Transcripts For BLOOMBERG Bloomberg Best 20171125 : vimarsan

Problem, and it is going to get worse. The war of the rich on the poor is astounding. Not everything in here is a bad idea. Ramy it is all straight ahead on bloomberg best. Ramy hello and welcome. I am ramy inocencio, and this is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. The week began with a political crisis in a european nation that has been a rare model of political and economic stability. German chancellor Angela Merkels negotiations to form a Coalition Government suddenly collapsed on monday. Matt chancellor Angela Merkel attempts to form a new government. Those have collapsed with of the Free Democratic Party Walking out of Coalition Talks last night. The breakdown of discussions throws the future of her fourth term into doubt and raises the possibility of new elections in germany, something which would be completely uncharted territory in the postwar period. As acting chancellor, merkel says she will consult with the countrys president later today. Ms. Merkel it is a day of deep reflection of how to move forward in germany, we will do Everything Possible to ensure this country will be well led through these difficult week. Matt what exactly happened that brought these, at the final moment, to a collapse . It was clear at the end that the whole package of things they have negotiated is not good enough for the ftp. Immigration was a sticking point. They could not get austerity through. Looking at the whole package, they decided it was not good enough. Matt we are seeing the euro gained against the dollar. Isnt this bad news for europe . The markets are telling us this is a local issue that will be quickly resolved, and that means without much fanfare. This is important because right now, the key to europe and brexit talks and further progress of integration hinges on strong german leadership. The u. S. Justice department is suing to block at ts 85. 4 billion takeover of time warner. It deals a major blow to the carriers bid to create a media and telecommunications empire. The bottom line is we cannot and will not be party to any agreement that would even give the perception of compromising the First Amendment protections of the press. Any agreement that results in us forfeiting control of cnn, whether directly or indirectly, is a nonstarter. It is unprecedented. Very odd coming out of the Republican Administration generally considered friendly to big business and mergers. We have no example. The last time this winter court was 1979 and the department of justice lost. David the department of justice will have to demonstrate that consumers will be harmed. There are a lot of things in the complaint that would raise concerns for competitors of at t, the question is, will consumers be harmed . I think the doj has a daunting battle in front of them. Kevin the white house trying to signal this is not anything to do with politics, despite the president s complete assertion against cnn. I continue the department of justice has largely taken a cautious approach, and everyone is weighing in, including mark cuban. He has suggested that when it goes to trial, it will ultimately the bad news for facebook, google, and silicon valley. The argument is that the vertical merger is a signal for them to play with tech titans. The u. K. Government says Economic Outlook is getting worse. A warning was delivered in parliament today. We have our he invested already invested almost 700 Million Pounds in brexit preparations. Today i am setting aside over the next two years another 3 billion pounds, and i stand ready to allocate further funds when and if needed. Speaker, no one should doubt our results. Anna he give us 3 billion pounds to deal with exit uncertainties. Is this to deal with the situation of no deal . Is that what the 3 billion is for . Because it was previously said he did not want to set aside money for a no deal scenario. Ms. Truss weve already allocated 700 million to prepare for all of venture out of and that includes no deal. It also includes the preferred option of a transition period plus free trade deal. Thats what the 3 billion is for. Money we will need to spend to get ready for leaving the European Union. Quite a lot of things we would need to do in a no deal scenario, we would still need to do in a deal scenario. It is right that we make the preparations, and i think people will expect the government to stay on top of that. Haidi janet yellen isnt the only fed official expressing more doubt when it comes to inflation moving higher. The minutes of the november meeting show a deeper than ever divide between policymakers. The november minutes are interesting, it has a lot to do with the words the fed uses, many, that is more than half, a strong consensus. They are ready to hike. But the march rate hike is in question and the pace of hikes next year. A few, that is not even half, but probably a few significant said inflation has to be rising on a sustainable path toward inflation before they will look for a rate hike, and they say the fed will have to monitor inflation developments closely. This datadependent said. Overall, a lot of consensus on the economy doing better, that but there is deepening concern over inflation, which is not playing along. Jonathan the ecb has released minutes of its october Monetary Policy meeting and they are learning that officials expressed concern about a firm date for quantitative easing. Have we learned a little more about the divide the currently dominates the council . A few things here and there. At the last meeting in october, when they decided to extend quantitative easing but at a slower pace, they did discuss how they want to implement that, first of all. They also discussed how they can change policy guidance, or whether they should shift policy guidance, because at the moment, progress on inflation is very much linked to asset purchases. Now, of course, if the ecb decides to end that program at some point next year, that will have to change, and that is what they discussed. Jonathan days after talks collapsed around Coalition Talks angelarman chancellor merkel, they may be coming to her rescue. The social Democratic Party said it is open to discuss a government led by Angela Merkel. It could restore political stability. How close are we to breaking the political deadlock in germany . Well, jon, the speculation is growing, of course with this move today, that Angela Merkel and Opposition Leader Martin Schulz will meet, it is pointing us toward a rerun of the government germany just had for four years. The social democrats are still very much hedging their words, but there is the overarching issue of german stability, and there will be appeals to that in the days going forward. It is black friday. Everybody is focusing on retail sales. Spending is very strong, off to a good start. By 5 00 p. M. Yesterday, up 17 yearoveryear according to adobe analytics. Black friday actually began yesterday. What responsive you seen from shopper so far . Shoppers so far . A strong start to the fourth quarter, and yesterday during black friday, we saw that. It started well online and we opened our stores at 5 00. Last night, in a lot of our stores, it is tracking quite well. One of our hallmarks is the ability to transact online, on a mobile device and instore. Black friday is a national pilgrimage, and having great value but also being where shopping is happening. 70 of america shops during the black friday window. Not all of your stores are like harold square. You have been closing some stores. Youre going to keep about 600. The ceo said if macys was starting again, the magic number would be more like 245, it was said. Could we expect more closures . Jeff we announced we were close 100, we have 30 more to go. There might be properties here and there we will be closing, but we serve nationally as a macys brand. The interplay between the Online Business and bricks business is important. Our calling card as we are a national on the channel retailer, and that is important. Expect us to weigh that very carefully. Ramy still ahead as we review the week on bloomberg best, a bold call on bitcoin. Plus, thoughts on the gop tax reform bill from paul krugman , among others. Up next, more headlines. Chinese automaker aims to bring its brand to the u. S. Market. At the current stage, our internalization process is just taken off. Ramy this is bloomberg. Ramy this is bloomberg best. Im ramy inocencio. Lets continue our global tour of this weeks top business stories. Next, in the United States hartline, another chapter in a controversial saga with the keystone pipeline. Transcanada has cleared one of the last hurdles for building the keystone xl pipeline. Shares of transcanada rising on the news and has given permission to build across the street. Nebraskas Public Service Commission Approved an alternative route for the pipeline put uncertainty into the mix. The commission did not get exactly what they wanted. What the commissioned did get is a proven alternative to what the company had proposed, that there were three alternatives that they were looking at. And this is one of the ones that i want to continue with the project. Rachel it is certainly a good first step or a good next step in our goal of getting more Energy Infrastructure to be able to ship our products more efficiently, less expensively, and more safely. Tom that will turn out to be an incredibly stupid decision, whereas we should be spending our time creating good paying jobs all across america. In every single rural and urban community to build the kind of sustainable infrastructure that will let our country be healthier and richer. This decision that will lead to the oldfashioned kind of pollution is incredibly shortsighted and just plain dumb. Emily uber covered up a massive hack attack covering up 57 million accounts. Hackers stole the personal data of 15 million customers and 7 million drivers. Uber, including travis kalanick, kept the breach concealed for a year rather than report it. Rather than report it, uber paid the hackers 100,000 to delete the information. It is so crazy. More than a year ago, uber heard from the hackers the day it found a way to get information, names, telephone numbers, that sort of information on 50 million riders. And 7 million drivers, most importantly, drivers license numbers for 600,000 drivers. The concern here is that is information that uber was required to disclose and did not. Vonnie more than a year later with a new ceo, dara khosrowshahi, the company is deciding to come forward and say here is what happened. Betty toshiba planning to raise money for its assets to avoid being delisted from the tokyo stock exchange. What kind of pressure is toshiba facing over this delisting . Well, toshiba has been in trouble for a while because of the Nuclear Assets in the u. S. This is the westinghouse business it bought a few years back. They had a very troubled foray into this business. A multibilliondollar losses. Because of that, theyve had to raise capital. The shareholders equity is negative, and they need to move that back in a positive territory by the end of the fiscal year, which is this upcoming march. They are in a process selling the chips business. They have a tentative agreement to do that. The Regulatory Approvals may take longer than that date. They want to raise capital separately from that, so they go through the process of raising , as you say, about 5. 5 billion to be able to fill that. David looking to build itself, doing so by buying a rival. How much of this is triggered by what we have seen with the broadcom deal . There was a lot of consolidation in the semi space. So you have only one side mar on the one side, marvell, who makes chips for hard drives. And on the other side, cavium, the networking process is much faster growth. And specializing in a traditionally. Yvonne guangzhou asking Fiat Chrysler to deepen the tie to try to relax some regulations. Speaking exclusively to our china correspondent, the president said the company is poised to enter the u. S. Market. Feng at the current stage, the internationalization process has just taken off. We have lay down the groundwork and carried forward car sales and Service Options in 14 different overseas countries this year. Entering the u. S. Market will be a huge breakthrough for guangzhou. 10 tim there are cars manufactured in china and sold in the u. S. Although does it. If they succeed to do that in 2019, it would be the trumpxi brand. The guangzhou brand. Branding will be crucial, of course. Julie the confirmation of this, according to the fed, this is not unexpected. Michael it is not unexpected, but it was not out of the question because Janet Yellens term on the fed as a governor runs until 2024. So she could stay on. Its been done once before. But today, janet yellen is making it official. She has submitted the letter of resignation effective on her successors swearingin. What it does is put pressure on the administration to try to hurry up and name some additional fed governors. A lot of work to be done. This is one of europes biggest a lot of of work to be done by the administration and the senate. Manus this is one of europes biggest airliners, the revenue for the full year. Very much bang in line. 5. 01, and this is a very fluid changing landscape. Theyve got a busted flush. Going through for them. You can see in the statement weve made today, that the first half is looking extremely positive. That is a direct result of the dislocations in the market. They have come out, they have taken some capacity out as well. We have benefited from air berlin, which is part of consolidation. It is very good news for easyjet, and weve come in at the top end of guidance. The forward outlook is good. Scarlet the hp shares after Companies Said that effective february 1, we will see meg whitman step down and be replaced by antonio neri. Cory highgrowth software, spending billions and billions on acquisitions. And it just isnt working. She hasnt been able to turn that trend around. Despite all the strength of reorganizing these businesses. The onetime restructuring charges for this company and over 10 million a week right now. 100 million in this quarter alone here. I think when we look at what going on, its not so much that shes getting pushed out. Shes not delivering the results that she had hoped to four hewlettpackard and hewlettpackard enterprise. More rollbacks of obama era policy. The fcc chairman announcing plans to overturn Net Neutrality rules, calling the measure imposed, heavyhanded, utility style regulations. Practically, what would we see as ramifications from the fcc and rolling back these rules . As a practical matter, i dont think, in the shortterm term, you will see changes. In the longterm, what you have the possibility to see is changes in how Internet Service providers operate. There are rules that address if it bars them from prioritizing traffic. This fcc is talking about wiping away all those rules. They said dont want to do that, but it would allow to do them in the long term. Ramy welcome back to bloomberg best. I am ramy inocencio. Bitcoin began the week on a roll, hitting a new alltime high on monday. But safety concerns dragged on cryptocurrencies after tether, the Company Behind another digital currency, suffered a hack. How can investors keep these swings in perspective . Mike is starting his own cryptocurrency hedge fund. He discussed the principles and practicalities of the market on bloombergs daybreak americas. Mike this whole revolution came out of a breakdown in trust. People say, we no longer trust Financial Institutions or governments. It is hard to trust central bank. The centralized revolution that bitcoin is the poster child of, its a response to the breakdown of trust. David is it an investment, or is it a trade . There was a cryptocurrency i never heard of, called tether. There was some theft of that and it drove bitcoin down. There seems to be an awful lot of volatility. Mike were in the second or third inning of this revolution. These are very young experiments. Each of these coins are individual ecosystems. Bitcoin, the largest, is really a decentralized system of money. Of there are thousands wer other coins, 30 or 40, easily, that have their own system. Because prices move so far, like anything, people are nervous. They are going to get back. You want to book your products and get back. Fair, people have lots of money that they did not get back. Mike the total market cap is about 250 billion. 30 million got hacked. Stolen. We spend a lot of time thinking about the security of our points, how to coins, how to keep them safe. Two years ago, when i had a smaller amount invested, i have had a lot less time. So i think we end the year at 10,000. It is a decent move from there and we end it close to 500, in this area. Ramy still plenty left on this edition of bloomberg best. More compelling conversations coming up on the need to resolve the brexit impasse, and the republican tax bill may soon come to a senate vote. The debate over what it means to the economy got pretty fiery this week over Bloomberg Television. How we start off with the idea that we can make a gift of 1. 5 trillion for the superrich. For the heck of it is really shocking. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and c