Should be conditional. It is a matter of policy itself. Alix and in the zimbabwe, the military seizes power and detains 92yearold president Robert Mugabe in the struggle over the succession of the only leader the african nation has ever known. It is all straight ahead on bloomberg best. Alix hello and welcome. I am alix steel. This is bloomberg best. Your weekly review of the most important Business News, analysis, and interviews from around the world. We began the week the President Donald Trump wrapping up his tour in asia during his 12 day trip. He demanded the foreign leaders help narrow the u. S. Trade deficits while advocating his America First policies. President trump a month ago said he was not going to participate in the tpp, and over the weekend, 11 other countries that are in the tpp or were in the tpp say they are planning to go forward with some modified version of it. So, President Trump came and talked tough on it, talked about shifting back to bilateral relations between the u. S. And individual countries, and look, there are some stats that support why the u. S. May be in a better position than other countries to pursue that. But essentially, if you look at trade as part of the geopolitical strategy for the u. S. To play a leadership role in asia and counter or check chinas role, this was not an obvious win for the president this weekend. You have countries Going Forward with their efforts to do their own tpp without the u. S. In it or maybe pressure the u. S. Back into it. It sounds a lot like the way Climate Change worked out with paris. You have president xi jinping of china saying, President Trump may think that trade deals should be bilateral, but i think globalization is here to stay and that is what we should embrace. David why did the president go to the philippines . As i recall, he was not going to stop there, but he decided to go. What was his goal, and did he achieve it . Guest the president heard that the east asia summit which is going on and which is going to conclude tomorrow was the most important of the meetings that would be taking place in manila. And he had heard that, from a number of different people, that that was a very importantly that was a far important meeting for him to attend, and have the u. S. There because the u. S. Has previously attended such meetings. When he heard there was some pushback to the idea that he would not be in manila, he decided in an improvisational way to do the meeting. There was also some pushback against the idea of meeting and spending time with the president of the philippines, duterte, given his human rights record. It does not seem the president really pushed him on that during their meeting. But that was another reason why a number of people were reluctant to the president to spend a lot of time in the philippines, given the things that duterte has said about the u. S. Government. This stock right now is plunging, right around the time of the financial crisis. Early in the premarket, up 2 . What happened during the day that investors are reacting so bearishly to what has been announced . You know, it is interesting. There was a lot of bad news today. The dividend was cut. Next years forecast was cut. And there was a lot of very frank talk about the challenges they are facing in a number of markets. But i think what you are seeing in the stock is not so much the bad news that was announced today, but what was not announced today. I think investors wanted more changes. Some of these problems have become clear over the past few weeks or few months, and investors really want something big, some big changes that are going to get ge back on track soon. And part of the changes ge is telegraphing, is they are going to focus on aviation, health care, and power. Karen, are these the right three businesses . What is the linkage between them . Karen that is the question. There is not really linkage at all. When the businesses are good, they are fairly profitable. Power is a mess, but they have a lot of work to do there. They will say the digital tie, but there really isnt. Jonathan the worlds most powerful central bankers descend on frankfurt. They discussed the future of Monetary Policy. The debate on communication had officials in agreement on the use of Forward Guidance as a tool of Monetary Policy. Here is some of what they had to say. We also cannot formulate and a framework where the various parts of this Forward Guidance, the Interest Rates on one side and the asset purchases on the other, would interact in a synergy. For us, really almost all guidance should be conditional, and related to the outlook for the economy. To a much richer instrument. Inflation expectations are formed, not only by forwardlooking ways, but also backward looking ways. But in the end, it is a bit of a rounding error. It is more than a rounding error. Relative to agents in the economy. Households and businesses. It is a matter of policy itself. Jonathan joining us from frankfurt is matt miller, from bloomberg. Matt, it is a fascinating conversation. When you put these guys on the same stage together, we will all be listening. What have we learned and how we can apply it to Monetary Policy and how it may or may not evolve in the next coming years . Matt we have had job growing, but Forward Guidance is supposed to be more transparency, more solid delivery of a message for the economy, and to a number of different audiences. We are focusing on zimbabwe, trying to figure out what we should do next because the president is set to be ready to step down after being in power for almost 40 years. The fallout is quite significant, and will continue to be a very significant one in the coming weeks. How significant is it as it is now and not one year ago or two years ago . Certainly, if you think about it, it is an interesting thing as you are heading towards the elections next year. It is an interesting one. President mugabe, he has just fired his Vice President , Emmerson Mnangagwa who a lot of people are saying could have taken the presidency from robert look at the end is seen as a leader. Of course, not so long ago when he did fire the Vice President , that was seen as a way for mugabes wife to step in as a party leader for the Political Party zanu pf. That would then take power of the nation as well. So it is quite an interesting one and interesting play. How long this whole scenario may play out is going to be an interesting one, however, there are people commenting saying that it is a slow coup. While military supporters are saying that it is not a coup, instead it is a bloodless correction of the past. Jonathan Deutsche Bank is the bank attempted to turn things around. According to a person familiar with the matter, a stake has been held by Morgan Stanley on Deutsche Bank. Shares are up on the news. Talk to me now about the composition of the investors face right now, and how it may be changing . Yeah. By the way, they just confirmed in a release a few minutes ago, and it is a big change. It is the first time a private Equity Company owns a big stake in Deutsche Bank. One investor i just talked to said it is revolutionary for the bank. Obviously, the question is now, what does cerberus want from Deutsche Bank with its investment in the bank, and we will be working to figure it out over the next few days. I am here in the senate now, a heavy security presence of President Trump departs his meeting with Senate Majority leader Mitch Mcconnell as well as House Speaker paul ryan. I caught up with representative cole from oklahoma after the meeting. I have spoken with several sources who are familiar with the meeting at the president had with republicans. They said it was largely a rallying troops kind of meeting. Trying to get everyone on the same page. Look, this is expected to pass within the next hour and a half, out of the house of representatives, clearing the way for the senate. I am told that vote will come as early as the week after the thanksgiving break. The bill is passed without objection, the motion to reconsider is laid on the table. David there you have it. That is the official declaration that the bill has passed the house of representatives. Not a surprise, but historic. We have a long road ahead of us. This is a very, very big milestone in that long road. We have a long road ahead of us and we have a timeline to get this done by the end of the year. We have the Senate Working on doing this right now. We are excited about going through the legislative process, going to congress, getting this done and making the bill even better. Most important, i am excited on behalf of the american people, who have been waiting to see us get this done. David the tax overhaul plan may have sailed through the house yesterday, but then the Senate Finance committee came up with a plan to come up with their own version. Democrats charge that it is all about giving tax cuts to the rich. It would be nice tonight before we go home to acknowledge that this tax cut is not for the middle class, but for the rich and the whole thing about higher wages is a good selling point but we know that companies do not give away higher wages. This bullcrap that you all throw out here, it is not right. I just it takes a lot to get me worked up like this. David that was the exchange between the democrats and republicans. The republicans have problems within their own ranks. [laughter] eric yes, they do. It is going to make the fight look like a little garden party when they get on the floor. The republicans have the senate bill full of problems. Their own party does not even like, for example the tax on businesses that ron johnson doesnt like. That is going to be really hard to solve financially for them. The Obamacare Mandate dropping that, that is upsetting Susan Collins and lisa murkowski. Then you have ron paul who does not like the idea that the tax cuts sunset for individuals, people will have to pay higher taxes halfway through this. Then the deficit itself that it creates is bothering at least three senators including jeff flake, bob corker, and jim langford, who said they dont want to raise the deficit. They can only lose three votes and that is six right there. Alix still ahead, as we review the week on bloomberg best, an exclusive interview with Philadelphia Fed president. And retailers battle it out with thirdquarter earnings as price wars take a toll. The price wars are affecting targets. What is amazing is they put up a beat quarter and we have shares plunging. Alix this is bloomberg. Alix this is bloomberg best. I am alix steel. Lets continue our global tour, starting with uber approving softbanks offer for an multibilliondollar stake, setting the stage for one of the largest private share purchases ever. The idea is that softbank, along with other investors, will put in about 1 billion in fresh capital, and then buy about 9 billion in stock from existing investors to take a substantial stake in the company. This will come along with some governance reforms at the company to decrease the influence of the exceo travis kalanick. It will give existing investors a bit more influence in that respect. Jonathan it could be the biggest tech takeover ever. Broadcom going after qualcomm with a 105 billion deal. Qualcomms board though rejects broadcoms unsolicited proposal. Guest the shares are unmoved, i think it is something the relationship between them has never been good. At the moment, it is particularly bad. Obviously, they came hostile while qualcomm themselves were in the middle of trying to do a deal with the Company Called nxp. Jonathan you mention nxp, in the semiconductor space, this is deal on top of deal on top of deal. There are like five layers of deals that go into this Broadcom Qualcomm offering. Are these guys going to get on with integrating the deals on the table . Guest that will be one of the huge challenges of this. How does qualcomm integrate both broadcom and potentially, another company like nxp . I think it is difficult for qualcomm to pull out of the nxp deal, so broadcom would essentially have to pursue both companies. It is like the russian doll of a deal. It is a deal within a deal with the deal, the russian dolls. David at t wants to buy time warner, but the word now out is the Justice Department is they have some problems with it, on antitrust grounds, and they may sue. Overnight, bloomberg is reporting that the lawyers of both Companies Say that if they are sued, they will seek discovery of everything that the white house had to say to you about the deal. Joining us now is paul sweeney, the director of north American Research for bloomberg. This is pretty tough talk saying were going to subpoena and get all the information about possible white house interference in the antitrust review . Paul yes, i think this is another round of posturing on the part of at t in response to what the department of justice has come out and said in the marketplace that they would consider blocking this transaction. So, i do not think this is a route that at t and time warner want to go down, but they recognize that their transaction is facing more scrutiny and a higher level of scrutiny than they have ever expected or the market expected. David softbank plans to invest as much as 25 billion in saudi arabia over the next three to four years, according to people familiar with the matter. It will deepen ties between the kingdom and the japanese company. 15 billion would go to the saudi megacity called neom. To take us through the deal, we welcome bloombergs Senior Editor of global business. Talk to us about this deal, and is it a coincidence that it come so soon to the crackdown by the crown prince . Guest i think what it shows is that softbank and the company are willing to make a longterm bet on the crown prince. This is an investment we are looking about over the next three to four years, and from it, it reflects the fact that softbank is willing to bet that the crown prince can transform saudi arabias economy, and maintain stability at the same time. David does saudi arabia really need the money . I mean, they have already said they will put 500 billion of their own money into it. And 25 billion, lets be clear, is a lot of money. Is this for the investment, or the endorsement, as you say . Guest good question. As you say it is interesting to note, there is a bit of recycling going on here as well . Who is one of the best investors and softbanks vision fund, saudi arabia, the saudi wealth fund, pif. So softbank, essentially is investing in saudi arabia after saudi arabia has invested in softbank. Airbus has agreed to the biggest deal in its history. The companys chief operating officer has confirmed it won a record order for 430 aircraft from Indigo Partners worth 49. 5 billion. How has the Company Managed to turn things around . It was such a dramatic loser yesterday when it came to the big body, widebody aircraft in its competition with boeing . You are absolutely right. The deal they wanted to get here so far, they have not been able to secure, that was that 380 superjumbo. Everybody expected them to bring it home on sunday, that was the opening day of the show, but it did not happen. Still, nobody quite knows why it did not happen or whether it was just delayed then today happened. That is a dramatic turnaround for the company. It is the deal that they needed badly to make a comeback. Boeing had done incredibly well, with a deal for emirates, that is the deal that airbus wanted, but it did not happen. So now, you know, airbus has had the last laugh, so good news for them. Mark elon musk unveiling the companys new electric truck called the semi. How far can they go . Let us find out . A 500 mile range. [cheers and applause] production begins 2019. If you order now, you could have your truck in two years. Guest it is important for tesla to make a case that electric vehicles are really competent, and capable in ways that you would not necessarily think. I think, you have seen heavy truck makers like daimler and even manufactures like toyota, come forward with zero emission trucks, but passed out on whether or not batteries make sense in this sort of application. I think this is an effort on the part of elon musk to really further burnish the reputation of electric vehicles. It is important for the company to sort of make its case as well that it is looking at all forms of transport, including moving its own vehicles around. Alix walmart now out. Earnings beat estimates, a one dollar per share versus estimates of . 98 a share. It also boosted its fullyear adjusted earnings view. Also, if you take into account fourthquarter comp sales, they are looking at the high end to be about 2 . They came in at 2. 7 for this last quarter, a killer number for them. I have to say, the expectations were about 100 basis points lower. Walmart is up over 1 on the news. This look likes a very solid quarter for walmart so far. Target shares plunging right now, on pace for the worst day since february, after the companys earnings report. It seems like the price war within groceries is really affecting target. The price war is certainly affecting target. They actually put up a beat and boost quarter. Yet, we had the shares plunging for the Third Quarter in a row, net income down 21 yearoveryear. Emily in china, tencent posted its strongest growth in five years. 7 years. 61 rise in quarterly revenue, and tencen