Marc benioff on success in the cloud, unicorns, and more. It is time the corporations had to their core value system the word quality. It is all straight ahead on bloomberg best. Yvonne hello, i am vyonne man, welcome to bloomberg best. The weekly look at the most important news, analysis, and interviews from Bloomberg Television around the world. We begin with a significant decline in the price of oil, which is where we start our review in the weeks top headlines. We start with oil, the big story, down the most in seven years. Investors are worried that oversupply will Carry Forward after opec abandoned to limit prices. David covers oil from our bureau in houston. Lets go back to that decision. So much as it was a decision by consensus. It is every member of opec for himself. Give us some sense of what saudi arabia is trying to do . A lot of people think that they are going after shale. They are going after the competition in the market with the shale producers here in the u. S. The crazy thing about that is the shale can respond very quickly to price movement. What might be the affect is it what have an effect on areas around the world where it is more expensive to drill oil. The arctic in canada and offshore, everywhere around the world. This man of having an effect on many other markets. The latest trade data from china confirms the slowdown is continuing. Exports fell for a fifth month in november. A slump in imports means a trade balance at 54 billion smaller than forecasted. Still, we have that surplus coming out of china. Joining us is an asian economics correspondent. Paint this picture for us. In a way that these numbers cant. I think its a pretty soft story. On the export side, it is hard to see circuit breaker. Well get them out of there they are suffering from deflation on one hand. And weak demand from key trading partners like japan and the eurozone whose economies are not in the best light at the moment. On the import side, there is a pricing impact. But there is some sense of a pickup in demand as well that is helping to drive imports. There is pickup in demand. Taken together, the trade data story out of china is reflecting a down global economy. Yahoo has scrapped its been off of alibaba shares after pressure from investors with risk associated with the deal. Yahoo shares are currently up. The company is said to be exploring a reverse spinoff where assets and liabilities. Will be, the think of as yahoo would be transferred to the newly formed company. This is a mirror image of what we have proposed before. Instead of spelling got yahoo , we will spit out Everything Else. Alibaba shares will trade under new tickertape yhoo. Yahoo would go to what . Yipee . It is another beautiful euphemism and a mirror image that before they could do something with the rest of this business, and now they are saying they cannot do something with the rest of this business. I will ask you the same question. What can be done with the assets we used to call yahoo . One, they can try to go through their turnaround plan. They had not been very successful. To turn the business around in the past four years. They could potentially try and sell the business. Or find suitors that would be interested in buying the business. Cable companies, like comcast, verizon, could be easy acquirers of yahoo . Or even private equity. What could and acquirer of yahoo do . What has arrived and him with aol . Verizon said they are bearers in the aol content business. But it is ad platform that is the gem. Yahoo has been caught up in this hamletlike who are they . To be or not to be . This is the battle of yahoo . Every single ceo has struggled with this decision. Marissa mayer is doing the same. You see the company have a success and technology and struggles in content and everyone on the outside telling them what they should do. Take one side of the other. But it is a business that is possible, yet not growing. Bank of england left record low Interest Rates saying low oil prices installing wage growth would keep inflation under control. This cop between the ecb decision to add stimulus and the fed likely decision to raise rates later this month. John nicholas, you spoke to mark carney not long ago and that these conflicted monetary policies globally. It is not like they can make a decision in a vacuum. They have got to factor in all the decisionmaking made around the world. He claims they are just looking alone. The truth is he is genuinely stuck between two huge forces. You have yellen going into one direction and mario draghi going into another. He has got to sit in the middle. It looks very unenglish to say theyre waiting to see what the americans do. There is another element to this. Mario draghi giving them more flexibility . A little bit. And gives them a little bit of cover. I agree. They are stuck between the u. S. And europe and might as well take a timeout and see what they want to do next. The other dilemma that they face is that they are not very good at irony. They really havent got the joke that seven years of ultraloose Monetary Policy created the boom cycle in energy. The global tail winds is coming from the energy complex. It is one of the things the bank of england is wringing their hands about. That is a consequence of coming from all the investments blowing up from the energy patch. We minutes is a fitting this for three days. The Dow Chemicaldupont merger. They will create a 130 billion in the largest merger ever. With us now, dow and dupont chairman. Please explain to us a fundamental underlying rationale behind this merger . You go. Listen, maybe it was a moment in time or this could happen but both of our companies we have known for a long time, fit together. It just so happened that are our stocks were basically trading on top of each other from a market cap standpoint. We could do a very tax efficient transaction to our shareholders by merging first, capturing all the synergies, and then doing a threeway split up. It is very efficient from that standpoint. What really ended up happening was that we did not create the world leading ag company, but we ad company, but we get to create a Specialty Company that will trade with high growth businesses. Andrew, with the dow business, gets the parts at dupont that always fit with his business. We strategically created three of the perfect platforms that will fit together, and all the synergies on top of it. It is a pretty Incredible Opportunity for both of our companies. A 10year odyssey for the dow board. Industrial logic of this was so powerful, that doubt from the beginning, the coincident that we are here this week. Not just this deal but the dow corning deal. I couldnt pull off that coincidence. No one could. We have activists in the stock. This is great for all shareholders. Yvonne welcome back to bloomberg best. Im yvonne mann. It has been a week of compelling conversation on Bloomberg Television. A round up of our best interviews with Global Business leaders starts with the volkswagen ceo. He spoke with hans nichols about the road ahead for a beleaguered company. To put all nonessential spending on hold. Help me understand that. What is being put on hold . For the moment, we have to tighten the belt, as they say in this country, and that affects all different areas. This has something to do with the fact that we should appear more modestly, savings is important. As far as investments in the Volkswagen Group, it will be 12 billion euros. One billion euros less in the previous year. Were going to scrutinize all projects and we will revisit them. Kennedy postponed can they be postponed . We are quite confident. In the incoming years, we will be spending less money. Can you get through this crisis without job cuts . That is an important topic for volkswagen with stuff job security. It is to in this time of crisis that we want to keep the workforce and all of the plants worldwide as it currently stands. That is a very important task for us. We have always been committed to that target. 12 brands, 300 models, should we expect any trimming of models or brands . 12 quite excellent brands i should add. The entirety, they make up the Volkswagen Group and we are very happy. Nothing will change in the coming years for sure. When you talk about the variety of different models or the complexity within the Volkswagen Group, it is true to say that we are going to see some adjustments in our portfolio. We just have to see that we have many different engines drive train combinations that make our life harder when we work through this crisis. So, we will be quite sure we have to look at a number of questions related to brands and the regions of the world. How they are positioned, or is their need for change when it there need for change when it comes to specific skills and potentials, we will be better coordinated. I do think that in just a few years we will see a more successful Volkswagen Company then we see right now. Brands including assets like ducati, will those stay within the volkswagen family . These are all very successful and there is no reason whatsoever to consider to get rid of those assets. Talk to me about the debate, the conversation you have had over the last day. Why didnt you cut rates today . There is no reason to change Monetary Policy. We have negative rates,. 75 basis points negative. We also need to intervene in the Foreign Exchange market is necessary. You have to look at the inflation forecast. It is roughly unchanged. The International Environment changed. The Business Outlook is that we expect 1. 5 growth for 2016. You seemed a little more upbeat than i have seen you before. The economy, you say, is better than the data suggest. Is there a question that the economy is much more resilient to a stronger swiss bank . Has that diminished in the last 12 months . The situation for a large part of the economy remains very difficult. For those firms that export or are under pressure because of import companies. The situation remains very difficult. The swiss bank remains overvalued. Significantly overvalued. That means a difficult situation. Nevertheless, firms are starting to adjust with this environment and we are hopeful that it will be able to adjust to the situation. There have been times where i had to get on the phone with really big managers, who have really been clients, and tell them what the downside was for them leaving their product off of spotify. Its Still Available on youtube for free and the Piracy Services for free. Youre missing out on a big revenue stream and you are ignoring the future. Hurricane katrina is coming. You know what i am saying . And you are staying in the house right now. Have you talked to taylor swift . No, i did not talk to taylor swift. So how does spotify get over the taylor swift problem . I dont know it needs to get over the taylor swift problem as much as it is. People have to see the future. Free already exists. It is a flawed argument when you say that i dont want my music any service that offers free when free already exists. Is taylor swift wrong on this issue . In general it is a flawed argument. A lot of television is ondemand in an increasing amount, whether it is dvr or a server or cloud. Or whether they are going and watching digital video on other devices. As we see this transition take place, we call it board cutting. What does that mean for Cable Companies . Obviously it will change one revenue stream but make another revenue stream more important. I think there are a couple things going on here. Just because it is ondemand doesnt mean people are going to cut the cord. It just means they are not going to watch every day. I think there is some cord shaving and cord cutting, but some of it is overstated. I am more bullish that Cable Television will be around for the longer term. As you point out, cable itself has two revenue streams, a Digital Stream and a stream from video. I am bullish in that business. I dont think it is going away. Yvonne you are watching bloomberg best. A host of Companies Made headlines this week, some reporting good news, some dealing with setbacks and some just making deals. Here is a sampling of the week big story. Angloamerican shares sinking. They suspended the dividend. Miners are among the biggest on the losing streak. The disposals selling at the bottom. There is a lot of stories outside the actual dividend story. In this environment, you are going to see a real reorganization of these companies. It will just be anglos. Wont just be anglos. We know a certain amount of it already. No surprise that the dividend is cut. They will go for a slightly different sort of dividend policy going forward. On the other side, you have the likes of bhb with a much more lower castoffs. In terms of iron ore. Anglo move on the dividend, where is the line in the sand . They are going to want to set themselves apart. They are a lower cost producer and are better focused in commodities. They are a safer place for investment. Anglos is more diversified and carries more risk. With that, there are more opportunities. You have more exposure to south africa. There is a lot less about that used to be. I think mark has done an amazing job here it looks like a better company. Glencoe announcing new financial targets. Parts it is business updates today they are cutting debt targets. It has been a brutal week in the markets. They fell short. Havent done enough to turn this story around . Investors clearly liking these new goals for debt reductions. In a statement, glencore said they intend to cut debt to about 18 billion to 19 billion. The previous was in the low 20s. Glencores debt right now stands at 30 billion, which is more than anybody has in the entire industry. We learned how they are going to achieve that. A cut in cap x to the tune of 1. 2 billion as previously forecasted. Also asset sales, the previous target was to raise about 2 billion in asset sales. Today, in a presentation, they said they want to raise about 4 billion. You wonder how he has held hostage to the fortunes of what is happening with the ultimate demand side of this story. There is a lot that is out of his control, isnt there . Yes. In the presentation glencore made it clear that they will cut production and cut costs further if necessary. Shares of chipotle falling yet again. The mexican food chain closing a restaurant in boston after dozens of Boston College students got sick. Local officials said to be leaning to nora virus and not e. Coli. Norovirus and not e. Coli. It doesnt matter at this point. Join me for the latest is craig. Get us up to speed . 80 students getting sick. Including members of the basketball team. The Company Coming out quickly to say lets not rush to judgment, this was not e. Coli. They said there has been no new e. Coli cases since november 7. Nobody exposed after november 7. The point they are making is that, yes, we have this issue started in seattle and portland, oregon. This is a new incident. Here is another bad headline. They had another norovirus incident in california over the summer. This is feeding questions about their Business Model and food safety standards. It is not a good thing for chipotle. Is there a National Effort underway to find what happened . You heard comments from chipotle where they said it has been unusual the way cdc has been reporting it. A little bit of frustration from chipotle in the weight and handle. It is trips in drafts. Way its been handled. It is trips in drafts. Three more cases, five more cases. Until cdc comes out and says, we know what it was, all clear, chipotle cant just move on. There is no closure. It is an incredible risk in the stock market. What does it mean for the companys bottom line to intimate the kind of testing and Safety Measures you are talking about . They said we will pay whatever it takes but it will pressure margins. So it will be something to watch when we get on new report in the next couple of quarters. Something to watch closely. This is a company that had questions about growth even before this food safety stuff hit. Yvonne it has been a tough year for ipos with deflated ideas. One Australian Software maker is set to buck the trend. What made you guys decide to go public . We have tried to build a longterm company and we have been preparing for this for a long time. For the last four years, we are making sure the company is ready. We have a very disruptive model in the business. We have always said we could go public in any market. The company is ready, rather than the market. Some want to hold you up as an example. A unicorn, you did it right, you did it right, you have been profitable for several years. Have you felt additional pressure from these comparisons to square and other tech unicorns . We cant make any comparisons. We feel we built a unique company. We help teams collaborate and be more productive, and that is really different as well as our Business Model. We spent a lot of money on research and development. Less on sales and marketing. All the way through to our 10 years of profitability. I dont know if you can use our company for other tech ipos. Fifa signed its first new sponsor since the 2014 world cup, the arrest of dozens of executive in a corruption investigation. It has forecasted a loss this year of 100 million. Lets look closely at the challenges facing fifa. Looking at the challenges is jeffrey. I want to talk about the latest headlines when alibaba auto group joining us the first officer in two years. Fifa said it was not an easy sell. Were you surprised . The timing is not very bright for alibaba. They need to have the right platform. Alibaba is not tainted by the past. Right now coming through is less of alibaba using this platform. Rather, fifa using alibaba as a way to cleanse itself. When bloomberg best returns, Stephanie Ruhles exclusive conversation with mark benioff. And one of Silicon Valleys most thoughtful executives coming up. Y