>> coming up on bloomberg best, the stories that reshape the world. a trade war becomes a currency war as u.s. and china take their dispute to another level. >> currency is seen as a weapon of last resort. >> what we have seen as a message from pboc is cool down, folks. >> the world central banks accelerate their race to the bottom on interest rates. >> central banks are willing to go and willing to go big. >> while strain trims bonus for triggs ears. -- traders. >> stumbling on breaks that deal

or no deal. >> if there is going to be a deal it has to be the first couple of days parliament returns. >> sorting threadbare roger of income reports. >> left wants to see profitability's. the law of large numbers is catching up. we call it the star wars symbol -- stumble. >> experts on how they are reading at jumble >>. china and the u.s. aligned economically. >> i do not think the fed's job is to make sure there's not a recession. >> all straight ahead on bloomberg best. >> hello and welcome. this is bloomberg best the weekly review of the most important business and analysis .rom bloomberg around the world after trump announced large

terrace last week, sent shockwaves through global markets. >> keeping stocks in the red this morning on fears that the us china trade war's s plating, asian stocks heading for the biggest selloff this year after keya you and fell past the seven per dollar level. due to the tariffs on chinese goods. china has ordered state owned enterprises to suspend imports of american agricultural products. what is china trying to signal today. as though they are trying to send a message back that they will up the ante when it comes to a trade war. >> they made it clear that what they can do on the currency side of things per and we had news that they're not willing to buy u.s. agricultural products either. a blow to one of president trump scored a man's. morningresident this his response to issues in the currency market, china, dropped the price of their currency to almost a historic low, it is

called currency manipulation are you listening, federal reserve, this is a major violation that will greatly weekend china over time? would not use foreign-exchange as a tool the trade dispute and saying in a statement, i'm fully confident that the yuan will remain a strong currency the product despite a brief fluctuation mid external uncertainties. is it fair to say the markets did not see the chinese s plating in this way. -- escalating this way. >> currency is seen as a weapon of last resort. we heard repeatedly from china they were not going to use that you and it was knocking to be used as a weapon in the trade war we saw -- not going to be used as a weapon the trade war. we sought finally china hitting back this way. we areecently as friday

hearing from administration officials that if the chinese will go ahead and deliver big buys of soybeans and other big products, -- goods that maybe tariffs can be avoided. signaling happily today that it is not going to go down that route. it is kind of lost hope for a .eal >> dow off at one point by more than 900 points. today the dow moved 735 points. trump of administration formally labeled china currency manipulator after that pboc allowed the yuan to fall in retaliation to new u.s. terrace. in response, china has taken steps to slow the yuan dissent at two below at seven per dollar. -- >> this has profound significance does it not? >> the civil is him is

significant in terms of what it says about the rapid deterioration of relations between the u.s. and china. in terms of the actual impact on china, it is very limited. because what they have limited what this does is triggers a set of negotiations and negotiations between the u.s. and imf about what china is doing from the u.s. perspective. then of course airports pencil -- there are potential penalties the u.s. can impose on china. but china already faces significant u.s. tariffs. >> we are seeing a message from the pboc cooldown folks. the yuan has suddenly not become a one way that. we have seen a shot across the bow to people who became overexcited yesterday. >> the stock market bounce back today on the feeling that maybe this is recoverable after all. howit is really hard to see that happened, when people get done again. it becomes a really personal competition between xi jinping

and donald trump neither man wants to back down and lee's face. trade should not be personalized. and lose face. trade should not be personalized. >> central banks taking center stage the r.b.i. cut rate by 35 basis points print in new zealand the kiwi has tanked after the rbn z announced a larger than expected rate cut. 15 basis points. >> the messages central bank's are willing to glow -- go big. it is a global track. we had james bullard fed president saying there's no reason to pile on rate cuts. but markets do not seem to be buying that. traders are pricing in 100 base cut -- 100 basis points of rate cuts from the fed of the next year. that will be on top of the reduction we got in july. again, i think the messages that central bank's are very willing to go and to go big. >> everybody is looking at the two elephants who are wrestling the middle of the global economy. that worried about what might -- trying to steal

a little bit of a first mover advantage. they are not going to say it. but they're trying to weaken their currency so they have cushion for their exports going into whatever happens. the problem is that if everybody goes in that direction, you have a currency war that leads everybody into recession. >> i'm looking at the u.s. three-month can your turf -- curve and you can see that this bond surge has gone much more into negative territory that it was. we are still down 34 basis points below zero. if that is not an inverted curve, i do not know what is. >> it is the biggest five-day drop since the debt ceiling debacle and 2011 for the 10 year. that move is nothing that speaks to how entrenched the lower forever stance with regard to policy rates are. if that is the global backdrop, then it is just a matter of time until that continues to weigh on the u.s.. the data we are getting are simply telling us that, hey not

only are we having this trade war but the global economy is in an even worse position going into it than we have thought. >> you a 30 year yield closing into their lowest level ever. negative yields in the u.s., what would it take for that to happen? >> probably not around the corner. what would take is a serious downturn in the economy. a recession in which the fed will take the rates all the way down to zero, will restart qe. at that stage we may well see negative in the u.s. as we are seeing them in other parts of the world. >> the wan rose after china central bank set its daily strong than expected. it is the first time in over a decade that the pboc set the reference rate weaker than seven per dollar. peoples bank of china. does this mean that we are seeing stabilization in the yuan? why is the market taking it that way when this is the first time we have seen. >> the key takeaway is there

still somewhat stronger than american anticipated. sure, they're willing to allow it to go on a certain direction, to allow the market to push lower. but it seems they want to keep some thing about flow as well. that is important from the pboc. because they have been preaching eight want to keep it somewhat stable and do not want to let a perception run away from themselves in terms of a one-way bet on the yuan. that's probably what the market is taken from the level today. extending gains. up to percent. every group in the s&p 500 are higher. can you believe that it was just monday when we saw the big selloff? >> no. >> china's producer prices contracted for the first time in nearly three years. outlook for factory profits in the trade war with the u.s.. key takeaways? >> as you say producer prices, those factory prices dropping minas, 0.3% for the month of --

-.2% for the month of july below the forecast. what this suggests is that profits for some of these industrial companies will be squeezed. then there is this divergence between the factory prices and consumer prices. because he saw consumer prices taking up 2.8%, above forecast. toecast had been increased 2.7%. that is in a conundrum for policymakers in terms of stimulus additional stimulus they punch -- pump into the system. the trade picture looks complex and growth continues to slow in china. >> the white house is holding off on a decision about licenses for u.s. companies to restart business with paul way. this comes after beijing -- with huawei that was after beijing said it was halting business with u.s. farming goods. does it show willingness on the part of the u.s. to find a way to negotiate with tiny echo -- with china? >> it is another sign that things are falling apart.

we had two olive branches out of the g20. on the u.s. side was going to be limited resumption of business with huawei and on the chinese it was going to be resumption of agricultural purchases. in the past week we have seen both of those be taken away. that is not a good sign. we have talks in september that are scheduled. big questions over whether they will go ahead. still had, as we review the week on bloomberg best, legendary investor howard marks shares his thoughts during a wild week for global markets. plus, former u.s. treasury secretary larry summers weighs in on the risks of currency wars. up next, more the weeks top business headlines with >> business reports. >>with the debt they have with the stock price where it is, it will be to go to do another dear bill -- another d.l.. this is bloomberg. ♪ haslinda: this is bloomberg

best. let's continue our global tour of the week's top business stories with a deep dive into a flood of earnings reports. among several european banks releasing results. they surprised with an executive shakeup. down ason is stepping chief executive of hsbc. the bank announced second-quarter earnings and a share buyback of up to $1 billion. a lot of people were taken by surprise. we'd heard possible differences. how much of the focus will be on someone who can shape up the u.s. and asian franchise? according to our reporting, they may potentially look outside as well for the first time for hsbc. a big see it coming from

change for the bank. it's a hot topic for the banks. returns are not being positive. they had extra liquidity they would like to use. the business is not very competitive compared to big u.s. banks. there are a few decisions that need to be taken. haslinda: congress bank -- commerzbank says it's higher profit this year. a fourth straight quarter of falling revenue. operating profit fell. >> how hard is it to do business in this negative rate environment? >> it is getting harder, especially if you believe forecasts like this. on the other hand, it's a reflection of what we have seen over the last year. the question is not how hard it is. what you have on offer to counter the issues? to a certain extent, it's been a

very successful way of dealing with it through the last year and corridors. ♪ >> abn amro has been and estimates on the bottom line. at the is well-placed end of the second year. 693 million euros. that lowerid mourn interest rates are having an impact on margins. please tell me you can see a glimpse of light on the revenue story at abm. good morning. >> all results are good this quarter. our revenue is good on the net interest income side. , interestw rates income was up quarter on quarter. there are a few one offs in the area. pretty stable. over time, quarter on quarter, you will see the effect of low rates impacting deposit margins.

that's why we've called that out this morning. operating income for the first quarter that be the highest estimate. this comes as the banks vision fund expanded its financial technology portfolio. honda did to the auto industry in the 70's, top bank is doing for the entire venture capital community. it's the most disruptive japanese organization we have seen since japanese autos disrupted the u.s. auto market. this is what happens on the ground. you are a hot company and you .re raising 50 million softbank says, we will give you 150. we are investing 100. if you don't say yes within 48 hours, we will go to the second player and giving them $100 million. they are being elbowed out of the way by softbank. it is a direct -- disruptor in

the space. uber out was second-quarter results including a $5.2 billion loss. shares down to the lowest levels since may. what are your biggest takeaways? >> the bookings group looked good. it was a revenue miss. part of that was related to the use of subsidies in their ridesharing business as well as food delivery. that is where they have been using subsidies for a while. they have been seeing pricing pressure. food delivery is a fragmented market. on the core ridesharing side, they are doing fine. the law of large numbers is catching up. it looks fine. >> shares of left are higher after the company reported a second-quarter loss and sales better than what analysts expected. the overall numbers are good.

see movingt to towards the path of profitability. the adjusted loss numbers are better than expected. what is really key here is that lift is saying, we think our annual numbers are going to be hundreds of millions of dollars better than we expected. they are improving their forecast. they beat analyst expectations. that's why we are seeing this reaction. >> jay-z shares plummeting in late trading. earnings screen by falling themepark attendance, spending on new streaming services, and a flop of a movie inherited in the acquisition of fox. disney opened the most anticipated themepark attraction ever, star wars. attendance dropped? >> yeah. the star wars stumble. we've written about this. social media posts saying,

there's nobody on main street. there's no way for these -- wait for these rights. there were a lot of explanations given. bob eisner was apprised. he said, we tried to hard to limit attendance because we thought the crowds were going to be so big. they had a reservation system for the attraction. people just data way. the same thing at walt disney world. people were staying away because they are waiting for that galaxies edged open later this month. as a group is weighing offers to sell some of its businesses with the ceo saying units with no clear future can't keep earning money. this comes amid an economic slowdown in germany which is added to concerns for the industrial conglomerate. it's market cap has been cut in half. there's a possibility the group could lose its place in the dow. it will present ahead with plans to lift its elevator music -- business. are all these moves that you've

announced today going to be enough to turn the company around? >> i clearly think so. if you take a look behind the current figures, you see some strong development as well. the overall numbers are clearly distorted by the weak automotive industry and the problems in steel. you see that we improved marvin -- margin in one quarter. we are clearly looking ahead. we can for filler guidance for the full year. we have seen a turnaround in the margin. kraft heinz is feeling the heat from wall street. , nearly 16%plunging to a record low after reporting earnings for the first time since february. the results were disappointing. it's a rough welcome for the new ceo who said, the level of decline we experienced in the first half of the year is nothing we should find acceptable moving forward. problemsare definitely

here. one of the biggest challenges is that they are in a tough position as far as making a major acquisition. that was always the goal here. they tried to buy unilever. they could've gone back to cutting costs which is what they do best. with the debt and stock price they have, it will be very difficult to do another deal. that leaves the new ceo to try to get these brands growing. there's a lot of stuff there that is out of step with where the consumer is these days. ♪

♪

global markets took a one-two punch this week from escalating trade tensions and steepening central bank rate cuts. thursday, oaktree capital howard marks told bloomberg how he thinks things will play out. usually, we stimulate the economy when it's doing poorly and we want to wake it up from the doctrines. we generally don't stimulate the economy after 10 good years. we usually accept that there will be an ebb and flow to the acle and that there might be justified recession. we have the lowest unemployment rate in 50 years. you usually don't stimulate at that time. the point is, the fed can stimulate. so, is it the fed's job properly -- i get the feeling, no.

job is think the fed's to make sure there's never a recession. say,the fed chair tends to jay powell said it last month, i have a quote in there from september 2007 where they said, we will do what it takes to keep the expansion going. is it the fed's job to keep the expansion going for forever? i don't than so. if i ran the fed, i'm not applying for the job, when the economy is roaring, i would try to cool it off so there's not too much inflation. when it's really we can not creating jobs, i would stimulate it. in between, i would leave it alone. >> if the fed keeps cutting rates, what does that mean for investors? the 10 year is at 175. bonds are paying 3%. high yield is in six. that savers and

moneys and people with are going to have trouble getting good returns. emanate from the base rate which is what the fed says. below are it is, the lower the perspective return on everything is. the process of lowering the rates causes assets to inflate. there will be more wealth piled up by the people who have assets. harder for people who have a little bit of savings to get a return. best,ing up on bloomberg more of the weeks top stories in business and finance. conflict continues on the streets of hong kong. a bloomberg scoop explains why asset managers are on the break of crisis. more compelling conversations. malaysia's foreign minister says his company -- country will

become collateral damage in the trade war with china. >> it's very unfair. you are being a big bully. >> this is bloomberg. ♪ hey! i'm bill slowsky jr.,

i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass.

>> this is bloomberg best. trade dominated discussion on bloomberg television this week. while the u.s. and china are the two key antagonists, other nations are feeling economic and political fallout. the foreign minister of malaysia says he would put -- pushback if the u.s. tried to impose sanctions. he spoke to was embedding -- bangkok. >> we would like to trade with both the u.s. and china. are most that we worried about is, should there sanctions, taken

wethe u.s. against us, if continue to trade for china. we want to continue trading with china. >> there are some concerns. china has already -- the u.s. has taken action against some of tradeuntries it says have deficits the likes of china, germany, canada. in asia, malaysia is among those in the top 10 including the likes of india. are you concerned that the u.s. will take action against you? >> we are concerned. happen, weng were to have to tell the u.s., you are being unfair. you are being a big bully. >> do you think the u.s. will fight back? >> we know the u.s.. ♪ the trump administration's decision to label china a currency manipulator raise the temperature in that relationship.

among those who raise their eyebrows at the move was the former u.s. treasury secretary. he discussed it with us on bloomberg -- bloomberg daybreak americas. >> now, the clearing china to be a manipulator raises the specter of some kind of further retaliation, raises the specter of a situation where it will be more difficult on grounds of yes toor china to say u.s. demands. therefore, raises the risks of a cycle of financial conflict. is, that is coming at a time when we are already 10 years into expansion. when the fed has already to thezed growing risks current expansion.

and when, given how low interest rates already are, if there were to be a downturn, there is much less room for monetary policy to act than has been the case traditionally. >> you mentioned secretary mnuchin yesterday. what is the justification for it? the claim was in response to the president saying there had been increased tariffs. you saw the pboc really weaken the rate for the yuan. >> no. i don't think there was much justification. currency manipulation is a legitimate issue. we tend to say that a currency is being manipulated when a few conditions are met. when the country in question is running a substantial trade surplus. china used to run a substantial trade surplus. it does not any longer. isn the country in question

trying to weaken its currency, when it is selling its currency into the market to push its value down. in recent months, recent weeks, entering then market, not to sell its currency, but to buy its currency. really, china has been propping it up. when you are propping up your currency, you are not running a trade surplus. you are not manipulating the currency on any definition that is understood and accepted in the financial community. >> european banks continue to struggle as central banks push interest rates lower and lower. franklyank cfo spokes abrupt the headwinds. he was asked about what he would say to policymakers about negative rates and their impacts. >> what really changes if you lower the interest rates by another 10 or 20 basis points, what will change?

is there any house you want to buy additionally or whatever? it's unclear what exactly the additional benefit of this lower interest rate is. nevertheless, if it happens, you need to deal with it. it will put up additional pressure on the sector in general. we would need to see what the answers look like. >> the ideas that they have no other choice. because of the geopolitical issues, they have to do that in order to grow the economy. that helps your customers continue in business. does that make sense to you? >> in general, that makes sense. that's what the core benefit of the last year is. does antion is, additional 0.2 create an additional effect or other collateral damages which it , do they outweigh the positives? >> how important is the fiscal

side of things? i spoke with olaf schulz last week. he says there is no financial crisis. germany doesn't need additional spending. he's not going to boost his spend on infrastructure or anything like that. do you think that germany needs to do that? >> no. i don't think there's anything we can see right now. the economy is growing this year, albeit at a much slower pace. we will probably see some contraction in q2. it remains to be seen. we are still going for something like a growth rate like a percent for next year. sense, doing a fiscal stimulus program or something would be helpful and will come for the industrial basis. total, you need to weigh what is being done on the monetary policy side. it's unclear whether you can really add with additional

stimulus. finally, for a birds eye view of the week in markets, we shut down for an exclusive conversation with kkr head of global macro and asset allocation. ultimately, i don't think china is going to do a large devaluation. i don't think that's in their interest. they are trying to build a consumer economy. weakening your currency hurts you. they are sending a shot across the bow that they have other tools to match what president trump is doing on the tip front. >> let's talk about them. if this situation keeps escalating, what happens next? halt exports of advanced technology to china, huawei tote and

their knees? do they hobble the u.s. economy? >> the first thing you will see is a pullback in capex from all sides. most executives are watching the situation. one of the fax that we feel strongly about is, if you had all the tariffs and say president trump does auto tariffs, that is less of an impact on gdp than a 10% pullback in. capex. >> how long until western capital is no longer welcome in china? >> when people say it's a cold war, it's not like it was with the u.s. and russia. china and the u.s. are aligned at the hip economically. massive that china's consumption wouldn't want u.s. goods is unfounded. that's not going to happen. what you need to do is a line

where the government and private sector need that expertise. you will see a bifurcation where some companies double down on capex because they can partner with the chinese economy to do well. ♪

>> let's resume our wrapup of the weeks top news in business, finance, and politics in hong kong. protests show no assigns -- no signs of abating. areisruptions in hong kong entering a ninth straight week. thousands of protesters have moved to shut down the asian trafficl hub, leaving stalled, subways and operable. over 100 flights were canceled.

not is a movement that is slowing down because they feel that the government is not listening to them. really, bringing a city of 7 million to its knees. it was too full. they called for a general strike. theys what this banner have been handing out. strike at work, school, the market. all the while, keep the pressure on carrie lam to withdraw that controversial extradition bill which kicked off all of these protests. you have ar hand, hard-core protesters who have pitched battles between protesters and police. carrie lam says the protesters are ruining hong kong. the protesters say they will not back down. germy corbyn is heartening plans to block a no deal brexit. he signals he will call a confidence vote in the prime

minister wen parliament resumes in september. he has until september 18 to show we can command a majority in congress. the following day is the last data trigger a general election. what do we know about what has to happen when it parliament wants to block no deal? >> the timeframe is extremely tight. if there's going to be a confidence vote, it has to be the first couple days that parliament returns. after that, we are in slightly uncharted territory. in terms of how the fixed term parliament acts out. the 14 day window applies to johnson to try to form a new government. it also allows tory rebels, that to form a coalition would prove that they have the majority as well. it'll be a very intense period of horse trading. >> britain's economy saw a

surprise contraption. -- contraction. it raises the stakes for boris johnson's government as it seeks a fast exit from the european union. >> it's a bracing reminder to boris johnson about what the markets do. in the end, it's all fine having this great laugh because no deal brexit and talking about boosterism and you need to get these things. actually, there isn't an economist on the planet who thinks that no deal brexit won't be up painful moment. matteo solve any is pulling the plug on italy's ruling coalition. he has called for early elections, saying the government has no longer got a majority. that sent italian yields surging. the spread widening. isthe first question, when this parliamentary debate going to take place? it's the midst of summer

vacation. parliament is on recess right now, technically. they have to be called back. salvi need is pushing for them to get back in their seats next week. it looks like he has the sufficient votes to bring down the government. it's a matter of time. the indian prime minister is promising a new era in kashmir after revoking its special status following several decades of autonomy. he says it will rid the region of separatism and terrorism. what was the thrust of his argument? >> he's saying that he's bringing kashmir into the mainstream governance of india. no longer will it be a state with its own separate economy. instead, it will be subject to the same laws and regulations as the rest of india. he says it will eliminate

corruption and domestic politics. been ahmiris, it has days long curfew, phone and internet blackout. thousands of extra troops streaming into the valley. they are worried about what is to come. are facing agers necklace schedule crisis. investors have been shifting their money into passive funds for years. the loss ofd thousands of jobs and forced large-scale consolidation. the industry is on the brink of a shakeout. what surprises did you find in your research? >> the industry is struggling. they have been pushed to a tipping point. active managers have been charging too much for subpar returns. it's a fraction of the cost of active managers. in some cases, they have outperformed.

industrywide, that has led to the compression. -- fee compression. industry ride -- wide consolidation. some may disappear. desksl street's trading endured the worst in addicted. bonds are poised to take a hit. a collective $5 billion drop in first-half trading revenue at wall street's major banks. >> it was the worst first half in more than a decade. one bank reported a couple of days ago. we saw cuts across the industry. these traders are getting less and also they are reducing headcount. beck and reduce the cost in order to keep things profitable in a lower revenue environment. hedge funds and private equity might go up a bit. as much as 5% on positive inflows.

we have retail and commercial bankers who are -- you could see as much as a 5% increase. that side of the bank has really been driving profits at these big banks. while the capital market site is having more muted revenue. ♪ >> crude oil is extending losses for a third day. brent crude has lost almost 5% over the last two sessions. it entered a bear market on tuesday. the trade war continues to escalate. oil is a major casualty. >> the trade war is dominating any moves in energy markets. west texas intermediate, the u.s. benchmark is down 0.5% today. it's a 1.9% yesterday. the global benchmark has fallen 20% since an april peak. it moved into a bear market yesterday. implements the

additional trade tariffs he has threatened that would be scheduled to start on september 1, a lot of analysts have speculated that china would flatten tariffs on u.s. crude imports. that is the next factor people are looking at. it certainly could have a larger economic impact. that's what people are looking to next in energy markets. >> prices are rebounding after bloomberg reported that saudi arabia said it is considering all options to stem the decline. the gains halt a three-day slide in crude prices. >> the biggest tool that saudi arabia has is managing supply. if you look at what's happening under opec plus agreement already, the are cutting more than what they agreed to. whether they have extra wiggle room to cut supply their is a big question. the details are vague. they are talking about using all options. they are talking about speaking to other producers. we don't know who they are or what those options are at the moment.

gold staging a comeback rally to the highest level since 2013, topping $1500 and demand for the traditional haven. gold up 17% yesterday -- year today. -- year to date. >> it's an interesting one. looking at other commodities, gold has performed really well. that's because it is traditionally a safe haven investment. we are facing things like the trade war, the chance of a no deal brexit later this year, tensions in the middle east, just to name a few. it's no wonder that investors are flocking to precious metals. the philippines is the latest to join the wave of central banks cutting rates to encounter growing economic risks. the governor there told bloomberg he sees further easing coming as soon as next month. >> right now what we are

contemplating is another rate points.5 basis a could come in as early as september or in the fourth quarter. we intend to cut further our reserve requirement. from 20-18 andng 16 now. another possible 100 basis points before the end of the year. ♪

♪ >> we see volatility. it is in certain asset classes. this is the volatility and correlation analysis tool. this is about fx markets and the level of implied volatility. you have the blue dots and red dots. the blue dots are ahead of the average red dots. the now implied volatility is higher than the average. >> i want to go to a bloomberg insight journal function. everyone worldwide uses it. all you need to know is that this is what the pros look at, the curves. the two tents, the three-month 10. the headline this morning is the 210 spread breaking to basis

points. it is flattening out with a vengeance. >> there are about 30,000 functions on the bloomberg. we always enjoy showing you are favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful. q u i see go. you can get fast insight into timely topics. here's a quick take from this week. ♪ they can litter sidewalks, minister pedestrians, and endanger their riders lives. electric scooters have popped up in cities around the world, inviting a wary public. copyright as indignant local regulatets struggle to them. it may come a surprise that he scooters could be exactly what ked cities need. this is your bloomberg quick take on these scooters. download an app, find a scooter, unlock it and go for a ride.

when you are done, leave it behind. rides can cost less than two dollars. >> uber and lift have scooters is now -- as well now. they are new. by their essence, they are all over the place. if you are not using them, they get in your way. because people are just learning how to use them, they tend to ride them in obnoxious ways. in a lot of places, they have become a symbol of the technology industry which annoys people. >> cities like cleveland banned them. created a permit system that caps the number of scooters a lot. bird and lime offer scooters in more than 40 cities. despite the controversy, he scooters have their defenders. in dense urban areas, cars aren't the fastest way to get around. many cities has to that have turned to bike share systems because they take up less space than cars.

urban planners see scooters as part of the future of city transportation. >> the hope would be that you would eliminate shorter car trips. that would get a lot of cars off the road, create protective lanes and so on. drive the in turn demand for scooters. a virtuous cycle. it's too early to tell if they will become viable businesses. offow long it takes to pay a vehicle and how long a vehicle stays on the road. we don't know exactly how much this is. it does seem like you can pay these things off fairly quickly. they are relatively inexpensive. they get completely trashed very quickly. you will take your of your own bike or car. no one ever washes a rental car. ♪ >> that was just one of the many quick takes you can find on the bloomberg. you can find them at bloomberg.com along with all of the latest business news and analysis 24 hours a day.

that will be offer bloomberg best this week. thank you so much for watching. this is bloomberg. ♪

♪ emily: i am emily chang in san francisco and this is bloomberg technology. in the next hour, how one analyst describes the third quarter after shares fall. and president trump suggests talks with china's might not happen. negotiators will head to washington. what all the back-and-forth means.