Where in the world you should put your money. European growth looks soggy of the next 18 months. When the fed has taken the football the accelerator or slammed on the brakes, somebody has gone through the windshield. It is all next on bloomberg best. Hello and welcome. This is bloomberg best. Your weekly review of Business News, analysis, and interviews from Bloomberg Television. Lets look at the top headlines. Political turmoil and south africa continue to undermine confidence and that nations economy. President zuma may face a confidence motion. The rand is lower. Some top officials are speaking out against the cabinet reshuffle, saying he did not consult them, and speaking out against the firing of the former finance minister. It seems it is critical as to whether this motion of noconfidence will succeed or not. Do you think he should step down . Yes, i do. They have charged him to have breached the oath of office, and that makes it difficult for him to command respect which would rally and unite various sections of the South African population. S p has cut south africa to jog, Political Risk front and center with growing pressure on jacob zuma to resign. We are concerned about the impact on the fiscal and economic story. It puts policy continuity at risk. There is an increased likelihood that Economic Growth and fiscal outcomes could suffer. Jeffrey lacker resigning today. He says i regret that in this instance i cross the line to confirming information that should have remained confidential. In 2012, like conduct was inconsistent with those policies. He is saying he is not the leaker. He was presented with information and sing he should have entered the conversation then and the risk is by not doing that that it infers the information was correct. It is a nuance, but a significant one. It is a serious breach of information. Sensitive information was given to analysts on wall street, who passed it along to clients who may have made money from it. I would say there is more to come. The fed released minutes from its march meeting that show the fed favors plans to shrink the Balance Sheet this year. The minutes indicate their general attitude on rate hikes for 2017, for dissipate anticipated a gradual increase in the federal funds rate would continue and judged it change the committees reinvestment policy would be appropriate this year. What is your big takeaway . The markets were looking for the possible start of the Balance Sheet unwinding, q4 or next year. The minutes provide that guidance of it being pushed into 2017. If were getting Balance Sheet unwind, that is like another rate hike almost into 2017, some more hawkish can may be too much push from the fed. You can see the reaction in equities and treasury yields. How do you calculate how many hikes the Federal Reserve will deliver in 2018 on a good day, never talking about normalizing the Balance Sheet. The context is obvious. The fed is slowing going to raise rates and address their Balance Sheet. For years since the great recession, we have had the fed as a tailwind for the stock market. They will turn it around and eventually become a headwind. That is what investors need to know. President trump is about to open a high stakes summit with resident xi jinping in florida. We have a lot on the agenda, north korea, tensions over trade, hanging over the meeting between the worlds two largest economies. They have been saying they are proud to have both president xi jinping and chinas first lady in town at maralago. Tomorrow looking ahead, that is when the hard stuff comes. For example, they would talk about u. S. Jobs and the export of u. S. Jobs to china. One other thing is the trade surplus that china has with the United States. It totals 347 billion in 2016. When they get to the substantive talks tomorrow, donald trump will be trying to figure out how he can get china to buy more u. S. Goods and services. We do have breaking news crossing the bloomberg. There have been u. S. Missiles launched against targets in syria. It was a targeted military strike on the airfield in syria from where the chemical attack was launched. To be honest, this does not change the balance of power in syria. It was a targeted strike. They knew the assets they wanted to get. They warned russia it was going to happen. The next steps will be crucial. This has catapulted tensions between the u. S. And russia the highest since trump took the presidency. Where did they go . Do they ramp them up more . Is it a potential point to deescalate . 180,000 is your estimate for payrolls. Here is the payrolls report. Have you spend this one . Just 98,000 jobs were created. 98,000 jobs in march. The Unemployment Rate falls to 4. 5 , the lowest since may 2007. I would not say it is a weak job report. Wage growth was unexpected, so this tells you the economy is gradually transitioning from job creation to higher wages, and it is in line with the gradual recovery we have expense for a number of years. Overall, we are pleased. And you look at the unemployment number going down, the 4. 7 number going down and the u6 number coming down by. 3 , then you put on top of that what we know is coming with the jobs being created by the companies we have talked to and moving manufacturing back to the United States, we are excited about what is going on in the future here. David still ahead, exclusive conversations with the president of argentina and jack lew. Plus, sheila patel sees investors searching for emerging markets. Coming up, top business headlines. Would you believe teslas market cap blue past forward this week . David this is bloomberg. David this is bloomberg best. I am david gura. Lets continue with the shift in u. S. Immigration policy that resonated worldwide, especially across the tech industry. The h1b fisa application process has opened despite President Trumps plan to reform the program. New guidelines were issued late friday that require Additional Information for computer programmers. Are you still expecting it to be oversubscribed . Yes, because we were expecting tougher rules out of the administration. We have not seen that. I would expect a lot of Technology Companies will use this window to fight for as many as they can. When we talk about tech employees from silicon valley, who exactly will be hurt by this . You could see a tightening, particularly for the outsourcing companies. It would reduce their use of these work of these is, and that leave more for american Technology Companies. The idea when it was set up three decades ago was to bring in workers from overseas that companies could not find in the u. S. , and it may go back to more of that original intent of the program. Teslas shares shot up 5 after the carmaker reported deliveries that exceeded estimates. Teslas market by you is 2. 7 billion more than ford motor company. How is this possible . You have tesla sang their sales were 25,000, but any good news sends shareholders into rapture, particularly those bullish on the stock. On the other side, you have established automakers march sales that were softer. It says we are at peak auto. There are more incentives to keep sales going. Inventories are rising. Its not a bad market, but it is headed south and tesla has growth. Lets turn to the latest on Credit Suisse, facing a tax invasion and Money Laundering investigation that could involve thousands of account holders. Who exactly is being targeted, and is Credit Suisse cooperating . The evidence suggests that the bank is not the target in this investigation. This is about account holders, individuals, who may have held a counselor Credit Suisse and there might be Money Laundering involved. The bank said it is looking into the matter and pledged that if they find wrongdoing that they will take measures against it. In a letter to shareholders, jamie dimon address concerns about europe and of negotiations and factors causing damage to the u. S. What did he have to say about brexit . What did he say about how the process is unfolding in what he hopes to see at the uks its down to the table with the European Union . He said the bank is preparing for a hard brexit, which most banks are, which would mean the loss of passporting and having to adjust their businesses to serve eu clients. He said he is not expecting a lot of job movement and next two years, but after that, they will face pressure from the eu to move things into the trading block and not do everything from london. Jamie dimon said government and pose Capital Requirements are holding back lending, and relaxing them could spur Economic Growth. Neel kashkari responded saying those assertions are false. I know jamie dimon and like him. When he says things i believe are incorrect, it is our responsibility to speak out. Too big to fail has not insult. The biggest banks are still too big to fail. The American People and Congress Need to know that. We have offered solutions in the form of higher Capital Requirements. The white house economic adviser was to take banking to the old days. The Goldman Sachs president said he would like to separate banks, Consumer Lending businesses from its Investment Banking effectively bringing back the depression era glasssteagall act. The bloomberg story set everyone was surprised. He has had a long career as a traitor, and it goldman, mostly as a broker. Its history as a full Bank Holding Company is relatively short since 2008. If you think of the trade mentality, goldman might have an advantage given its exposure to Investment Banking. I dont see why he would not be opposed to that idea. What we are worried about is the one size fits all regulation. We have these regulations bill to regulate banks as if they were equal. If we come up with the modern glasssteagall, we can tailor regulations, and that would allow banks to lend more aggressively to small and mediumsized companies. Lets focus on france, a platform to all 11 hopefuls last night, but allowed room for fiery exchanges between the two favorites. We need clever protectionism because we cannot accept we are in competition with products that dont respect the same norms. Nationalism is war. I come from a region filled with cemeteries, and i dont want to go back to that side of the black line. April showed far left candidate outperformed expectations. Everyone turn their fire on marine le pen. She was attacked by those who want france to stay connected with europe. There were two candidates much further to the right than her who attacked her for being soft, saying they are the real ones in favor of frexit. Macron managed to avoid any mistakes. You would have to say that he came out on top last night. Shares of a narrow surging after it was agreed to be bought. It is a much bigger premium. It is a huge price. We knew it was going to command a high price, 19 times is astronomical, so puts it in line with popeyes, louisiana kitchen was bought by the owners of burger king. It is expensive, but it is a huge brand with enormous presence across the country. They have paid to get access to that. Steve bannon has left the National Security council, been removed rather in a shakeup today. Why now . This was an exclusive by jennifer jacobs, the chief strategist to President Trump has been removed from the National Security council. This comes just two months in which general h. R. Mcmaster has taken over as National Security adviser. One of the first hires that general mcmaster did was bring over deana powell as his deputy to the National Security council, a former Goldman Sachs executive was previously working in the administration for first daughter ivanka trump, so what you are seeing is a restructuring of President Trumps inner circle. We should underscore that steve bannon still does have significant influence on a host of policy areas, including infrastructure and politics. Samsung reported higher than expected profit. Shares have been on a tear, close to record highs, despite the bribery scandal and the exploding phone note 7 debacle. What is important to look at is the profitability of the company, all time profits in the first quarter, up meaningfully, and that is powered by the strength and components, particularly memory, and that is the most important thing for the stock, the earning power of the company, and surprising everyone to the upside at the moment. The senate has confirmed neil gorsuch to the u. S. Supreme court, 5445. Neil gorsuch will be the next Supreme Court justice. The senate needed to have that vote this morning. Thats right. Everyone knew this would happen. Senate republicans voted to change the rules and remove the 60 vote threshold for nominations for the first time in american history. The senate advance the nomination to a final vote with a simple majority of 51 votes. The Supreme Court confirmation is a huge win for conservatives. It is a big win for President Trump who had a troubled start to his presidency and has not gotten any major legislation done. David welcome to bloomberg best. Erik schatzker travel to argentina for an exclusive interview with president Mauricio Macri. Argentina has a cordial relationship with United States, but now Mauricio Macri must establish ties with the new administration. He ask them what will be on the agenda. Discussing about the future relations between both countries. He believes that we have started with the obama administration. It is the base. We should believe we have a space to deepen relations and find out ways of Mutual Benefit and future cooperations. Erik he is a protectionist. You are a free trader. I leave him globalization. I believe we can find ways to increase relations between argentina and the states a lot, because we have very weak relations. Erik where does argentina fit in and America FirstForeign Policy . First, in spite of relations between argentina and the states, we have to talk erik so you need to have a united front . We need because we are members, so we will Work Together on future relations. I expect we will find a way to improve and increase our commercial relations together with any other space of cooperation. For example, against drug trafficking, against terrorism come in favor of peace. There are many ways we can cooperate. Erik there are many ways you can compete as well. America wants some of the same export markets you want. That happens always. We focus first on harrys and which we can be complementary, than to compete, there is always time, no . David we have more exclusive interviews ahead. I went oneonone with jack lew. We gathered a wealth of intelligence about sectors and market trends. Up next, frank talk from some prominent ceos. Peabody is back from bankruptcy, so is the Company Banking on trumps promises to bring back . We think there is benefits and call in a scalability and reliability. David this is bloomberg. David this is bloomberg best, im david gura. A number of prominent ceos spoke with Bloomberg Television this week. The most interesting conversations with aols ken armstrong, launching as they prepare to absorb yahoos internet assets. How is it going . How is this merger going to work . The main question i always ask, can you run up against your old shop of google and facebook . First, let me start with verizon. Verizon has a longterm strategy in the media space. We are going to touch over a billion consumers. I think we are in a very good position to launch what is a house of trusted ran in the digital space. We are focusing on a Business Model on brand advertising. I have done advertising for 20 years. I see an open lane in the space of advertising. Alix is Marissa Mayer going with you . We are planning all the executive outcomes that will come in terms of leadership which we will announce in q2. Marissa will stay through the next phase. I would expect half the executive team to be from yahoo . Talking about bringing back coal mining jobs, you employ 6700 around the world. How many more coal mining jobs can you create around the united dates . The actions of the administration today, we have seen sweeping statements, the actions we have seen have been targeted protecting jobs. We are currently recruiting across our operations in the United States, but i also believe that the foundations have been laid to enable clear signals to occur around the generation environment, to either delay, the for, or turn around but we see about 50 gigawatts of planned capacity in the next five years. If we can get exports of coal going forward, that would be future increases. We think there are inherent benefits with coal, its scalability, afford