Serious problem and it will get worse. This 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. Ism Ramy Inocencio and this 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 the european nation that has been a model of economic stability. Angela merkels negotiations to form a Coalition Government collapsed on monday. Chancellor Angela Merkel attempted to form a new government. With thee collapsed Free DemocraticParty Walking out of Coalition Talks last night. The breakdown in discussions throws the future of her fourth term into doubt and raises the possibility of new elections in germany, something that would be unchartered territory in the period. As acting chancellor, she says she will consult with the countrys president later today. It is a day of deep reflection. I will have to move forward in germany as i will do Everything Possible as transitional chancellor to make sure this country will be well led during these difficult weeks. Matt what happened that brought these final Coalition Talks to a collapse . It was clear in the end that the package of things they had negotiated were not good enough for the ftp. They were the sticking points, immigration, they cannot get through, and the ftp decided, looking at the whole package, it wasnt good enough. Matt we are seeing the euro gained against the dollar. Isnt this bad news for europe . I think the way markets responded tells us it is a local issue and quickly resolved, without much fanfare. That is important because right now, the cutie europe and brexit talks and further progress in integration on integration rests on a strong german leadership. The u. S. Justice department is suing to block at ts 85. 4 billion takeover of time warner, a major blow to their bid to create a media and telecommunications empire. The bottom line is we cannot and will not be party to any agreements that would give the perception of compromising the First Amendment protection of the press. So any agreement that results in us forfeiting control of cnn, whether directly or indirectly, is a nonstarter. Unprecedented. It is coming out of a republican administration, generally considered friendly to vertical dealers, big business, and we have no example. The last time a case went to court like us was 1979 and the Justice Department lost. Ultimately, the Justice Department will have to demonstrate before a judge that consumers will be harmed. There is a lot of things in the complaint that would raise concerns are competitors and at t, but the question is, will consumers be harmed . I think doj has a daunting case, a daunting battle in front of them. The white house this morning and yesterday trying to signal this is not anything to do with politics, despite the president s assertion against cnn. That said, i can tell you the department of justice has largely taken a cautious approach and everybody is weighing in, including mark cuban. He suggested when this goes to trial, it would need bad news for facebook, google and silicon valley. The argument being this vertical merger, 85 billion worth, is a signal for them to play catchup with tech titans. The u. K. Government says Economic Outlook is getting worse. They was a warning as delivered their budget speech in parliament. We have already invested almost 700 Million Pounds in brexit preparations. And today, i am setting aside over the next two years, another 3 billion pounds. I stand ready to allocate further pounds if and when needed. No one should doubt our resolve. He put aside 3 billion pounds to deal with brexit uncertainties. Is this to do it the situation of a no deal . Is that with the prevailing pounds is for is that what for . Ounds are they said previously they did not want to set aside for a no deal. We have already allocated 700 million to prepare for all eventualities, including no deal. It also includes the preferred option of a transition period, plus, a free trade deal. That is what that 3 billion is for, the money we will need to spend to get ready for leaving the European Union. A lot of things we would need to do in a no deal scenario, we would also need to do in a scenario of a transition period, plus a free trade deal. It is rightly made those preparations and i think people will expect the government to be on top of that. Is not the only fed official expressing more doubt when it comes to inflation moving higher. The minutes of the fomc november meeting show a deeper than ever divide the train policymakers, rick inflation on the verge of accelerating and those saying rates should not move higher until it does. It is interesting and it has a lot to do with the feds words, many, already ready to hike near term, but the division over inflation puts the march hike of next year in question. A few, not even half, but a few significant doubts said inflation has to be rising on a path toward inflation before they vote for rate hikes, and they say the fed will have to monitor inflation developments closely. Overall, a lot of consensus on the economy doing better. There is deepening concern over inflation, which is not playing along. Released minutes of its october Monetary Policy meeting, and they are learning officials expressed concern about setting a firm date for the end of quantitative easing. Have we learned more about the divide that dominates the governing council . There. W things here and at their last meeting in october, when they decided to extend quantitative easing but at the lower pace, they did discuss how they want to implement that. They also discussed how they should change their policy guidance or whether they should set their policy guidance because at the moment, progress on inflation is linked to approaches. If the ecb decides to end that program at some point next year, that will have to change. That is what they discussed. After talks, the commission collapsed around Angela Merkel, the countrys biggest Opposition Party may come to her rescue. They are open to discuss a merkel. Nt backed by support from them could offer a way to restore political stability in europes biggest economy. How close are we to breaking that deadlock in germany . Well, the speculation is growing that this move today that merkel and opposition , wills, social democrat meet, and that news is pointing us toward a rerun of the government that germany had for four years. The social democrats are 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. Friday. Everybody is focused on retail sector. Spending the strong, said to be off to good start. By 5 00 p. M. Yesterday, up 17 year over year, according to adobe analytics. Black friday began yesterday. What response of using from shoppers . There has been a strong start to the fourth quarter. During black friday, we saw that. It is well online and we open stores at 5 00. In the stores last night, a lot of inner stories, it is tracking well. Whenever hallmarks as on the channel retailers is the ability to track online, on the mobile and instore. It is a national pilgrimage. Have a great value over shopping is happening in stores, 70 of america shops during the black friday window. All of your stores are in the square and you have been closing some. Earlier this year, cfo said it macys was starting again, the magic number would be 245. Can we expect mark store closures . We announced we will close 100. We close 70. There are 30 more. There may be properties were closing but we serve nationally in all communities as a macys brand. The interplay between the Online Business and the bricks business is important. We are a national on the channel retailer and that fights between bricks and clicks is important. Expect this to way that carefully. Still ahead as we reviewed the week on bloomberg best, mike no regrets makes it mike makes a bold call on bitcoin. Up next, more of the weeks top business headlines. The chinese automaker aims to bring its brand to the u. S. Market. At the current stage our internationalization process has just taken off. Ramy this is bloomberg. Ramy this is bloomberg best. I am Ramy Inocencio. Lets continue the tour of this weeks top business stories. Next, United States heartland and 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 state. Nebraskas public service, an approved an alternative route for the pipeline put uncertainty into the mix. They did not get exactly the clear permission they wanted. Ist the commission did today approved an 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 the company has to figure out, do i want to continue with the project . 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. The fact of the matter is we do not need that energy. That energy will prove to be disastrous. 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 kind of decision where it well lead to the oldfashioned kind of pollution is shortsighted and plane down. Plane dumb. Uber covered up a massive hack attack covering up 57 million accounts. In 2016, hackers stole the personal data of 15 million customers and 7 million drivers. Uber, including former ceo travis kalanick, kept the breach concealed for a year rather than report it. They 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 writers. Riders, and 7 million drivers, most importantly, drivers license numbers for 600,000 drivers. The concern is that is information that uber was required to disclose and did not. More than a year later with a new ceo, the company is deciding to come forward and say here is what happened. Toshiba planning to raise about 5. 5 billion for its assets to avoid being delisted from the tokyo stock exchange. They are raising more money. What kind of pressure is toshiba facing over this delisting . They have 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. Multibilliondollar losses. Because of that, theyve had to raise capital. The Shareholder 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 their chips business. They have a tentative agreement to do that. Now they are saying 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 5. 5 billion to be able to fill that. Is lookingr marvell to build itself a future outside of the area of the market 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 he it you are putting two Distinct Companies together. On the one side, chips for hard drives. And then cavium, which does networking process, is much faster growth and is an area where it has specialized in traditionally. Asking Fiat Chrysler to deep in 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. At the current stage, the internationalization process has just taken off. We have laid 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. There are already cars manufactured in china and sold in the u. S. Volvo and gm does it. They would be the First Chinese rand in the u. S. If they succeed to do that in 2019, it would be the trumpxi brand. Branding will be crucial, of course. They may have to change the name, when the came up with about a decade ago. Janet yellen will step down along j. Powells confirmation. According to the fed, this is not unexpected. It was an open question. 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. Lets talk about one of europes biggest airliners, the revenue for the full year. Pretty much right in line with what analysts estimated. The estimate was for 5. 01, and this is a very fluid changing landscape. Theyve got a busted flush. You can see in the statement weve made today, that the first half is looking extremely positive and Forward Momentum is strong and that is a direct result from the markets. They have come out and they had taken some capacity out as well. We have benefited from an airberlin, and it is part of consolidation. It is very good news and weve come in at the top end of guidance. The forward outlook is good. The hpe shares after the company said that effective february 1, we will see meg whitman, the current ceo, step down and be replaced by antonio. They tried to put the slow Growth Business and highgrowth software, spending billions and billions on acquisitions and it just isnt working. The businesses shrinking and she has not been able to turn that around, despite the strength of the Balance Sheet and reorganizing these businesses. The onetime restructuring charges for this company and over 10 million a week right now. 130 million this quarter alone. I think when we look at what going on, its not so much that she is getting pushed out but shes not delivering the results im sure she had hoped to hewlettpackard enterprises. 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 rolling back these rules . In the practical matter, i do not think you will see shortterm changes. In the longterm, you will have possibility to see changes in how Internet Service providers operate. There are rules that address it from blocking traffic, throttling it and doing deals to prioritize traffic. They are talking about wiping away all those rules. They dont want to do that, but it would allow them to do that if they wanted to in the longterm. Ramy welcome back to bloomberg best. I am remy inocencio. Bitcoin began the week on a roll, hitting a new alltime high on monday. But safety concerns dragged on cryptocurrencies. The Company Behind another Digital Currency suffered back. How can investors keep these swings in perspective . There is a new cryptocurrency hedge fund. He discussed the principles and practicalities of the market on bloomberg daybreak americas. This whole revolution came out of a breakdown in trust. They came out of the 2008 financial crisis. People say, we no longer trust Financial Institutions or governments. Today,s of the world still, it is hard to trust central bank. Decentralized revolution, which bitcoin is the poster child of, is a response to the breakdown of trust. David is it investment or trade . There was a cryptocurrency i never heard of, called tether. There was some theft of that and it drove bitcoin down. 5. 5 . It has come back since. It seems to be a lot of volatility with cryptocurrencies. Were in the second or third inning of this revolution. These are all young experiments. Each of these coins are individual ecosystems. Bitcoin, the largest, is really a decentralized system of money. For a decentralized store of wealth, but there are other coins, decent market cap coins with their own system. Because prices move so far, like anything, people are nervous. Money,e made a lot of there are moves, you want to book profits and get out. To be fair, people lost millions of dollars they would not get back. How does that not put the model in question . The total market capital, the crypto space, is about 250 billion. 30 million got hacked. It gets people nervous. It was stolen. We spend a lot of time thinking about our coins, have to keep them safe. Two years ago, when i had a smaller amount invested, i have d less time. What is your call for 2018 . So i think we end the year at 10,000. And close to 500 and ethereum. This still plenty left on edition of bloomberg best. More compelling conversations, including the need to resolve the brexit impasse, and the republican tax bill may soon come to a senate vote. On what it could mean for the economy got fiery on Bloomberg Television. We make a gift of 1. 5 trillion for the superrich. The heck of itor is really shocking. Ramy this is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from th