredient requires limestone heated to high temperatures. Usually this heat is generated by fossil fuels. The chemical reactions inside the kiln release even more co2. Companies are trying to reduce the amount of clinker use. Others are testing substitutes, including the residue left in burning furnaces. The drawbacks are serious. These new techniques come with a price tag that sometimes triples the cost of the traditional process. Since cement is holding many of the world structures together, alternative recipes make contractors or regulators uneasy. Steel is just as important, and as cities grow, demand is expected to rise by 50 between 2019 and 2050. Its process involves purifying iron ore in blast furnaces with a refined type of coal called coke. Just like cement this produces a lot of co2. In europe, furnace owners are Testing Hydrogen as an alternative way to take the carbon out of iron ore but it is way too expensive to go mainstream, about double the cost. There is one thing you can do with steel that you cant do with cement, and that is recycle. Instead of producing more steel in the first place, we can use what we already have. Increasing recycling is seen as critical to reducing Carbon Emissions. Agriculture requires a multipronged effort, as it is responsible for nearly 25 of global co2 emissions. The practice of controlled burns after harvest, the use of inorganic fertilizers, the destruction of rain forests, and even livestock flatulence all need to be addressed to put a dent in agricultures carbon in bigmberg goal or culture output. Some hope can be seen in the u. S. As demands for beef products have dropped significantly. Additionally, interest in alternatives like beyond meat and impossible burgers have soared in recent years. For those who cant quit beef, scientists are developing cows with digestive systems producing less methane. Implementing these Solutions Globally remains an uphill battle, even as more people in the europe and u. S. Take on vegetarian alternatives. Increased meat demand means consumption is expected to rise 50 . You are the last, best hope of earth. We are in the beginnings of a mass extinction and all you can talk about is money and fairytales of eternal economic growth. How dare you. It will take policy makers and companies years of diligent work and collaboration to move industry away from its polluting methods. Each of these industries is working on answers. With some executives competent they can be green and show a profit. That was just 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 this week. Thank you for watching. This is bloomberg. Carol welcome to bloomberg businessweek. Im carol massar. Jason and im jason kelley. Were here inside bloomberg headquarters in new york city. Carol this week, the coronavirus continues to spread and investors try to size up government efforts to contain the outbreak and its economic impact. Jason Barnes Nobles next chapter. The new hero all of the rags to riches tale is a hedge fund