Ramy and Disneys Bob Iger heads the list of the weeks top interviews. You have to consider a studio that grew over 60 for the quarter. Thats quite a performance. Ramy it is all straight ahead on bloomberg best. Ramy hello, im ramy inocencio, and this is bloomberg best. It is your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. Lets start with a day by day look at top headlines. On monday, republican president ial nominee donald trump unveiled his economic plan in a speech to the detroit economic club. He promised to slash taxes and limit regulations. Remove theme to anchor dragging us down. And that is what it is doing, it is dragging us down. [applause] upon taking office, i will issue a temporary moratorium on new agency regulations. On top of halting financial regulation, trump would lower the top individual tax rate to 33 and cut corporate taxes from 35 to 15 . Give us a brief overview of the plan. Did we get enough details . A few new things in a speech, it added some meat on the bones to trumps previous proposal. We saw he changed his top proposed tax rate from a previous proposal of 25 to 33 . That brings him in line with House Speaker paul ryan. We saw him pose a moratorium on financial regulations. This is something that the financial industry will really like. It ultimately amounts a Big Olive Branch to republican elites, elected officials, and donors. Is it implementable . Can he get tax cuts through and d regulations like doddfrank through a Republican Congress . Yes, he can. We have disneys results earnings topping analysts estimates by a penny. As for the revenue line 14. 3 billion top the consensus as well. Media Networks Revenue misses. It is the biggest part of the company. Thats when it comes to revenue. Parks and resorts, 4. 3 billion, also missing consensus. In addition, disney says it has the option to buy a majority ownership in van tech. It will be buying a Minority Stake in the company. What you think first off as far as the results are concerned . The topline numbers are pretty solid. They are right in line with what the street was expresse expecti. I think on the earnings investors will want to talk about the media networks, specifically espn. Investors want to hear about how are the subscriber numbers at espn and how is that impacting your affiliate growth rate in terms of fees and advertising. Announcing they are buying a Minority Stake. Does that help blunt concerns about cord cutting . Disney is not afraid to make investments in the digital side of the business. If you are a Big Media Company like disney, you walk this fine line of trying to protect your core business, your core bundle of cable networks, that has been so profitable, while making investments in the digital side of business where consumers are spending more time. That is where the advertising dollars are going. If you are a traditional Media Company like walt disney, you have to continue to play both sides of the fence. Disney has generally done well over the years. This investment is another example of that. The focus on the united kingdom, we dont usually get to say it. And uncovered bank of england operation plain english, not enough salad for the bank of england sellers for the bank of england to get to that 1 million target. What is the easiest way to get a rally in the market . Tell the market that you are struggling to buy enough bonds. You got what you want. That certainly seems to be the case at the moment. They are putting brave face on it. We saw statement from the bank of england saying they are not worried about this. In the second half of the program, we will give you the details of that in november. Keep calm and carryon seems to be the story. We continue to get this very big move in the tens and 30s. That kind of area is where we are seeing the real action at the moment. The bank of england saying it will stick with its expanded bond buying plan after failing to find enough government sellers of longterm government securities. It was a much different story today. The bank says it latest purchases were not fully covered and we saw the 10 year yield pare back some of its losses after it hit a record low. Was this just a hiccup . Or is this going to be a bigger problem for the boe . Certainly, the results of todays operations indicate that different parts of the yield curve are yielding different amount of success in terms of how easy it is for the bank of england to pick up the yields it needs in order to push the easing through. Ms. Clinton i believe every american willing to work hard should be able to find a job that provides dignity, pride, and decent pay that can support a family. So, starting on day one, we will work with both parties to pass the biggest investment in new, good paying jobs since world war ii. She talked about a child care plan when the cost would be limited to 10 of family income. She talked about infrastructure spending, connecting homes to broadband by 2020 across the entire 50 states. She talked about student loans, making it easier to repay. And also highquality Union Training program. Perhaps the most interesting thing was appointing a cheap trade prosecutor she plans to kill the tpp. The major things that the do with the speech is try to portray trumps vision as one that will help the upper class. Clinton is trying to portray herself as someone who wont is going to make this a much more level Playing Field across the board. She is going to make mobility possible in america again. Did she explain enough in detail how she would pay for all the things she plans to do with new intake . No, she certainly did not. It is something we have seen both candidates not bring to the table. They have not exactly detailed how theyre going to pay for all of these proposals. Retail sales backing out cars, backing up gas, negative. 1 . Estimates were an increase of 3 10 of 1 . The overall retail sales is actually flat. Big debate is if everyone spent money on autos last month and did not have enough money. When you strip out the orders, you strip out the gas. It is the downside surprise and the market moves reflect that. This is disappointing what people were expecting. What do you make of it . You had it exactly right. The autos number was quite solid, but we already knew that with the incoming data. Ex autos is weaker than expected. And a little bit of context, just remember the last several months here were quite strong. Sequential improvements are sometime difficult. Retail sales is a very noisy signal. We take a stronger signal from your outright auto sales data than we do from retail sales data. It is a disappointment relative to expectations. There has been a very high correlation between the retail sales and overall services. It is larger than retail sales if the correlation holds up. It says something broader about the u. S. Consumer and how they are spending. It does not mean there is no signal in retail sales at all. In terms of durable spending, the housing demand, that really gives you a true picture of where Household Sentiment is. Ramy we will have more on disneys billiondollar deal for bamtech, part of a oneonone interview with ceo bob iger. Plus, earnings reports from companies around the globe. Up next, more of the weeks top stories, including a set of problems for delta airlines. This is bloomberg. Ramy this is bloomberg best. Im ramy inocencio. The worlds biggest brick and Mortar Retail powerhouse pays a premium price to acquire an online upstart. Lets continue our global tour of the weeks top stories. Walmart has agreed to buy jet. Com for 3 billion in cash giving them a stronger online presence. 3 billion, they have only had the site up for 13 months. This is pretty extraordinary. It is not making any money, it is burning cash. It is kind of like amazon used to. This is a bit of a desperate move by walmart. A year and a half ago, their market cap was double of amazon. Now they have flipped. I think they are at 230 billion and amazon is 360 billion. They are just desperate to catch amazon or to be more competitive in the online space. This chart illustrates exactly what you are saying. So you are pretty desperate if you are walmart. They do 14 billion annually in online sales. It is not bad. Is this one of the biggest hires and history . Is seen as a bit of a genius in the online space. They are not only buying the technology and the Customer Relationship and the website, but they want him. They want mark. Not to valeants surprise, the drugmaker reported Second Quarter sales that fell beneath estimates. The Company Holds firm on its fullyear guidance. We have had many positive earnings calls from valeant. Is this different . What makes you think they can turn things around in the second half . Im not entirely sure. They have a lot to do. They have to really drive Earnings Growth and they have to drive Earnings Growth out of businesses that are declining in the past. They have a really big task ahead. What joe poppa has been sticking to his that there is a seasonality and natural pick up in the second half able to benefit from. That guidance was obviously a big surprise today. Shares of valiant plunging today. The drugmaker is a target of a criminal probe. Investigators are investigating if they defrauded customers by fraudulent to a drugmaker. Didnt we hear from valeant saying everything was going to be fine . He did give what wouldve been a positive and upbeat call. What was positive essentially not negative. They basically averted more bad news earlier this week, but there was a little bit of a relief rally. These ongoing investigations, which we always knew where around, but the magnitude of them and the amount they could are coming back to haunt them. Delta woke up this morning and still had some of the headache it developed yesterday. After canceling 1000 lights yesterday, more than 300 wont take off today because of a computer failure monday morning down in atlanta. What do we know at this point . What does delta know about what caused this . We heard something about a power failure in atlanta. You would think with an airline of this size, they would have backup system after backup system after backup system . They do have backup systems. The big question is why those backup systems did not work. Delta says they had a power outage in their facility. Georgia power says the power was getting to the delta building, but then there was a problem with the switchgear and that prevented power from getting to the Delta Computers and to the delta operations. What delta has to figure out is why did that happen . Why did there that systems not kick in yesterday . How much is this going to cost delta in the end . We dont know yet. When southwest had a sort of similar outage late july, the y canceled 300 flights and their flights cannot get up to their schedule for several days and they said the cost would be tens of millions of dollars. There are a lot of small costs involved that add up to a lot, but we dont have a figure from delta yet. Indian bonds rallied after the outgoing governor said the central bank will conduct more open market purchases of debt and Interest Rates were left unchanged. What does he leave behind as his legacy . Time has been an exciting as he is been in office the last three years. Three years ago, india was facing an account deficit. In the last three years, you have seen a proactive bank of india that took measures to stem the fall of the rupee and build up the reserves. It put inflation targeting regime. The Monetary Policy that will be deciding, Game Changing ideas that the governor pushed for. There were critics of his policymaking. Many believe he was more hawkish than expected to hold onto rates. And just rates have come down nearly 100 basis points. The other big challenge is he was way too outspoken for the indian establishment and often spoke on policy that did not go down too well with the powers that be. Chinas factory deflation narrowed for the seventh straight month, showing improving conditioned for the manufacturers. We have not seen figures like this in two years. It is interesting on the factory rate side. It could prove to be one of the more interesting developments of the year. One economist said it could be heading toward northern territory. If that happens, it is a Significant Development and a breakthrough. The deflationary cycle has been one of the real drags on the factory side of things. Policymakers have been trying to crack. It is not because they are cutting back on excess capacity or tackling the overhang of supply. It is more about the pickup in commodity price. It is less of a story. More that they are reflecting the commodity side of things. In brazil, the senate has voted to move ahead with the impeachment of the president could she will go on trial that she used improper loans for government banks to pay for social programs. She says she did nothing wrong. The trial is expected to be held at the end of the month. What do investors need to see to push valuations higher . There arent going to be any clear signals on the political front. Where the action is really going to lie is what exactly the government is going to be able to pass in terms of reforms once the impeachment process is over. We will then test the mettle of the president to see if these measures do get diluted or if they proceed as expected. If they proceed as expected, that more than justifies recent market optimism. If they get diluted, we have to see the extent to which they get diluted to see whether we can recent optimism is justified or not. Brexit undermining the nearterm outlook for the u. K. Housing market. That is according to the Market Survey that saw both demand and sales dropping in july. How much does this have to do with changes that we saw in the tax surrounding by second homes and Investment Properties and what happened with the brexit . Walk me through the two competing forces here. It is really important to mention that that tax issue in the First Quarter the First Quarter was particularly strong. It was inevitable things would slowdown. Lets not minimize how markets reacted to a big event. Whether it is an election or whether its a referendum, the sorts of highprofile events always lead to a degree of uncertainty. It is been visible in the feedback we have gotten in the commercial survey and in the residential survey. The commercial survey was more noticeable because it was so dominated by investors. Ramy you are watching bloomberg best. Im ramy inocencio. Another week and another parade of earnings reports from companies around the world. Lets review some of the most interesting results, starting with the big beat from alibaba. Alibaba posted Quarterly Sales and Beat Estimates. Their core business held up despite chinas slowing economy. Revenue from Cloud Computing services soared. Alibaba has remained relatively resilient even as the chinese economy slows. How do explain that . We are more than resilient. We just had the fastest growth rate ever in terms of revenue since our ipo. We generated 4. 28 billion of revenue. That is 59 year on year growth. If you look at our core commerce business, where we are facing consumers, we generated 2. 5 billion of operating income. And that, in itself, is at 30 38 year on year growth. So, from our perspective, the Chinese Consumer is very, very healthy. You look at the chinese households, that is 4. 6 trillion u. S. Dollars of net cash savings on the Balance Sheet of chinese households. This is because over the last few years, they have had real wage increases. They dont have a lot of mortgage debt on the books. And this is all going to provide the foundation for very, very strong growth of consumption. Prudential has reported firsthalf profits that beat analyst estimates. This is a share price reaction, up 3. 2 . Prudential not only saying that they Beat Estimates, but for 2017on good track financials. 2017 be . Cult will i think the results they are obviously pleased with them. Earnings up, cash up, performance outstanding, 50 increase in their profitability. These are on u. K. Currency basis. You look at the local currencies and it is even more dramatic. We have been derisking the portfolio moving away for about a decade. You have about 16 of the groups earnings that are spreadbased, so the book of the earnings arent affected by rates directly. There are some accounting noise without question, but as far as pure economic value, we are pretty wellpositioned. The bank has announced the fall and cash profit in its update for the trading quarter. It is kicking off the Earnings Seasons for all the australian lenders on a bad note. What is the reason for this weak result . Said thenk itself revenue environment for banking is more constrained and Interest Rates, very low at the moment. It also notes that its net interest margins are stable. The word on the results from the third quarter, 3 decline in cash profits to 5. 3 billion. This is a Trading Update not the fouryear result. The capital one ratio is nine point 1 , but really this result is down on the higher expenses of bad debt. Lending club shares plunging. It is on the news that the company has lost more than 81 million in the Second Quarter. The company also said cfo has resigned. Lending club is regrouping after a surprise leadership change back in may. Are the hits going to keep coming . From the tone of the Conference Call it suggests that they tried to figure out all the problems. Theyve opened up and gone back to a lot of their